The Auto Industry is significant.
Read more This paper is based on past surveys of Chinese business opinion in the two key cities of Beijing and Shanghai, comprising in-depth interviews with business owners and senior purchasers.
Companies were divided into quotas to ensure a cross-section of different types of manufacturing and service companies. The principal aim of this paper is to dispel some of the myths propagated about Chinese business, and explore the reasons behind both successful and unsuccessful marketing and sales approaches in China.
Chinese Attitudes Towards Marketing And Sales When discussing Chinese attitudes towards marketing and sales, it is important to make the distinction between the different types of companies operating in China.
Marketing staff employed by western multinationals typically have more heightened awareness of marketing concepts than local Chinese companies, often employing expatriates or returnee overseas students with MBAs in senior marketing positions.
With such large variations in marketing practices among different types of companies in China, foreign companies are best advised to take a flexible approach to sales and marketing. Commonly, marketing is viewed as a task for the sales department, its role sometimes viewed as little more than taking care of the company logo and brochures.
Figure 1 — The 4Ps of Marketing In contrast to some Western markets, the salesperson and more broadly the principle of selling are more widely respected in China.
Two issues perhaps lie at the core of this fact: A good salesman must be adept at forging not only relationships, but also friendships with potential customers. The importance of relationship-building tends to imply a long sales process, requiring of salespeople patience, continual learning and an on-the-ground presence.
In order to appreciate how good Western companies are at targeting potential Chinese customers, it is worthwhile considering how Chinese companies prefer to be targeted by potential suppliers.
As in other markets, the answer to this question is that a wide range of marketing and sales techniques can work, and usually a combination of different methods is necessary.
Figure 2 illustrates the general view of the Chinese business community: Figure 2 — Communicating With Chinese Clients Conferences And Exhibitions In many Western markets, conferences and exhibitions are often derided as a waste of time and money.
In Asia, and particularly China, nothing could be further from the truth. In most industries and market sectors, attendance at exhibitions, conferences and similar events can be essential for any company looking to achieve substantial or sustained success in China. Such events are an excellent way of making initial contact with customers, and can also be a good means of moving a potential sales relationship forward relatively quickly.
The events are an opportunity for potential customers to ask questions, and have the advantage of establishing the face-to-face contact which Chinese buyers value so much. More importantly, they help to persuade buyers that companies are committed to the local market, by virtue of the fact that they have physically devoted the time and expense to be there.
All big cities have conference and exhibition centres Beijing has seven, for example and details of their events can be found simply by contacting the centres directly or looking at their websites.
Figure 3 — www. The size and scope of these exhibitions varies greatly, and it is advisable to do some background research before deciding which exhibition to attend. Looking over exhibitor lists from past exhibitions is a useful way of gauging the profile of an exhibition.
Similarly, the location of an exhibition is often significant. While the larger, more influential expos tend to be located in Tier 1 cities such as Beijing, Shanghai and Guangzhou, exhibitions located in Tier 2 and 3 cities are more likely to have a higher proportion of smaller local companies than multinationals.
Similarly, exhibitions located near to industry clusters are likely to have more key industry players in attendance. It is also worthwhile remembering that exhibitions are an indirect form of marketing and seldom result in immediate sales leads in the short term. The benefits of attending such exhibitions can seem frustratingly intangible to Western companies, since there is no way to assess their true impact on sales.
It may be the case that Chinese businesspeople are culturally disposed to over-emphasise the importance of trade shows and exhibitions, although it is also the case that companies that fail to attend key exhibitions can create a negative impression with customers just by virtue of being absent.
Email Email is now the primary means of communication for any Chinese company that regularly deals with foreign customers or suppliers.
Email is extremely important at all stages of the sales process, but particularly at the introduction stage — Chinese buyers tend to react positively to a well-structured, personalised email as a prelude to a more detailed face-to-face discussion. As such, most Chinese companies have a website and are increasingly using online and digital marketing as the principal means through which they communicate with their customers.
An informative homepage is therefore an unmet need that Western companies are well placed to meet. As in Western markets, the huge popularity of such social media in China offers good low-cost and effective promotion and marketing channels for both b2c and b2b vendors. · The success of the Chinese manufacturing industry is due in part to its national competitive advantage as a low-cost manufacturer.
The low production cost and cheap labour has enabled Chinese manufacturing firms to enjoy a strong competitive edge in global attheheels.com://attheheels.com · Likewise, new market entrants should ensure that all trademarks are registered both in English and Chinese, and that any internet domain names are properly registered.
Beyond these legal measures, there are a number of practical measures that foreign companies can attheheels.com Variety seeking behavior and customer derived value An important factor that comes in the study of loyalty is the variety seeking behaviour of the customer.
Both these are assumed to attheheels.com • Threat of Chinese Entrants – What kind of advantage are the Chinese entrants seeking?
How close are they to achieving this advantage? – Can Samsung’s low ‐ cost advantage withstand the Chinese threat?attheheels.com Samsung Electronics (Korean) faces the prospect of large-scale Chinese entry into its DRAM chip business.
Before deciding how to respond it should establish the sources of its competitive advantage. Does the company have a distinct dual advantage of being both low-cost and differentiated?
· Published: Fri, 29 Sep People’s Bank of China seeking a fresh start in after a tough period of restructuring. People’s Bank of China (PBoC) after experiencing a great collapse in June is aiming for a sustainable attheheels.com://attheheels.com