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How Marketing Strategies Differ When Operating in China Versus the West' The paper by Ho and Perry, titled "Strategic Marketing Planning for China by Western Firms in Hong Kong: An Initial, Comparative Investigation", provides an interesting case study of how six Western firms in Hong Kong develop their strategic marketing plans for their China operations. Managers from these firms were interviewed on nine issues, five of which were related to market segmentation and one for each element of the marketing mix. These issues raised were: 1. Is marketing research as important a foundation for strategic marketing effectiveness as it is in the West? 2. Is planning longer-term different from the West? 3. Is the approach evolutionary rather than revolutionary compared to the West? 4. Does strategy emphasise long-term relationships with and among consumers (for example, by offering after-sales service) more than in the West? 5. Is market segmentation of consumers in China more difficult than in the West? 6. Are product line strategies different from those in the West? 7. Do strategies allow for less flexibility in price than in the West? 8. Will promotion strategies which Western firms can exercise within distribution channels in China be similar to those used in the West? 9. Are the choice of institutions and levels of channels in China different from those in the West? Ho and Perry argued that there should be differences in these issues because of cultural differences and marketing systems between the West and China. For instance, in terms of culture, the West favours individualism, small power distance, future-orientation, and a mixture of good and evil. In contrast, the Chinese culture is characterised by collectivism, large power distance, Confucian values such as continuity, and harmony with others. The marketing systems operating in the West and China are also different. In the West, several bases for market segmentation are used, there is more flexibility in product and pricing strategies, promotional strategies can be implemented easily, and there are several levels of distribution. The Chinese marketing system, however, segments the market in a limited way, and has planned product and price strategies, and few levels of distribution. Their findings showed that on six of the nine issues, practices between the West and in China were different. These were: Importance of market research. Market research is valued less inChina than in the West because of the lack of reliability in the former. The managers indicated that the most common market information tool they use in China was personal observation. Time horizon for developing strategic marketing plans. Strategic planning for China took longer than in the West, lasting one to three years, compared to one year in the West. This is due in part to the need to develop relationships and networking in China. Long-term relationships with consumers. Chinese consumers were observed to be more brand loyal than those in the West, reflecting the cultural orientation of continuity. Difficulty of market segmentation. Market segmentation in China was found to be more difficult than in the West. More simplistic segmentation bases were used, including urbanisation and income. Flexihility in price setting. The state-control of pricing policies was extended to Western firms operating in China, especially for industrial goods. The choice of institution and t