Managing Global Relationships and Marketing Crisis

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Table of Contents

Executive Summary
Introduction
Relationship development
Background information about the Russian Federation
Reasons for Apple Inc. to develop good relationships with RF
How to develop good global relationships
The developing relationships with Russian Federation
Management of Marketing Crisis in the Russian Federation
Conclusion
List of references

Executive Summary

Management of global relations is very important for any company that is anticipating to carry out its operations in a global scope. In the view of the stiff competition created by the global marketing participants, it is good to put structures in place that will see that there is not only development of such relationships but also there is adequate management of the same.

The following brief report tries to examine how Apple Inc. Company that is operating in an electronic industry can develop global relationship in a foreign marketing region, Russian Federation and to what extend it can benefit from those relationships. The reasons behind the establishment of such relationships and the best possible strategies that can be applied are thereby expounded in this report.

Furthermore, the justification for establishment of such relationships is comprehensively provided in the report. The report also looks at the reasons why Russian Federation is a potential business operating zone giving highlights of some of the business and marketing opportunities available in the region.

As it will be observed in the report, the development and management of good relationships can encounter some challenges that may threaten the company’s operations in the chosen country. In the event that Apple Inc. Company encounters a marketing crisis like the one witnessed when the company’s appointed logistic company fails to deliver goods to the customer as agreed, the remedial measures that need to be taken are analyzed and how best Apple Company can prevent such a crisis from occurring in future.

In brief, the company needs to have adequate mechanism for handling not only marketing crisis but also any other crisis that is likely to affect the performance of the company.

Introduction

With the increasing global competition, any marketing participant needs to maintain foreign and global relations that are sufficient to enable an enterprise secure a significant market share in the industry. The success of all the business entities is dependent on its relations with the outsiders since a firm cannot operate in isolation; that is it needs support from various stakeholders for instance the firm’s suppliers of various materials (Vernon 1966, p.194).

The relationship also targets the entity’s customers and it is quite imperative that the firm’s policies provide systems and solutions that may solve any prevailing marketing crisis. The relationships with the customers can be strengthened through provision of required products in the right quantity and quality, within the stipulated time period without any delay and meeting all the other expectations that the customers may require.

However, this may not be an easy task since there are some limitations rendering the achievement of excellent global relationships. Cultural differences do arise among different countries of the world as well as huge spending required in maintaining such relationships. Marketing crisis may too be beyond the organization’s scope and therefore its management becomes difficult.

The following brief report analyzes how Apple Inc. Company can develop such relationships, the reasons for their development, their associated benefits and the appropriate actions that need to be taken to solve any marketing crisis that may arise in the selected company (Perlmutter 1967, p.92).

Relationship development

Before a business organization develops any global relationship, a comprehensive analysis of the targeted group of people or customers in which the company needs to establish such relationship is crucial to determine the extent to which such relationship will benefit the company (Cavusgil 1984, p.115). In the provided context, Apple Inc. Company has identified Russian Federation as its potential business customer with whom it plans to establish business relations with.

Background information about the Russian Federation

The background information of Russia Federation gives enough justification as to why it was chosen as the preferred target area (customer) for the Apple to extend its marketing activities. Russian Federation was founded in the year 1991 upon the dissolution of the Soviet Union. Russia’s economy is the tenth largest in the world and the country is believed to have one of the strongest economies in the world.

Russia is known for having a strong power with significance influence on matters related to economic development. It is a country with massive economic activities and prospects bearing in mind that the country hosts huge oils and mineral reserves including coal and forestry reserves. In addition, the country is a world supplier of ammunitions and other weapons that have boosted the country’s GDP and its economic status to a greater extend.

The per capita income of the nation is as high as those of other advanced nations. This means establishment of business relations with Russian Federation maybe of significant benefits to the interested party since the country has all what it requires providing promising prospects to the interested investor.

Apple Inc. company, dealing with electronic products need to develop relations with a relatively strong economic zone where there is likely to be strong customer base for its products. In this case, Russian Federation can provide the company with reliable customers who can impact positively on the performance of the company.

Russia’s market economy has huge natural resources that make its resident’s economic welfare better off. Russia is one of the countries in the world with the highest purchasing power parity. Since 21^st century, the country has had high domestic consumption therefore; provision of products to the region is a golden opportunity to any investor.

In the year 2008, the average salary for the Russian employees was about $6400 per month. This is a good indicator of strong consumer’s purchasing power. The number of residents living below poverty line in the year 2011 was merely an estimate of 13 percent. In 2006, the middle class persons in the country amounted to approximately 55 million out of a possible 147 million people.

Reasons for Apple Inc. to develop good relationships with RF

Apple Inc. is well known for the manufacturing of high quality phones. Since its establishment, the company has been able to develop strategies that are aimed at increasing its market share in the global marketing environment. One of the ways through which the company has achieved this is identification of potential customers with whom the company maintains good relations (Firat, Dholakia & Venkatesh 1995, p.51).

There are a number of reasons why the company needs to develop these relations. Firstly, without such relations the company’s existence in the industry may be at stake. To improve the marketability of the company’s electronic products, the management has to ensure that the consumers get what they want at reasonable prices.

This means that the value attached to its products need to be matched with the prices charged to its products (Hakansson 1982, p.98). In addition, the products must meet the required customer satisfaction and win their confidence in the products being offered.

The other reason for having excellent business relations with the customers is due to the nature of the marketing environment in which the company operates. There is increasing competition among the mobile manufacturers with each participant striving to offer the best in order to secure relatively large market share.

Apple’s choice of the Russian Federation is a move that is likely to move the company a step ahead. This is because the company has chosen the best marketing zone likely to boost its sales volume by a wide margin. Failure to develop good relations with company’s customers can drive a market player out of the market very easily.

These relations helps a particular company in determining what the consumers want and developing such products that meet their expectations. The overall goal of maintaining good relations with customers is retention of the existing customers as well as outsourcing of new customers (Jaffee 1993, p.76).

Maintenance of good relations with Russian Federation will result in trust on the part of its customers as far as Apple Inc. is concerned. Trust and confidence from consumers is very essential since consumers are very sure of what they are buying and hence increased marketability of company’s goods. Consumer needs change everyday life with changing world.

Maintenance and management of good relationships with the target customers is crucial to match the organization’s products with the changing needs. The company can improve its profitability as well as the expansionary goals if indeed it succeeds in maintaining good relationships with Russian Federation. The successful multinational and global companies have achieved that due to the history of their existing relations and therefore it is good for Apple Inc. to emulate them to achieve the same (Keegan 1989, p.108).

How to develop good global relationships

One of the most difficult task in management marketing is the building of good relationships with customers. However, the task becomes more complicated when relationship to be built is global based. Good customer relationship is the engine that drives a business to success (Kotler 1988, p.102).

The target customers should be adequately convinced to make them believe that the company has the ability to satisfy their needs as well as their expectations. While building these relationships, it should be noted that it is a long-term thing that is likely to benefit the Apple to for a long period of time.

One of the ways of developing good global relationships is establishment of strong network of customers in the region where the company is anticipating supplying its products. Any company anticipating to increase its sales volumes should put more efforts in building strong network instead of concentrating on promotional and advertising activities.

This can be enhanced through establishing relationships with various associates, acquaintances, business partners and the existing customers of the product in question. The reason for establishing such relationships is because the market is so huge that the company may not be able to reach out all the people who can benefit from the product being offered (Carter 1988, p.15).

Connections may also be strengthened through attending of various business organizational events, conducting business seminars etc. Another way of building strong global customer relationships is keeping in touch with them in the targeted geographical region. This will enhance communication between the company and its newly created customers and the customers will get an opportunity to express their feelings concerning the product offered.

In a move to address cultural differences, Apple Inc. needs to incorporate some natives in the Russian Federation in marketing campaigns since they are more informed about the requirements of Russian customers. This is a very beneficial method of building global relationships in a foreign country.

Putting in place a strong team of labor force can assist the company significantly in building global relationships. This can be enhanced when international human resource management is taken into consideration and the management team to be deployed in the Russian Federation has to be conversant with global employee relationships.

Despite contributing immensely to the performance of the organization, the cultural differences will be sufficiently addressed using this technique (Terpstra 1987, p.97). After initial penetration of the Apple Company in the Russian Federation market, the company may opt to reward the royal customers in the region.

This may be enhanced through offering after sales services of the mobile products or giving them reasonable warrants of their mobiles to make them come back again. Such customers contribute largely in expanding the network. Rewarding loyal customers not only bring them back again but also bring with them new customers that form strong a network of connections (Boxall & Purcell 2007, p.76).

Apple Inc. Company should establish effective service delivery systems that are compatible with Russian infrastructures. This will ensure that the customers get the required mobile phones and accessories in a very convenient way and that the goods arrive in good time. This will avoid delay in delivering the products to the interior regions of the Russian Federation.

The developing relationships with Russian Federation

Every business strategy adopted by an organization has some benefits attached to it. Building global relations with Russian Federation too is a business strategy aimed at expanding Apple Inc. business activities. There are benefits associated with each of the strategies for of developing strong relationships with Russia discussed above.

For instance, creation of direct links with various associates will help the company gather crucial information concerning the customers, their needs, and expectations and how they differ from those of other regions (Weiss 2009, p.312). In addition, the associates will help the company in acquainting itself with the market segment to enable the company in developing products that best suit different consumer groups in the region.

The existing customers of the mobile products are able to provide the company with a hint of the most preferred brands that will enable the company in developing more sophisticated and high quality phones that are differentiated to beat their rivals in the market.

Business seminars and conferences are important avenues of generating ideas that will enable the selected key management staff to handle market penetration in the Russian Federation. This will also facilitate the learning of business ideas and other strategies that they adopt in increasing marketability of their products in the region (Smith 1759, p.423).

Keeping in touch with initial customers in the selected region is important as it helps the company in getting the required responses of the already supplied products. This will enable the Apple company make any corrective measures for example modification of the products if they are not meeting the customer expectations.

Inclusion of the personnel from Russia to steer up marketing campaigns and processes is imperative in the sense that the company does not understand fully the cultural behavior of the Russian natives. These residents will help the company in formulating and implementing the strategies that best fit the region.

The success of any business in a particular geographical region is dependent on the nature of the organization’s labor force. Since this is a market-oriented thing, highly experienced team of marketing experts will deliver the innovative solutions necessary in achieving the intended goals. Therefore, the employment of efficient labor force in the exercise is more advantageous than having the normal labor force in the organization.

Rewarding loyal customers will assist the Apple Inc. since this is a way of retaining the already established customer base and attracting more customers. Once a customer is satisfied with the company’s products, he/she is more likely to influence others who are interested in the products of the same company and this helps in building the reputation of the company (Weiss 2009, p.302).

Supply of the customers’ expected products as soon as they are required is very important and this is enhanced by having efficient delivery systems that may incorporate online ordering and digital delivery of products that may be developed by the company to enable the customers get the products without necessarily travelling to where the outlets are located.

Management of Marketing Crisis in the Russian Federation

Marketing crisis happens when there are some complications or problems that may be hindering a given company from marketing its goods (Weiss 2009, p.250). Marketing crisis may refer to the combination of factors that may affect the demand of goods and services. Apple Inc. Company should be prepared to overcome any marketing crisis that may come on its way while trying to make its operations more successful in the Russian Federation market.

While operating in a given region, it may become important to create an intermediary that will help in getting the goods to the target consumers at an easy. The intermediary may let the company down if indeed it cannot carry out the duties as expected by the principal supplier of the products in question.

The situation in question involves a logistic company that was vested with the overall responsibility of ensuring the goods arrive at the customers’ warehouse as agreed with the company. However, this did not happen as it was planned and now the blame lays with the Apple Inc. company for failing to comply with the customers’ demands. This very dangerous phenomenon can affect the reputation of Apple Inc. in the Russian territory.

Effects of marketing crisis to the operations of apple Inc. Company and how effectively they can be handled. The prevalence of marketing crisis does not mean the company cannot carry out its operations. While analyzing the development of good relationship we saw the need to have an effective delivery system that will make sure the products are delivered using the most effective modes that will not let the company down.

One of the effects that may be created by the marketing crisis in question is the destruction of the company’s reputation at its initial entrance stage. This is because loss of customer’s goods that have been paid for is not something that should be taken lightly.

In addition to ruining of company’s reputation, the customers are likely to lose trust and confidence on to the company’s services since it is not clearly known whether the Apple Inc. is capable of maintaining the expected supply of mobile products to the customers in need. The already outsourced customers for the Apple products may shift to other companies since this is a sufficient proof that the company cannot meet the customer satisfaction.

This will result in reduced sales volume on the part of the consumer’s products. The problem need an urgent action, otherwise the company’s reputation may be at stake. Firstly, the goods that are allegedly to be lost should be re-supplied again to the customer before the company deciding on the action to take against the logistics company that was handling the task.

Apple company has to convince the customer that the failure of deliverance of the designated goods was the not its fault but rather the fault of the logistics company. Although it may be hard to make the customer believe how committed it is to serve him in his best interest, the urgent action may prove some seriousness on the part of the company.

The customer should also be assured of a different intermediary who is going to supply him with the required goods during the subsequent orderings. Secondly, the company has to get rid of the logistics company that has caused the entire mess to prevent the problem from occurring again. While appointing other subsequent logistic companies, Apple Company has to do thorough screening that will see the best and reliable companies that are likely to improve the company’s image are chosen.

The overall goal of extending marketing operations to the Russian Federation is to increase its sales and thus the profitability as well as the expansion of the company’s business activities. In the event that the company will delay in taking action against this marketing crisis, the anticipated goals may not be achieved since the company’s reputation will be ruined and the already established consumers may shift to other companies whose services are more reliable (Smith 1759, p.409).

Therefore, to prevent this from happening, an urgent action is recommendable to save the company’s image that may be taken as an advantage by its business rivals. The company’s action too, will be viewed as a commitment and prove how the company is caring and prepared to deal with any issue related to the customers’ services.

Conclusion

Development of good global relationship with various stakeholders has a significant impact on the demand of products than advertising and promotional campaigns for the products. Once a company has identified potential customers for its products, it is important to establish and maintain relationships that are likely to last and beneficial to both the company and the customer (Pinnington, Macklin & Campbell 2007, p.12).

This helps in ensuring that the customer gets what he/she wants from the company and at the same time, the company gets what it wants from the customer. However, some problems might occur that may hinder the effectiveness of this beneficial relationship. In such a situation, the company should be fully prepared to handle such a crisis and get its operations back to the original status.

List of references

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