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SEM141 > International Marketing CHELSEA Weeks 2-5 > Flashcards

International Marketing CHELSEA Weeks 2-5 Flashcards

1
Q

Define Culture

A

-Integrated system of learned behavior patterns that are distinguishing characteristics of the members of any given society-Way a group thinks, says, does and makes, customs, language, material artifacts and shares attitudes and feelings -Primarily passed on by parents -Provides code of conduct-Creates individual identity

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2
Q

Define Acculturation

A

-Adjusting/adapting to a specific culture other than one’s own-A key to success in international operations

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3
Q

What is the impact of culture on International Marketing?

A

-Conditions needs & wants of potential buyers-Impacts how messages are received & interpreted-Pervades all elements of the marketing mix

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4
Q

Why is cultural adaption important?

A

It affirms acceptance rather than tolerance of a different culture (based on the 10 cultural adaption criteria).

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5
Q

What are the 10 basic criteria for cultural adaption?

A
  1. open tolerance2. flexibility3. humility4. justice/fairness5. adjust-ability to varying tempos6. curiosity/interest7. knowledge of the country8. liking for others9. ability to command respect10. ability to integrate oneself into the environment
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6
Q

To apply the 10 basic criteria for cultural adaption, what three categories must you understand?

A
  1. Imperatives- Customs that must be accommodated and conformed to 2. Options - Not mandatory but may enhance the process3. Exclusives- Customs that an outsider cannot participate in
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7
Q

What are the major cultural frameworks?

A
  1. Kluckhohn & Stodtbeck2. Hall and Hall3. Hofstede4. Trompenaars
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8
Q

What is a high context culture?

A

A culture where the social context of what is said strongly affects the meaning of the message e.g. Japan, Saudi Arabia

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9
Q

What is a low context culture?

A

A culture where the meaning of the message is expressed by words and is less affected by social context e.g. North America

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10
Q

How does the traditional Asian high context culture compare to the Australian low context culture?

A

Asian High Context-Indirect-Implicit, nonverbal-Formal-Goal Orientated-Emotional controlled-Self-effacing, modestAustralian Low Context-Direct-Explicit, verbal-Informal-Spontaneous-Emotionally expressive-Self-promoting, egocentric

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11
Q

What are cultural universals and what do they include?

A

Cultural Universals are generalizations concerning a given culture.1. Music2. Mealtime3. Personal Names4. Etiquette5. Status6. Jokes

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12
Q

What are the major elements of culture?

A
  1. Language2. Religion3. Values & attitudes4. Manners & customs5. Material elements6. Aesthetics7. Education8. Social Institutions
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13
Q

Why is mastering a cultural language important?

A
  1. Aids information gathering2. Provides access to local society3. Important to company communications4. Allows for interpretation of contexts
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14
Q

What does a language entail?

A
  1. How words are spoken2. Gestures3. Body positions4. Level of eye contact
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15
Q

Why do marketers often use back-translation?

A

Back-translation is used to detect omissions & mistakes.

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16
Q

What can the word “yes” mean in Thailand & Japan?

A
  • Thailand yes means “maybe”-Japan yes means “I hear what you are saying”
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17
Q

What is an example of a businesses translation mistakes?

A

American Airlines advertised it’s new leather first class seats in the Mexican market. It’s “Fly in Leather” campaign was translated to “Fly Naked” in Spanish.

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18
Q

Give examples of the hidden language of cultures.

A
  1. Time flexibility & sensibility2. Social acquaintance & rapport3. Personal space & physical contact4. Non-verbal gestures & signaling
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19
Q

Give examples of non-verbal language.

A
  1. Personal appearance2. Body posture3. Body movements & gestures4. Facial expression5. Eye contact6. How things are said7. Touching8. Interpersonal distance
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20
Q

What are the reasons for religion?

A
  1. A reason for being2. Belief in a higher power3. Belied they are part of the ‘bigger picture’4. Provides basis for trans-cultural similarities
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21
Q

What are the 6 major religions, & how many followers do they have?

A
  1. Christianity - 2 billion2. Islam - 1.3 billion3. Hinduism - 860 million4. Buddhism - 360 million5. Confucianism - 150 million6. Judaism - 14 million
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22
Q

Define values & attitudes.

A

Values are shared beliefs or groups.Attitudes are evaluations of alternatives based on these values.

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23
Q

How is the attitude to change shown in different countries?

A
  1. Positive in industrialized countries2. Viewed with suspicion in more traditional-bound countries
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24
Q

Who has a noticeably positive attitude towards change?

A

Japanese youth display positive attitudes towards Western products.However, Japanese manga is still popular in Australia & NZ.

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25
Q

In relation to manners & customers, problems may arise from a lacking of understand of what?

A
  1. Different ways of thinking2. Necessity of saving face3. Knowledge & understanding of host country4. Decision-making process & personal relations5. Allocation of time for negotiations
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26
Q

What are some numbers that are consider lucky/unlucky in China?

A
  1. Number 8 is of great significance. -Sounds like “to make money” in Cantonese-Beijing Olympics began at 8am on 8/8/082. Lucky numbers: 6, 8, 9. 3. Unlucky numbers: 1, 4, 7.
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27
Q

How is material culture formed? Give examples of economic infrastructure.

A

Material culture results from technology. It is related to the way society organizes its economic activity.Economic infrastructure e.g.:-Transportation (roads)-Energy (electrical power plants)-Communications (mobile, land-line, internet)

28
Q

How are educational levels assessed, & what business functions do they impact?

A

Educational levels are assessed by:1. Literacy rates2. Enrollment in secondary or higher educationEducation impacts on the following business functions:1. Employee training2. Local job recruitment3. Use of visual aid/printer manuals

29
Q

What is social stratification?

A

Social stratification is the division of a population into classes.

30
Q

What are reference groups?

A

Reference groups provide values & attitudes that become influential in shaping behavior, and developing an individual’s concept of self. Primary references groups= Family & coworkersSecondary reference groups= Professional associates & trade organisations.

31
Q

Define the 2 types of cultural knowledge.

A
  1. Factual Information=Obtained through communication, research & education. 2. Experiential Information=Obtained by being involved in a different culture.
32
Q

What is the model of Cross-cultural Behaviour?

A

Picture unavailable.

33
Q

What is the natural self-reference criterion, & what are some ways to reduce it?

A
  • Unconscious reference to one’s own cultural values
  • Cause of most international business problems

Reduce by:

  1. Defining problem/goal in terms of domestic culture
  2. Define problem/goal in terms of foreign culture
  3. Isolating self-reference criterion
  4. Redefining problem without self-reference criterion
34
Q

What are the 3 internal education programs?

A
  1. Culture-specific info
  2. Cultural general info
  3. Self-specific info
35
Q

What are the objectives of training programs?

A
  1. Preparedness
  2. Sensitivity
  3. Patience
  4. Flexibility
36
Q

What are the 3 different training methods?

A
  1. Factual
    (Books, Lectures, Area briefings). Low in Participation & Rigour
  2. Analytical
    (Case studies, films, sensitivity training).
    Medium in Participation & Rigour
  3. Experimental
    (Field experience, simulation, field trips, role plays)
    High in Participation & Rigour.
37
Q

What are the 6 steps to make culture work for marketing success?

A
  1. Embrace local culture
  2. Build relationships
  3. Employ locals & gain cultural knowledge
  4. Help employees understand you
  5. Adapt products & processes to local markets
  6. Coordinate by region
38
Q

List and describe the 3 strategic planning aspects.

A
  1. International Strategy.
    The organisation’s objectives relate primarily to the home market. However, we have some objectives with regard to overseas activity and therefore need an international strategy. Importantly, the competitive advantage – important in strategy development – is developed mainly for the home market.
  2. Multinational strategy.
    The organisation is involved in a number of markets beyond its home country. But it needs distinctive strategies for each of these markets because customer demand and, perhaps competition, are different in each country. Importantly, competitive advantage is determined separately for each country.
  3. Global strategy.
    The organisation treats the world as largely one market and one source of supply with little local variation. Importantly, competitive advantage is developed largely on a global basis.
39
Q

List the 3 different phases of the Global Marketing Evolution, and what Corporate Actions they involve.

A

PHASE 1.
Leverage of domestic capabilities: foreign market entry
Objective: Economics of scale

Corporate Actions:
-Driven opportunistically, often by approach of distributor or customer

  • Constrained by lack of funding (domestic growth still priority investment), so low cost entry
  • Constrained by lack of funding (domestic growth still priority investment), so low cost entry
  • Risk minimized by entering close markets (geographically, culturally, economically)
  • Entry based on core products with technical superiority

PHASE 2.
Expansion of foreign market presence
Objective: economics of scope

  • Slower domestic growth creates greater pressure for foreign sales growth
  • New lines carried, sales mix broadens and reflects national market
  • Search for new customer segments, requiring new management skills
  • Countries develop own marketing skills
  • New applications sought
  • Decentralization of R & D production
  • Regional management reflects foreign experience

PHRASE 3
Coordination of global operations
Objective: Exploit synergies throughout network

  • Product the broadened, new emphasis on full-time service rather than proprietary technology
  • Global account management
  • Coordination mechanisms (Global Force Tasks)
  • Learning transferred between countries
  • Headquarters introduces global branding, packaging
  • Requires common culture
40
Q

Why do companies need to globalize?

A

To take advantage of:

  1. Underlying market
    - Purchasing power
    - Developed infrastructure
    - Technology
    - Globalization of distribution channels
    - Cross-border retail alliances
  2. Cost
    - Avoiding cost inefficiencies & duplicated efforts
  3. Environmental factors
    - Reduced govt barriers & rapid technology evolution
    - “Mini-nations”/”Born globals” are taking advantage of today’s more open trading regions & newer technology
  4. Competitive factors
    - Marketer must be able to match competitors’ moves to remain competitive
    - Include product intro, upgrade, distribution
41
Q

What are the 3 types of countries from least to most globalized?

A
  1. Low-income countries
    - Closed arena
    - Still blocked or lacking significant opportunity
  2. Emerging countries
    - Growing arena
    - Globally contestable today
    e. g. India
  3. Triad
    - Old arena
    - Globalized in 1980’s
    e. g. Australia, Western Europe, Japan, North America
42
Q

What are the contributions of formal strategic planning?

A
  1. Raising efficacy of new-product launches
  2. Enhancing cost reduction
  3. Improving product quality
  4. Improving market share
43
Q

What are the 3 broad dimensions to be kept in mind while undertaking formal strategic planning?

A
  1. Potential benefits for the company in short/long term
  2. Costs in terms of management time & process realignment
  3. Necessary management resources
44
Q

GLOBAL STRATEGY FORMULATION.

What are the 4 stages of the Global Strategy Formulation?

A
  1. Assessment & Adjustment of Core Strategy
    - Market/Competitive analysis
    - Internal analysis
  2. Formulation of Global Strategy
    - Choice of competitive strategy
    - Choice of target countries & segments

3.Development of Global Marketing Program

  1. Implementation
    - Organizational structure
    - Control
45
Q

GLOBAL STRATEGY FORMULATION: Stage One.

What is a SWOT analysis?

A
  1. Strengths
  2. Weaknesses
  3. Opportunities
  4. Threats
46
Q

GLOBAL STRATEGY FORMULATION: Stage One.

What are the different stages of the Product Life Cycle?

A
  1. Product Development
  2. Introduction
    - Sales begin but profit is negative
  3. Growth
    - Sales increase with profit
  4. Maturity
    - Sales reach peak with profit
  5. Decline
47
Q

What are the different Industry Competitors?

A
  1. New entrants
  2. Suppliers (bargaining power)
  3. Buyers (bargaining power)
  4. Substitutes
48
Q

GLOBAL STRATEGY FORMULATION: Stage Two.

What are the 3 different types of Competitive Advantage?

A
  1. Cost leadership
  2. Differentiation
  3. Focus
    - Single segment
    - Can focus on cost/differentiation within that segment.
49
Q

GLOBAL STRATEGY FORMULATION: Stage Two.

What factors determine country market selection?

A
  1. Stand-alone attractiveness
  2. Global strategic importance
  3. Synergies offered by market
50
Q

GLOBAL STRATEGY FORMULATION: Stage Two.

What are the Bases for Global Market Segmentation?

A
  1. Environmental Variables
    - Geographic
    - Political
    - Economic
    - Cultural
  2. Marketing Management Variables
    - Product
    - Promotion
    - Price
    - Distribution
51
Q

GLOBAL STRATEGY FORMULATION: Stage Three.

What are the 4 areas of marketing related decisions that need to be made?

A
  1. Degree of standardization in product offering
  2. Marketing approach
    - Uniformity is sought in elements that are strategic in nature, while taking care to localize necessary tactical elements- this is called glocalizations.
  3. Location & extent of value-adding activities
  4. Competitive moves
    - Cross-subsidization may be the competitive advantage needed for long term.
52
Q

GLOBAL STRATEGY FORMULATION: Stage Three.

What are the 6 segmented global markets by cultural values?

A
  1. Strivers
    - Mostly men
    - Emphasis on material goods
    - 1/3 Asia
  2. Devouts
    - 22% adults
    - Mostly women
    - Emphasis on tradition & duty
    - Africa, Asia, Middle Eat (least common in Europe)
  3. Altruists
    - 18% of adults
    - Mostly women
    - Emphasis on social issues & welfare
    - Latin America & Russia
  4. Intimates
    - 15% population
    - Emphasis on personal relationships & family
    - Europe & North America
  5. Fun Seekers
    - 12% Youngest group
    - More developed in Asia
  6. Creatives
    - 10%
    - Emphasis on education, knowledge & technology
    - Europe & Latin America
53
Q

GLOBAL STRATEGY FORMULATION: Stage Three.

What are the challenges of global marketing?

A
  • Insufficient research & tendency to over-standardize
  • Inflexibility in planning & implementation
  • Local resistance in form of not-invented here (NIH), occurs when country isn’t part of the planning process or if adoption is forced on them by headquarters
54
Q

GLOBAL STRATEGY FORMULATION: Stage Three.

How can you avoid NIH syndrome?

A
  • Ensure local managers participate in development of global brand marketing strategies
  • Encourage local managers to develop ideas for regional/global use
  • Maintain product portfolio that includes local, regional & global brands
  • Allow local management control over their marketing budgets so they can respond to local customer needs & counter global competition
55
Q

GLOBAL STRATEGY FORMULATION: Stage Three.

In terms of localizing global marketing, what are the management processes?

A
  • Globalization enhances flow of info, leading to idea exchange & strengthening org values
  • Encourage personnel interchange to gain experience abroad
  • Coordinate & leverage resources of the corporation
  • Permit local managements to develop their own programs within specified parameters & subject to approval
  • Minimize influence of NIH syndrome by using motivational policies.
56
Q

GLOBAL STRATEGY FORMULATION: Stage Three.

In terms of localizing global marketing, what are the organizational structures?

A
  • Establish global/regional product managers & support groups at headquarters
  • The matrix structure is considered more effective in today’s global marketplace
  • Execute global account management programs to build relationships with important customers & allow development of internal systems & interaction
57
Q

GLOBAL STRATEGY FORMULATION: Stage Three.

In terms of localizing global marketing, what are corporate cultures?

A
  • Affects & is affected by the manner in which a company holds its operations together and makes them a single entity, & commitment to global market place.
  • Management development system has to be transparent; non-national executives should have equal chance for the fast track to top management.
  • Implement compensation & mobility policies to avail the best talent regardless of job location.
58
Q

GLOBAL STRATEGY FORMULATION: Stage Four

In terms of the local company in the global environment, what is the 6 part strategy for success?

A
  1. Create customized product & services
  2. Develop approaches that overcome key obstacles
  3. Utilize latest technology for advantage
  4. Scale up operations locally, regionally & globally
  5. Exploit low-cost labor
  6. Invest in talent to sustain their growth & expansion
59
Q

GLOBAL STRATEGY FORMULATION: Stage Four

What are the reasons strategic plans fail?

A
  1. Having a pan simply for plans sake
  2. Not understanding the environment
  3. Partial commitment
  4. Not having the right people involved
  5. Writing the plan & putting it on the shelf
  6. Unwillingness or inability to change
  7. Having the wrong people in leadership positions
  8. Ignoring marketplace reality, facts & assumptions
  9. No accountability or follow through
    10, Unrealistic goals or lack of focus & resources
60
Q

What aspects can a new market environment bring with it?

A
  1. Scarcer resources
  2. Increased competition
  3. Higher customer expectations for service & quality
  4. Pressure from strong distributors
  5. High levels of customer concentration
  6. Faster rates of change of markets & technologies
  7. Post recession envrioment8. More turbulent & unpredictable markets
61
Q

What are the motivations to internationalize?

A
  1. The type & quality of management e.g.
    - Perceptions & attitudes towards exporting are good predictors of success
    - Long-term broad commitment is needed
    - Specific person should have responsibility of exporting activities
  2. A mixture of proactive & reactive factors motivate firms to go international.
62
Q

What is the model of International Entry & Expansion?

A 
STIMULI:
-Proactive
-Reactive
& 
CHANGE AGENTS & INTERMEDIARIES :
-External
-Internal

leads to: INFORMATION EXPERIENCE PERCEPTION

leads to: CONCERNS:
-Info
-Mechanics
-Communication
-Sales Effort
-Service
-Delivery
-Regulations
&
CORPORATE EXPORT STAGES:
-Awareness
-Interest
-Trial
-Evaluation
-Adaption
&
DOMESTIC FOCUS (dead end)

Concerns & Corporate Export Sales leads to: FURTHER INTERNATIONAL EXPANSION

  • Franchising
  • Licensing
  • Foreign Direct Investment
63
Q

Explain the Stimuli to Internationalize.

A

-In business, a variety of stimuli push & pull firms along the international path.

The major motivations separate into:

  1. Proactive motivations (Stimuli to attempt strategic change)
  2. Reactive motivations (Influence firms that respond to enviro shifts by changing activities over time)
64
Q

What is the difference between Proactive and Reactive stimuli?

A 
Proactive Stimuli
-Profit advantage
Unique products
Technological advantages
-Exclusive info
-Economics of scale
-Market size

Reactive Stimuli

  • Competitive pressures
  • Overproduction
  • Stable/declining domestic sales
  • Excess capacity
  • Saturated domestic markets
  • Proximity to customers & ports
65
Q

What are the different change agents in the Internationalization Process?

A

Internal:

  • Enlightened management
  • New management
  • Significant internal event

External:

  • Foreign demand
  • Competition
  • Domestic distributors
  • Service firms
  • Business associations
  • Govt activities
  • Export intermediaries: export management companies & trading companies.

SEM141 (9 decks)

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