Relationship marketing with a dash of guanxi : the recipe for success for Sino-Swedish business?MBA-thesis in marketing

Abstract: Aim: After discussing marketing issues with representatives from a number of companies established on the Chinese market, we came to the conclusion that it would be interesting and useful to further investigate relationship marketing models from a Swedish perspective when doing business in China.   The aim of the study is to highlight, by examples and experiences from firms dealing with or on the Chinese market, what makes up successful marketing between Swedish and Chinese businesses.   Research question: Is relationship marketing with a dash of guanxi the recipe of success for Sino-Swedish businesses?   The result of successful relationship marketing is a marketing network and it is an important asset for companies today. Competition is not between single business units or entities any more but between marketing networks (Kotler et al., 2006).   To get a full view of relationship marketing between Sweden and China, we have also studied the Chinese culture context.   Method: We interviewed 10 firms in various industries. Common for all respondents is an extensive experience of over 5 years of doing business in China. A questionnaire was used as a foundation for the interviews.   In the analysis findings regarding how the respondents have handled their internationalization process are highlighted. Also how they handle the relationship marketing on a market, where guanxi have been a dominating way of doing business.   Result and conclusions: Relationship marketing with a dash of guanxi is the road that most companies take already today and should take if not yet doing so. As we can see from the study, China is not under as strong influence of guanxi as it used to be. Our respondents offer insights and examples of that Chinese businessmen and women are adapting a more global approach to business negotiations. Operating on the Chinese market requires a relationship marketing approach although it is more personalized to better suit the Chinese culture context.   Suggestions for future research: ' Relationship marketing in China and corruption: how is it handled, avoided, viewed. ' Relationship marketing in Sweden by Chinese firms: How can Chinese firms succeed on the Swedish market? ' Deeper research into relationship marketing strategies for Swedish companies in China. ' Study Swedish firms on the Chinese market today and how they experience the paradoxes mentioned by Fang and Faure (2008).   Contribution of the research: The study offers insights in the actual marketing strategy implementation and how firms with extensive experience from China and the Chinese market approach it.