A descriptive study of the marketing practices of Chinese private entrepreneurs

Abstract

PurposeThis study is designed to describe the marketing practices of private entrepreneurs in mainland China.Design/methodology/approachPersonal interviews were conducted with 200 private entrepreneurs in China. A structured survey instrument was used and data were analyzed using SAS tools.FindingsFour key findings: Chinese entrepreneurs focus primarily on reaching an industrial client base among private companies in China; their marketing practices suggest that they prefer tight control over their operations; they use listed prices extensively and salespeople are typically given some flexibility in deviating from those listed prices; the development of sales/distribution networks is enhanced through the use of listed prices but is hurt by the flexibility salespeople have in deviating from those listed prices. Some marketing practices differ by geographic location of the entrepreneurial firm (Beijing, Shanghai, Guangzhou) and by the type of entrepreneur (returnee, local).Research limitations/implicationsIt is imposible to offer a clear reference point for Chinese entrepreneurs; hence, apart from documenting their practices, it is not certain whether these practices are significantly different from others. All data are self‐reported (including financial performance). Sampling frame: although every attempt was made to have a representative sample, there was no way to guarantee this. More comprehensive research to validate the findings is needed.Originality/valueThe major contribution is insights into the marketing practices of Chinese entrepreneurs so far not documented in the literature. Hence, this study gives a descriptive but comprehensive picture of Chinese entrepreneurs as marketers.