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.”