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Abstract

The article reveals the authors experiences as a channel through which the grounded theory approach can be utilised in presenting qualitative research. The detailed description of the methods used in collecting, interpretation and analysis of data are fully given. The study is about international marketing and focuses on appropriate implementation of communication mix within the automobile industry. The area of study was in Turkey, where various stakeholders were involved in interviews. The information obtained assisted in exploring the various marketing communication mix utilised by most automotive companies in the Turkish market.

The main purpose of the article is to present the readers with detailed practical descriptions of various market situations on the ground. The paper reveals the nature of thinking and practical processes involved when generating theory from data collected majorly from conducting in-depth interviews. The article starts by introducing the topic in relation to the industry and country of study, then, the definition of the problem statement, research questions and objectives of the study. This is followed by the detailed literature review in the second section and then research methodology, data collection and analysis, discussion of the results and finally the conclusion and recommendations based on the findings.

Introduction

The motor vehicle industry is rapidly growing. The demand for new car models is on the rise, thus forcing major car manufactures to strategise their businesses in order to enhance their market share and global presence. Concurrently, there are emerging markets for major car manufactures. It is evident that such manufacturers strive to enhance the sales of their automobiles, augment revenues, and realise remarkable profitability (Norcliffe 2006, p. 56). Vehicles are demanded internationally despite the noticeable competition; thus, manufactures must enhance their production rates, cost-effectiveness, supply chain, and customer satisfaction to meet the changing market demands. This will augment their competitiveness and increase its market share in emerging markets.

The automotive sector in Turkey began far back in the 1950s with few companies such as Ford, Renault and Fiat dominating the domestic market. The market has continued to grow owing to several factors such as the large size of the domestic market and expansion of international trade. There has been a significant move made in foreign investment within the sector. Automotive firms owned through the partnership between Turkish and foreign companies include Ford Otosan, Oyak-Renault, and Tofas-Fiat, while the main producer of motor vehicles Toyota is fully under the ownership of Japanese. The level of car ownership within the country has tremendously increased over the recent decades with the current level being at 100 cars per 1,000 people. Domestic demand is expected to stabilise in the near future leading to efficient planning and higher margins (Cavusgil and Nevin, 1981).

Automobile companies are coming to realise the increasing demands for cost-effective vehicles in the realms of fuel consumption, performance, and other environmental concerns. Nonetheless, there are special marketing strategies that chief motor vehicle manufacturers must establish, ratify, and embrace in order to capture and retain clients in emerging markets. They range from the production of cost-effective cars to intensive promotions. Contextually, providing customers with variety is equally important. It is important to agree that the motor vehicle industry is quite competitive. This is shown by the emergence of new manufactures, distributors, and the variety of products from which clients can choose from. It is crucial to consider such facts when developing appropriate business strategies in order to remain competitive and relevant in such markets. Additionally, major companies like General Motors, Nissan, Peugeot, Toyota, Mitsubishi, and others have formulated appropriate business strategies in order to enhance their competitiveness, market visibility, and customer services (Appiah-Adu 1998, p. 118).

International marketing generally involves the marketing of goods and services beyond the boundaries of the organisations home country. There is a need for companies to learn the various avenues they should utilise to enter foreign markets hence increase the level of their global competitiveness (World Investment Report, 2006). The international marketplace always presents a quite different environment compared to domestic markets. The two environments vary in terms of market sizes, buyer behaviour, as well as marketing practices. These should be carefully evaluated by international marketers based on the market segments within the targeted areas. International operations always have effects on a companys operations and management hence forms part of crucial decisions made by firms. Decisions to operate within the international markets depends on several factors which include; deliberate policy decision, reaction to specific business opportunities, economic trends, political stability as well as competitive reasons amongst others (Bartlett and Ghoshal, 1989).

In the process of tracking the nature of development within global corporations, the records have clearly revealed repeated, a sequential pattern of expansion. The initial step involves understanding the nature of the environment within the international market. Then there is a consideration based on the appropriate proportion of foreign to total sales, which involves the decisions on the number of countries to do business and the countries to enter. Then decisions on the particular markets to enter based on the rate of return on investment against the risk involved. Companies venturing into international market undergo a process referred to as an internationalisation process. There is also the act of deciding on the effects of products, promotion, price and distribution within individual foreign markets. In most instances, regions are treated as single markets and, at the same time, the various automobile models standardised by region with promotions helping in the projection of the uniform image. Such orientation assists in enhancing coordination by discounting national differences and is well revealed by the French automobile industry, which showed evolution process involved in international marketing strategy (Caves, 1971, pp. 1-27).

The act of the extending internationally endues companys management with the responsibility of setting geographic emphasis. This may range from developed nations within Europe, North America amongst others and developing nations in Africa, Asia and Latin America. The task of the management team is to ensure that strategic decisions are made capable of directing business development operations in alignment with the companys objectives and at the same time congruent with activities within the target region. The decisions should include both macro-environmental and micro-environmental issues. Macro-environmental issues include economic, socio-cultural and political factors while micro-environmental issues are market attractiveness, skills, resources, product adaptation as well as a competitive advantage. Firms with highly-rated technology products are known to have concentrated activities within developed regions of the world. However, doing business in developed countries is far much preferred over developing nations since the business modalities within the business environment are easily predictable, and, at the same time, security on investment is assured.

Emerging markets are characterised by geographic region and level of economic development, which presents the main point that makes them differ from developed economies. The higher degree of risks is prevalent in markets within developing regions such as Latin America, Africa, the Middle East and Asia; this is attributed to less stable economic climates within the regions. Any firm operating within these areas is inclined to be subject to a high level of uncertainty and fluctuations. Developing countries presents a number of barriers which include huge foreign indebtedness, instability within governments, shortcomings within the foreign exchange, government entry requirements, high tariffs, corruption, piracy, communication adaptation and bureaucracy.

Frequent changes within the political environment in developing countries present a major setback to normal business operational activities and may result in drastic reductions in growth. Making decisions on global marketing strategy will, at some point, compel firms to make specific choices on individual countries they intend to compete. One of the components of developing a global marketing strategy is making decisions on where to compete and selection of appropriate territories. In such emerging markets, Turkey stands as one of the key ones for the motor companies. This dissertation will be based on the case study of Turkey. In order to collect viable, reliable, justifiable, and valid data and marketing managers of different major car manufacturers in Turkey will be taken as the main source of information. Revealing common patterns and differences between these companies will be taken as the main aim.

The Turkish automotive sector has been highly recognised to be international; statistics in 2008 showed that over 80% of Turkish vehicle production was sold within the global market. Within the same year, only around 70% of the vehicle sales within Turkey were from other countries. The custom Union with the European Union has made it possible for other Multinationals to integrate their Turkish plants within their global production plans. Statistics show that the current Turkish market has 21 automotive manufacturers, 15 vehicle manufacturers and 6 tractor producers. Main producers include Ford Otosan (US), Oyak-Renault (France; passenger cars); Tofas (Fiat and Koc) and Toyota (Japan), these are considered as the main producers and accounts for over 80% of all vehicles manufactured in Turkey. The market comprises of vehicles used for different purposes; these include; passenger cars, commercial vehicles, as well as tractors. Turkey is recognised as one of the top exporters of vehicles to Europe. In the year 2008, the sector recorded averagely US$ 25 billion, which indicated an increase of 10%. The top exporting companies include Toyota, Ford, Tofas, and Oyak-Renault, amongst others (Andrews, 1971).

Business operation within the international market requires additional investment in terms of management time and capital. Venturing into new territories also present both new business opportunity and risk. This is since business ventures in new countries takes time to develop, and profits may show after a fairly long time, the firms should first go through careful analysis of the investment climate within the country and ultimately determine the level of market attractiveness. The lead market concept can as well be applied in the process of identifying markets for special emphasis. There is a need to understand competitors within various market segments since corporate success results from focusing on the provision of value and quality to consumers instead of competition.

The attractiveness of an industry is determined by five forces which determine the level of attractiveness of an industry, these include; the bargaining power of buyers and suppliers, threat of new entrants, presence of substitute products, presence of rivalry firms within the industry. Competitive advantage sustenance could be achieved through the provision of superior value using differential advantage. Means of competitive advantage include product differentiation or marketing mix and work best when combined with the competitive scope of activities. Majorly it is considered that the general sources of competitive advantage are skills as well as resources owned by the firm and which can be used in the process of developing quality products and discovery of new markets. Global marketing strategies involve the application of a set of strategic marketing principles within the various world market segments. The difficulty arises in the determination of profitable marketing operation elements.

Research methodology, which was utilised in this research, incorporated a systematic approach structured to solve the concerned research problem systematically. All the research methods and techniques used in this study, as well as the logic behind them, were demonstrated for clarity. Besides reliable/valid secondary data, marketing managers of different major car manufacturers in Turkey were the main source of information for the prospected dissertation, as mentioned earlier.

Problem Definition

Due to challenges fronted by emerging markets in the automobile industry, it is important to investigate further on the matter. This considers how different automobile organisations are handling their businesses and marketing strategies in emerging markets. Firstly, it is hypothetical that emerging markets (in the automobile industry) such as Turkey have fronted various challenges to major car manufacturing companies. Hence, they require special attention in order to meet the demands of such markets. If this is true, then, there must be viable marketing strategies assumed by these companies in order to remain competitive in such markets (Khanna, 2010). It is crucial to recognise such provisions in the marketing contexts so as to remain relevant and uphold competitiveness. The questions provided are of some concern when considered critically and can be subjected to investigations as mandated by this research proposal (McDonald 1992, p. 54).

Various reasons have been employed in defining the current automotive market situation within Turkey. Competition within Turkeys market has intensified amongst industry firms, and at the same time, structural changes have been eminent in the economy, especially after major economic crises in 2001. The crises led to the development of complexity within the Turkish automotive industry making the firms to adjust their capabilities for the purposes of counteracting the changes. The various changes within the automotive market environment have thus shaped the nature of competition and, at the same time, stimulated realignment within the export firms (Banga, 2006).

Turkey has experienced growth in the number of players within the Turkish automotive industry, and this is attributable to the liberalisation of the trade policies, regional agreements and the liberalisation of foreign investment regulations made it possible for new entrants to the emerging market. However, due to the increased number of players within the saturated market, firms are pushed towards exploring new strategies and sales opportunities in both the international and local markets. The expansion of the Turkish economy made firms to experience high competition owing to change within the business environment. Before, the market operated under high tariffs hence protecting the automotive firms from foreign competition. Records reveal that foreign ownership within the Turkish automotive firms is much higher compared to other industries.

Additionally, enacting proper business and marketing strategies in such contexts is considerable and proper. It is evident that investigating such matters can actually help in knowing the exact marketing strategies assumed by major motor vehicle companies in the emerging markets (Bandyopadhyay 2001, p. 13). Additionally, it is crucial to elaborate on such matters with due precision and other mattering concerns. Numerous organisations in the automobile manufacturing industry have managed to grasp considerable market share and vitality in their businesses by attaining remarkable customer satisfaction. This is quite crucial when considered critically in the business context. Precisely, it is debatable and researchable whether the major car manufacturing companies use special marketing strategies in order to conquer emerging markets with their products (Chilisa 2012, p. 2).

Aims and objectives

Accordingly, the intended research was to unveil the marketing strategies that major car manufacturers in emerging markets assume in order to remain competitive in such markets. This objective was narrowed down to reveal trends, similarities and differences between corporate strategies in order to enhance some precisions within the entire study. The objective was drafted with consideration of the most available data. The research used the readily available data for the purposes of emerging with viable research findings. As indicated before, the automobile industry is quite competitive hence require appropriate business strategies that would allow its players to attain competitiveness. Since there are numerous players in this industry, every company must strategise appropriately in order to outdo the rest and remain aggressive in a similar industry (Carson & Hine 2007, p. 23). This is a considerable fact, as indicated before.

Preferably, it is important to enact viable production, marketing, and distribution strategies in order to conquer emerging markets with the required novelty and appropriateness. This objective incorporates Turkey as one of the emerging markets in the automobile industry. Illuminating this objective with respect to Turkey forms a credible foundation from which the argued facts lie. There is accessible and credible information discussing emerging markets with regard to the automobile industry. As indicated earlier, the intended research unveiled the marketing strategies that major car manufacturers in emerging markets use in order to enhance their market share and remain competitive in such markets.

Frequently, automobile manufacturers have to venture into the new markets so as to enhance their market divides, sales, and profitability, as indicated before. Emerging markets contain such opportunities hence the need to establish and ratify viable marketing strategies in such markets. This research endeavours to unveil this phenomenon while using examples from relevant countries as well. It is important to recognise the strategies that such companies use to storm the prospected markets in future (Marshall 2006, p. 1). Such strategies might vary from one company to the next depending on the country involved, the business objective of the concerned company, and the available competition in the region.

The objective of this research proposal is to unveil the patterns of marketing strategies in the realms of their success and appropriateness. The concerned pattern considered the differences and similarities of the business strategies assumed by automobile companies. The whole business prospects lie on this perspective. It is crucial to consider various aspects of these business prospects in order to remain relevant and aggressive in the market. There are similarities noticeable amidst the business strategies used by the involved companies (Dunn & Halsall, 2009). Such tactics are meant to enhance the market visibility enjoyed by the involved companies. The differences that exist in such context relates to the objectives of each and every company. Evidently, every car manufacturer has established unique marketing mechanisms in order to grasp a considerable number of clients in a given region. Precisely, the research aims at unveiling the differences and similarities in the business strategies used by different automobile manufacturers in the emerging market. Turkey is included in this context since it forms one of the emerging markets considered by major car manufacturers (Calof, 1994).

It is crucial to know whether car manufactures have considerable stakes in the emerging markets and what they can do to enhance their presence, market share, and profitability in such markets. It is important to consider such aspects in the realms of business. Since globalisation has boosted the prosperity of numerous businesses, adopting viable business strategies is important (Ferguson 2006, p. 351). This is applicable in the automobile industry where the business has been globalised both economically and in the distribution channels. Enacting viable marketing strategies will help considerably despite the witnessed competition in the industry. Actually, emerging with viable marketing options will establish and enhance the required competitive advantages and other relevant marketing and business provisions in the entire contexts.

It is from this perspective that the whole prospective arguments lounge.

Since the automobile market is challenging (fluctuates in response to fuel cost, technology, and performance), it is proper to convince customers with appropriate products that serve their varying demands with appropriateness. Each market segment demands a different kind of cars. The concerned company must consider these provisions in order to remain relevant in the entire marketing context. This relates to the similarities and differences that occur amidst the business strategies employed by the motor vehicle manufacturers in order to capture reasonable market share in the emerging markets (Semple 1992).

In order to meet this objective, the research applied appropriate and feasible research methodology ranging from research design to the presentation of the findings as indicated earlier. It is essential to enhance business prospects in various organisations in order to emerge with an appropriate conclusion with regard to marketing tactics. Since automobile manufacturers are competing for global market share and other viable competitive advantages, they have established both internal and external business practices that allow them to attain such goals. Emerging markets are tricky to handle hence demanding appropriate business perspective in order to remain relevant and competitive in the entire market (Noble 2005, p. 83). It is from this case that the entire business prospects lie with precisions.

Following the aspects of Corporate Social Responsibility (CSR), various organisations have assumed this provision to enhance their market appropriateness and global presence. This constitutes the mandates of this proposal, as mentioned earlier. Identifying the business strategies used by car companies in order to handle the emerging market is important when considered critically (Czinkota & Ronkainen 2007, p. 88). This objective proved critical to this research following its guidance to entire research methodology and other relevant research provisions. Additionally, the mentioned objective was found to be researchable through establishment and utilisation of critical research methodology. Marketing strategies are able to dictate the success of a given company in the emerging markets, as indicated before. With respect to this objective, it is crucial to consider the viability of such business strategies with respect to the market involved in the entire business contexts.

Central Research Question

What marketing strategies can globalised car manufacturers utilise to enhance presence, market share, and competitiveness in the emerging markets? This formed the central question that the concerned research tried to answer alongside credible findings at the end of the study. Contextually, the research questions assumed in this context relates to the mentioned marketing strategies applied by the major automobile manufacturers to enhance their market presence in the emerging markets with respect to Turkey. There is a critical business provision in this context due to the numerous influences created by varying market strategies. Evidently, the ability to apply considerable market prospects and marketing tactics can actually help in grasping and retaining potential customers in the automobile industry (Gillespie 2011, p. 34). Due to competition evident in the entire context, the research drafted viable research questions meant to trigger the extraction of remarkable marketing options.

In this context, the concerning question was considered as relating to the most accessible data with respect to the concerned research methodology. Precisely, the central research question was; what are the marketing strategies applied by major car manufacturers in the emerging markets? It is from such strategies that the whole business scenarios related to automobile dealers rely on. It is proper to consider various aspects of this concern before rendering everything inconsiderable in various contexts. Ability to manage the business prospects in such circumstances is considerable (Miller 1998, p. 2). Additionally, unveiling the similarities and differences assumed in such situations is important. Another important issue in this scenario relates to the demanded business prospects in the entire set-up. It is from this consideration that the entire business provisions lie as indicated earlier.

Upon execution of this proposed research, it was possible to unveil whether there are similarities and differences within the strategies assumed by various automobile manufacturers in the emerging markets (Neergaard 2007, p. 67). After the research had emerged with marketing tactics used by major car manufacturers in emerging markets, it was possible to discern the disparities noticeable in the entire context. This indicated the viability of this proposed research question. It acted as the driving force for prospected research. This proved helpful in solving various business prospects when considered critically. Ability to discern the differences and similarities assumed in this circumstance proved important and considerable.

It is the mandate of the concerned organisation to grasp the required business prospects so as to attain a remarkable market share and global presence in the realms of marketing, sales, and profitability. It is crucial to recognise such research questions following their ability to elicit the required responses to the concerned topic. Such questions help in redirecting the research objectives and help in executing a focused study on the concerned topic. This is quite interesting when scrutinised critically due to its ability to provide viable business prospects for the concerned automobile organisations (Majumdar 2001).

Literature Review

Comparing and contrasting the works done by various authors helped in the literature review during research execution. According to Özerdem (2009, p. 23), Neergaard (2007, p. 67), and Ferguson (2006, p. 351), emerging markets have presented lucrative business opportunities to the automobile industry and its players. This has forced major car manufactures to device novel methods that would augment its marketing strategies in such regions. Contrastingly, Doole & Lowe (2008, p. 65) indicate that emerging markets are unique and demand special marketing strategies in order to succeed market-wise. It will be vital to illuminate the kind of strategies that such organisations employ with respect to marketing (Özerdem 2009, p. 23). This is helpful in determining the fates of such firm in the emerging markets.

Leingpibul (2006, p. 97) identifies one of the marketing strategies employed by automobile firms to grasp the emerging markets. This incorporates improved marketing techniques employed conventionally and contextually by such firms. Relatively, Czabke (2008, p. 75) demonstrates that marketing aspects have improved in the recent past due to the emergence and embracement of technology among other market provisions. Other sources have equally demonstrated this provision. Numerous businesses have been forced to avoid conventional marketing strategies and venture into creative, novel, relevant, and cost-effective marketing models. Major car manufactures have equally embraced such marketing provisions in order to enhance their competitiveness and other marketing provisions in the concerned emerging markets.

Comparably, Sengupta & Chattopadhyay (2006, p. 95) indicate that some firms have employed the use of the internet to enhance their marketing endeavours and reach numerous customers at once (Rosa 2001, p. 445). It is possible to reach potential clients globally by using internet marketing strategies and other viable mass media provisions in various contexts. In contrast, Sprenkle (2005, p. 32) shows that there are other marketing options apart from the internet that can be employed locally and work tremendously.

In addition, Czinkota & Ronkainen (2007, p. 98) discern the contribution of technology with respect to international marketing. It is important to agree that the emergence of technological aspects in the production sectors, transactions, distribution, and marketing has allowed numerous organisations to expand their businesses. This is critical when considered in marketing and business realms. Every major car manufacturer has employed unique and distinctive marketing methods in order to outdo other players. This includes Toyota, Nissan, General Motors, Mitsubishi, BMW, and prominent car manufactures endeavouring to venture into the emerging markets with novelty, creativity, and competitiveness with regard to marketing (Colwell 2006, p. 68).

While comparing information from various journals and books reviewed, the major similarity in the entire context is that all tactics are meant to enhance the market share, global presence, sales, revenues, and profitability. Additionally, they are targeted to storm emerging markets with novelty and distinctiveness. This is meant to enhance competitive advantages assumed by such organisations (Leingpibul 2006, p. 97. Harris (2004, p. 97) study the marketing strategies employed by the concerned firms. The proposed research will unveil the entire provisions of novel marketing techniques.

According to Sarvary & Parker (1997, p. 24), another marketing tactic shown by numerous sources is the production of a diverse range of products (automobiles) that serve the varying interests of customers as indicated earlier. Contrastingly, these sources provide varying opinions in the marketing context. It is also important to enhance the variety of vehicles so that every customer can have a choice (Czabke 2008, p. 75). On the other hand, Weihrich (2010, p. 4) argues that since emerging markets present diverse customer tastes, major car manufacturers have strategised to provide a variety of vehicles that will handle the situation with the desired precision. This will enable them to enhance their market divide, global presence, sales, and profitability required. It is important to consider such marketing strategies due to their ability to lure numerous customers into buying the desired products.

It is crucial to consider the significance of diversity in the realms of products. This marketing strategy tries to provide customers with alternatives. Thus, customers will continue to satisfy their needs with regard to automobiles. Almost every automobile organisation produces several motor vehicle models for a different class of people and with different tastes (Doole & Lowe 2008, p. 6). This is a crucial provision in this context due to its viability and other considerable provisions. It is crucial to consider such viable market trends with precision. Additionally, managing to consider business provisions is important in the marketing context. There are varying concerns that relate to varieties in the motor vehicle context. Additionally, considering various business aspects has been critical to car manufacturing organisations (Weihrich 2010, p. 4). These provisions have allowed major motor vehicle manufactures to launch and embrace their businesses in the emerging markets. It is through this consideration that the entire business prospects with regard to automobile industry lie.

Comparably, Majumdar (2001, p. 2) and Khanna (2010, p. 45) argue that some manufactures have adopted the production of hybrid cars to meet the demands of the emerging markets customers with satisfaction. Such companies have strategised to capture niche markets, which had not been exploited by other car manufacturing organisations. This marketing strategy has enhanced the performance of most v

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