Patrick Cranley is Managing Director of AsiaMedia Ltd, a strategic
marketing and communications consulting firm serving companies across a
broad range of industries in Asia. He came to China first as a graduate
student in 1986, returning as the China country officer for CIGNA
Corporation in
1995. He founded AsiaMedia in 2001. Fluent in Chinese, Cranley has been
based in Shanghai since 1997, and is a sought-after speaker on modern
Chinese social, political and economic developments.
What were the business objectives for setting up AsiaMedia, and how do you reassess these in your business plan?
WPC: As the owner of an MBA and a veteran of a large, multinational
financial services company, I suppose I should be able to recite the
precise ROI we were looking for over the five-year horizon to IPO. To
be honest, our objective was simply to do what we liked best – helping
companies to visualise their own goals and design strategies to realize
those goals – and to make a reasonable amount of money. By these
measures, we’ve done very well.
What are the primary PR/marketing industry developments in China that you have noticed since launching the business?
WPC: Marketing and public relations are intellectual capital-intensive
activities, and as such are not especially scalable. That’s why the
cost of such services provided by smaller companies and larger ones are
similar. The quality of consulting depends on the creativity,
management skills and communications abilities of the consultants.
Always has, always will. So apart from the obvious changes in
communications tools – the internet, mobile phones and related
technologies – our business remains dependent on a very limited
resource – smart, creative people who are good communicators.
The demand for marketing and communications consulting services in
China, on the other hand, has been developing rapidly. Three main
factors are driving demand: the overall growth of the Chinese economy;
the increasing awareness of the importance to company value of good
marketing and communications; and the shift in the Chinese economy
toward services and brand building. As the Chinese so often put it,
“Prospects for growth are bright.”
You have both Chinese and overseas clients. Where do their requirements and market perceptions differ, and, perhaps, overlap?
WPC: Market perceptions do differ between Chinese and many western
companies, and I think the differences reflect different stages of
economic development. China is in the middle of unprecedented growth
in manufacturing, construction and trade, and business people are in a
rush to “get rich first.” They’ve heard that marketing and
communications are somehow important, but they want to “do it fast and
cheap.” Western economies today are service-oriented, lifestyle-driven
and marketing-savvy, and many of their companies are keenly aware of
the importance of marketing and communications in driving brand and
company value. They make up the bulk of AsiaMedia’s client base today.
More Chinese companies are moving into services and lifestyle-oriented
products, though, and these firms are also in the market for consulting
services to help them succeed. We believe that the basic principles of
good marketing and communications are applicable to any company, in any
industry, in any location. The important things are to have a clear
vision, include marketing and communications in the strategic plan, and
to execute according to the plan. That takes both analytical skills
and creative skills – which are often hard to get into the room at the
same time.
What are the most common mistakes made by foreign businesses in their marketing and public relations strategies in China?
WPC: The most common are (1) not including marketing and communications
in strategic planning, and (2) not budgeting adequately for marketing
activities. This is understandable, since many managers of
foreign-invested enterprises in China come out of the manufacturing or
engineering sides of their businesses and reflexively place
communicating about their product at a lower priority than producing it
for “the China price.” Understandable, maybe, but still a mistake.
And, though it is cliché to say it, cultural and linguistic adaptation
of marketing and communications strategies remains an extremely common
problem for western companies operating in China. Again, this is
understandable, as most western executives lack much background in
Chinese culture and language, but it is still an egregious – and
avoidable – error. A central marketing principal is to look at your
product or service from the perspective of your customer and build your
strategy around appealing to the customer’s thinking and emotions. As
the Chinese say, “If you know your customer’s heart, you will succeed
in business with him.”
Last update : Saturday, 15 September 2007
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(0 vote)
Excellent analysis
By: Pierre GERVOIS (Guest) on 19-09-2007 08:06