A Marketing Report on a Malaysian Business - Free Essay Example

1.0 INTRODUCTION This overview of how business works great for students trying to figure out whether a career in business is right for them, employees want to understand more about their companies and build their business acumen, and entrepreneurs planning to start a business. In this Assignment, it will review concepts, principles and operation of private enterprise. It will compare and contrast sole proprietorships, partnerships, and corporations and the pros and cons of each. Moreover, it will explore the functions of modern business management, marketing, and ethics and social responsibility can enhance or tarnish the brand. And it also depend the human resource management business, and learn how employers can motivate their employees. Finally, the deal with the numbers and examine the business bookkeeping, accounting, financial management, and financial statements. For the first question, it is concern with the important of studying business. The importance of stud ying business is because of many career opportunity business are provide and to help you to become a knowledgeable consumer in the market. In the question 2, it concern with the role of marketing in business. Marketing is the process of planning the conception, price, promotion and distribution the goods and services to satisfy the objectives of individual and organization. 2.0 My business in Malaysia Im going to open a coffee shop in Malaysia called Josephine Cafe, ità ¢Ã¢â€š ¬Ã¢â€ž ¢s a partnership business. There will be a comfortable place to dream of as you try to escape the daily stresses and to meet your friends or to read a book, all in one. Josephine Cafe will offer its customers the best prepared coffee in the area some delicious cakes, cookies, meals, and even tasty ice cream, as well as free books that its patrons can read to enjoy their visit. 2.1 The factors that affect my business in Malaysia Many factors can be affect the survival and growth of my bus iness for example, economics, government, corruption, market access, currency trends and infrastructure. The choices I make in the early selection of location for my business may affect its growth and health in the long term. I have to consider these factors and incorporate them in my business plan or I have to elect to consider location shortly after initiation of the business activities. In either case, so do not ignore them as they may affect the long-term direction of the business. 2.1.1 Economics In a strong economy, nearly all the businesses enjoy greater prosperity. Disposable income of people is high, unemployment is low and consumer confidence prompts people to pump their money back into the economy through the purchase of essential and nonessential services and goods. The impact of a strong economy on Josephine Cafe is two-fold, as business increases, so too does the need for a my business to keep pace with demand by hiring additional employees, expanding retail spac e or adding new product lines in my business. This may be viewed as a positive. During an economic slowdown, my business will face a number of challenges. Consumers will become concerned about their job stability and, in turn, are more likely to be cautious with expenditures, which leads to decreased revenue for my business. A slow profit stream can make it difficult for my business to repay creditors, which can negatively impact its long-term viability. My business will face financial struggles is far less likely to qualify for loans for capital operations and expenditures, which limits growth opportunities. My business also is forced to downsize my workforce during a slow economy. This limits my ability to serve customers and contributes to the unemployment rate, which furthers slows the economy. 2.1.2 Government Some goods and services are classified with the goods and services tax exemption (GST), therefore, known as sources of zero-rated. Basically, these are basic nee ds. This will help ease the burden of the lower income group. Goods and services that are served by the export market are also classified as zero-rated sources to maintain the competitive advantage of local products in the foreign market. If a company pays tax input supplier of raw materials, however, the final product is classified as zero-rated supplies, which means that you cannot charge GST on your final product, and the company can claim back the duty of government. Exempt supplies are a supply of any goods and services that is not subjected to the imposition of GST. Basically the mechanism is very similar to zero-rated supplies except that there will be no fund on input tax paid to supplier. GST may increase cost of production. It depends on whether the business already practices the imposition of sales or service tax. Moreover, they can use the input tax to offset output tax or they may choose to pass on the additional costs to its consumer. However, the businesses will incur additional compliance costs. For example, they will need to upgrade their accounting and recording system, staff training and information technology system. This may incur a one-off increase in its capital or revenue expenditure. Most importantly, the business will need to restructure their cash flow so as to prevent having the cash flow problems, once the government starts to implement GST. The businesses need to charge GST on sales, so if the customers are late in paying due to credit terms, the businesses will have to pay for the tax first. Businesses should be educated and be aware of the potential cash flow aspects of GST. Therefore, GST will cause the businesss cost increase, and profit will be decrease. 2.1.3 Corruption Corruption poses a very real and significant risk to the companies. It was gained the attention of regulators globally and has thus become a fast moving area of the law. Although the last few years have seen some corporations publicized efforts and Government to create awareness about the ill effects of this malaise and discourage it, the industry by large remains reluctant to discuss this issue. We encourage organizations have to consider the risk of corruption when developing fraud risk strategies. The most common underlying motivator for corruption was to win or retain business. Respondents cited getting routine administrative approvals from Government agencies as a key motivator, or fear of losing contracts because someone else has bribed the decision makers also contributed largely to the occurrence of corruption in my coffee house. 2.1.4 Market Access Market access is openness of a countrys markets to foreign services and goods. Market access reflects the governments economic policies regarding import substitution or free competition. Imports can contribute to growth through at least two channels. They can force domestic producers either to improve their production efficiency and the quality of their produc ts and be innovative or to exit from the business, a process that can reallocate resources to more productive uses. Imports also are helpful in identifying domestic opportunities for local firms willing to compete (Lawrence and Weinstein 1999). Technological advances embodied in imports of machinery and equipment provides a second channel. The Malaysian economy is relatively open to imports if measured by tariff levels. Except for a few product categories, Malaysiaà ¢Ã¢â€š ¬Ã¢â€ž ¢s tariffs are low and comparable to those of its neighbors. Although nominal tariffs may no longer be an issue, nontariff barriers and other restrictions have reduced competition in the domestic market. Josephine Cafe will import some quality coffee or stuff from other countries that which countries is producing quality stuff to Josephine Cafe, because quality stuff only can attract more customers to consume in my cafe. The example of the countries I will import from is USA, or United Kingdom, becau se the products of these countries produce are good in quality, especially coffee. 2.1.5 Currency Trends Currency trends are the exact tracking or tracing of the currency rate progress over in a certain previous months. The exchange rates trends specify the exact figures and trends among various currency with tables and graphs on particular currency page. The exchange rates are generally compared with US dollars to form around one single unit of the currency to obtain the exchange currency trends. An upward exchange rates trend shows that the currency is increasing in strength with respect to the USD and the downward trends are indicate a decrement. Therefore, if Ringgit Malaysia (RM) rates trends are lower than USD, while Josephine Cafe trying to import stuff from US, the stuff will become more expensive. If RM rates trends is keeping decrease, or USD rates trends is keeping increase, the stuff that import from US is becoming more and more expensive. Now, RM rates trends a re lower than USD, so the stuff that import by Josephine Cafe from US is expensive. 2.1.6 Infrastructure Getting traction in a competitive marketplace like cafe is vital and I will need to have a clear understanding of how to get my customers to initially give me a go and a plan for keeping my business returning and referring my cafe to their friends. I will decorate my cafe to become a comfortable place, plying some comfortable and smooth music to make my customers feel relax and to reduce their daily stress. For me, Josephine Cafe will be a nice and comfortable place. Mostly of the people will like this kind of place because ità ¢Ã¢â€š ¬Ã¢â€ž ¢s really attractive. It might help me to attract a lot of local customers or even customers from far away of the area. 2.2 Conclusion As a conclusion, I know that we have to consider the six factors that will affect business in Malaysia, which are economics, government, market access, currency trends, infrastructure and corru ption. We have to understand these six factors before we start a business or in the business that are operating. I also know that we are not easily to have a business in Malaysia. Because there are many regulation that set by government, economics of Malaysia are not that good, and currency trends of Malaysia is low. Therefore, we have to import expensive stuff from the countries that rateà ¢Ã¢â€š ¬Ã¢â€ž ¢s trends are higher. 3.0 Introduction to my product Ià ¢Ã¢â€š ¬Ã¢â€ž ¢m going to sell a smart phone called iPhone. I choose to sell smart phone because there are 9 out of 10 people are using it. Nowadays, smart phone are seem like a basic need for us. Before, phone are just use to text and call, but now, there are so many application can download at the App Store or Android. App Store and Android are provide many games and social application for people. They can use social application to have a free chat with friends, if you are connecting with a Wi-Fi or even use data to w ork it. I choose to sell Apple product because Apple products are trustworthy especially iPhone. Also, I like it design. Function of iPhone is also simple to use, ità ¢Ã¢â€š ¬Ã¢â€ž ¢s suitable for teenagers and even old people. 3.1 What is Marketing Mix? The marketing mix refers to the set of actions, or tactics, that a company uses to promote its product or brand in the market. The 4Ps make up a typical marketing mix which is Product, Price, Promotion and Place. However, nowadays, the marketing mix increasingly includes several other Ps like People, Positioning, Packaging and even Politics as vital mix elements. 3.1.1 Product The product is a service, good, idea, place, person- whatever is offered for sale in the exchange. The aspect of the marketing mix includes the packaging and design of a good, as well as its physical features and any associated services, such as free delivery iPhones thumps print screen lock function and iMessage function can satisfy the custom ers, because thumps print screen lock function is the easier way to let iPhone user to unlock the screen and dont need to tap for the passcode. Beside, About the iMessage, its a free texting application for iPhone user to another iPhone if you are connecting to the Wi-Fi or data. It has 4 colors available which are black, white, gold and pink. It is 123.8 mm height, 58.6 mm width, 7.6 mm depth, and 112 grams weight. 3.1.2 Price Price is the assignment of value, or the amount of consumer must exchange to receive the offering. The decision about how much to change for something is not simple. iPhone is selling RM2199. The customer price is sensitive, if i decrease RM100-200 the price of iPhone, I will gain the extra market share. Because iPhone is a luxury goods, also, the price of iPhone is lower than other brand of cell phone, so that will cause many of the customers will like to buy my product. 3.1.3 Place Place is the availability of the product to the customer at the desired location and time. As we will see, the P is also known as the channels of distribution, which are the firms that work together to get a product from a producer to a consumer. Buyers can look for my product at a store in a shopping mall. Because normally, a mountain of people will go to shopping mall to shopping, even to watch a movie. So I choose to sell my product at a shopping. I do use a sales force, attend trade fairs, or make online submissions, because these way can help me to gain extra sales. 3.1.4 Promotion Promotion is the activities marketers undertake to inform consumers or organizations about their product, and to encourage the potential of customers to buy these products. Promotions can take many forms, including personal selling, store coupons, television advertising, billboards, magazine ads, and publicity releases. I will reach the audience by advertising in the press or in the internet. For example, in the Facebook, Twitter and so on. Nowadays, most of the teenagers also playing Facebook or Twitter at most of time, they will check their Facebook and Twitter at least 5 times a day. So, this is a good channel to promote my product. The best time for me to promote my product is in the Valentineà ¢Ã¢â€š ¬Ã¢â€ž ¢s Day. Why? Because we launched the pink colorà ¢Ã¢â€š ¬Ã¢â€ž ¢s iPhone, most of the girlà ¢Ã¢â€š ¬Ã¢â€ž ¢s favorite color is pink, if their boyfriend gives them a pink colorà ¢Ã¢â€š ¬Ã¢â€ž ¢s iPhone, the moment will just so romantic. 3.2 Product Life Cycle This is the graph of Product Life Cycle Stages. The product life cycle has four very clearly defined stages, each with its own characteristics that mean different things for business that are trying to manage the life cycle of the particular products. Four stages are Introduction Stage, Growth Stage, Maturity Stage and the last is Decline Stage. Introduction Stage is like cycle could be the most expensive for a company launching a new product. The si ze in the market for the product is small, which means sales are low, although they will be increasing. On the other hand, the cost of the things like consumer testing, development and research, and the marketing needed to launch the product can be very high, especially if ità ¢Ã¢â€š ¬Ã¢â€ž ¢s a competitive sector. Growth Stage is typically characterized by a strong growth in profits and sales, and because the company can start to benefit from the economies of scale in production, the profit margins, as well as the overall amount of profit, and the profit will increase. This makes it possible for businesses to invest more money in promotional activity to maximize the potential of this growth stage. During the maturity stage, the product is established and the aim for the manufacturer is now to maintain the market share they have built up. This is the most competitive time for most products and businesses need to invest wisely in any marketing they undertake. They also need to consider to any product modifications or improvements to the production process which might give them a competitive advantage. Eventually, the market for a product will start to shrink. This shrinkage can be due to the market becoming saturated, or because the consumers are switching to a different type of product. While this decline may be inevitable, it may still be possible for companies to make some profit by switching to less expensive production methods and cheaper markets. 3.2 Conclusion As a conclusion, I do the result of Marketing Mix (4P), which is Product, Place, Price, and Promotion. Marketing Mix is important in business, because the basic principle of marketing apply to the sale of canned peas, to the delivery of clothing and food to need people, and to the fortunes of a symphony orchestra. Because meeting the needs of the consumers and society in the efficient way touches on so many aspects of our daily experience, ità ¢Ã¢â€š ¬Ã¢â€ž ¢s important to think ab out the role marketing plays in our lives. So that, we have to consider the 4P in our business, if you are understood to the 4P, you might be successful in your business. References Beem, C. and Soloman, M. (2000).Study guide, Marketing. 1st ed. Upper Saddle River, NJ: Prentice Hall. BusinessDictionary.com, (2014).What is market access? definition and meaning. [online] Available at: https://www.businessdictionary.com/definition/market-access.html [Accessed 24 May. 2014]. KPMG, Malaysia Fraud, Bribery and Corruption Survey 2013. (2014). 1st ed. [ebook] Malaysia, p.41. Available at: https://www.kpmg.com/MY/en/IssuesAndInsights/ArticlesPublications/Documents/2013/fraud-survey-report.pdf [Accessed 24 May. 2014]. Mindtools.com, (2014).The Marketing Mix and 4 Ps: Understanding How to Position Your Market Offering. 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