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MARKETING MANAGEMENT IN CHINA. Scanning the Marketing Environment and Capturing Markets. Chapter 3. 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.
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MARKETING MANAGEMENT IN CHINA Scanning the Marketing Environment and Capturing Markets Chapter 3
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. Contents
Find Market Opportunities Marketers find many opportunities by • identifying trends • identifying megatrends
Environmental Forces Demographic Political-Legal Economic Technological Socio-Cultural Natural
Economic Envrionment GDP in 2012: USD8243 billion, 7.8% FDI in 2012: USD112 billion Foreign Exchange Reserve in 2012: USD3.3 trillion Total Trade Volume in 2012: USD3866.7 billion Richer Chinese People:More Purchasing Power
Natural Environment Shortage of raw materials Increased energy costs Anti-pollution pressures Climate Change Green Marketing Opportunities
Population growth Population age mix Ethnic markets Educational groups Household patterns Geographical shifts Population and Demographics
Social-Cultural Environment Confucianism(humaneness, loyalty, filial piety, trustworthiness) Taoism social roles of women Consumerism CSR
Technological Environment Pace of change Opportunities for innovation Varying R&D budgets China: From Factory to R&D Center
Political-Legal Environment Political stability Increase in business legislation
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
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? Case Study