Paul Volcker, chairman of U.S President Barack Obama’s Economic Advisory Board recently said, “(The United States) needs to do a better job at the new industries coming along, the so called green economy.” However, an article from the New Yorker titled “Green Giant” suggests that China has invested in green technologies for decades and already has a significant head start.

Why China and green technologies? Call it a matter of survival. As factory to the world, China is now responsible for a larger carbon footprint than even the United States. And while links between carbon emissions and global warming are debatable, Chinese leaders haven’t taken any chances investing in technologies that are more environmentally friendly such as wind and solar. Moreover, its export heavy led economy needs energy to sustain itself, so renewable energy is definitely a national security imperative.

Strategic planning is often about seeing significant trends on the horizon, making big (and wise) bets and laying the foundation for future dominance. To this point, according to the New Yorker article, as far back as 1986 Chinese leaders saw the beginnings of a “new technological revolution” and started building green capabilities and setting targets for heat and wind turbines, solar panels and hydro-electric dams.

Indeed years of heavy investment have paid off in that China now manufactures “more solar cells than any other country” and has doubled its wind capacity for three years running (2006-2008).

It’s tempting to dismiss the prowess?and progress of China with a vision of cheap goods, backwards factories, inefficient processes and thousands of workers in assembly lines producing with ancient technologies. Yet, in many cases Chinese factories are just as productive, clean, and advanced as Western enterprises, and in some instances the only place a product can be made cost effectively is in China!

There is a sliver of good news, however for Western companies. While the New Yorker article cites China’s ability to scale and mass produce green technologies, much of the innovation and science behind the scenes still comes from the West.

One can only wonder, however, how long this lead in innovation will hold, especially as R&D expenditures, “have grown faster in China than other big country?climbing about 20% per year for two decades to $70B last year.”

Perhaps there’s a future in collaboration between Western countries and China. “Chinese manufacturing and American innovation is powerful,” says Kevin Czinger, a former Goldman Sachs executive. Mr. Czinger calls it the “Apple model” where innovation and know-how is born in the West and execution resides in Asia.

On the other hand, with a just small portion of the overall “value” of a product staying in China, it seems unlikely that China will be content as simply the muscular strength powering the world economy.
Questions:

• Marketers; dominance of green markets isn’t just limited to green energy. Green design, building, packaging, chemistry, and nanotechnologies are also in play. Which areas hold the most promise for Western companies?
• With unemployment levels nearing 12-17% in some US states and cities, the green industry is often seen as a potential panacea. Are Western countries in danger of losing green jobs to developing countries? If so, what’s the remedy?
• How does “green technology” fit in the future of your company?

There are poor in China–and lots of them–as peasants from the countryside struggle with daily hardships and most live “hand to mouth”. And for a country that once frowned on the accumulation of wealth, there are also individuals who are very well off. But a segment of consumers exists in China, just above the hefty niche of factory workers–a middle class–growing in sophistication and disposable income.

To be sure, this middle class is just a segment of Chinese consumers–estimated to be anywhere from 150-300 million, of a total 1.3 billion people. But these individuals are spending and could potentially be the growth engine that delivers the world from its economic doldrums.

To keep their economy humming at a 6-8% growth rate, China has unleashed a $586B stimulus package. A recent Wall Street Journal article cites the implications of this stimulus on China’s economy:

“A torrent of bank lending, spurred by the government, is increasing investment in China. Consumers are out shopping in response to incentives such as lower mortgage rates and tax cuts on car purchases. Auto makers in particular are benefiting. Vehicle sales in China climbed 5% to a record 1.11 million units in March–a tentative turnaround from last autumn, when car sales slowed significantly.”

It’s important to realize that not all of the $586B will be put back into the hands of consumers. In fact, most of the monies will go towards needed infrastructure improvements and healthcare. But a significant portion of the stimulus is helping China’s middle class spend more aggressively. “In China, people still have the money to buy a Mercedes”, said Ulrich Walker, chairman and CEO of Daimler’s northeast Asia operations. We expect a continued positive growth trend.”

To be sure, China’s definition of middle class isn’t the same as in most Western societies. Affluent workers in China’s middle class only earn up to $12,500 (USD) per year. Moreover, many middle class workers are still salting away a significant portion of their salary for housing, healthcare, and schooling–not exactly spending wildly on international brands.

However, as global marketers desperately seek buyers for their products and services, it might be worth a look at the rising incomes and spending power of China’s emerging middle class.

Questions
1. The Chinese head of Nissan Motors says that China’s market is currently the only growing market. Proctor and Gamble says sales in China have slowed, but not as much as other countries. Can affluent and middle class Chinese “save” the global economy?
2. Many multi-national retailers have made significant strides in the Chinese market. Are they placing safe or smart bets (both?) on a growing middle class?
3. Have you identified your growth engine for the next 5-7 years? What/where/who is it? Does China factor in your plans?

Let’s get real! Most B2B decision makers are not present to blogs, podcasts or vlogs, nor are they spending much, if any, time social networking online.
While some believe integrated marketing is a new strategy and are now jumping on the bandwagon as if they discovered the idea that an integrated marketing mix to achieve business goals is the best way to grow a business by getting it and its products and services noticed, savvy marketers have used integrated marketing plans for decades. For them, integrating tools and measuring the results of each tool in achieving company-wide goals are not new nor are these marketers surprised by their effectiveness.
To create, launch and execute on an integrated marketing plan, I recommend the following.
1. Identify your ideal customers and clients. What do they look like (name, title, address, age, gender, industry, networking habits, media they use, wants, needs and desires)?
2. Why will they be interested in your products and services?
3. Why will they buy from you instead of a competitor?
Once you answer those questions with as much detail as possible, you are ready to create measurable goals, strategies and tactics. Here in a very brief form is what that integrated marketing plan might look like:
Goal: To add 10 new clients during the next 12 months.
Strategy: To identify those who represent ideal clients and begin building relationships.
Strategy: To communicate at least monthly with each identified client.
Tactics:
* Attend events where these clients are present, meet them, get their business cards, and ask if they would like to be on your distribution list so that they can receive useful information about solutions for growing their businesses.
* Send every person whose business card you gather a thank you note for talking with you, and then follow-up with an e-mail invite for coffee.
* Create and distribute a monthly newsletter that addresses potential client’s wants, needs and desires and offers solutions to those wants, needs and desires. (I prefer e-newsletters, which offer the recipient the choice to open or delete or unsubscribe. What they do represents good information for us to use as we go forward with this plan.)
* Distribute quarterly thought papers (white papers) to your list that go into depth about a particular challenge your potential clients face. (Again, I prefer e-mail for the same reasons noted above.)
* Create a speaking flier and send it to event program/seminar chairs where your ideal clients might be found (those specifically identified and all who fit the profile). Follow-up with phone calls to the program chair. Accept as many speaking engagements as possible and be sure to notify your potential clients where and when you will be speaking and on what topic. Invite them to attend. If they cannot attend, offer them your notes.
* If you have a blog, be sure to send your URL to all potential clients who fit your profile. I like to attach a sample post so they can see what my blog offers.
* Use social networking (LinkedIn, Plaxo Pulse, etc.) to find contacts who may know the ideal clients you identified, and ask them for information about that client and their business as well as a referral.
The above represents what an integrated plan might look like in its briefest of formats. Questions? Insights?

When I mean bad, I don’t mean they necessarily are poorly run, or are bad to the environment, their employees, or otherwise. We just stop liking them.

(1) New Business, Single Location

An entrepreneur starts a business with hopes of being successful. It does well and is considered special… “a destination.” Customers LOVE it. They drive for miles and wait for hours to get in. Locals add it to their list of “must visit” places when friends and family come to visit. Reviewers laud it.

(2) Simple Expansion

It does so well, the owners open a second location on the other side of town just to keep up with customer demand. Everyone is happy. The third and forth location open… still busy. Word of mouth continues to pack ‘em in.

(3) New Markets!

They open a single location in Chicago, New York City, San Francisco, Boston, Seattle and Miami… Rave reviews. Lines outside the door. They open a few more in each city. Success!
Sometimes this growth can span 50 years (Krispy Kreme Doughnuts started in the 1930s, In-N-Out Burger the late 40s), or a decade (Starbucks grew incredibly in a 15-year period).
Then something starts to happen…

(4) A Shift

A few more locations open… and while they’re providing the same great service and the same great product… sentiment begins to change.
The initial customer group, come less frequently, and eventually… not at all. Their secret place has become too mainstream. Now that this business is in every city, it’s no longer special.
This shift is hard to notice since sales continue to climb as a result of the new wave of customers discovering the business.
And then…

(5) Then Big Becomes Bad

Slight shifts in the way the business operates. Slight automation here. Expansion of offerings there. A few things designed to keep quality and service up with customer volume. These work, but tarnish the brand. Mom and Pop long gone, replaced by “factory.”
This has happened, among others, to McDonald’s, Wal*Mart and more recently Krispy Kreme and Starbucks.
What is to come of our still darling Whole Foods Market and In-N-Out Burger? Whole Foods is in expansion mode…newly opened in the UK. In-N-Out has grown as well, but so far only regionally in the southwest U.S.

• Is something only special when there is scarcity? I know, if Christmas were everyday, it wouldn’t be special.

• Should a company create an artificial cap on its growth to prevent it from being considered common?
• Is the problem going public? Does being driven by shareholders require constant growth even if it means company demise?

What do you think?
What would you do? (Honestly? Would you have the discipline to stop your own growth?)