Marketing and branding in China

The first class was called Marketing in China, but it had little to do with marketing and a lot to do with business development. I was disappointed since there was very little information provided about segmentation or marketing strategy. I think I was less interested in this class since I had already had so many conversations with contacts who do business in China. However, here are some of my learnings:

- It was interesting to learn the extent that China’s use of raw materials heavily impacts the rest of the world. For example, if they import enormous amounts of steel, so the price of steel increases for everyone. It sounds very basic, but it demonstrates that China can impact businesses that don't even consider entering their market.

- At one point the Chinese professor made a statement that slotting fees are, "bad, very bad." During the break, I went to ask for clarification regarding his statement. His response was to tell me a story about a man who owned a business and paid for the slotting fee. He was not able to sell enough of the product and committed suicide. The professor believed that this response answered my question. I then pushed more and asked if it was a matter of which side (manufacturers or retailers) has more power. His response was that retailers are the "big, bad guys" beating down on the little guys. I was surprised that the quality of the product or the marketing of the product was not part of the conversation. This is a different way of looking at that relationship than in the US.

- Best quote about China: “Everything is possible. Everything is different.” -Dr. Dongsheng Zhou

The second class was titled Branding in China. I didn't like the professor's teaching style for this class, and both of these classes made me appreciate some of our Kelley marketing professors that much more. Here are some of my learnings:

-The recent economic reform changed the social classes so that there wasn't a clear division between groups. People began to purchase luxury goods to show that they are from the upper class, and the industry continues to grow. Branding is key because people want to spend money to look good and be respected. (At the same time, anyone in China can see that the black market for fakes has grown as well. What makes a luxury brand a quality product is not common knowledge in this society, so anyone can feel that they can improve their status by purchasing the fake goods.)

- Differentiation is a challenge for companies because of competition. A brand has to compete with international brands that have strong brands and R&D and also compete with domestic competitors who may have cheaper prices and greater distribution capabilities.

- The class made me wonder to what extent can a company can copy another company. For example LiNing built a R&D center in Portland next to its competition, Nike, and hired people from Nike to develop its technology. They worked with a design company that once worked with Nike, but the contract ended. If you click on the website link, you can see how the logo and tagline are also similar to Nike.

- Best response to the phrase "when pigs fly": “Even one typhoon comes, even a pig can fly.” (I don't know if this is a common saying or if the professor came up with it.)