marketing latam - 02 history & geography

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Global MarketingDoing Business in Latin America

2. History and Geography

This presentation (and extra material) belongs to Natalia Ceruti´s Global Marketing Course, within the Leading the Way to Success in Latin America Program. Should not be copied, nor reproduced, in full or in parts, without Natalia Ceruti´s permission.

Environmental Adaptation


Environmental Adaptation

• Establish a frame of reference

• Avoid measuring and assessing markets against the fixed values and assumptions of your own culture

Ability to effectively interpret the influence and impact of the culture in which you hope to do

business.


The Self-Reference Criterion and Ethnocentrism

• Primary obstacles to success in international marketing• SRC• Associated ethnocentrism

The key to successful international marketing is adaptation to the environmental differences from

one market to another.


SRC and Ethnocentrism

• Dangers of the SRC• Failing to recognize the need to take action• Discounting the cultural differences that exist among

countries• Reacting to a situation in an offensive to your hosts

SRC is an unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for

decisions.

Ethnocentrism is the notion that one’s own culture or company knows best.


Framework for Cross-cultural Analysis

1. Define business problem or goal • Home-country vs. foreign-country cultural traits, habits, or

norms• Consultation with natives of the target country

2. Make no value judgments

3. Isolate the SRC influence • Examine it carefully to see how it complicates the problem

4. Redefine the problem • Without SRC influence • Solve for the optimum business goal situation


Developing a Global Awareness

Tolerance of cultural differences:

Understanding cultural differences and

accepting and working with others whose

behavior may be different from yours.

History and Geography


What should we learn?

• The importance of history and geography in the understanding of international markets

• The effects of history on a country’s culture

• How culture interprets events through its own eyes

• The effect of geographic diversity on economic profiles of a country


Global Perspective

• To understand a society’s actions and its points of view, you need to appreciate:

• The influence of historical events

• The geographical uniqueness to which a culture has had to adapt

To interpret a culture’s behavior and attitudes, a marketer must have some idea of a country’s

history and geography.


Geography and Global Markets

• Affects a society’s culture and economy

• Physical makeup limits a nation’s ability to supply its people’s needs

• Altitude, humidity, and temperature extremes

Geography: element of the uncontrollable environment that confronts every marketer.


Presentation - Argentina

QUICK FACTS:

Name: Argentine Republic

Population: 40.4 million (2008)

Capital: Buenos Aires

Other major cities: Cordoba, Rosario, Mendoza

Area: 1.1 million sq miles

Currency: Peso

GNI per capita: US$6,050 (WB, 2007)

Main exports: Grains, livestock, vegetable oils, machinery, cars

Language: Spanish

Religion: Catholic (70%), Protestant (9%), Muslim (1.5%), Jewish (0.8%)

Life expectancy: 72 years (men), 79 years (women)

Source: http://www.worldbank.org/


Source: Inter American Development Bank - http://www.iadb.org

Geography


Geography - Topography


Geography - Resources


Geography - Tourism


Geography - Climate

Major population lives where temperatures are warm, but not extreme

-10 - 01 - 5

6 - 1011 - 1516 - 2021 - 30

Media Annual Temperature (C°)

Pacific Ocean

Atlantic Ocean

Amazonas

Patagonia

Río de la Plata

Andes Mountains

Amazonas River

Caribean Sea


Rural/Urban Migration

• Result of a desire for greater access to:• Sources of education• Health care• Improved job opportunities


Population is highly concentrated

7 countries concentrate

443 MM (78% of LATAM)

103

México

Chile

16

Argentina

40

182

Colombia

46

Venezuela

27

Perú

29

Brasil

Greatest 8 cities

concentrate 98 MM

(17% of Latam´s

population)


Buenos Aires


History - 500 Years of Trade


History - Indians / Spanish


History - First European Immigrations


History - World´s Barn


History - European Buildings


History - Perón


Emergency Villages


History - Second European Immigrations


History - Military Regimes


History - Democracy


History - 1to1 & Privatization


History - 2001 Crisis


History - Néstor & Cristina


History - Private Neighbourhoods


History - Private Neighbourhoods


History Perspective in Global Business

• History helps define a nation’s mission• How it perceives its neighbors• How it perceives itself• Its place in the world

• Insights into history are important for understanding current attitudes

• It is necessary to study culture as it is now as well as to understand culture as it was (A country’s history)

History is Subjective: historical events always are viewed from one’s own biases and SRC.


Summary

• A prospective international marketer should be reasonably familiar with the world, its climate, and topographic differences.

• Geographic hurdles must be recognized as having a direct effect on marketing and the related activities of communications and distribution.

• Without a historical understanding of a culture, the attitudes within the marketplace may not be fully understood.

• The study of history and geography is needed to provide the marketer with an understanding of why a country has developed as it has rather than as a guide for adapting marketing plans.



Sources

• Cateora, P., Gilly, M. and Graham, J. (2009). International Marketing, 14th ed. New York: MacGraw-Hill.

• Czinkota, M. and Ronkainen, I. (2010). International Marketing, 9th ed. New York: Cengage Learning.

• Keegan, W. and Green, M. (2011). Global Marketing, 6th ed. New Jersey: Pearson Education.

• Kerin, R., Hartley, S. and Rudelius, W. (2007). Marketing The Core, 2nd ed. New York: MacGraw-Hill Irwin.

• Kotler, P. and Armstrong, G. (2006). Principles of Marketing, 11th ed. New Jersey: Pearson Education.

• Kotler, P. and Keller, K. L. (2009). Marketing Management, 13th ed. New Jersey: Pearson Education.

marketing latam - 02 history & geography

Documents

countrys history

importance of history

effects of history

societys culture

countrys culture

src inuence ethnocentrism

environmental differences

src inuencecountries