Midterm exam Flashcards
International Marketing
The individual market is served with specific tailored products especially adjusted to the customers in that market. eg. Lays: Chips super spicy for Thailand.
Global Marketing
The same product distributed worldwide.
eg. Coca Cola classic is identical in every country and also the price.
Glocalization
The same product distributed worldwide but adjusting the good accoording to the country. eg. Big Mac in India (no meat).
Outsourcing
Contracting work out to an external company.
Offshoring
Accessing products/ services in a different country.
Tariffs
These are taxes that are imposed by the government on the goods imported from a different country.
Quotas
It is a specific unit limit applied to a particular type of good. And it is to protect local product.
Standards
Regulations to protect health, safety, product quality. And it can be used to restrict trade.
Boycotts
Restriction against the purchase and importation of certain good or service from other countries by government or local customers.
Cultural models
Independent
- Emphasis on individual action.
- Individuals see themselves as distinct from their groups.
- Preference for egalitarianism and achieved status.
- Rules of proper behavior should be universal. (universalism)
Cultural models
Interdependent
- Emphasis on collective action.
- Individuals want to blend harmoniously with their reference groups.
- Acceptance of hierarchy and ascribed status.
- Rules of proper behavior differ from one situation to another. (particularism)
Hofstede’s cultural dimensions
Power distance
the degree to which the less powerful members of a society accept annd expect that power is distributed unequally.
Low: people expect an equality distribution, but it is not so, people demand for justifications.
High: Power is distributed unequality in society. Everyone has a assigned place in the social hierarchy.
Individualism vs Collectivism
The degree of interdependency a society mantains among its members.
Individualism: people are supposed to look after themselves and their direct family only.
Collectivism: people belong to “in group” that take care of them in exchange for loyalty.
Masculinity vs Feminity
Masculinity: stands for preference in a society for achievement, heroism, assertiveness, and material rewards for success.
Feminity: stands for a preference for a cooperation, modesty, caring for the weak and quality of life.
Uncertainty avoidance
The degree to which the members of a society feel uncomfortable with uncertainty and ambiguity.
Strong: Low tolerance for uncertainty. Desire to control the future. Higher trust in experts.
Low: Higher tolerance for uncertainty. Attitude toward the future is to just let things happen.
Edward T. Hall, Beyond Culture
High Context
A high context culture relies on implicit communication.
A message cannot be understood without a great deal of background information.
The rules of communication are primarily transmitted through the use of contextual elements. (i.e. body language,..)
-> Restricted code: very little verbal development and detail.
Pro and Con of High context system
Pro:
❏ They tend to be more intimate and comfortable (for insiders).
❏ They enable greater efficiency of communication.
Cons:
❏ They have difficulty including people from diverse backgrounds.
❏ Outsiders might easily misunderstand and misinterpret them.
Edward T. Hall, Beyond Culture
Low Context
relies on explicit communication.
-more of the info in a message is spelled out and defined.
Elaborated code: most of the necessary info is expressed in verbal form.
Pro and cons of a Low context system
Pro:
❏ They tolerate a wider variety of participants from diverse backgrounds.
❏ Low-context communicators tell you what they mean directly.
Con:
❏ As they increase in size, they become difficult to manage.
❏ They ignore personal and social circumstances that could be relevant and important.
Organizational & National Culture
❏ culture: About people in groups.
❏ national culture: “values”, normative, the way things “should be”.
❏ organizational culture: “practices”, descriptive, the way things “are”.
-> sometimes called “corporate” culture.
-> how an organization and its people train everyone to behave and think in certain ways: organization’s common practices.
-> organizational culture might weaken or erase the influence of outside societal cultures.
Hofstede’s dimensions of organizational culture
Means-oriented vs goal-oriented
Means-oriented: Emphasis on the process and routines of work, workers avoid risks and do not make many efforts in their jobs. “Doing things right”
Goal-oriented: Emphasis on producing results, workers feel comfortable in unfamiliar situation, they make maximum efforts and everyday at work brings new challenges. “doing things right”
Hofstede’s dimensions of organizational culture
Internally driven vs externally driven
Internally driven (normative):
- workers see thir jobs as implementing inviolable rules, that must be followed (dogmatism)
- high, strict standards of business ethic and honesty.
- workers thing they know what is good for the customer.
Externally driven (pragmatic)
- workers see their job as meeting customer’s need and achieving results for customers (pragmatism)
- satisfying customer needs are more important than following strict rules and correct procedures.
Hofstede’s dimensions of organizational culture
Easy going work discipline vs strict work discipline
Easy-going (loose control):
- workers do not think much about costs and expenses.
- meetings are often not scheduled and not on time.
- people make often jokes about company.
Strict (tight control):
- people care a lot about costs and expenses.
- all vice versa.
Hofstede’s dimensions of organizational culture
Local vs professional (focus)
Local (parochial):
- workers feel that organization’s norms apply at work and outside.
- workers identify with the company. #likeabosh
- social and bakground are important in hiring decisions.
- workers trust the company will plan the future for them.
Professional (cosmopolitan):
- workers do not mix their privat lives with their jobs.
- they define their identities according to their job type. (“I am a doctor”).
- hiring decisions are based on own competence.
- workers think far into the future.
Hofstede’s dimensions of organizational culture
Open system vs closed system
Open system:
- people in the organnization are open and welcoming to newcomers and outsiders.
- workers find easy to “fit in” and are always well informed and get all necessary info.
- everyone get a second chance in case of failure.
Closed system:
- people in the organization seem to be closed off and secretive, even to insiders.
- management is not keeping everyone informed.
- no mercy for those who fail.
Hofstede’s dimensions of organizational culture
Employee-oriented vs work oriented
Employee-oriented
- the organization cares about workers welfare and well-being. And also workers feel that.
- important decisions are made by groups/ committes.
Work-oriented
- workers feel strong pressure to finish their assigned work.
- organization just care about the work/ results.
- important decisions are made by individuals.
Marketing research process
Define the problem
- > Design the research
- > Design the data-collection form
- > Specify the sample
- > Collect the data
- > Analyze the data
- > Write the research report
- Design the data-collection
- Primary data are freshly gathered for a specific purpose or for a specific research project: • Survey • Focus group • Interview • Observation • Experiments
- Secondary data were collected for another purpose and already exist somewhere:
• In company reports, memos etc.
• Newspaper, reports
• Various search engines, portals and websites
• Industry or trade associations
• Government and international publications
Problem with secondary data research
- Lack of accuracy of data
- Age of data
- Decrease reliability over
Primary data collection - Focus Groups
The focus group is a research technique used to collect
data through group interaction on a topic determined by
the researcher.
• To test new products
• To explore and identify issues of satisfaction for
customers, staff or suppliers
• To explore perceptions of brand and service elements
associated with the brand
Primary data collection - Focus Groups
Pro & Cons
Strengths: • focused data collection • some control • flexibility • fairly speedy • fairly low-cost
Weaknesses: • data are difficult to analyze • moderators are important • differences between groups • not all topics, not all people • generalize only to groups
Primary data collection - Interviews
Pro & Cons
Strengths
• Depth vs. Breadth of understanding
• Can be flexible or structured
• The “So-What?” and the “Why” questions
• Excellent accompaniment to other methods
• Easy way to build rapport with informants
• Can provide new uncharted avenues for exploration
Disadvantages
• Social desirability
• Draining from time/energy perspective
• Quality-of-informants issue (personalities)
• Still run risk of misconstruing what was said
- Sampling
Probability Sampling • Random Sampling • Area Sampling • Systematic Sampling • Stratified Sampling
Nonprobability Sampling
• Snowball Sampling
• Convenience Sampling
4.1. Random Sampling
each member of the subset carries an equal opportunity of being chosen as a part of the sampling process.
4.2. Systematic Sampling
Select sample members from a larger population according to a random starting point but with a fixed, periodic interval. This interval, called the sampling interval, is calculated by dividing the population
size by the desired sample size.
N = 100 want n = 20 N/n = 5 select a random number from 1-5: chose 4 so, we have to select every 5th unit starting from #4
4.3. Stratified Sampling
Divide the population into separate groups (by certain criteria), then, a probability sample (usually simple random sample) is drawn from each group.
Research brief
- A research brief is a write-up from the client to the research agency
- The brief helps the researcher and the client to understand the problem properly.
- It makes the initiator of the brief more certain of how the information to be collected will support decision-making.
- It ensures an amount of agreement or cohesion among all parties who may benefit from the research findings.
- It helps both the marketer and the researcher to plan and administer the research program.
- It helps to reduce disputes that can occur when the gaps in marketers’ knowledge are not ‘filled’ as intended.
- It can form the basis for negotiation with a variety of research organizations.
