Exam 1 Flashcards
-a process
“it takes time.” To become global or transform marketing into a global environment to have to integrate the market
Globalization
“a result of the process” bringing markets together. The more you get together the more you know about each other which increases acceptability
convergence
unifying cultures” cultures coming together
cross-cultural
economic financial market political cultural
Types of globalization
o Combines “promotion” and “selling”
- They become interdependent as the marketer moves from market to market.
globalization of marketing
♣ Ex. A hedgehog know everything about one great thing a fox knows many things about many great things.
♣ Fox- when markets change they adapt
♣ Hedgehog- you know so much about the market to become the most efficient allowing you in turn to offer a product at the lowest possible price (very valued oriented, best product for the lowest price)
o Independent vs. non-independent economies (fox vs. hedgehog)
♣ Ex. L’Oreal has 4 different facial creams in china because there are 4 different climates that effect the skin in different ways.
o Multinational vs. global corporations
♣ Marketers must know what consumers need before the consumers know what they need
♣ “latent marketing” ex. Apple is creating products that we don’t even know about/ know we need
A new marketing concept
♣ customization is different areas have different needs so you have to modify the product for different locations
the global corporation vs. customization
♣ chemicals, steel, sugars, calculators, PC’s etc. (“sugar is sugar no matter where you go”)
products for homogeneous markets
♣ If you don’t have an attitude one will be formed, if you already have an attitude and it is adverse it will be changed.
cultural attitudes
♣ Acceptable behaviors
♣ Ex. Joining a frat it is expected that you will be hazed
cultual norms
“how people live”
♣ Holidays. Christmas is celebrated more by Americans than it is in Europe. Easter is celebrated more in Europe
cultural activités
o “I” reflects individualism
♣ Aristotle
♣ Does not wait for everyone to be on board
♣ Low context culture
♣ North western societies
o “we” reflects collectivism
♣ Plato
♣ “the whole is more important than the part”
♣ the interest of the group exceeds the interest of the individual
♣ south eastern hemisphere
I to we
♣ history and geography
♣ social institutions and the political economy
origins of culture
♣ Ex: Chinese people think china is the center of the universe which has effected their attitude on the way they think about china
cultures behaviors and attitudes
Culture is not hereditary. It is learned in a formal(school) and informal (observing surroundings and others) way
Learned through Family, education institutions, media, faith
culture is learned and shared
♣ the faster the culture evolves the greater the economic development
How culture affects management
cultures evolve
♣ Its is a threat because it means you buy local
♣ Ex: when GM was about the go bankrupt people bought their cars so they didn’t go out of business
o Ethnocentrism
♣ Affect consumption
♣ Ex: hummus is not allowed in Israeli during pass over
social norms
o A great way to test your product in a foreign market
o Ex; if you’re shipping something to brazil and the packaging is purple you will have to change the color because in brazil purple is a sad color
export marketing
o Power distance ♣ How people view hierarchy o Uncertainty avoidance ♣ How people avoid risk o Individualism vs. collectivism o Masculinity vs femininity ♣ Men are more aggressive and wealth oriented ♣ Woman are relationship oriented
- The Hofstede Model (4 cultural dimensions)
♣ Agenda, want to know exactly what they’re doing
♣ Relationship, focus more on trust
agenda vs. relationship focused
♣ Expressive; Americans
♣ Reserved; Japanese (very silent and observational. Respond through facial expressions)
expressive vs reserved communication
♣ Language and culture are inseparable (ex. Italians can not talk without moving their hands)
linguistic
♣ Physical distance that people prefer to keep from each other (brazil people like to get close to you, Americans like personal space)
concept of space
♣ Do not judge others on your own standards
♣ Cultural differences in communication
self referencing
♣ Decision making varies in different cultures
consumer purchasing behavior
o Avoid cultural bias
o Develop cultural sensitivity
o Become acculturated
on cultural attitudes
♣ “a new Yorker going to Tennessee feels like they’re in another country”
♣ do you have the skill and understanding cultural communications?
culturally competent
♣ understand that other cultures are different
♣ beliefs values and customs (values determine attitudes)
♣ we buy products based on our attitudes
cultural awareness
♣enculturation- learning your own culture
♣ acculturation- learning another culture
o enculturation vs. acculturation
- our worst enemy is our self
* you can never succeed or develop cultural empathy if you have a big ego
avoid egocintrism
• the greater the bias you have the more you need to get to know the culture. Getting to know a culture will eliminate bias
bias and cultural proximity
dividing the market into smaller markets
segmentation
o ethnic background o geographic o age o religion o sexual orientation o college market o cross classifications etc.
bases subcultural segmentation
o marketers should appeal to subcultural characteristics
♣ values, norms, customs
o gaining upwards and mobility
♣ becoming viable and effective
o used as “niche” markets
♣ niche markets are small markets that have well defined characteristics
♣ niche markets run out of steam fast
o show unique preferences
♣ smaller the subcultural the more unique the subculture is
♣ ex. vegans
o exposed to specialized media
♣ social media are used to reach certain groups
subcultural segmentation considerations
♣ means you are aware of the foreign culture and its impact
♣ ability to use perception, intuitions and reason to understand factual knowledge
cognitive knowledge
♣ lack knowledge of the foreign culture
SRC
self reference criterion
♣ marketing that is focused on the market on another culture
cultural strategy
♣ program that is similar to the local competition
♣ ex. Windows has a tablet similar to the ipad, but with innovations to be different than Ipad
culturally congruent strategy
♣ McDonalds offers chicken in india, they don’t offer beef
culturally distinct strategy
Risky because it may create diverse attitudes towards the product
culturally disparate strategy
♣ Technology, communication and transportation
♣ Ex. Facebook you can talk to someone on another culture without even knowing where they are.
♣ Increases adaptation
intercultural convergence
