International marketing (2)


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International marketing (2)

  1. 1. IMR300 – Lecture 2 The cultural environment of Global markets
  2. 2. Agenda <ul><li>History and Geography–The Foundations of Culture </li></ul><ul><li>Cultural dynamics in assessing global markets </li></ul>
  3. 3. Cultural environment <ul><li>Understanding the geography and history of a country can help a marketer have a better appreciation for many of the characteristics of its culture. </li></ul>
  4. 4. History <ul><li>It helps define </li></ul><ul><li>nation’s “mission” </li></ul><ul><li>how it perceives its neighbors </li></ul><ul><li>how it sees its place in the world </li></ul><ul><li>how it sees itself </li></ul>
  5. 5. History <ul><li>The United States and Mexico </li></ul><ul><ul><li>The USA: Geography has made us neighbors, tradition has made us friends </li></ul></ul><ul><ul><li>Mexico: Geography has made us closer, tradition has made us friends </li></ul></ul>
  6. 6. Microsoft’s Encarta <ul><li>Electric light bulb: US- Thomas Alva Edison, UK- Joseph Swan </li></ul>
  7. 7. Microsoft’s Encarta <ul><li>Kurdistan </li></ul><ul><li>No hate, No violence. </li></ul><ul><li>Races? Only one human race. </li></ul><ul><li>United we stand, Divided we fall. </li></ul><ul><li>Know your enemy! </li></ul><ul><li>No time to waste. Act now! </li></ul><ul><li>Tomorrow it will be too late. </li></ul>
  8. 8. History <ul><li>History says the ways we are in. </li></ul><ul><li>But today the world is dividing into commercial blocks, and we are handcuffed to each other better or worse </li></ul>
  9. 9. Importance of history <ul><li>In understanding many aspects of a culture. </li></ul><ul><ul><li>how businesspeople negotiate, </li></ul></ul><ul><ul><li>how they conduct business, </li></ul></ul><ul><ul><li>their attitudes toward foreign investment, </li></ul></ul><ul><ul><li>the legal system, and </li></ul></ul><ul><ul><li>other aspects of the market/business system </li></ul></ul>
  10. 10. Importance of history <ul><li>for many of the cultural differences that often cause misunderstandings and in many cases, mistakes. </li></ul><ul><li>historical perspective of why they react as they do, you can gain insights that can possibly make it easier to adapt your strategies for a successful outcome. </li></ul>
  11. 11. Importance of history <ul><li>Attitudes about the role of government and business </li></ul><ul><li>Relations between Managers and Subordinates </li></ul><ul><li>Sources of Management Authority </li></ul><ul><li>Attitudes toward Foreign Corporations </li></ul>
  12. 12. History and Contemporary Behavior <ul><li>To understand, explain, and appreciate a people’s image of itself and </li></ul><ul><li>the attitudes and unconscious fears that reflected in its view of foreign cultures, </li></ul><ul><li>it is necessary to study the culture as it is now as well as to understand the culture as it was—that is, a country’s history </li></ul>
  13. 13. Understanding of history: - Helps an international marketer <ul><li>people’s image of itself and the fundamental attitudes and unconscious fears </li></ul><ul><li>role of government and business, the relations between managers and the managed, the sources of management authority, and attitudes toward foreign MNC’s. </li></ul><ul><li>nation’s “mission,” how it perceives its neighbors, and how it sees its place in the world. </li></ul><ul><li>look beyond the surface or current events to the inner refinement of the country’s entire past for clues. </li></ul>
  14. 14. Geography
  15. 15. Geography <ul><li>Strictly speaking, the physical elements are not forces, because except for natural disasters they are passive. </li></ul><ul><li>However, there are similarities between them and the uncontrollable forces: </li></ul>
  16. 16. Geography and International Marketing <ul><li>The interaction of the physical characteristics is one of the principal determinants of a country’s customs, products, industries, needs, and methods of satisfying those needs </li></ul>
  17. 17. Geography <ul><li>Important role in the economy of a country and its marketing system </li></ul><ul><li>Affects a culture’s evolution including its marketing and distribution systems. </li></ul><ul><ul><li>its topography </li></ul></ul><ul><ul><li>climate </li></ul></ul><ul><ul><li>physical position </li></ul></ul>
  18. 18. LOCATION <ul><li>Location is important, because it is a factor in explaining a number of a nation’s political and trade relationships, many of which directly affect a company’s operations </li></ul>
  19. 19. TOPOGRAPHY <ul><li>Surface features such as mountains, plains, deserts, and bodies of water contribute to differences in economies, cultures, politics, and social structures both among nations and among regions of a single country. </li></ul>
  20. 20. TOPOGRAPHY <ul><li>Mountain Desert </li></ul>
  21. 21. Climate and topography <ul><li>the broader and more important elements of geography </li></ul><ul><ul><li>Altitude, </li></ul></ul><ul><ul><li>Humidity </li></ul></ul><ul><ul><li>Temperature extremes </li></ul></ul><ul><ul><li>Affect the uses and functions of products and equipments </li></ul></ul>