How Marketing Strategies Differ When Operating in China Versus the West'
论文作者:Ang Swee Hoon论文属性:调研报告 Research Proposal登出时间:2007-07-19编辑:点击率:3989
论文字数:826论文编号:org200707190908396130语种:英语 English地区:中国价格:$ 22
关键词:
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
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