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International marketing (2)



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  • 1. IMR300 – Lecture 2 The cultural environment of Global markets
  • 2. Agenda
    • History and Geography–The Foundations of Culture
    • Cultural dynamics in assessing global markets
  • 3. Cultural environment
    • Understanding the geography and history of a country can help a marketer have a better appreciation for many of the characteristics of its culture.
  • 4. History
    • It helps define
    • nation’s “mission”
    • how it perceives its neighbors
    • how it sees its place in the world
    • how it sees itself
  • 5. History
    • The United States and Mexico
      • The USA: Geography has made us neighbors, tradition has made us friends
      • Mexico: Geography has made us closer, tradition has made us friends
  • 6. Microsoft’s Encarta
    • Electric light bulb: US- Thomas Alva Edison, UK- Joseph Swan
  • 7. Microsoft’s Encarta
    • Kurdistan
    • No hate, No violence.
    • Races? Only one human race.
    • United we stand, Divided we fall.
    • Know your enemy!
    • No time to waste. Act now!
    • Tomorrow it will be too late.
  • 8. History
    • History says the ways we are in.
    • But today the world is dividing into commercial blocks, and we are handcuffed to each other better or worse
  • 9. Importance of history
    • In understanding many aspects of a culture.
      • how businesspeople negotiate,
      • how they conduct business,
      • their attitudes toward foreign investment,
      • the legal system, and
      • other aspects of the market/business system
  • 10. Importance of history
    • for many of the cultural differences that often cause misunderstandings and in many cases, mistakes.
    • 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.
  • 11. Importance of history
    • Attitudes about the role of government and business
    • Relations between Managers and Subordinates
    • Sources of Management Authority
    • Attitudes toward Foreign Corporations
  • 12. History and Contemporary Behavior
    • To understand, explain, and appreciate a people’s image of itself and
    • the attitudes and unconscious fears that reflected in its view of foreign cultures,
    • 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
  • 13. Understanding of history: - Helps an international marketer
    • people’s image of itself and the fundamental attitudes and unconscious fears
    • role of government and business, the relations between managers and the managed, the sources of management authority, and attitudes toward foreign MNC’s.
    • nation’s “mission,” how it perceives its neighbors, and how it sees its place in the world.
    • look beyond the surface or current events to the inner refinement of the country’s entire past for clues.
  • 14. Geography
  • 15. Geography
    • Strictly speaking, the physical elements are not forces, because except for natural disasters they are passive.
    • However, there are similarities between them and the uncontrollable forces:
  • 16. Geography and International Marketing
    • 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
  • 17. Geography
    • Important role in the economy of a country and its marketing system
    • Affects a culture’s evolution including its marketing and distribution systems.
      • its topography
      • climate
      • physical position
  • 18. LOCATION
    • 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
    • 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.
    • Mountain Desert
  • 21. Climate and topography
    • the broader and more important elements of geography
      • Altitude,
      • Humidity
      • Temperature extremes
      • Affect the uses and functions of products and equipments