global marketing management
DESCRIPTION
THE PPT SHHOWS THE BASICS OF OF MARKETING TACTICS USED IN INTERNATIONAL BUSINESSTRANSCRIPT
Develop an understanding of what culture is and how the main components of a culture impact on a culture’s way of life
Explain the intimate relationships between cultural influences, consumer needs and consumer behaviour
Discuss the approaches which can be used to conduct cross-cultural analysis
Examine the nature of business-to-business marketing and buyer behaviour
Examine the effect of culture on ethical decision making
Cultural factors are often linked together› Social Class, status, family & roles influence cultural
values
Affect the ways in which consumers perceive a product and affect:› The willingness to pay › How it should be packaged, priced, promoted and
distributed› E.g. Bicycle in China is a major means of transport, in
Britain a leisure activity
“The collective programming of the mind which distinguishes the members of one human group from another…Culture, in a sense, includes systems of values; and values are among the building blocks of culture”
Hofstede (1980)
“The sum total of learned beliefs, values and customs that serve to direct customer behaviour in a particular country market”
Doole and Lowe
Invisible elements are the underlying causes of what manifest on the visible side
Visible - dress, dance, architecture, language, food, gestures, greetings, behaviours, devotional practices, art and more. In addition it can also relate to behaviours such as seeing people ignoring red traffic lights, spitting on the floor, smoking in public or queuing for a bus, etc
Invisible - religious beliefs, worldviews, rules of relationships, approach to the family, motivations, tolerance for change, attitudes to rules, communication styles, modes of thinking, comfort with risk, the difference between public and private, gender differences and more
Who is he?Who is he?› Author of “The Silent Language” (1959) and “The
Hidden Dimension” (1969)› The foundation for his lifelong research on cultural
perceptions of space was laid during World War II when he served in the U.S. Army in Europe and the Philippines
› When he was Director of Foreign Service Institute training program for technicians assigned to overseas duty, Hall observed the many difficulties created by failures of intercultural communication
His contribution:His contribution:› Basic differences in the way that members of
different cultures perceived reality were responsible for miscommunications of the most fundamental kind
› Identified two classic dimensionstwo classic dimensions of culture
Concerns with the way in which information is transmitted or communicated
All ‘information transactions’ can be characterised as ‘High’, ‘Middle’ or ‘Low’ Context
High Context transaction feature pre-programmed information that is in the receiver and in the setting, with only minimal information in the transmitted message - Implicit
For Low Context transactions, most of the information must be in the transmitted message in order to make up for what is missing in the context - Explicit
India??
The ball whizzes past like a bumblebee and the Indians are in the sea!!
Japanese hotel notice to hotel guests:“You are invited to take advantage of the chambermaid”.
Acapulco hotel notice regarding drinking water:“The manager has personally passed all the water served here”
An announcement in the class to tell students to keep quiet while their director was passing by:“We will maintain a 2 min silence as the director of ITM has just passed away”
A Bangkok dry cleaner to potential customers:“Drop your trousers here for best results”
An Italian laundry innocently suggested:“Ladies leave your clothes here and spend the afternoon having a good time”
in Taiwan Pepsi’s slogan ‘Come alive with the Pepsi generation’ was translated as ‘Pepsi will bring your ancestors back from the dead’.
When General Motors introduced the Chevy Nova in South America, it was apparently unaware that "nova" means "it won't go." After the company figured out why it wasn't selling any cars, it renamed the car in its Spanish markets to the Caribe.
Ford had a similar problem in Brazil when the Pinto flopped. The company found out that Pinto was Brazilian slang for "tiny male genitals". Ford pried all the nameplates off and substituted Corcel, which means horse.
Toyota’s Fiera car did not take off as expected in Puerto Rico, where ‘fiera’ translates to ‘ugly old woman’.
Who is he?Who is he?› Dutch organisational Anthropologist – the most cited
author
His Contribution:His Contribution:› Provided a universally applicable framework for
classifying cultural patterns › Derived his culture dimensions from examining work-
related values in IBM employees in 40 countries during 1970s
› Subsequent studies validating the earlier results commercial airline pilots and students in 23
countries, civil service managers in 14 counties, 'up-market' consumers in 15 countries 'elites' in 19 countries.
Power DistancePower Distance › The extent to which the less powerful members of
institutions/organisations within a country expect and accept that power is distributed unequally
High Power Distance = More Hierarchical, Accepts inequality in wealth and power
Attitudes towards fear of expressing disagreement with managers or authority
India, the Philippines and China have high PDI score; Austria, Denmark, Finland and Sweden score relatively lower
Uncertainty AvoidanceUncertainty Avoidance › the extent to which the members of the culture feels
threatened by uncertain or unknown future situations
High Uncertainty Avoidance = High need for written and unwritten rules
Cultures that have a low UAI score (e.g. Denmark, Sweden and HK) tend to accept each day as it comes and willing to take risks.
Cultures with high UAI score (such as Japan, France and Belgium) tend to be less risk-taking
Individualism Vs. CollectivismIndividualism Vs. Collectivism › the degree of horizontal dependence of individuals upon the
group
Individualism = ties between individuals are loose; everyone is expected to look after themselves
Collectivism = people are integrated into strong, cohesive groups in exchange for unquestioning loyalty
In a high IDV score culture (UK), consumers make individual decisions, whereas in low IDV score culture (China), family tend to be central to decision making and expected to look after one another
Masculinity-Femininity Masculinity-Femininity › The degree to which society subscribes to the typical
stereotypes associated with males and females
Masculine = assertive, competitve, tough, results/performance oriented
Feminine = modest, co-operative, nurturing, tender, equity oriented
Masculine cultures stress making money and the pursuit of visible individual achievements (Austria, Japan and Italy). Feminine cultures tend to emphasise on the harmony of the wider society rather than individual material possessions (Denmark, Sweden and Finland)
A fifth Dimension added after conducting an international study with Chinese employees and managers
Long-Term OrientationLong-Term Orientation, based on Confucian Dynamism, applied to 23 countries
High LTO score = persistence, ordering relationships by status and observing this order
Low LTO score = personal steadiness and stability
Author of “Riding the Waves of Culture” – Classified cultures along a mix of behavioural and value patterns
Research focus on cultural dimensions of business executives
Identified SEVEN Value Orientations
The degree to which a culture emphasises individual freedoms and responsibilities in relationships, or focuses more on group interests and consensus
Almost identical to Hofstede's dimension – Individualism Vs. Collectivism
The degree to which a culture emphasises earned or performance-based status, or status based on social standing and non-performance factors –
Achieving Status is:› accorded on the basis of achievement› promotion on merit and outcome regardless of age
Ascribing status – is:› accorded on the basis of durable characteristics, such as
age› achievement in Ascriptive cultures is less on individual
and more of a collective concern › organisations in these societies justify a high power
distance and the resulting hierarchy as requisite Almost identical to Hofstede’s Power Distance
The degree to which feelings are openly expressed
Neutral Cultures - emphasises objectivity and reserved detachment in relationships
Emotional Cultures- allows more opened emotionality and expressed feelings
Southern Countries e.g. Mediterranean, Central & South America more Emotional
Anglo Saxon cultures e.g. USA, UK, Northern Europe more Neutral
The degree to which a culture emphasises rules and consistency in relationships, or accepts flexibility and the bending of rules to fit circumstances
Universalist cultures: prefers clear rules and believe that personal relationship should not interfere in business decisions
Particularist cultures: accepts flexibility of rules and believe that institutionalised obligations to friendship and kinship are considered "moral" requirements
The degree to which a culture emphasises focused and in-depth relationships, or displays broader and more superficial ones
Diffuse relationships - Diffuse cultures (Germany, France, China) are concerned with keeping people's face. › This is why in diffuse cultures so much more time is taken to
get to the point. › It is about avoiding private confrontations so others won't feel
offended and won't take disagreements personally
Specific relationships - are those separated by the role of each party or transaction› Less time is spent on building relationships› Getting straight to the point and focus is on “getting the job
done as soon as possible”
Different attitudes towards time (past, present and future) are reflected by the contrast between notions of time › Linear and Sequential, OR› Circular and Synchronic
Pressures to resolve problems quickly so that time won’t be "lost" are more likely in synchronic than sequential cultures
Cultures which are synchronic are more collectivist and particularist
This is about how a culture sees the natural environment and the extent that it should be controlled
Inner directed cultures - wish to subdue nature › Cultures which try to guide and control their lives by
themselves on a high scale like the USA and to a lower extent France
› The origin might be related to their history and the discovery of a new continent. The great enforcement was to fight against the nature and create a new nation
Outer directed cultures - feel more dependent upon the environment› Go along with the nature and live in harmony as well as to
your whole environment › The French see themselves as the "Grand Nation" with a
centralized state. They have fought already many battles and wars and resisted natural forces
Developed Schwartz Value Inventory (SVI, 1994) to analyse value differences on culture as well as individual levels
Asked 60,000 respondents to assess 57 values as to how important they are as “guiding principles of one’s life”› Openness to change: Stimulation, self-direction and
some hedonism. › Self-enhancement: Achievement, power and self-
direction › Conservation: Security, tradition and conformity. › Self-transcendence: Universalism and benevolence.
Organizations collaborate in procurement to compete
Governments cooperate to provide public services
New technologies enable global design, manufacture, supply chain management and marketing
Organizational buyers are becoming more ‘rational’, and buying situations more complex
Components are more globally standardized Increasing attention to CSR and ethics
Once it so happened in a flight that, James bond was sitting besides a Telugu guy..
Both were traveling to US.
Telugu Guy : "Hello, May I know ur name please?"
James Bond : "I am Bond.. James Bond."
James Bond: "and you?"
Telugu Guy :
Siva Venkata Sai...Laxminarayana Siva Venkata Sai....Srinivasula Laxminarayana Siva Venkata Sai...Rajasekhara Srinivasula Laxminarayana Siva Venkata Sai...Sitaramanjaneyula Rajasekhara Srinivasula Laxminarayana Siva Venkata Sai ...Bommiraju Sitaramanjaneyula Rajasekhara Srinivasula Laxminarayana Siva Venkata Sai……..."
"I am Sai... Venkata Sai...