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• The global marketplace continues to grow– Capitalism is gaining acceptance– Advancement in technology– Reduction in trade barriers
International Trade
• Who Benefits from International Trade?– Consumers – Benefit from the competition
– Producers – Able to expand their businesses
– Workers – Higher employment rates
– Nations – Increases standard of living
Global Marketplace
• The global marketplace causes companies to change their marketing approach
• Have to market according to the culture you are trying to sell to
• Marketers must be savvy with cultural diversity and a foreign society’s value system.
• A cross-cultural analysis should be performed prior to conducting business in foreign countries– Language & Symbols: Unlucky Numbers
• #13 in the US; #4 in China
– Holidays & Religious Observances: • McDonalds sells chicken, fish, and veggie burgers instead of beef
– Social & Business Etiquette: Gift Giving• Standard & polite in some countries; bribery in others
Factors Influencing Buying Decisions
Social Factors
Individual Factors
Psycho-logical Factors
Cultural Factors
CONSUMERDECISION-
MAKINGPROCESS
BUY /
DON’T BUY
Culture
CultureCulture
Set of values, norms,
attitudes, and other
meaningful symbols that
shape human behavior and
the artifacts, or products, of
that behavior as they are
transmitted from one
generation to the next.
LO5
Components of Culture
MythsMyths
LanguageLanguage
ValuesValues
CustomsCustoms
RitualsRituals
LawsLaws
Material artifactsMaterial artifacts
Culture is. . .
LearnedLearned
FunctionalFunctional
PervasivePervasive
DynamicDynamic
Cultural Diversity• The United States is becoming more diverse
• Rapid growth in the Hispanic culture affects– Food, Music, Clothing, & Entertainment
• African American women are the fastest-growing segments in America– Black women tend to drive family decisions– Advertisers target them as result
Value
ValueValueEnduring belief that a
specific mode of conduct is
personally or socially
preferable to another
mode of conduct.
Core American Values
• Silent Generation (1945 or earlier)– Great Depression / WW II– Conservative, frugal
• Baby Boomers (‘45-’64)– Wealth, youth, & carefree
• Generation X– Accept Diversity & individualism
• Generation Y – More serious, socially aware,
tech savvy
SuccessSuccess
MaterialismMaterialism
FreedomFreedom
ProgressProgress
YouthYouth
CapitalismCapitalism
Cultural Differences• Marketers need to know how to reach each
generation– The Marketing mix for each generation will vary
• Marketers need to know how to reach various cultures– In Brazil being skinny is most important– Will take drugs with side effects whereas in
China they don’t really care about weight
Cultural Differences
• Companies are becoming more global– Rituals, Traditions, Appearance, Language,
Interests will vary from one culture to the next
– Need to know how customers will react to the advertisements you create
Coca-Cola• Coca-Cola sells “Diet Coke”
in Japan under the name “Coke Light”
• In India soft drinks are reserved for guests & that water is mainly consumed so Coca-Cola has to come up with ads that matched that preference
Marketing Adjustments• UPS trucks in Spain had to repainted
because they resembled hearses
• In Germany, the brown uniform was changed because no one had been required to wear brown since 1945
International Marketing Blunders• General Motors tried to market the Chevy Nova in Mexico but the
term “no va” means “no go” in Spanish
• The soft drink Fresca was marketed under that name in Mexico … before the company discovered that ‘fresca’ is a slang term for lesbian in parts of Mexico.
• Pepsi used the slogan “Come Alive With Pepsi” in Taiwan … or so they thought. The slogan was actually translated as: "Pepsi brings your ancestors back from the dead."
• The Coors slogan "Turn It Loose," was translated into Spanish as "Suffer From Diarrhea."
Approaches to Market Globally
International Marketing
• Company wants to expand internationally– Globalization– Adaptation– Customization
• Globalization: Selling the same product and using the same promotion methods in all countries.
• Only a small portion of products that are common to all global customers can use this marketing strategy.
Example: Coca-Cola, Microsoft
• Adaptation is a company’s use of an existing product &/or promotion to which changes are made to better suit the characteristics of a country or region.
• Companies study characteristics of countries to identify that regions target market– Products and promotions are adjusted according to a
particular country’s target market
– In Sweden, McDonalds only uses adults in its advertising because it is illegal to advertise to children
– French companies can’t use nude males in United States
• Customization: involves creating specially designed products or promotions for certain countries or regions.
• Referred to as “Individual Marketing” because you tailor a product to meet specific needs
• Each geographical area where a product is sold or a service is offered becomes a unique market segment.
McDonalds & Customization
• McDonald’s is in 121 countries all over the world
• Brand is globally recognized but their menu is customized based on their location– Think Globally, Act Locally
Jordan
Assignment• Based on the country you chose Friday
• Go online to learn that countries norms, culture, way of life– http://www.cyborlink.com/besite/ – https://www.cia.gov/library/publications/the-world-factbook/
• Choose an existing product that can be adapted to meet the countries needs
• Create a customized product that meets that countries wants and needs
Assignment
• What is due?– A prototype of your adapted & customized
product• Drawing• Photoshop• Physical Item
– Explanation as to why your adaptations & customizations will work
CountryCountry Person/Partner
Australia Libby & Austin
Brazil
Britain Jack & Eric
Canada Louie & Joe
China Uthman & Dhiraj
France
Germany Alec & John
Italy Shannon & Maggie
Japan
Mexico Ryan & Nate
Russia Shannon & Maggie
Spain Jackson & Brett
Khakistain Michael & Blake