Marketing Latam - 02 History & Geography

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  • 1. Global Marketing Doing Business in Latin America Environmental Adaptation 2. History and GeographyThis 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. www.nataliaceruti.com · contact@nataliaceruti.com Environmental Adaptation The Self-Reference Criterion and Ethnocentrism Ability to effectively interpret the influence and The key to successful international marketing is impact of the culture in which you hope to do adaptation to the environmental differences from business. one market to another. • Establish a frame of reference • Primary obstacles to success in international marketing • Avoid measuring and assessing markets against the fixed • SRC values and assumptions of your own culture • Associated ethnocentrism www.nataliaceruti.com · contact@nataliaceruti.com www.nataliaceruti.com · contact@nataliaceruti.com
  • 2. SRC and Ethnocentrism Framework for Cross-cultural Analysis SRC is an unconscious reference to one’s own cultural 1. Define business problem or goal values, experiences, and knowledge as a basis for • Home-country vs. foreign-country cultural traits, habits, or decisions. norms • Consultation with natives of the target country• Dangers of the SRC 2. Make no value judgments • Failing to recognize the need to take action • Discounting the cultural differences that exist among 3. Isolate the SRC influence countries • Examine it carefully to see how it complicates the problem • Reacting to a situation in an offensive to your hosts 4. Redefine the problem • Without SRC influence Ethnocentrism is the notion that one’s own culture or • Solve for the optimum business goal situation company knows best. www.nataliaceruti.com · contact@nataliaceruti.com www.nataliaceruti.com · contact@nataliaceruti.com Developing a Global Awareness Tolerance of cultural differences: Understanding cultural differences and History and Geography accepting and working with others whose behavior may be different from yours. www.nataliaceruti.com · contact@nataliaceruti.com
  • 3. What should we learn? Global Perspective• The importance of history and geography in the understanding To interpret a culture’s behavior and attitudes, a of international markets marketer must have some idea of a country’s history and geography.• The effects of history on a country’s culture• How culture interprets events through its own eyes • To understand a society’s actions and its points of view, you• The effect of geographic diversity on economic profiles of a need to appreciate: country • The influence of historical events • The geographical uniqueness to which a culture has had to adapt www.nataliaceruti.com · contact@nataliaceruti.com www.nataliaceruti.com · contact@nataliaceruti.com Geography and Global Markets Presentation - ArgentinaGeography: element of the uncontrollable environment that confronts every marketer. QUICK FACTS:• Affects a society’s culture and economy Name: Argentine Republic• Physical makeup limits a nation’s ability to supply its people’s Population: 40.4 million (2008) needs Capital: Buenos Aires Other major cities: Cordoba, Rosario, Mendoza Area: 1.1 million sq miles• Altitude, humidity, and temperature extremes Currency: Peso GNI per capita: US$6,050 (WB, 2007) Source: http://www.worldbank.org/ 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) www.nataliaceruti.com · contact@nataliaceruti.com www.nataliaceruti.com · contact@nataliaceruti.com
  • 4. Geography Geography - Topography Source: Inter American Development Bank - http://www.iadb.orgwww.nataliaceruti.com · contact@nataliaceruti.com www.nataliaceruti.com · contact@nataliaceruti.com Geography - Resources Geography - Tourismwww.nataliaceruti.com · contact@nataliaceruti.com www.nataliaceruti.com · contact@nataliaceruti.com
  • 5. Geography - Climate Rural/Urban Migration Major population lives where • Result of a desire for greater access to: temperatures are warm, but not extreme • Sources of education Caribean Sea • Health care Amazonas River • Improved job opportunitiesPacific Ocean Amazona s Andes Mountains Media Annual Temperature (C°) -10 - 0 Atlantic 1-5 Ocean 6 - 10 11 - 15 Río de la 16 - 20 21 - 30 Plata Patagonia www.nataliaceruti.com · contact@nataliaceruti.com www.nataliaceruti.com · contact@nataliaceruti.com Population is highly concentrated Buenos Aires Venezuela Greatest 8 cities Méxicoconcentrate 98 MM 103 Colombia 27 (17% of Latam´s Brasil population) 46 Perú 182 29 Chile Argentina 16 40 7 countries concentrate 443 MM (78% of LATAM) www.nataliaceruti.com · contact@nataliaceruti.com www.nataliaceruti.com · contact@nataliaceruti.com
  • 6. History - 500 Years of Trade History - Indians / Spanish www.nataliaceruti.com · contact@nataliaceruti.com www.nataliaceruti.com · contact@nataliaceruti.comHistory - First European Immigrations History - World´s Barn www.nataliaceruti.com · contact@nataliaceruti.com www.nataliaceruti.com · contact@nataliaceruti.com
  • 7. History - European Buildings History - Perónwww.nataliaceruti.com · contact@nataliaceruti.com www.nataliaceruti.com · contact@nataliaceruti.com Emergency Villages History - Second European Immigrationswww.nataliaceruti.com · contact@nataliaceruti.com www.nataliaceruti.com · contact@nataliaceruti.com
  • 8. History - Military Regimes History - Democracywww.nataliaceruti.com · contact@nataliaceruti.com www.nataliaceruti.com · contact@nataliaceruti.com History - 1to1 & Privatization History - 2001 Crisiswww.nataliaceruti.com · contact@nataliaceruti.com www.nataliaceruti.com · contact@nataliaceruti.com
  • 9. History - Néstor & Cristina History - Private Neighbourhoodswww.nataliaceruti.com · contact@nataliaceruti.com www.nataliaceruti.com · contact@nataliaceruti.comHistory - 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.www.nataliaceruti.com · contact@nataliaceruti.com www.nataliaceruti.com · contact@nataliaceruti.com
  • 10. 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. www.nataliaceruti.com · contact@nataliaceruti.com• 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. www.nataliaceruti.com · contact@nataliaceruti.com 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. www.nataliaceruti.com · contact@nataliaceruti.com