The China's Corporations' Choice Of Transnational Marketing Strategy

Michael E. Porter has made great contribution to the theory of Competitive Strategy. He put the forward a theory known as the Three Competitive Theory: Cost Leading Theory, Differential Theory and Specific Theory. It inspires us that the multinational corporation should pursue the optimization of cost by the means of standardized strategy and local strategy. Another important theory is the Value Chain Theory. The theory accounts that the value chain is constituted with a series of operating activities. The comparative advantage on the value chain of different enterprise is different. An enterprise should make the decision about marketing strategy based on the comparative advantage on the chain. If the comparative advantage is in the upper reaches of the chain, it is better for the company to take the standardized strategy. Otherwise, the multinational strategy is a good choice.The globalization of economic has promoted the formation of global marketing which induced many changes in the marketing activities of the Multinational Corporation. The understanding about transnational marketing has upgraded from genetic method to strategy position. At the same time, the theory of international marketing has been greatly developed known from Megamarketing Strategy to Global Strategy. Warren J. Keegan thinks in his Global Marketing Management that the development of multinational corporation experienced such periods: internal marketing, international marketing, multinational marketing and global marketing. The development of economic globalization has promoted the development of international marketing for Chinese enterprises. After 30 years reform and opening-up, many Chinese industries have strengthened and dissatisfied with the domestic market and resource. They are active to seek the choice to enter the world market. The government of China encourages the Chinese corporation to "go out of the gate" and take part in the competition of the whole world as well as they continue to introduce the foreign investment all over from the world. After all, the environment of international market is different from the international. The Chinese enterprises will meet a series of difficulties in the process of internationalization. It is important for the Chinese company managers who want to develop in the international market to choose appropriate marketing strategy.Which strategy should they choose, the multinational one or the global one? It is difficult but important for them to make the right decision. The foundations of the decision is1) marginal cost of standardized strategy and localized strategy;2) driving motions of marketing such as economic motion, market motion;3) the advantages and disadvantages on the value chain;4) the factors of marketing.The last but important part of the article introduces how to dominate these foundations with the practical situation of the enterprises then make the right decision.1,The managers of the enterprises can make the decision on marketing strategy according to the characters of product and industry.2,The driving motions of multinational strategy and global strategy are different. The managers should make the choice based on the driving motions.3,There are many factors of marketing such as price, product, promotion, place and so on. The enterprises can come to a decision which strategy carried out based on these factors.