A - Why cross-cultural marketing? Flashcards
Definition: Globalization
The growing integration of economies around the world and companies‘ increasing cross-border activities
Origins of Globalization
European Perspective
China -> silk -> Europe = Silk Road
Europe -> glass -> China = glass road
Causes and correlates of globalization
Politics
- > “Nations” lose their significance
- > transnational entities
- > regionalization
Society
- > geographic, mental and emotional mobility
- > travelling
- > media
Technical Advances
- > Interconnectedness and communication
- > information (speed, costs)
- > transportation
Economy
- > deregulation
- > cutback of trade barriers
- > independence of the capital markets
- > growing competitive pressure
What is CCM?
International Value Chain
In order to give a „world-wide“ configuration to a national value chain, activities concerning marketing and HRM have to be performed in every country, where the company is active, since they are culturally different.
What is cross cultural marketing?
Marketing + Culture?
CCM
-> Behavioral Science
+ Economics
+ cultural sciences
Behavior of economically relevant actors
- > adoption of innovative products
- > willingness to pay
- > emotional or informative ads
What is cross cultural marketing?
Influence of culture on individual consumer behavior
Culture determines consumer behavior
- > macro sociology = culture, subculture, social group
- > social psychology = reference group, family/household
- > (Personality-)psychology = social profile, psychological profile
+ situational factors
Managerial Approach
Standardization vs. Adaption
Standardization leads to cost advantages, whereas adaption leads to preference advantages.
Which approach is used, is dependent on the context variables, e.g. culture, law or climate.
Managerial Approach
Differentiated Standardization
When using differentiated standardization, the different country markets are combined to homogeneous clusters, e.g. all masculine countries vs. all feminine countries.
