marketing in china pt 3 of 7

Marketing In ChinaA review of Culture, Trends, and Strategies for non-Chinese

Brands.

Table of Contents

China’s Market 3 E-Commerce & M-Commerce 101

Marketing Differences in China 9 Social Media in China 118

Chinese vs. Western Companies 13 Chinese Culture in Marketing 130

How to Target Chinese Companies 24 Targeting Chinese Markets 141

Communication to Chinese Businesses

51 Works Cited 156

Strategies for the Chinese Market 88

Communicating to Chinese BusinessesA review of what to convey and how to approach Chinese businesses.

Western Businesses:What Messages must be Communicated?

Any marketing campaign should have the target market’s needs at its core of its communication

It is essential to consider what Chinese businesses may require from potential suppliers

Western Businesses:What Messages must be Communicated?

Main Chinese Requirements from Western Businesses (Other Than Price)

Image from authors at b2binternational.com

Western Companies:How Well are they Communicating?

There is room for improvement for the way Westerners communicate with potential Chinese customers

Westerns need to think about how well their message corresponds to what the target market wants to hear

Western companies are seen as synonymous with high quality and professionalism, but also as companies that are inflexible


Decision Making in the West

Decision Making in China

Images from authors at b2binternational.com


Unwillingness to Negotiate

The tendency to define the customer’s needs and how to meet those needs happen concurrently can make Western companies feel unsure about negotiations

Many try to resolve this by insisting on more structured negotiations


Unwillingness to Negotiate

The Chinese approach to completing deals usually involves many rounds of negotiation

Often involving a large number of people from different levels within an organization in the process

Contracts are often redrawn several times before a final agreement is in place

Being Successful in China:Tips-Remember the Marketing

BasicsProduct, price, place and promotion are all importantAll should be researched before and after market entry to ensure that the value proposition meets and continues to meet the target market’s needs

PatienceRequired when marketing in the local marketThe sales process is longer and more complex than in Western marketsLocal buyers will take time to be convinced that a Western company has the ‘local’ credentials to meet their needs

ListenIn order to understand and meet the local market needs companies must listenChinese companies do not want a product or service that has come straight off a shelf in the West

Compiled from authors at b2binternational.com

Being Successful in China:Tips-

RelationshipsDo not over-focus on relationshipsSales Personnel must be prepared to be ‘friends’ with potential suppliers-this is as well as, not instead of the 4 Ps of the marketing mix

Be confident in your quality

Focus on the value you addbe prepared to explain why you can add value in China specifically

Be methodical When being methodical turns into a dogma about how business should be done, Chinese companies quickly lose interestHowever, highlight the methodical nature of your offering- this is something that is valued by Chinese businesspeople


Being Successful in China:Tips-

Be flexible Be as flexible as possible on issues such as product, service, payment terms and price Foreign companies should identify and meet Chinese customers’ real needs rather than assuming Chinese needs mirror those in the WestBe prepared for plenty of Negotiations

It is almost inconceivable that a first proposals will be acceptedBuyers may also be deliberately benchmarking suppliersReserve sufficient margin for further price reductions at a later stage

Avoid exaggerationDon’t exaggerate to make up for perceived deficiencies- Focus on the credentials Chinese companies want to trust their suppliers and wont do business with those they don’t


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Works Cited

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Cecilia. "China Online Shopping Accounted for over 10% of Total Retail in Q1 2015." China Internet Watch. Incitez Pte. Ltd., 17 June 2015. Web. 28 Jan. 2016. <http://www.chinainternetwatch.com/13444/online-shopping-q1-2015/>.

"Chinese Lucky Numbers And Unlucky Numbers." China Travel. China Highlights International Travel Service Co., Ltd, 14 Oct. 2015. Web. 28 Jan. 2016. <http://www.chinatravel.com/facts/chinese-lucky-numbers.htm>.

"Chinese Meaning of Numbers." Www.whats-your-sign.com. N.p., n.d. Web. 28 Jan. 2016. <http://www.whats-your-sign.com/chinese-meaning-of-numbers.html>.

Gao, Kane. "Avoiding Insult and Injury when Using Color in China." Illuminant. Illuminant (HK) Limited, 17 Jan. 2011. Web. 28 Jan. 2016. <http://www.illuminantpartners.com/2011/01/17/color/>.

Harrison, Matthew, and Mark Hedley. "Marketing and Selling to Chinese Businesses." B2B International. N.p., n.d. Web. 28 Jan. 2016. <https://www.b2binternational.com/publications/chinese-marketing-selling/>.

Jacob. "Color Symbolism in Chinese Culture: What Do Traditional Chinese Colors Mean?"Color-Meanings.com. N.p., n.d. Web. 28 Jan. 2016. <http://www.color-meanings.com/color-symbolism-in-chinese-culture-what-do-traditional-chinese-colors-mean/>.

Kemp, Simon. "Marketing in China: a Five-step Guide | Media Network | The Guardian." The Guardian. N.p., 6 Oct. 2015. Web. 28 Jan. 2016. <http://www.theguardian.com/media-network/2015/oct/06/marketing-china-social-media-consumers>.

Li, Xunshu. "Find Your Target Customer in China." Freshtrax. Btrax, n.d. Web. 28 Jan. 2016. <http://blog.btrax.com/en/2015/08/03/find-your-target-customer-in-china/>.

Magni, Max, and Yuval Atsmon. "The Power of Word-of-Mouth in China." Harvard Business Review. Harvard Business Publishing, 30 Apr. 2010. Web. 28 Jan. 2016. <https://hbr.org/2010/04/the-power-of-word-of-mouth-in/>.

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Olivier. "5 Business Tips for Search Engine Marketing in China." Marketing China. Gentlemen Marketing Agency, 17 Sept. 2015. Web. 28 Jan. 2016. <http://marketingtochina.com/5-business-tips-for-search-engine-marketing-in-china/>.

Works Cited

Olivier. "Five Ways Social Media is Different in China." Marketing China. Gentlemen Marketing Agency, 14 Sept. 2015. Web. 28 Jan. 2016. <http://marketingtochina.com/five-ways-social-media-is-different-in-china/>.

Olivier. "Storytelling is Your Best Marketing Option in China." Marketing China. Gentlemen Marketing Agency, 22 July 2015. Web. 28 Jan. 2016. <http://marketingtochina.com/storytelling-is-your-best-marketing-option-in-china/>.

On Marketing. "The Biggest Mistakes Most U.S. Marketers Make In China--And How Some Are Learning From Them." Forbes CMO Network. N.p., 4 Mar. 2013. Web. 28 Jan. 2016. <http://www.forbes.com/sites/onmarketing/2013/03/04/the-biggest-mistakes-most-u-s-marketers-make-in-china-and-how-some-are-learning-from-them/#4b8a6c8d4805>.

Philip. "10 Mistakes to Avoid in E-Commerce in China." Marketing China. Gentlemen Marketing Agency, 22 Nov. 2015. Web. 28 Jan. 2016. <http://marketingtochina.com/10-mistakes-to-avoid-in-e-commerce-in-china/>.

Philip. "Social Media in China : 7 Main Differences with Western Countries." Marketing China. Gentlemen Marketing Agency, 19 Oct. 2015. Web. 28 Jan. 2016. <http://marketingtochina.com/social-media-in-china-7-main-differences-with-western-countries/>.

PYMNTS. "China’s M-Commerce Spending Sees Boost In 2015." PYMNTS.com. 1st in Media, LCC, 31 July 2015. Web. 28 Jan. 2016. <http://www.pymnts.com/news/2015/chinas-m-commerce-spending-sees-boost-in-2015/>.

Qiu, Yujun. "Understanding Chinese Consumers." China Business Review. US-China Business Council, 1 July 2011. Web. 28 Jan. 2016. <http://www.chinabusinessreview.com/understanding-chinese-consumers/>.

Sorin, Kay. "Brands Entering Chinese Market Must Appeal to Unique Preferences - Research."Luxury Daily. N.p., 8 June 2015. Web. 28 Jan. 2016. <http://www.luxurydaily.com/brands-entering-chinese-market-must-appeal-to-unique-preferences/>.

Waring, Joseph. "China’s M-commerce to Account for Half of Online Sales Next Year." Mobile World Live. GSM Association, 7 Aug. 2015. Web. 28 Jan. 2016. <http://www.mobileworldlive.com/asia/asia-news/mobile-to-account-for-more-than-half-of-chinas-online-sales-next-year/>.

Warren-Gash, Christopher. "Want To Capitalize On China? You Better Have Good Guanxi."Forbes Entrepreneurs. N.p., 8 Feb. 2015. Web. 28 Jan. 2016. <http://www.forbes.com/sites/languatica/2012/03/15/want-to-capitalize-on-china-you-better-have-good-guanxi/#2715e4857a0b2a147093af4b>.

Wu, Annie. "China Public Holidays, Calendars of China Holidays and Festivals in 2015, 2016."China Highlights. N.p., 22 Jan. 2016. Web. 28 Jan. 2016. <http://www.chinahighlights.com/festivals/china-public-holiday.htm>.