MARKETING MANAGEMENT IN CHINA Chapter 3 Scanning the Marketing Environment and Capturing Markets.

MARKETING MANAGEMENT IN CHINAMARKETING MANAGEMENT IN CHINA

Chapter Chapter 33Scanning the Marketing Scanning the Marketing

Environment and Environment and Capturing MarketsCapturing Markets

Contents

• Marketing Environment Scanning

• Marketing Insight:

Features of Transforming Market of China

• Marketing in China:

The Rising Trend of China’s Middle Class

• Case Study: Vanke Group Ltd.  

Find Market Opportunities

Marketers find many opportunities by

• identifying trends

• identifying megatrends

Environmental Forces

Demographic

EconomicPolitical-Legal

Socio-CulturalTechnological

Natural

Economic Envrionment

GDP in 2012: USD8243 billion, 7.8% GDP in 2012: USD8243 billion, 7.8%

FDI in 2012: USD112 billion FDI in 2012: USD112 billion

Foreign Exchange Reserve in 2012: USD3.3 trillion Foreign Exchange Reserve in 2012: USD3.3 trillion

Total Trade Volume in 2012: USD3866.7 billionTotal Trade Volume in 2012: USD3866.7 billion

Richer Chinese People：More Purchasing PowerRicher Chinese People：More Purchasing Power

Natural Environment

Shortage of raw materials

Increasedenergy costs

Anti-pollutionpressures

Green Marketing Opportunities

Climate Change

Population and Demographics

• Population growth• Population age mix• Ethnic markets

• Educational groups• Household patterns• Geographical shifts

Social-Cultural Environment

Confucianism （ humaneness, loyalty, filial piety, trustworthiness）

Confucianism （ humaneness, loyalty, filial piety, trustworthiness）

Taoism Taoism

ConsumerismConsumerism

CSRCSR

social roles of women social roles of women

Technological Environment

Pace of change

Opportunitiesfor innovation

Varying R&D budgets

China: From Factory to R&D Center

Political-Legal Environment

Increase in business legislation

Political stability

Marketing Insight

Features of Transforming Market of China: • Enormous

• Changing

• Different

• Risky but lucrative

Special Topic

• Definition of China’s middle class • Who benefits from the rising China’s middle class?

Opportunities for retailers Educational investment Consumer credit Insurance Automobile Luxury goods Airline/travel

Case Study

• Chapter Case: Vanke Group Ltd.  

• Discussion Questions:

1. As a leader in the real estate industry in China, what major marketing strategies did Vanke adopt?

2. How did Vanke identify China’s market demand and capture the market?

Thank You