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The peculiarities of marketing strategy development in china ()
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Word Doc
1570
100

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THE PECULIARITIES OF MARKETING

 

STRATEGY DEVELOPMENT IN CHINA

 

 

 

:

 

402

 

 

 

 

:

 

 

 

2003

 

 

ONTENTS

 

1.Introducing3

 

2.Lobbyng5

 

3.Budget offer..8

 

4.Technical discussions...9

 

5.Final offer10

 

6.Formal negotiations.11

 

7.Managerial implications..13

 

8.Conclusions.15

 

INTRODUCING

 

Since the 1970s,when Chinas foreign trade policy was liberalized ,many

Western firms have been very enthusiastic about capturing this market of

over one billion consumers.

 

On average ,throughout the 1980s ,China was visited by one Western

government ad-

 

visor every week.This interest of Western authorities and businesses can

be compared

 

with Western interests in Japan,a far more important trading

partner.Western busines-

 

ses interest in China decreased somewhat after the Tiananmen Square

incident in 1989.

 

However,interest from trade and industry continued ,and increased even

more in the

 

1990s.Lately,West European governments and businesses have also shown

the interests

 

in China.The picture is not much different where American interests in

this market are

 

concerned.In 1980s the trade between USA and China rose to more than US

$ 5 billion

 

In these years,there was great demand in American goods.The trade

relations between

 

the USA and China received a serious set-back after the 1989

incident.But the interest in China,both from the authorities and the

business sector in the USA revived again when

 

it was given the ranking of most-favoured nation (MFN) in the mid-1990s.

 

Since 1979,when the new regulating joint ventures was introduced by the

Chinese government ,there has been a tremendous increase in

joint-venture agreements with

 

agreements with foreign investors.In 1984,China signed 741 equity

joint-venture agreements with foreign investors.By the end of 1987,the

number of enterprises with

 

foreign investment in China exceeded 10,000 with a total coctract value

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