Marketing Japanese Style

Marketing Japanese Style

Marketing Japanese Style

Marketing Japanese Style

Synopsis

The Japanese are not the world's greatest marketers. Japanese companies approach and perform marketing within Japan differently than Western firms do within their domestic markets. In fact, marketing to the average Japanese firm is not a priority item. To succeed in Japan, they concentrate instead on production quality and low prices. This fascinating look at the cultural differences, reflected in their marketing practices, reveals the advantages and disadvantages of Japanese marketing practices. The author argues that as the advantages of a protected market and superior production and technology disappear, the Japanese must develop a new marketing process. Examples of both Japanese and foreign firms operating in Japan highlight each section.

Excerpt

In 1982, Philip Kotler and Liam Fahey wrote "The World's Champion Marketers:
The Japanese."
At that time, the Japanese had almost conquered the automotive industry, had finished annexing the consumer electronics industry, were on the upward path toward securing a dominant share in semiconductors and several other industries, and, in general, seemed invincible. Record continuous Japanese trade surpluses of unheard of proportion have existed since 1980. But something else happened en route to the slaughter. Japan Inc. is not as invincible as the world thought it was. the Japanese, too, can suffer from strategic overstretch.

Peter Drucker (1981) once said, "When the rest of the world was only talking about marketing, the Japanese were doing it." He meant that the Japanese came to the United States to study marketing principles and philosophy and then applied the textbook principles with unparalleled success. Ezra Vogel (1985) in Japan as Number One; Kotler (with Fahey andJatusripitak in 1985) again in The New Competition, and Boyd DeMente (1990) in The Kata Factor all discuss Japan as the next economic superpower, overtaking the United States, with basically Japanese marketing prowess as the major reason for Japan's success. What most of these prophets failed to realize, did not property factor into their equations, or chose to ignore is that when dealing in foreign markets, Japanese corporations, especially in the United States and Europe, overwhelmingly allow nationals to conceive and implement local marketing programs. That is, the success of "Japanese" marketing in the West, particularly the United States, is derived from American marketing experts working for Japanese subsidiaries in conjunction with American advertising agencies casting . . .

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