subject: How to approach China market: who/where is your target customer? [print this page] How to approach China market: who/where is your target customer?
Just as imagine practicing archery with your eyes closed or throwing a football with a blindfold on, doing business without knowing what your target market is will waste your customer resources, your capital, and your manpower and material resources.
In the past years, the blanket approach of mass marketing was adopted by most companies, but today's industry experts are singing the praises of one-to-one, or relationship marketing. As you know, today's customers are cleverer than ever before. With access to nearly gather any piece of information they want via the Internet, the customers need the trading partner who are willing to help them find real solutions. So, how can you do that? Firstly, you need to know who your customers are; secondly, find out their real needs; and third, provide them with the quality product and services.
One of the priorities is the choice of the China market. The possibility of global distribution makes it necessary to focus on particular markets.
Which market is suitable for my product?
1. You need to realize the general need of a product on particular market. For example, "Don't try to sell fridges to Eskimos".
2. Checking the competition level on this market. An old Chinese saying goes like this: "Know the enemyknow yourselfand in every battle you will be victorious." So, a detailed market research is necessary.
3. You need a price level research: on which market can your product been sold most profitable?
4. You need to improve your personal strength: your own experience and competence referring to particular markets, mentalities and countries.
Besides the need of observing different markets, it is indispensable to analyze the customer, respectively the purchasing company in detail. Without knowing the "target customer", it is impossible to create an effective marketing strategy.
We always think over the following questions: Which is crucial for successful business? What is more profitable for a company? Which one is more important, having several occasional customers or only few loyal customers?
There are some ideas as follow:
1. Please be aware of the difference between a loyal customer and an occasional customer.
2. Please be attentive as it concerns in the question, if a customer already IS or probably could become a loyal customer.
3. You need be always remember the "80/20-rule": 80% of a company's income is usually generated by 20% of loyal customers.
4. You need to realize that occasional customers will usually just move on to the next company, if they can get a slightly better price etc.
5. You should discuss business strategies with your customers at the fair and per email; discuss his market strategies for your product and ask him how you can support him. These discussions will give you a first impression about the professionalism of your partner.
6. Remember to find out what kind of relationship the customer wants to establish with you.
7. You can receive some information at the chambers of commerce about the year of establishment of a company, number of employees etc.
8. The serious customers will always accept common/serious payment and delivery terms.
When you are looking for a target customer, try to develop an instinct for your customers and don't treat all the customers in the same way by referring to a general "company rule". Adjust your company rules in a flexible way according to the importance of your customers and train your staff as it regards this point. Remember, it costs you five times more to gain a new customer (marketing costs, price offers, time etc.) than keeping an old one.
When you are looking for a target market, work out a sales strategy by making market agreements. You need to make a decision: which one do you want to sell, "everybody" or only some stronger exclusive partners. Choose the right customers for your product by asking yourself honestly, which kind of quality your factory can provide, and communicate this key point to your existing or potential customers.
When you want to approach the target customer in China market, you need always to notice the custom and culture, and then you will be more competitive.
At last, there are some general advises as below:
- Try to communicate/look at the situation from the customer's point of view as often as possible! People are easily convinced / pleased if you speak about their advantage, but not by mostly speaking about the counter part's interests.
- Be aware of the "reciprocity-factor": if you provide value service to your customers, they will pay it back by their loyalty; it is virtually impossible to treat customers well, without profiting on your own!
- Be aware, long-term business-relationships are usually only possible with a so called "win-win"-strategy!
- Be aware of the "indirect" and "relationship-oriented" Eastern communication style (in contrary to the "direct" and "fact-oriented" Western communication style).
In the final analysis, no matter which market you what to approach, as long as you are clear about your target market, your business will be much more focused.
