Sunday, February 3, 2013

Chinese Business and Economic






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.


In general, the principle of ‘marketing’ in business-to-business markets is less widely recognised in China than in more mature markets. 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. In short, marketing is defined by many in Chinese businesses as consisting of only the ‘promotion’ element of the 4 Ps. ‘Product’ is the job of engineers, ‘price’ the job of salesforces and ‘place’ the job of senior management. At worst, marketing departments are derided as ‘spending departments’, their apparently superficial output seen as a poor substitute for the relationships that are so important in a Chinese business environment.
 
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 is fact: firstly, the entrepreneurial spirit of the Chinese people, and secondly the great importance placed on relationships in business decision-making. 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, that is exhibitions and conferences, email, website, online media, face to face meeting, phone calls, post and networking. if China is to implement all the business preformance, I think in a few decades, the economy in china can be greater than in America.