Marketing and company performance of Chinese small firms in Mainland China: a preliminary study

Abstract

This paper reports the survey results of marketing practices of 87 Chinese small firms in Mainland China. The findings suggest that the broad small firm marketing principles, though specifically generated from the Western countries, contribute to the success of Chinese small firms in China. Interestingly, however, the specific marketing practices of these small firms are different from those of their British counterparts. Research results indicate that higher‐performing Chinese small firms adopt the customer orientation, use a proactive approach in strategic planning, are aware and make use of marketing planning tools, adopt long‐term profit objectives, participate actively in new product development, and introduce new ways of doing business. Also, the higher‐performing Chinese small firms have well‐organised marketing organisation and encourage free communication flow and interaction among employees. To have better control over marketing activities, higher‐performing Chinese small firms frequently use marketing control devices. Thus, care should be taken before making generalisations about marketing in Western situations and in assuming that marketing tools and techniques are equally applicable across all locations.

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