Executive Insights: Perspectives for International Marketers on the Japanese Market

Abstract

“Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others” (Kotler 1991). This definition is based on notions of: needs, wants, demands, products, utility, value, satisfaction, exchange, transactions, relationships, markets, marketing, and marketers. The need for marketers to focus on consumer behavior flows from this widely held definition. Yet, with this focus on consumers, little strategic note has been taken of the influence of key markets on other markets. For example, the United States— in particular, California— was a major influence on style and consumer tastes in the 1970s. The world witnessed the emergence of Silicon Valley and listened to Californian sounds, which were subsequently recycled through advertising and movies. The essential purpose of this article, therefore, is to highlight the importance of the Japanese market upon others and to offer a prognosis of the impact it will have.

Market entry decisions in China

“…The research conducted in Shanghai is similar in style to other studies completed by the authors, most notably in Indonesia, Japan, Korea, Malaysia, Myanmar, and Thailand (Reid, 1991(Reid, , 1995a(Reid, , 1995b(Reid, , 1995c(Reid, , 1997(Reid, , 1999Reid & Lee, 1998). In seeking to understand international business, it is essential to understand the countries involved and the particular local market conditions prevailing.…”

“…Some of the phenomena, about which we will now report, are not unique to China. However, findings from previous studies conducted by the authors in Japan (Reid, 1991(Reid, , 1995b(Reid, , 1995c, Korea (Reid, 2000;Reid & Lee, 1998), Burma (Reid & Walsh, 2001), and Thailand (Reid, 1995a) revealed nothing like the surge in market entry impetus exhibited by foreign companies in China. An overwhelming proportion of those senior executives interviewed confided that their companies had, if not stampeded, then at least rushed into the China market without adequate analysis.…”

Consumer change in Japan: A longitudinal study

“…Several authors have shown that thriving FACs exhibit several success factors: a management philosophy that holds true at the international level, high technological capabilities, and acceptance of the Japanese subsidiary as a strategic base (Gleckman, 1996;Shill, Guild, & Yamaguchi, 1995;Sweetman, 1996). Reid (1995aReid ( , 1995b takes the argument further, presenting evidence to show that not only can foreign companies suc- ceed, but they have also developed leadership positions in the Japanese consumer products market. However, according to Hirsh (1991), it is only companies competing in the nonstrategic (for Japan) sectors that are allowed to succeed.…”

“…Subject matter and data that emerged from the data on Japan's business environment are now presented. These are complemented by a framework, refined from two earlier articles in the Journal of International Marketing (Reid, 1995b(Reid, , 1999, which is used to compare and contrast the pre-and postbubble situations and the process of ongoing change. Some quotations from senior executives, based on the 1995-1996 and 2003 fieldwork, are used in support.…”

“…The frame- The fieldwork followed a list of topics and themes designed to explore the macroeconomic and businessenvironmental issues, market and competitive trends, and the interviewees' strategic responses to these stimuli. work, with an italicized summary of the key elements from the Reid (1995b) article, is based on the following topics:…”