Ch. 19 The Global Marketplace

Front 1

__________, as developed in the United States, is based on logical principles for creating a business transaction between more than one individual for both goods and services for the purpose of generating a profit. In the past, all marketing programs were directed within the borders of the United States.

Back 1

Traditional Marketing

Front 2

However, ___________ has boomed over the past three decades and now these principles are being applied in those countries

Back 2

International trade

Front 3

__________ is nothing new considering all civilizations have at one point in their history found trading partners from other locales for exchanging goods. The famous explorer Marko Polo wandered east and was the first individual from Europe to encounter the Chinese civilization and brought back to Europe new products an inventions

Back 3

International Trade

Front 4

are the fastest growing international markets and represent tremendous potential for marketers in the US to develop continuing trade relations to promote their goods and services

Back 4

BRIC (Brazil, Russia, India, China)

Front 5

➢ At one time in our history, we lead the world in manufacturing providing goods primarily for domestic consumption. But as foreign countries began to develop and prosper our exports began to increase. However, over the past 50 years the US has yielded its’ manufacturing to the Pacific rim mainly China who now manufactures an exhausted list of products.

Back 5

Today, our balance of trade has been functioning in the deficit (we import more goods than we export)

Front 6

How does Global Marketing differ from domestic marketing?

Back 6

The 4 P’s (Product, Price, Place and Promotion) can be considered universal concepts.

Front 7

To be successful in the global market place, the marketer must consider the following THREE as it relates to these principles:

Back 7

Language, Culture, Borders
• Language = without fully understanding the nuances of the language can create an unfavorable business relationship or a general lack of understanding what people are trying to communicate
• Culture = without fully understanding a countries mores, value system or religious beliefs will always result in an unfavorable view from the host country trying to do business with people of another culture i.e. Western cultures versus Eastern or Mid-Eastern cultures
• Borders = represent the political climate, the regulations, rules, traffic, the power structure of the government and its leaders is another element for failing to complete business transactions successfully

Front 8

Many US companies have made marketing mistakes because of their lack of understanding of the language/culture, i.e

Back 8

o Consider the following language examples:
• Coca Cola first enter the Chinese market back in 1924 struggled with a group of Chinese characters that sounded like Coca Cola but the literal translation was “bite the tadpole” – Today the characters translate to “happiness in the mouth”
• Chevy’s Nova translated in Spanish as no va “it does not go!”
• Rolls Royce avoided the name Silver Mist in German markets, where mist means “manure”

Front 9

Consider some advertising themes (mistakes):

Back 9

• Coors Beer slogan “get loose with Coors” in Spanish came out as “get the runs with Coors”
• Coca Cola “Coke adds life” theme in Japanese translated into “Coke brings your ancestors back from the dead”
• KFC slogan “finger-licking” in China translated as “eat your fingers off”
• The classic British add line for Electrolux vacuum cleaner “Nothing sucks like an Electrolux” would not capture customers in the US

Front 10

Consider the following cultural examples (mistakes):

Back 10

• The average French man uses almost twice as many cosmetics and grooming aids as his wife
• The Germans and the French eat more package, branded spaghetti than Italians do
• Some 49% of Chinese eat on the way to work
• Most American women let down their hair and take off makeup at bedtime, whereas 15% of Chinese women style their hair at bedtime and 11% put on makeup
• Nike inadvertently offended Chinese officials when it ran an ad featuring LeBron James crushing a number of culturally revered Chines figures in a kung-Fu theme television ad
• Burger King made a similar mistake when it created in-store ads in Spain showing Hindu goddess Lakshmi atop a ham sandwich with caption “a snack that is sacred.”

Front 11

Ebay's Rush to Judgement problems (cultural mistakes)

Back 11

In Japan it is a problem with the “saving face” concept Japanese find it embarrassing to sell cast-offs to anyone much less strangers – garage sales do not exist in Japan

Front 12

Elements of Cultures are (3)

Back 12

Values, Beliefs, Attitude

Front 13

_________ differ from country to country and are developed from family, friends, religions

Back 13

Values

Front 14

________ on the other hand are mental acceptances of an conviction or truth, actuality, or validity of something. They tend to be long lasting and subjected to significant change

Back 14

Beliefs

Front 15

__________ on the other hand is a mental predisposition towards a person, object or idea either positively or negatively

Back 15

Attitudes

Front 16

Culture Value System

Back 16

Individualism/Collectivism, Rituals

Front 17

________ pertains to societies in which people from birth onward are integrated into strong, cohesive groups, which thought out people’s lifetimes continue to protect them in in exchange for unquestioning loyalty

Back 17

Collectivism

Front 18

__________ represents the preference for behavior that promotes one’s self-interest – cultures that scored high reflects an “I” mentality and tend to reward and accept individual initiative – whereas a low index reflect more the “We” mentality or more group involvement

Back 18

Individualism/Collectivism

Front 19

_____ = life is full of rituals or patterns of behavior marriage ceremonies and funerals ceremonies will differ by country/culture.

Back 19

Rituals

Front 20

o Little rituals are everywhere in all cultures
• For example:

Back 20

• For example: Eating out in Madrid starts much later at night than in Canada – Madrid this is a process and could last three hours or more whereas Canadian “under two hour “ efficiency
• Visit a doctor in Canada and a 15 minute or more wait in a cold exam room whereas in Spain the exams are often done in the doctor’s office and there is no waiting
• Shopping in a department store in Canada becomes frustrating since you can never find any person to help/answer questions – in Japan customer assistance starts at the door, where a greeter bows as you walk in
• However, in Germany Wal-Mart’s attempt to carry the “store greeter” failed because Germans considered that as an invasion of their privacy

Front 21

_____ no language readily translated in another because the meaning of words differ widely among languages
o For Example: the word “marriage” even when accurately translated can mean “love” in one language but “restriction” in another
o Or consider: I picked up my German client up at his hotel near LAX and asked what kind of food he wanted for dinner. He said, “something local”. In LA local food is Mexican but the German client may not like Mexican food or is not aware of the cuisine

Back 21

Communication Style

Front 22

_______ time and space mean different things in different countries/cultures

Back 22

Formality & Tempo

Front 23

____________ are characteristics of North American business relationships – take for example a German business man was taken back when employees of his Ontario client called him by his first name – in Germany you do not do that until you know someone for 10 years – and never if of a lower rank
o An English executive commented about the North American manager’ compelling involvement in business – “at a cocktail party or a dinner, the North American is still on duty.”

Back 23

Informality and Haste

Front 24

__________ are probably the most common mistakes of North Americans attempting trade in the Middle East – most Arabs need two to three appointments before considering talking business – they do not like to be rushed and they do not like deadlines

Back 24

Haste and impatience

Front 25

Latin Americans depend on friendship but establishing these relationship the South American way – slowly over a considerable period of time. North America is more

Back 25

is more time-bound culture than Middle Eastern and Latin cultures – common attitude is “they are always late” and their attitude “you are always in a hurry”

Front 26

Most North American, Swiss, Germany and Scandinavians tend to concentrate on thing at a time – they divide into small units and are concerned with promptness

Back 26

perceptions of punctuality in the US and Brazil
• Brazilian timepieces are less reliable and public clocks less available than in the US
• Brazilians more often described themselves as late arrivers, which gives them greater flexibility in defining early and late
• Two Latin Americans conversing would likely opt to be late for the next appointment rather than abruptly terminate the conversations before it subordinates with in a social system

Front 27

o International trade/marketing, as countries continue to grow their economies and people begin to acquire more disposable income, will attract more foreign investment and more favorable trade will occur. Those industrialized nations that have the infrastructure and available capital will have the competitive edge. However, once countries develop from within and their people’s standard of living increases more and more demand will be placed on shopping items, luxury items etc. If these demands are so great and an opportunity exists for internal manufacturing, distribution than more and more companies will emerge to meet the needs of the local market.

Back 27

However, whatever the size of a countries economy and whatever the level of development, all countries will continue to create import/exports to support the needs of consumers who will always look for certain products at a reasonable price level not necessarily available in their market.