4.3 Global Marketing Flashcards

Question

How can the marketing mix be adapted to global niches?

Answer 1

Product --> global niche products often place emphasis on quality, differentiate its standard product into something that shows it is meeting the needs of niche customers Price --> can charge a premium price Place --> more careful and exclusive about distribution channels. Mercedes-Benz have exclusive dealerships. Montblanc sells through authorised retailers. Adds to the exclusivity of a brand Promotion --> methods are based around brand name and exclusivity.they need to be more targeted than in mass market promotion The name may need a change due to the language. Car names are often changed. by being sensitive to national land cultural difference the promotion costs can therefore increase, this can impact prices, and ultimately competitiveness

Answer 2

- Prices are higher than in mass markets – demand is more price inelastic - The product is distributed through specialist retailers or directly to the consumer. This has advantages in terms of image. For example, the Billabong surfer image might be compromised if sold widely in supermarkets.

Answer 3

- Products sell in relatively low volumes (compared with mass markets), so profits need to be high enough to make it worthwhile. - The niche market must be large enough to support the business and specialist distribution. The small size may prevent economies of scale that compete with larger competitors

Answer 4

Study and examination of an organisation’s cultural characteristics (such as assumptions, norms, philosophy, and values) to determine whether they hinder or support its vision and mission.

Answer 5

The tendency of people to view their own cultures, ethics and norms as superior. The evaluation of other cultures according to preconceptions originating in the standards and customs of one’s own culture.

Answer 6

Cultures, including much of the Middle East, Asia, Africa and South America, that are relational, collectivist, intuitive, and contemplative. This means that people in these cultures emphasis interpersonal relationships. Developing trust is an important first step to any business transaction.

Answer 7

Cultures such as those of North America and much of Europe, that tend to say what they mean. A communication style that relies heavily on explicit and direct language..

Answer 8

- doing business across cultures can be challenging. without an understand of national and corporate cultures and languages the potential to offend is very real. - In order to market effectively in other countries, businesses must overcome ethnocentrism (the tendency of people to view their own culture, ethics and norms as superior). - In international business you must try to understand the values of the country and the business and try to do right by them

Answer 9

- working across national culture can ad levels of complexity to business operations. - each step in conducting business need to be carefully prepared for and considered , to take account of cultural differences and build trust. - to understand how companies need to think about each level of the business relationship: the introductions, the negotiations and communicating on a day-to-day basis - Businesses may have formal and informal procedures that if ignored can cause offence. eg Vietnam – you shake both hands when entering a room, nod heads and exchange business cards, which must be received with both hands. The card should be studied, otherwise they will take great offence.

Answer 10

- Language - Unintended meanings - Different tastes - Inappropriate branding and promotion

Answer 11

- Although most international business is done in English, knowing other languages helps build relationships and can avoid misunderstandings so reduces risk and shows sensitivity. - Communication is also different for high-context and low-context cultures. - Low Context --> Europe and USA – say what you mean direct. - Get down to business, socialise after, what is said is taken at face value, formal letters/contracts are essential and relied upon during and after negotiations are completed -High Context --> Middle East/Asia/Africa-SA. - Sometimes yes doesn't mean yes in high context cultures In Saudi Arabia, ‘yes’ means ‘I hear you’, rather than ‘I agree’. Socialising and building trust can take first to create relationships place before 'negotiating actually happens.

Answer 12

Can cause great offence - Thumbs-up --> in Iran it can mean 'sit on it' which is their equivalent to holding a middle finger up - OK sign --> in Brazil and Italy it signifies a similar shaped part of the human anatomy - Pointing with the index finger --> in japan its considered rude and aggressive - Come hither gesture --> Philippines its considered fit for dogs and is actually punishable by arrest -Use of left hand --> In Muslim countries the left hand is reserved for 'cleaning yourself'

Answer 13

- Some countries will require more adaptations to products than others. e.g. the changes from UK product to Australian markets is less than to Chinese markets as they are cultural more similar. - However, drinks, like Coke, have the same formula, but the water may taste different in different countries. - Other differences can be based on religious beliefs. The use of halal meat is common in fast food restaurants in the Middle East. By respecting these beliefs businesses ensure they adapt sufficiently to gain a market share from local businesses who may be better suited to understand regional specifications. - Some adaptations are based on legal requirements. Some US products such as Pringles and Starbursts have to have additives removed to be able to be used in the UK.

Answer 14

- There are many accounts of mistakes involving language, mistranslations and unintended meanings when businesses operate - Sometimes this can be due to laziness and poor efforts to check with native speakers of a language that a translation is correct. e.g. General Motors sold its branded 'Nova car; in Latin America where its name in Spanish means 'no go' which isnt bey good for a name of a car - direct translations and local colloquialisms arent possible in other languages. - there is also a different approaches to promotion. In Africa – due to low levels of literacy, products have an image of what is inside the packaging, Nestle put a picture of a baby on their baby food products! - Promotions and advertising should be adapted too. Just because a marketing campaign worked in one country doesnt mean it will work in another Not considering your new market can be costly.