Literature Review:Literature Review格式樣本-怎么寫好完美的文獻綜述?.文獻綜述寫作范文參考
2.1 Introduction of literature review
This chapter reviews relevant literatures. First it reviews the researches related to Mary Kay's marketing strategy, the second part reviews relevant investigations on direct selling and the status quo of China's direct selling, the third part reviews the relation between Chinese culture and direct selling; the fourth part reviews studies in the role of Chinese women; the followed part reviews researches on China's cosmetics market and multinational cosmetics corporations in China, the last is a summary of the meaning and innovations of this chapter.
2.2 Researches on Mary Kay’s marketing strategy
Mary Kay's success has attracted some scholars’ research; Ash (1995:67) claimed that Mary Kay's success is because the choice of marketing strategies is suitable for itself: direct selling. The continuous refinement of direct selling within 45 years enables the marketing bring direct benefits to Mary Kay.
In addition, at the beginning when Mary Kay was founded, Ash took enriching women's lives as her responsibility and committed to creating a ‘business shared by global women’. Since Mary Kay opened the door for women to get unprecedented opportunities for financial independence, career advancement and personal fulfillment (Mary Kay, 2009), the U.S. ‘Fortune’ magazine (Yao, Q., 2007: 117) listed it as one of ten companies which are more suitable for women to work there, and it is the only cosmetics company in this list. Because of this, the International Women's Forum praised Mary Kay Inc in recognition of their special contribution on enhancing the status of women's equality (Yin Xiaoli, 2007:145). Ash (1995:46) thought that the corporate culture of Mary Kay was also an effective marketing tool, because the company was committed to provide women with more opportunities for self-realization, it also indirectly enhanced the female consumers’ impression of this company, which enabled more women consumers pay more attention to this company so as to accept their products, it is also the key factor for Mary Kay to achieve a success.
2.3 Direct selling and its status quo in China
Direct selling was originated in the United States, it was founded by Jewish Kasa Bei; it first began in 1940s and has been developed rapidly with the rising of information society and people's psychology of preferring to convenient shopping (Albaum, Gerald, 1992:45-107). Now, direct selling has covered almost all countries with mature and developed market economy all over the world. Moreover, the world's total turnover of direct selling is 1,140 billion U.S. dollars in 2008. Some scholars (Mason, et al, 1993: 213) figured that direct selling adapts to the requirements of fast-changing market. It completely differ from the traditional marketing channels which rely on multi-level marketing and take interests as link, it abandons the original fixed-store-type sales model and through advanced technical means to identify potential customers, selling products for specific customers (Raymond, et al, 1994: 34-67). The sales level of direct selling is very short, but its width is very broad. Thus making the marketing channel clean and improving the efficiency and competitiveness of enterprises, which is also conducing that enterprises’ control, the reform for marketing channel and to collect more response of market changes. Roche and Imelda (1995: 231-237) believed that direct selling adapts to the trend of consumers’ individual consumption. Direct selling is a real sense of selling directly (Direct Selling Association, 2005). Future consumers pay more attention to self-shaping, resulting in the emergence of personal consumption. And direct selling can conduct direct communication with consumers by telephone, Internet, direct mail, etc. to provide customers with unique product so as to adapt to their individual needs. Caballero and Marjorie (1986:77) pointed out that direct selling is a powerful tool to build a good relationship with customers. Enterprises can establish customer files based on past customers information to track customers, to provide long-term personalized products and services to meet their specific needs and aspirations, then establishing a good brand image through spread of a good reputation. In addition, direct selling can greatly reduce consumers’ costs. For example, energy costs, time costs, etc. (Buell, 1954:102-109). Via the network, direct mail and other forms, it can be very easy for consumers to purchase, at the same time it can effectively protect consumers’ privacy security. #p#分頁標題#e#
In China, direct selling has developed since 1995; its annual turnover has exceeded 100 million. In 1995, 1996 and 1997, direct selling has experienced a glorious period in China. But in 1997, changes emerged in Chinese market of direct selling, at that time the market was completely chaotic. It was due to the following reasons (Hung Wei and Gong Long, 2007: 12): first, a lack of proper management and guidance, second, a lack of appropriate regulatory regime for timely putting down a number of violations in direct selling, leading to direct selling transfer into pyramid selling, which has greatly undermined the image of direct selling. Therefore, under this circumstance, great confusion emerged in direct selling. In April 1998, the Chinese government introduced a policy which made direct selling completely withdraw from the market. All business of direct selling of foreign multinational corporations in China has been stopped. This is a fatal blow for the development of direct selling in China. The early stage when Mary Kay entered into China was also the hardest time when direct selling facing a beating in China. So in the early stages of Mary Kay’s development in China, it faced with great difficulties. With China's accession to WTO, Chinese government's attitude to direct selling has been changed. In 2005, it has formally established the Direct Selling Regulation, which has finally determined the legal status of direct selling and regulated the behavior of direct selling, at the same time, after years of efforts, the attitude of the Chinese people towards direct selling has also been changed, they gradually recognized direct selling. In this background, the industry of direct selling developed rapidly in China since 2005, it is certain that the prospect of direct selling is bright in China.
2.4 The relation between Chinese culture and direct selling
Literature Review格式樣本-怎么寫好完美的文獻綜述?.文獻綜述寫作范文參考China is a society which pays much attention to relationship between people; the so-called ‘relationship’ in China usually refers to some ways which connect two people together to establish an interdependent link (Sun Xiaohong, 2007:124). Chinese people get what they need in their daily lives through the relationship between them, relationships allow them obtain others’ help as well as provision of certain items or services. Once someone has provided assistance to others, it looks forward to be rewarded in the future; too, if someone gets help, it has an obligation to repay later. (Su Hong, 2004:321). Any help or acts of generosity, whether it is giving, or harvest, it would bring you to the network system of relationship. No one would want to be separated from the system, because people's daily lives are carried out smoothly through this interaction between each other. This relationship makes life humanized, which is not familiar for westerners. #p#分頁標題#e#
China as a kindly nation which pays attention to the relationship makes China as the natural soils for direct selling. The direct distributor has tried everything possible to make full use of their own network of interpersonal relationship to achieve marketing goals in China. Therefore, the industry of direct selling develops rapidly in China, such as Amway Corporation. In 2003, its sales reached 100 billion yuan; in 2004, its annual sales were 16 billion to 17 billion yuan, it increased at an alarming rate. However, in terms of the impact of Chinese culture on direct selling, some scholars have put forth different views, studies (Hung Wei and Gong Long, 2007: 12) have shown that although Chinese people have the tradition of emphasis on relationship, but the tradition of emphasis on relationship and ignoring profits in Chinese culture make many people do not want to link themselves with money, even there are good products, they are not willing to introduce it to their acquaintance to have access to benefits, so the impact of Chinese culture on direct selling is not positive. To sum up, the Chinese culture of relationship has laid the foundation for the development of direct selling, but how to open the knot in hearts of Chinese to enable them to make use of their relationship to carry out direct selling; it is still a problem that is worth studying.
2.5 The role of Chinese women in China and Mary Kay’s unique strategy
Chinese traditional culture and people’s ideology have been influenced a lot by Confucianism. Yin Xiaoli (2007:212) considered that in the thinking of Confucian philosophy, on the one hand, it stresses the dialectical relationship between men and women, that is, complementarily and balance; on the other hand, it emphasizes the division of the roles of men and women, determining the principle that the female can not cross the border to replace the man's position. This actually determines in the minds that the male is the key aspect of the relationship between male and female, women can only be a secondary role in the conflict. Thus, until now, in China, male-centered consciousness is still very serious; women often bear the role of housewife.
At the same time, in China, most families can not just rely on men alone to bear the economic responsibilities; women also need to bear some financial responsibility. Due to the commitment to the role of housewife, there is a lack of work experience and job skills for most Chinese women which make them only undertake works with lower payment (Yao xiangguo, 2005: 434). It can be seen that, on the one hand, Chinese women is still in a relatively weak position, they not only need to shoulder the responsibilities of life and family, but also face economic pressures, on the other hand, Chinese women's feminist consciousness is gradually improving, Chinese women have their own needs to get social recognition through establishing their own businesses, therefore, to provide Chinese women with opportunities of establishing their own business to help them to gain wealth, which would be looked on as the enterprise’s behavior of fulfilling their social responsibilities so as to win good reputation. #p#分頁標題#e#
2.6 Researches on cosmetics market in China
Among the ranking of global cosmetics sales in 2006, China has surpassed France and Germany. Currently, it has become the world's third-largest cosmetics market. The latest data released by Kline & Company, a global management consulting and market research firm said that China's cosmetics sales has increased more than 13% in 2006 when compared with 2005. Kline's interactive on-line service-Global Cosmetics & Toiletries 2006 showed that China's market is second only to Japan and the United States, the growth is very significant. Experts pointed out that the consumption habit of China's urban consumer became westernized increasingly; they were now using the same products as consumers used in the United States. Because of the enhancement in the level of China's consumption of cosmetic and the homoplasy of products of cosmetic, the competition in the whole China’s cosmetic market shifts to taking the terminal sales as its core areas, every cosmetic company pays more attention to the management of terminal sales and sales staff, it will ensure the interests of enterprises, timely product reimbursement and strict management, the more important is the timeliness and accuracy of market information collection and feedback (Schwartz, Martin L., 2007: 76-85). China's current marketing of cosmetic products have been out of the planned economy model, flexible means of marketing emerge in department stores, monopolized shop, supermarkets (including hypermarkets), counters, beauty shops, chain stores and networks. Generally speaking, the overall production of China's cosmetics market develops rapidly and its efficiency continues to grow, showing a great potential, but the intense competition is particularly reflected in the fight for customers through terminal sales (Yin Xiaoli, 2007: 121).
Amway and Avon are two major competitors of Mary Kay.
The brand strategy that Amway uses is a multi-brand strategy. It has different brands in different areas. Multi-brand strategy also means that the company need to make more efforts and cost more to carry out management and planning, from a cost point of view, is a big problem. However, relying on the brand –Amway, different sub-brands have gained rapid development. Amway's multi-brand strategy benefit itself in three main areas: first, there is a clear market segments which is easy for product promotion; second, it cannot only reflect Amway’s strength, but also show to a certain extent that Amway is a modern enterprise which attaches importance to scientific research; third, it can carry out adjustment according to different regional markets.
Currently, Avon was the first cosmetics company to be granted a direct selling license in China (?). In 2001, it was appraised as one of ‘the world's 100 most valuable brands’ by the United States Business Week (Yao, Q., 2007: 114) and it is the only cosmetic brand one selected. When it entered into the Chinese market in 1990, Avon has developed in China for 14 years; it has also experienced the ups and downs of China's direct selling market. In 1998, Avon was forced to transform to adopt the business model of a combination of stores and promotion. From Avon’s brand strategy it can be seen that its corporate brand and product brand are the same, this overlap brand strategy is suitable for the market position of focusing on a particular market, like Avon, which has established the concept in the hearts of consumers’ that Avon is equal to cosmetics.#p#分頁標題#e#
Today, the most successful direct selling companies operating in China are Mary Kay, Amway, Avon and other companies. These cosmetic companies are from the United States, their business model is direct marketing, their direct sales models are similar and their upgrade mechanisms are also similar, but Mary Kay is a professional in area of women’s skin care. The image Mary Kay has always established is completely different from Avon’s and Amway’s, it is a successful woman's perfection and grace, and it emphasizes the corporate culture of services for women’s building up their own businesses, which is also its original idea.
2.7 Summary of literature Review
The above studies have shown that China's cosmetics market is tempting, but Mary Kay faced with fierce competition from Avon, Amway and other large companies. Mary Kay's unique direct selling and encouraging women to establish their own business adapt to Chinese traditional culture and the Chinese women's roles, which help Mary Kay to achieve success in China as well as gain an advantage in competition. However, there is a lack of evidence of empirical research in the above studies to provide the overall assessment and analysis on Mary Kay's marketing strategy, this dissertation will use empirical research methods to critically analyze Mary Kay's marketing strategy in China in the following chapter.
Literature Review格式樣本-怎么寫好完美的文獻綜述?.文獻綜述寫作范文參考References
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Buell, Victor P. (1954) ‘Door-to-door selling’ Harvard Business Review, vol. 32, May-June, pp. 102-109.
Caballero, Marjorie. (1986) Direct marketing, Washington: Research Publishing, pp. 77.
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Raymond, Mary Anne and John F. Tanner, Jr. (1994) ‘Maintaining customer relationships in direct sales: stimulating repeat purchase behavior’, Journal of Personal Selling & Sales Management, 14, September, pp. 34-67.#p#分頁標題#e#
Roche, Imelda. (1995) ‘Managing a direct selling organization’, in T. R. Wotruba (ed.), Proceeding of the international academic symposium on direct selling in central and eastern Europe, Washington, DC: Direct Selling Education Foundation, pp. 231-237.
Schwartz, Martin L. (2007) ‘Direct selling: a multinational strategy’, Journal of Marketing Channels, vol. 2, no. 2, pp. 76-85.
Su Hong, (2004) Gender of multi-perspective view. Shanghai University Press, pp. 321.
Sun Xiaohong. (2007) History and women's Composition. PhD Thesis of Chinese Text Databases, pp. 124.
Yao, Q. (2007) ‘The development of direct selling in China’, Market Weekly, vol. 12, no. 3, pp. 114-117.
Yao Xianguo. (2005) Analysis on the status of women. Zhejiang, University Press, pp.434.
Yin Xiaoli. (2007) Confucian cultural traditions and women's status. PhD Thesis Chinese Text Databases, pp. 121-212.
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