The Australia China Business Council (ACBC) is the peak business association for developing business and trade between Australia and China. The organisation has state-based branches operating across Australia to facilitate trade and business opportunities between the two countries.
This morning I was invited to deliver a workshop for the Perth Branch of the Australia China Business Council, where we discussed the marketing foundations required for Australian businesses to establish and develop a market presence in China. As a market, China is rapidly increasing in sophistication, meaning Australian businesses need to be strategic in how they enter China and build market demand.
Australian businesses need to adopt a good governance approach to marketing to instil the strategic rigour required to develop China as a potential market. Businesses need to manage potential risks by quantifying target markets, understanding purchase decisions and competitor intensity. Marketing roles need concise position descriptions to ensure there is suitable capability to develop new markets and opportunities. China’s population of 1.4 billion is significantly larger than Australia but requires segmenting and defining to build suitable target markets engaged through multifaceted marketing campaigns.
Developing new markets requires resources to build market potential. Marketing Governance embeds an understanding of the budgetary resources needed to develop new markets, as well as forecasting the potential return on investment. Australian businesses need to be aware of these factors to determine the potential results when entering China.
Understanding marketing metrics is imperative when entering a new market. Building awareness is the first stage in creating potential demand. Awareness activities consist of several marketing tactics that to build brand preference and purchase intent. The inputs that build brand awareness need to correlate to the output of purchase preference leading to outcomes in customer acquisition and potential re-purchase behaviour. Understanding the chain of activities required to build a customer base is essential to being able to measure progress and market penetration.
China is rapidly growing in sophistication and Australian businesses need to build their marketing capability and capacity to realise the market potential that exists across China.