Author: Shipchandler, Zoher E.; Moore, James S.

Publication: University of New Haven

Date: January 2000. Vol. 18, Issue 1. Page:62-68

The purpose of this particular article is to discuss the role of various strategic marketing decisions within the financial performance of foreign firms in U.S. markets. Marketing strategy variables that have shown a significant relationship with market share or profitability in the U.S. are the mode of entry, perceived product benefits, price, and R&D expenditures. For example, R&D and the introduction of locally designed products would enable a foreign firm to better serve the needs of its American customers. However, the large size of U.S. markets makes multiple strategies competitively more effective. A competitive or low price strateg

Building relationships between customers and suppliers is also affected by certain marketing variables, such as price, for example. Customers are always out for the best for less and a low pricing strategy would easily sway customers to switch their supplier. However, foreign firms typically sell high-quality products at a lower cost here in U.S. markets simply because their production costs are lower by comparison. They manufacture overseas, where labor costs are cheaper, and then export to U.S. markets and sell it at a higher price, but not high enough to decrease product demand.

Certain marketing variables, such as Research and Development can be the success or failure of a firm, regardless of ownership. R&D not only allows firms to better serve their American customers, it also enables them to keep up with the speed of technological innovation. R

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Approximate Word count = 582
Approximate Pages = 2 (250 words per page double spaced)