Ese international marketing 2013

Massimiliano G. Falcone 1 MICRI VI a.a. 2011/2012 Massimiliano G. Falcone

Massimiliano G. Falcone 2

Organization

Target Mkt

Product

Target Mkt

Mktg Mix

From vision… … to the business concept

Marketing communication and Business strategy

Organization

What?

How?

Who?


Marketing Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others Kotler

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. American Marketing Association

(archaic, until the 1920’s), shopping, going to market

Buying and selling in a market

Marketing


Corporate Marketing & Communication

Market Analysis

& Selection

Entry Mode Strategies

Communication strategies

Stakeholders’ Requirements Analysis

Designing strategic relations and local alliances

Communication strategies

Social, Political, Institutional Marketing & Communication



International Marketing consists of

• finding and satysfying global customer needs better than competition, both domestic and international

• and of coordinating marketing activities with the constraints of the global environment

Target Market


World's Wealth distribution Year 2015 (forecast)

By Global Finance


The Next Eleven



Globalization 2.0

First Half

Falling of Transportation Cost

• Steam Engine

• Rail Road

.


Globalization 2.0 Infrastructure

MICRI VI a.a. 2011/2012



Globalization 2.0 Infrastructure

MICRI VI a.a. 2011/2012


Source C.Altomonte (Bocconi)

0 200 400 600 800

1000

1930-60 Today

(train)

Today

(airjet)

km/h

Average cargo cruising speed

Before 1930s


Falling of Telecommunic. Cost Second Half

.


Brief description of falling costs (Tlc, Transport)


Porter’s Diamond

Factor conditions

• How the national playing field can contribute to the competitive advantage of the industry? (1/6)

• What is nations’ position in terms of factors of production (labour, land, infrastructure, capital, natural resources, etc.)?

e.g., Japan: “an island nation with no natural resources” – invented

JIT to save space


Factor conditions


• Does the home demand gives the companies a clearer or earlier picture of emerging buyer needs?

• Do demanding buyers push for innovation?

• Is the size of the home market permit to get the “critical mass”?

Demand conditions

Porter’s Diamond


Factor conditions


• Do national suppliers offer most cost-effective inputs of the needed quality in an efficient, rapid way? Demand

conditions

Supporting industries

Porter’s Diamond


Factor conditions


Demand conditions


Firms strategy,

structure & Rivalry

• Do national property and capital markets structure reflect the needs of a particular industry?

e.g., family firms in Italy who offer an extraordinary flexibility, niche marketing, customized products in furniture, footwear, lighting industry

Porter’s Diamond


Factor conditions

• How the national playing field can contribute to the competitive advantage of the industry?(5/6)

Demand conditions


Firms strategy,

structure & Rivalry

• Does government contribute to the creation of specialized factors (skilled labour, R&D)..?

• Does it avoid intervening in markets and protects competition?

• Does it enforce safety, product and environmental standards?

Government

Porter’s Diamond


Factor conditions


Demand conditions


Firms strategy,

structure & Rivalry

Government

Case

Industry

Porter’s Diamond


Bienvenue

Bienvenido

歓迎(Kangei)

欢迎Huānyíng

Bem‐vindo

Hoşgeldin

مرحبابكمMrḩbāBkmر

WillkommenСпасибо(Spasibo)

ДобропожаловатьDobropozhalovat′

BenvenuO

Welcome


A Challenge

Please draw a map of the world as best you can within 5 minutes

Name as many of the countries as you can

Mark an country you have visited for a week or longer



The true size of Africa

Source: The Economist

By kay Krause October 2010


Population

Major religions ranked by size

Source: CIA Factbook


Another way to view the world

Languages Number of speakers

Mandarin 1,213,000,000

Spanish 329,000,000

English 328,000,000

Hindi-Hurdu 221,000,000

Arabic 182,000,000

Bengali 181,000,000

Portuguese 178,000,000

Russian 144,000,000

Japanese 122,000,000

German 90,000,000

Source: Ethnologue, 16th Edition (2009)

Languages


Cultural Map of

the World

Inglehart-Welzel


Another way to view the world

If we could shrink the world into a village of 100 people: 50 would be female: 50 would be male 26 would be children 8 would be over 65 60 would be Asian

• 5 would speak English • 16 would suffer from malnutrition • 23 would have not a place to shelter them from the wind and the rain • 13 would not have access to clean, safe drinking water • 7 would have a college education • 22 would own or share a computer

In 2006, only 1 person out of 100 would have had a college education

The world’s 1,210 current billionaires, Forbes reported in March 2011, hold a combined wealth that equals over half the total wealth



“Why we are here!”


Receiver/Decoder Sender/Encoder

Response Feed-back

Communication Process

Message

Encode Decode

Through a Medium:

• verbal: low context – high context

• non verbal

Rumor


• Message Itconsistsofbothverbal(spokenandwriTen)andnon‐verbalsymbolsinorderto

transferaninformaOon

• Sender–EncoderAsasender–encoder,youusesymbolsthatexpressyoumessageandcreatethe

desiredresponse

• Receiver–DecoderThemessagereceiverisyourreaderorlisteneralsoknownasdecoder,ass/he

decodesyourencodedmessage.Receiverisinfluencedbyhiscontextandbyhismentalfilter

• FeedbackFeedbackcanbeadesireacOon,anoralorwriTenmessage,orsimplyasilence


Cross Cultural Communication


Coca-Cola in China was first rendered as Ke-kou-ke-la

Coke did not discover until after thousands of signs had been printed that the phrase means or “female horse stuffed with wax,”

Coke then researched 40,000 Chinese characters and found a close phonetic equivalent, “ko-kou-ko-le,” which can be loosely translated as “happiness in the mouth.”


The American slogan for Salem cigarettes, “Salem—Feeling Free”

translated in the Japanese market into “When smoking Salem, you feel so refreshed that your mind seems to be free and empty”

Nike Air shoes showing flaming logo Nike Air flaming logo Nike offended Muslims in June, 1997 when the "flaming air" logo for its Nike Air sneakers looked too similar to the Arabic form of God's name, "Allah”

Nike pulled more than 38,000 pairs of sneakers from the market


Drakkar Noir: Sensuality and touch culture in Europe and Saudi Arabia Source: Field (1986)


Colgate introduced a toothpaste in France called Cue

was the name of a local porno magazine

Scandinavian vacuum manufacturer Electrolux



Verbal

Lostintransla6on

Business/Busy Negocio/Ocio

Coca‐Cola:“Can’tbeatthefeeling”“IfeelCoke”“Thefeelingoflife”“Sensazioneunica”“TodayisabeauOfulday”

Visual(colors,nude…)

Role(gender,age,dressingcodes/look,context…)

Symboliclanguage(6gerinEsso,Jeans)


Low‐contextcountries:moreemphasisisplacedonwords,directness,and6me(deadlinesandschedules)

Low‐contextcountries:moreemphasisisplacedonwords,directness,and6me(deadlinesandschedules)

CultureContext

High‐contextcountries:meaningisdeterminedbynonverbalcues,socialrela6onshipsandindirectcommunica6onsuchasmetaphorsandaphorisms




Behavior

Dress Language

Customs Music

Architecture Food

Beliefs, values, assumptions and norms

History

Demography

Genetics Geography

Climate

Theory Development

Political Structure

Economic System

Family Patterns Educational System

Social Stratification

Technology


Individual culture behaviour/opinions

National/Regional culture

Company culture Business/industry culture

Culture

Culture is the collective programming of the mind which distinguishes the members of one human group from another.

• Culture is learned • Culture is interrelated • Culture is shared


A Challenge

Please write words that relate to

“Cross - Culture”


A Challenge: Words

For Cross Culture:

Cultural Interaction Global Intercultural (Syn) Human Activities Together Interdisciplinary Orientation

Two or more Different Cultures Cultural Spheres Multiple Cultures Understanding Languages

Did any of the following words appear into your definition?


Definition: Cross-Cultural

Interacting with &/or comparing two or more

cultures, & understanding their values, beliefs, &

norms.


Cultural Dimensions


Low-context countries: more emphasis is placed on words, directness, and time (deadlines and schedules)

Low-context countries: more emphasis is placed on words, directness, and time (deadlines and schedules)

Culture Context

High-context countries: meaning is determined by nonverbal cues, social relationships and indirect communication such as metaphors and aphorisms


Power Distance Uncertainty Avoidance

Collectivism Vs. Individualism

Feminine Vs. Masculine

Collectivism Vs. Individualism

Uncertainty Avoidance Power Distance

Cultural Dimensions (Geert Hofstede )

Cultural Dimensions


Hofstede’s Cultural Dimensions

• Extent to which less powerful members of institutions and organizations accept that power is distributed unequally – High power distance countries: people blindly

obey the orders of their superiors, centralized and tall organization structures

– Low power distance countries: flatter and decentralized organization structures, smaller ratio of supervisors

Power Distance


• Extent to which people feel threatened by ambiguous situations and have created beliefs and institutions that try to avoid such situations – High uncertainty avoidance countries: people

have high need for security, strong belief in experts and their knowledge, structured organizational activities, more written rules, less risk taking by managers

– Low uncertainty avoidance countries: people are more willing to accept risks associated with the unknown, less structured organizational activities, fewer written rules, more risk taking by managers, higher employee turnover, more ambitious employees

Power Distance

Uncertainty Avoidance



• Individualism: Tendency of people to look after themselves and their immediate family only – Countries high in individualism: tend to be

wealthier, support protestant work ethic, greater individual initiative, promotions based on market value

• Collectivism: Tendency of people to belong to groups or collectives and to look after each other in exchange for loyalty – Countries high in collectivism: tend to be poorer,

less support for protestant work ethic, less individual initiative, promotions based on seniority

Power Distance


Individualism/Collectivism



• Masculinity: a culture in which the dominant social values are success, money and things – Countries high in masculinity: great importance

on earnings, recognition, advancement, challenge, and wealth. High job stress.

• Femininity: a culture in which the dominate social values are caring for others and the quality of life – Countries high in femininity: great importance

on cooperation, friendly atmosphere, employment security, group decision making, and living environment. Low stress and more employee freedom.

Power Distance


Individualism/Collectivism

Masculinity/ Femininity




Country PDI Power Distance

IDV Individualism

MAS Masconlinity

UAI Uncertainty Avoid.

Arab World 80 38 52 68

Australia 36 90 61 51

Brazil 69 38 49 76

Canada 39 80 52 48

China 80 15 55 40

Colombia 67 13 64 80

Denmark 18 74 16 23

East Africa 64 27 41 52

France 68 71 43 86

Germany 35 67 66 65

India 77 48 56 40

Indonesia 78 14 46 48

Italy 50 76 70 75

Japan 54 46 95 92

Mexico 81 30 69 82

Norway 31 69 8 50

Philippines 94 32 64 44

South Africa 49 65 63 49

Uk 35 89 66 35

Usa 40 91 62 46


Time and Truth


Time

Monochronic

• Time viewed as scarce resource; tangible commodity; “time is money”.

• Prefer to deal with one task at a time; low tolerance for interruptions.

• Linear view of time: divided into precise, distinct units; scheduling, deadlines and punctuality valued.

Polychronic

• Time is seen as plentiful, indefinitely available; no economic value.

• Stress involvement with people; able to do several things at the same time; interruptions the norm.

• Cyclical view of time: more patience and less urgency; natural rhythm to events.

Past: Emphasize role of past in present situation.

Present: Focus on “here and now”; fatalistic element.

Future: Emphasis on planning, setting goals; future will be “bigger and better”.

Temporal Orientations:


Facts vs Feeling

• Truth is synonymous with facts and figures.

• Rationality is valued over emotion.

• An inductive approach is favored : theory is derived from data and experience.

• Truth is determined through interpretation, reasoning and logic.

• Intuition and emotion are valued to balance rationality.

• A deductive approach is favored: solutions are derived from theory.

Nature of Reality and Truth


A framework for conceptualizing underlying cultural assumptions

• Man’s Relationship with Nature

• Nature of Human Activity

• Orientation to Time

• Orientation to Space

• Communication Style

Task /Relationship

Masculinity\femininity

Individualistic/Collectivist

Universal/Particular

Egalitarian / Hierarchical

Monochronic /Polychronic

High Context /Low Context

Distant/Intimate

Past/Present/ Future

Instrumental/Expressive

Bridging Assumptions

External Adaptation Internal Integration

Doing / Being • Nature of Reality and Truth

• Human Nature Basically good / Basically

Adapted from: Schneider, S.C. & Barsoux, J-L., 2003. Managing Across cultures, 2nd Ed. Harlow England: Prentice Hall/FT.

Facts\ feelings

• Nature of Human Relationships Control/Harmony/Constraint

High Tolerance /Low Tolerance of uncertainty


Nonverbal Communication


Functions of Nonverbal Communication

• To provide information

• To regulate interaction

• To express or hide emotion and affect

• To express power and control

all elements of communication that do not involve words



Proxemics • an individual’s perception & use of space

Kinesics • study of body movements, including posture

Facial & Eye Behavior • movements that add cues for the receiver

Paralanguage • variations in speech, such as pitch, loudness, tone,

duration, laughing-crying



c

c = social 1.2 to 2.1 m 2.1 to 3.7 m b

b = personal 46 to 76 cm 76 to 120 cm

Proxemics: Territorial Space

Territorial Space – bands of space extending outward from the body;

territorial space differs from culture to culture

a

a = intimate < 15 cm to 46 cm

d d = public 3.7 to 7.6 m


SPACE

BODY LANGUAGE


Facial and eye behaviour Paralanguage


• 9 Dimensions: – Uncertainty avoidance – Power distance – Collectivism I: Social collectivism – Collectivism II: In-group collectivism – Gender egalitarianism – Assertiveness – Future orientation – Performance orientation – Humane orientation

the GLOBE Project: Global Leadership and Organizational Behaviour Effectiveness


Introduction to GCI

Measured by the Global Competitiveness Index

Factors responsible for the level of economic prosperity

the set of Institutions

Policies


Factor Driven

Economy

Impossibile trovare nel file la parte immagine con ID relazione rId1.

Efficiency Driven

Economy


Innovation Driven

Economy



Criteria of deciding the stages

• Percent of specific types of goods allocated in total export

• Level of GDP per capita at market exchange rates:

• Transition from stage 1 to stage 2 2.000-3.000

Stage 1 Factor Driven GDP/Cap < 2.000

• Transition from stage 2 to stage 3 9.000-17.000

Stage 2 Efficiency Driven GDP/Cap 3.000-9.000

Stage 3 Innovation Driven GDP/Cap > 17.000


•

Basic requirements

1) Institutions 2) Infrastructure

3) Macroecon. stability 4) Health and primary

education

Key for

factor-driven economy

Efficiency Enhancer

1) Higher education 2) Goods mkt efficiency 3) Labor mkt efficiency

4) Financial mkts 5) Technology

6) Mkt size

Key for

efficiency-driven economy

Innovation factors

1) Business sophistication

2) Innovation

Key for

innovation-driven economy





“Strategy” derives from the Greek:

Rooted in the Military

Originated in business with the emergence of the business schools (Wharton and Harvard)

* "stratos" – meaning army. * "ago" – which is the ancient Greek for leading/guiding/moving.



External Analysis: - Market - Industry

- Competition

Internal Analysis:

Resources and Competencies

Formulation: Business Strategy:

Innovation and competitive advantage

Formulation: Corporate Strategy:

Diversification, differentiation,

cost leadership. Acquisitions,

alliances

Implementation

The AFI Strategy framework


PEST

SWOT

Foreign Market Entry Mode

Decision

Home Country Factors

Target Country Factors

Firm’s Products/Services

Firm’s Resources/Capabilities


From Environmental uncontrollables to controllable resources and capabilities

Price Product

Promotion Distribution

Economic climate

Political

Legal Compet.

Political

Legal

Cultural

forces

Geography

Infrastructure

Economic

Forces

Competitive

Forces

Level of

Technology Structure of

Distribution


SWOT Analysis

S W

O T

Strengths Weaknesses Opportunities Threats


SAMPLE SWOT ANALYSIS FRAMEWORK

Strengths Weaknesses Internal Factors Opportunities

External Factors Threats

Management

Marketing

Manufacturing

R&D

Finance

Offerings

Economic

Competition

Consumer

Technology

Legal/Regulatory

Industry/Market Structure


Deliberate versus Emergent Strategies

Realized Strategy Unrealized

Strategy

Emergent Strategy

Adapted from: Mintzberg, H. “The Strategy Concept

Sustained Superior

Performance

84

Massimiliano G. Falcone 85 MICRI VI a.a. 2011/2012




Abell’s Framework for Defining the Business

Source: D. F. Abell, Defining the Business: The Starting Point of Strategic Planning (Englewood Cliffs, Prentice Hall, 1980)

Massimiliano G. Falcone 89 89

capable of exploiting existing competencies as well as exploring new opportunities with equal dexterity

EXPLOIT Refinement, choice,

production, efficiency, selection,

implementation, execution

EXPLORE search, variation,

risk taking, experimentation, play, flexibility,

discovery, innovation

Ambidexterity

Massimiliano G. Falcone 90 MICRI VII a.a. 2012/2013

Documents

Ese international marketing 2013