Topic Social and Cultural Environments

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Information derived from each phase, market research and performance.

Phase one Preliminary analysis and screening: matching company/country needs

Phase two Adapting the marketing mix to target markets

Phase three Developing the plan

Phase four implementation and control

Environmental uncontrollables, company character, and screening. Host country (s) constraints Company character

Matching mix requirements Product Price Promotion Distribution/place Physical Evidence People Process

Marketing plan development Situation analysis Objectives Strategic options Tactics Budget Action programmes

Implementation, evaluation, control

Objectives and standards Assign responsibilities Measure performance Corrective action

The International Marketing Planning Process.

Task of Global Marketers

Study and understand the country cultures in which they will be doing business Incorporate this understanding into the marketing planning process

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Introduction
It is not just speaking a common language. It is sharing a culture and understanding friendships in the same way Juan Villanonga Former Chairman of Telefonica

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Society, Culture, and Global Consumer Culture

Culture Ways of living, built up by a group of human beings, that are transmitted from one generation to another Culture is acted out in social institutions Culture has both conscious and unconscious values, ideas and attitudes Culture is both material and nonmaterial
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Society, Culture, and Global Consumer Culture

Culture is the collective programming of the mind that distinguishes the members of one category of people from those of another. - Geert Hofstede

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Society, Culture, and Global Consumer Culture

Global consumer cultures are emerging
Persons who share meaningful sets of consumption-related symbols Pop culture; coffee culture; fast-food culture

Primary the product of an interconnected world

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Attitudes, Beliefs and Values

Attitudes - learned tendency to respond in a consistent way to a given object or entity Belief - an organized pattern of knowledge that an individual holds to be true about the world Value - enduring belief or feeling that a specific mode of conduct is personally or socially preferable to another mode of conduct

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Religion
Religion is one important source of societys beliefs, attitudes, and values. The worlds major religions include: Buddhism, Hinduism, Islam, Judaism, and Christianity.
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Religion

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Aesthetics
The sense of what is beautiful and what is not beautiful What represents good taste as opposed to tastelessness or even obscenity Visual embodied in the color or shape of a product, label, or package Styles various degrees of complexity, for example are perceived differently around the world
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Dietary Preferences
Would you eat..
Reindeer (Finland) Rabbit (France) Rice, soup, and grilled fish for breakfast (Japan) Kimchi - Korea Blood sausage (Germany)

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Language and Communication

Linguistic Category Language Example
English has relatively fixed word order; Russian has relatively free word order
Japanese words convey nuances of feeling for which other languages lack exact correlations; yes and no can be interpreted differently than in other languages. Japanese does not distinguish between the sounds l and r; English and Russian both have l and r sounds. Russian is a highly inflected language, with six different case endings for nouns and adjectives; English ahs fewer inflections.

Syntax
Semantics

Phonology Morphology

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Language and Communication

Verbal Cues Nonverbal cues or body language

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Marketings Impact on Culture

Universal aspects of the cultural environment represent opportunities to standardize elements of a marketing program Improved communications have contributed to a convergence of tastes and preferences in a number of product categories

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Marketings Impact on Culture

Movement has 70,000 members in 35 countries Slow food is about the idea that things should not taste the same everywhere.

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High- and Low-Context Cultures

High Context
Information resides in context Emphasis on background, basic values Less emphasis on legal paperwork Focus on personal reputation

Low Context
Messages are explicit and specific Words carry all information Reliance on legal paperwork Focus on non-personal documentation of credibility

Saudi Arabia, Japan

Switzerland, US, Germany

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High- and Low-Context Cultures

Factor/Dimension Lawyers A persons word Responsibility for Organizational error Space High Context Less Important Is his/her bond Taken by highest level Low Context Very Important Not reliable get it in writing Pushed to the lowest level

People breathe on each Private space maintained other

Time
Competitive Bidding

Polychronic
Infrequent

Monochronic
Common
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Hofstedes Cultural Typology

Power Distance Individualism / Collectivism Masculinity Uncertainty Avoidance Long-term Orientation

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Self-Reference Criterion and Perception

Unconscious reference to ones own cultural values; creates cultural myopia How to Reduce Cultural Myopia:
Define the problem or goal in terms of home country cultural traits Define the problem in terms of host-country cultural traits; make no value judgments Isolate the SRC influence and examine it Redefine the problem without the SRC influence and solve

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Diffusion Theory
The Adoption Process Characteristics of Innovations Categories of Adopters

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Marketing Implications
The topics in this chapter must be considered when formulating a global marketing plan Environmental Sensitivity reflects the extent to which products must be adapted to the culture-specific needs of different national markets

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Environmental Sensitivity

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Looking Ahead to Chapter 5

The Political, Legal, and Regulatory Environments of Global Marketing

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Social Institutions
Family Education Religion Government Business These institutions function to reinforce cultural norms
Return

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Material and Nonmaterial

Physical components of culture Objects Artifacts Clothing Tools Pictures Homes
Return

Subjective or abstract culture Religion Perceptions Attitudes Beliefs Values

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Aesthetics and Color

What do you associate with Red? With white?

Active, hot, vibrant Weddings in some Asian cultures Poorly received in African countries
Return

Purity, cleanliness Death in parts of Asia

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Phonology in action
Colgate is a Spanish command that means go hang yourself Technology implications for Text messages
8282 means hurry up (Korea) 7170 means close friend (Korea) 4 5683 968 means I Love You (Korea)

Return

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The Adoption Process

The mental stages through which an individual passes from the time of his or her first knowledge of an innovation to the time of product adoption or purchase
Awareness Interest Evaluation Trial Adoption

Return

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Characteristics of Innovations
Innovation is something new, five factors that affect the rate at which innovations are adopted include
Relative advantage Compatibility Complexity Divisibility Communicability
Return

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Categories of Adopters
Classifications of individuals within a market on the basis of their innovativeness. Five categories Innovators Early Adopters Early majority Late majority Laggards
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Categories of Adopters

Return

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Class Exercise
Divide the class into 2 groups One is in favor of launching Vicks Vaporub to Russian Market Other is in favor of launching it to Australian Markets

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