Workshop made by Annika Zeit, Sergio Stanga, Müjdat Emre Semiz, Maximilian Preuß ...all about the best practices and customs in the implementation of international marketing strategies

1. Business Customs and Practices
in International Marketing
By
Annika Zeit
Sergio Stanga
Müjdat Emre Semiz
Lara Zitzer
Maximilian Preuß
Hochschule Neu-Ulm University

2. DOMESTIC VS INTERNATIONAL
 Diverse patterns of customer preferences, distribution
channels, legal framework,…
 Need to mesh the corporate strategy with the host country
policies
 Need to be competitive against technical standards
 Economic performance is measured in diverse currencies

3. WHAT IS A MNC?

DRIVERS
MOTIVATIONS
PROCESSES

4. MAIN GOALS
 EFFICIENCY  achieved by:
 Increasing value of outputs (local responsiveness)
 Lowering cost of inputs (global integration)
 FLEXIBILITY 
 Managing the risks
 Exploiting the opportunities arisen (PESTEL)
WHICH IS THE SOURCE OF THE COMPETITIVE
ADVANTAGE?
GLOBAL INTEGRATION VS LOCAL RESPONSIVENESS

5. MENTALITIES
MULTINATIONAL GLOBAL
PRODUCT LIFE CYCLE EACH NATION HAS GLOBAL PRODUCT LIFE
PRODUCTS IN CYCLE (MOST
DIFFERENT STAGES ADVANCED PRODUCTS)
PRODUCT ADAPTATION ADAPTED TO NATIONAL ADAPTED TO GLOBAL
DIFFERENCES WANTS AND NEEDS
PRODUCTION STANDARDISATION GLOBAL STANDARDISED
LIMITED BY NATIONAL PRODUCTION
TASTES
PRICE CUSTOMISED PRODUCT “BETTER
= HIGHER PRICE STANDARDISED: IS
CHEAPER”
PROMOTION NATIONAL PRODUCT GLOBAL PRODUCT
IMAGE IMAGE
PLACE NATIONAL GLOBAL
DISTRIBUTION STANDARDISATION OF
CHANNELS DISTRIBUTION

6. MENTALITIES
Global integration
CONSUMER
ELECTRONICS
AUTOMOBILES
Local responsiveness

7. MENTALITIES
Global integration
GLOBAL TRANSNATIONAL
INTERNATIONAL
MULTINATIONAL
Local responsiveness

8. Why should a foreign marketer be concerned with the study of
culture?
Cultural Sensitivity in business is
essential/ vital
Globalization
- High volume of interdependence
between markets of different areas.
Complexity and heterogenity of cultural differences
- High context / Low context culture
Different political, legal, macro/microeconomic
environment

9. In this respect ,
Advertising techniques / Advertising practices ‘’Cultural
World’’ of the local market.
Understanding the way of doing business in that culture
Efficient Market Strategy
Success
launching an advertising campaign will differ amongst cultures
.
numbers,
colours,languages etc.
 Dealing with the managers, customers from different cultures will require a
deep cultural knowledge and sensitivity
in order to get in the same mood and right information
exchange perception.

10. Cultural Differences in Business :
They Matter!

11. If the managers do not have the ability to be sensitive
about the cultural differences such problems may come
along :
 General Motors Chevy Nova (Car) South America
In Spanish, "nova" : "it won't go".

12.  Disneyland
Hong Kong, China > Low success
Later they decided to change the Mickey Mouse dressed in
Chinese customs and reconsider the menu to be local.
 The case of Orange, a French telecommunications company
UK,
In 1994 ,new marketing slogan across the UK: “The future’s
bright… the future’s Orange.”
 In Northern Ireland, the term Orange is associated with the
Orange Order, a Protestant organization with had anti-Catholic
sentiments.
> So this did not work well with the country’s Catholic
population .

14. What is the possible results when managers are not
concerned with the study of culture ?
 Misunderstandings  Low sales
- Waste of time , money and bad impressions
->> Withdrawal from the market (?)
- Marketing strategies : Discovering the customers‘ and colleagues’
desires needs cultural study and empathy as much as costs and
profits.

16. Homesickness
Stress
Excessive consumption of
drugs, alkohol and food
Anxiety
Helplessness
Insomnia

17. Turkey - Emre Can Bulut
 Name: Emre Can Bulut
 Age: 20
 Why study abroad? To get to
know to
a different culture
 Syptoms of cultural shock:
 Stress:
  Understanding of rules: traffic
e.g.
 Homesickness:
to feel alone, think about home,
wish to visit the family
 Help?
 Talking with friends

18. Turkey - Pinar Delibal
 Name: Pinar Delibal
 Age: 23
 Why study in Germany?
Improve the language skills
 Syptoms of cultural shock:
 Strict punctuality
 Rules stressful
 Anxiety
 Positive: German people

19. Spain – Sergio Stanga
 Name: Sergio Stanga
 Age: 21
 Why study in Germany?
Improve the language skills
What is so different?
 Strict punctuality
Body contact
 Symptoms of cultural shock:
 Feeling of loss
 Confusion
 Help?
Spend time with other Erasmus
students, talk about it

20. Latinoamérica - Rolando Cortes
 Name: Rolando Cortes
 Age: 20
 Why study in Germany?
Improve the language skills
 Syptoms of cultural shock:
 Insomnia

21. Hungary - Gergeli Mázik
 Name: Gergeli Mázik
 Age: 2?
 Why study in Germany?
Improve the language skills
different culture
 Syptoms of cultural shock:
 Homesickness
Not so much, because the
attitude of people is almost
the same

22. •Recognize your problem
•Talk with someone who understands you
•Spend also some time alonediscover the
city
•Read about history and traditions
•Try to remember why you wanted to study
abroad and what means that for your future
life
•Go out with friends

23.  about sending and receiving a message
message in mind is not what you deliver
 the 4 levels of communication
level of content = what is exactly said
level of self-revelation = what you reveal about yourself
level of appeal = what you want the receiver to do
level of relation = relation between sender and receiver

24.  Receiver just gets a picture - maybe not the same like the one in
senders mind
Why? - unspoken vs. spoken message
encoding decoding
Communication in marketing is about interpretation!

25.  “level” of communication stick to the time which it takes
 phenomenon of “time” within communication by E. T. Hall & M. Hall
-> high context vs. low context
 high context need to speak about status, relationship first
 low context need to quickly come to “the point”

26.  high context individual low context individual:
time aspect
importance of content
 low context individual high context individual
time aspect
importance of social status
Combination

27. to be aware of differences within communication
Knowledge of Ability to Be
country and its adapt flexible
culture
to know how Put no
Integrate into
to put it into pressure
practice environment

29. Monochronic Time and Polychronic
Time by Edward Hall
•Do one thing at a time •Do many things at once
• Concentrate on the job •Concentrate on the relationships
•Take time commitments •Consider time commitments an
• need information objective to be achieved, if possible
•Are committed to the job •Are high-context and already have
•Adhere religiously to plans information
•Are concerned about not • Change plans often and easily
disturbing others; •Are more concerned with those who
•rules of privacy and consideration are closely related (family, friends,
•Show great respect for private close business associates) than with
property; seldom borrow or lend privacy
•Punctuality •Borrow and lend things often and
easily
• strong tendency to build lifetime
relationships

30. by Albert Einstein

31. Cultural Imperative Business customs and expectations
that must be met and conformed to if
relationships are to be successful.
Cultural Adiaphora Areas of behaviour or customs that
cultural aliens may wish to conform to
or participate in.
Cultural Exclusives Customs or behaviour patterns
reserved exclusively for locals, from
which foreigners are excluded

32. „I don„t want to buy this carpet please – Godspeed.“

33. Business customs and expectations that must be met and conformed to if relationships are to be successful.
„must do“
„While in Rome, e.g.: Smalltalk in the USA, being on time and
do as the Romans do!“ well prepared in Germany, leisure activities
etc.
Asia & Latin America Friendship leads to success!
Trust and Acceptance as a
cultural basis for business

34. Areas of behaviour or customs that cultural aliens may wish to conform to or participate in.
„can do“
Following customs and/or e.g.: bowing in japan, greetings,
rituals that are typical for eating special food etc.
the according culture.
Most visible customs
Careful: Exaggeration may lead to annoyance
Sign of goodwill and interest in
the business partner„s culture

35. Customs or behaviour patterns reserved exclusively for locals, from which foreigners are excluded
„don„t do“
e.g.: politics, religion, WWII in
Germany, visiting a mosque in shorts,
contradiction in Japan etc.

36. „I„d like a fresh beer for me and my friends please – get well soon!“

37. - International Marketing, Second Edition; Ghauri/Cateora
- Paulaner Brauerei München
- http://www.wordpress.com
- http://www.CoxandForkum.com
- Barbara Stöttinger / Hartmut H. Holzmüller ; International Marketing
Managers´ Cultural Sensitivity, 2001
- NBC‟s Today Show ; Doing Business in China, 2008
- http://today.msnbc.msn.com