the International Marketing arena | My Assignment Tutor

www.derby.ac.uk/businessSensitivity: InternalMarketing across CulturesWeek 4 – the International Marketingarena and culturewww.derby.ac.uk/businessSensitivity: Internal▪emergence of a more open world economy▪globalisation of consumer tastes▪greater inter-dependence and inter-connection of nationaleconomies across the worldThe International Marketing scenario:www.derby.ac.uk/businessSensitivity: InternalThe International Marketing scenario:Marketers (and marketing students) therefore need to:▪understand the concept of international marketing▪appreciate the complexities of marketing internationally▪develop skills to respond to the changeswww.derby.ac.uk/businessSensitivity: Internal▪But involves :– making multiple marketing mix decisions across nationalboundaries– coordinating manufacturing facilities and marketingstrategies across the globe▪And may operate at any one of the followingthree levels:The same marketing principles apply whetherfrom a domestic or international perspectivewww.derby.ac.uk/businessSensitivity: InternalExport marketing:• the organisation markets its “offering” across national andpolitical borders from the domestic base using resources such asexport companies; agents in the destination country• Adaptations to goods/services are rare and/or minimal• Implications of risk, control, involvement, cost?Doole, Lowe and Kenyon 2016 pp4-6www.derby.ac.uk/businessSensitivity: InternalInternational marketing:• the firm has activities, interests or operations in more than one country• there is marketing influence from outside the country where theoffering is sold• Implications of risk, control, involvement, cost?Doole, Lowe and Kenyon 2016 pp4-6www.derby.ac.uk/businessSensitivity: InternalGlobal marketing:• the whole organisation focuses on selecting and exploitingglobal marketing opportunities• positions resources around the globe with the objective ofachieving global competitive advantage• Implications of risk, control, involvement, cost?Doole, Lowe and Kenyon 2016 pp4-6 $83bn2015 www.derby.ac.uk/businessSensitivity: InternalSocio/CulturalLanguageReligionAestheticsValues/attributesSocial organisationMaterial culturePoliticalOperational restrictionsDiscriminatory restrictionsPhysical actionsFactorsInfluencingInternationalMarketingLegalLocal domestic lawsInternational lawHome domestic lawTechnologicalSatelliteCommunicationsInternetWWWWifiEconomicDeveloped economiesEmerging economiesLess developedeconomiesCurrency movementsSustainabilityGovernanceCommunityWorkforceEnvironmentMarketplaceDoole, Lowe and Kenyon 2016 p7www.derby.ac.uk/businessSensitivity: InternalThe “Big Mac” Indexwww.derby.ac.uk/businessSensitivity: InternalDiversity of Stakeholder Interestwww.derby.ac.uk/businessSensitivity: InternalThe Challenges of the InternationalMarketing Environment #1• Culture– Often diverse and multicultural• Markets– Widespread and sometimes fragmented• Data– Difficult to obtain and sometimes expensive• Politics– Regimes vary in stability, political risk becomes animportant variablewww.derby.ac.uk/businessSensitivity: Internal• Governments– Can be a strong influence in regulating importers and foreignbusiness ventures• Economies– Varying levels of development• Finance– Many differing finance systems and regulatory bodiesThe Challenges of the InternationalMarketing Environment #2www.derby.ac.uk/businessSensitivity: Internal• Stakeholders– Commercial, home country and host country• Business– Diverse rules, culturally influenced• Control– Difficult to control and co-ordinate across marketsThe Challenges of the InternationalMarketing Environment #3www.derby.ac.uk/businessSensitivity: InternalInternational Marketing Strategies: Success and FailureFailures arise from:– inability to find right market niche– unwilling to adapt products– products not perceived as sufficiently unique– vacillating commitment– assigning the wrong people– picking the wrong partners– inability to manage local stakeholders– mutual distrust/lack of respect between HQ &management– inability to leverage ideas to all countrieswww.derby.ac.uk/businessSensitivity: InternalInternational Marketing Strategies: Success and FailureSuccess comes from:– ability to find right market niche– willingness to adapt products– products are perceived as sufficiently unique– consistent commitment– assigning the right people– picking the right partners– ability to manage local stakeholders– mutual trust/respect between HQ & management– ability to leverage ideas to all countrieswww.derby.ac.uk/businessSensitivity: InternalA Cultural Framework (Terpstra, Foley and Sarathy, 2008)culturereligionvaluesattitudeseducationsocialorganisationstechnology &material culturelaw & politicsaestheticslanguagewww.derby.ac.uk/businessSensitivity: InternalReligion•Will affect the food people eat•When they eat it!•When they holiday!•Views on alcohol•Islamic views on “comparative” advertising•What is seen as “Haraam” (unlawful)e.g. alcohol and cheating•What is seen as “Halal” (permissible)•What is seen as “Makrub” (distasteful, discouraged, but not unlawful)e.g. smokingA Cultural Framework (Terpstra, Foley and Sarathy, 2008)www.derby.ac.uk/businessSensitivity: InternalValues and attitudes•The importance (or not) of:– time– achievement– work– wealth– risk taking– traditional motivation/incentive techniquesA Cultural Framework (Terpstra, Foley and Sarathy, 2008)www.derby.ac.uk/businessSensitivity: InternalEducation•Links between levels of formal primary and secondary education andthe “sophistication” of the target customer, impacting upon, forexample:– degree of literacy will affect packaging and labelling effectivenessas a communication tool– developed countries primarily rely on advertising/printed matter– lesser developed: training and educational programmes(ICI Pesticides in LDCs, Tetanus prevention in Borneo)A Cultural Framework (Terpstra, Foley and Sarathy, 2008)www.derby.ac.uk/businessSensitivity: InternalSocial organisations•How a society organises itself, e.g:– the importance of kinship– social institutions– caste and status system– the role of women in the particular society– social status– house ownership or rental (UK v Switzerland,N.Europe)A Cultural Framework (Terpstra, Foley and Sarathy, 2008)www.derby.ac.uk/businessSensitivity: InternalTechnology and material culture•The local market’s ability or willingness tohandle modern technology, e.g:– leaving freezers plugged in overnight– servicing cars that have not yet broken down•Marketers choice – either “educate” thepopulation or “de-engineer” the productA Cultural Framework (Terpstra, Foley and Sarathy, 2008)www.derby.ac.uk/businessSensitivity: InternalLaw and politics•Legal and political systems represent what is anacceptable form of behaviour, and may vary by culture ,e.g:– views on the legality of piracy, intellectual property andbribery– political insensitivity (“The future’s bright, the future’sOrange” – the colour orange will alienate the northern halfof Ireland)A Cultural Framework (Terpstra, Foley and Sarathy, 2008)www.derby.ac.uk/businessSensitivity: InternalAesthetics•The local culture’s perception of what representsbeauty, good taste and design – i.e. what “appeals” tothe consumer e.g:– colour – see Doole and Lowe Illustration 3.1.p70 e.g. white:= natural, pure and happy in the UK and USA= joy and fertility to Bedouin people= death in Japan– music– architecture– brand namesA Cultural Framework (Terpstra, Foley and Sarathy, 2008)www.derby.ac.uk/businessSensitivity: InternalLanguage•The key to understanding and empathy (ormisunderstanding and conflict):– spoken language (tone, volume, speed)– silent language (body language, silences, socialdistance, gestures, expressions)A Cultural Framework (Terpstra, Foley and Sarathy, 2008)www.derby.ac.uk/businessSensitivity: Internal•Bangkok Dry Cleaner: “drop your trousers here for best results here”•Budapest zoo: “do not feed the animals. If you have any suitable food,give it to the guard on duty”•Kenyan zoo: “please do not put your hand in orphan’s mouth or risklosing a finger”•Airport: “give foreign currencies in the charity box for especiallydifficult children”•Airport: “if you are stolen, call the police at once”A Cultural Framework (Terpstra, Foley and Sarathy, 2008)“Speaking or writing in another language can be a risky business”Doole, Lowe and Kenyon (2016 p72)www.derby.ac.uk/businessSensitivity: InternalNext week……The International Trading Environment

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