JAPAN'S MARKET

Things to know - Presentation.2

"3 Great Tips to Master the Japanese Market"

Lecture at The Yomiuri Shimbun New York Media Reception

(Jul. 15, 2009)

Introduction

There are three great tips for mastering the Japanese Market and succeeding in it.
These are the tips you must learn. In order to succeed in the Japanese market, US marketers should:

1. Use media that is trusted
2. Brand the company
3. Realize the unique Japanese business culture: Bottom-Up Decision-Making
These tips are introduced in order in each chapter.

Chapter 1

This chapter talks about what kind of media is trusted in the Japanese market.

 

An advertiser from a home appliance company says"Newspapers are the best media to make our corporate announcements", and goes even further, saying, "It is the social demand." The advertiser knows that it is necessary to express its determination to win the support of the public.

 

Advertisers who are trying to convey their message seriously rely upon newspapers' outstanding credibility in Japan. In the Japanese market, corporate activities come under public scrutiny. That's why advertisers periodically run corporate ad campaigns in newspapers to communicate with consumers, relying upon newspapers' high credibility.

 

Yes, the newspaper is the most trusted medium in Japan due to its high journalistic standards. 79 percent of the public believe the most trustworthy information comes from newspapers. The internet is seen as most trusted by the Japanese public by only 21.1 percent of the public.

Information Credibility by Medium

Information Credibility by Medium

Source: J-READ (multiple answer), Tokyo Metropolitan Area

How about for conveying the advertising message? 58.1% choose newspapers as number one in regards to the credibility of advertisement, and here the Internet is chosen by only 13.7 percent. You can see from these figures that Japanese people are rather conservative.

Advertising Credibility by Medium

Advertising Credibility by Medium

Source: J-READ (multiple answer), Tokyo Metropolitan Area

Newspapers' credibility in Japan has also been built upon its steadily home delivery system. The home delivery rate for newspapers is 75.6 percent in US, but in Japan it is 94.2 percent. But, Yomiuri boasts an even higher home delivery rate, highly 99.4 percent of Yomiuri newspapers are received by home delivery. There is no way that our audience will miss any message from advertisers.

Advertising Credibility by Medium

Source: WAN "World News Trend 2007", Japan ABC (average Jan.-Jun. 2008)

This table shows organizations people most trust in both Japan and the US. Japanese newspapers compete against the US Military as the most trusted organization in each nation. On the other hand, newspapers are ranked in 8th place in the US. This shows the big difference between the US and Japan in how the two societies regard newspapers.

Organizations People Trust

Japan   U.S.A.
(N=1,021)   (N=1,000)
Newspapers(61.1%) #1 Military(77.8%)
Hospitals(54.3%) #2 Church(75.3%)
Courts(53.4%) #3 Hospitals(74.0%)
Self-Defense Forces(46.8%) #4 Prosecutors(65.4%)
Schools(44.9%) #5 Schools(63.7%)
  #8 Newspapers(48.6%)

Source: The Yomiuri Shimbun and Gallup (2007), Telephone survey by Random Digit Dialing (RDD)

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