Executive Insights: Marketing Strategy in Emerging Markets: The Case of China

Abstract

The Chinese market's attractiveness to international marketers has recently received a significant boost as a result of the country's admission into the World Trade Organization. Membership in the World Trade Organization requires trade barriers to be reduced and new sectors of the economy to be opened to foreign firms according to a predesignated timetable, which in turn will make this most populous country a promising market for marketers. Despite these positive developments, acquiring reliable information and, in particular, the understanding of the market presents big challenges to the development of a viable Chinese marketing strategy. In this article, the authors explore barriers to information acquisition in China and focus on the need to understand crucial dimensions of the operating environment with respect to internal protectionism, relationship development, the diversity of the market, and competitive contexts.