
To Work With Chinese Companies, Gain Access to the CEO and Offer
Marketing Services Beyond Advertising
SHANGHAI,
CHINA (September 7, 2011) -- Global agency networks
increasingly want to work with local companies to expand in China,
but it’s not easy. Chinese companies don’t operate like
multinational firms, they hold varying views on marketing and
branding and they have different needs from agency
partners.
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Western companies “are more
structured,” says Viveca Chan, chairman and CEO of WE Marketing
Group, this week on “Thoughtful China,” but for small agencies like
hers, growing in China depends on building business with local
firms and can lead to wide-ranging, fruitful relationships.
Many ad agencies, for instance, have seen dramatically rising
interest from local companies since the 2008 Olympic Games in
Beijing and the 2010 World Expo in Shanghai, as local firms seek
expansion in the West. At the same time, Chinese advertisers expect
ad agencies to play a role in marketing far beyond normal standards
in overseas markets.
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When WE Marketing Group
works with Chinese companies, “we are always part of their team. We
help them with the positioning, we help them with suggestions in
products and how to build a total brand experience. We get involved
with them in a much bigger way,” Ms. Chan says.
Local companies “are coming to us. We receive
five or six calls every week,” says Bernard Wong, general manager,
Grey Group, Shanghai.” |
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http://www.thoughtfulmedia.com/newsletter/Ep12/Ep112Bernard250.jpgWork With Chinese Companies, Gain Access to the CEO and Offer Marketing Services Beyond Ad" /> |
But winning business from
local companies often depends less on the traditional pitch process
common in the West, says Ellen Hou, head of planning, Greater China
at TBWA Worldwide. “Local clients are very straight forward, very
transparent and they very results oriented. The challenge we are
facing is how to find a different team to work for them. The way
they use the agency is not to find an advertising company but more
like a marketing services partner.”
While Chinese companies tend to be more holistic in their view
towards working with agencies, they are also very top-down in their
management style.
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Chinese
companies “are quite patriarchal,” says Melvyn Goh, Mindshare’s
president, China. “When you sell back to the top [leader], and the
top guy may not have a clear understanding of marketing, you can
waste a lot of time.”
Chinese business relationships are balanced by three cultural
frameworks--traditional, modern and multinational--and balancing
all three requires careful planning.
“Be skeptical when someone talks about ‘the’ way to do business in
China,” says P.T. Black, Thoughtful China’s senior creative
director in Shanghai. Build a repoire with the company’s boss,
build trust through meals and entertainment and build a team with
local experience and understanding.
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http://sailthru.thoughtfulchina.com/72mm.34e/Ti5yf1YZ_iG6Ip79Ce9d2
Thoughtful China - Episode Twelve: “Chinese Companies as
Clients"
Host:
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Trevor Lai - VP
& Director of Client Service,
Identica
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Featured Guest: |
Viveca Chan - Chairman & CEO,
WE Marketing Group |
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Commentator: |
P.T. Black, Senior Creative Director,
Thoughtful China |
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Panel: |
Melvyn
Goh - President, MindShare China
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Ellen Hou - Head of
Planning, TBWA Greater China |
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Bernard Wong - General
Manager, Grey Group, Shanghai
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Episode
Summary: |
To expand in China, global agency networks are trying to
work with local companies. Certainly, it’s not easy. Chinese
companies don’t operate like multinationals and have different
views on marketing and branding, but growing in China depends on
building business relationships with local firms. We’ll examine the
issues facing multinational ad agencies as they try to expand their
business to include local companies alongside multinational
advertisers.
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