MARKETING MANAGEMENT IN CHINA
Chapter
3
Scanning the Marketing
Environment and
Capturing 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
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 and Demographics
• Population growth
• Population age mix
• Ethnic markets
• Educational groups
• Household patterns
• Geographical shifts
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
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