Session 28 International Marketing Flashcards
Cross-Cultural Analysis of Consumer Behavior ¢ Determine relevant motivations in the culture ¢ Determine characteristic behavior patterns ¢ Determine what broad cultural values are relevant to this product ¢ Determine characteristic forms of decision making ¢ Evaluate promotion methods appropriate to the culture ¢ Determine appropriate institutions for this product in the mind of consumers
What is Culture?
Culture
The unique character of a social group
(ie. the groups shared values and norms)
Cultural prototype
- a cultural tendency
Cultural stereotype
- the idea that everyone in a culture is
the same, that there is no distribution around the mean— puts everyone its a box from the same culture.
Cultural Differences vs. Stereotypes
It’s worth learning about and knowing cultural differences, but but recognize that on most
dimensions, substantial variance exists within cultures— Stereotypes do not represent the actual variances in a culture.
example- of silence period that is ok in negotiation for Japanese vs. Mexicans vs. Americans
(DRAW OUT)
Why Go Global (as if we all had the choice)?
Coke example- American product that is success all over the world- has become the successful company that it is by becoming an international company.
Example: Coca-Cola in China
- Coca-Cola invested $150 million in China over 5 years– Deal enabled Coca-Cola to move beyond the coastal regions of China
Why?
- China’s population is more than one billion
- Chinese consumers have increased buying power and are interested in American products
- Coke’s sales in China are highest among its Asian countries
- On average, each Chinese drinks only 1.5 cans or bottles of Coke a year
- Coca-Cola’s goal is to increase Chinese consumption to that in the U.S.
International Marketing Motivations
PCL in India Vs. US on same Product:
- A product (ie. Television) could be on the Decline stage in US, but in a place like India where they are a few steps behind on new technology, this TV could be at Introduction and Growth Stages of PLC
Managing a Global Product Line
Possible Product Life Cycle for a Product in Different Countries
Country A Country B Country C Country D
Introduction Growth Maturity Saturation Decline
TV in INdia vs. US example
McDonalds Abroad (Franchises)
McDonalds run as a local company in each market
- Managing director is a native of the country
- Local real estate experts and local advertising agencies used
- But foreign executives must go to Hamburger University near Chicago
Case Study: The Introduction of Euro Disney In Paris
- Europe isn’t North America is the Consensus of experts Same as Us: - No Alc in Park - rides - main st. USA
Differences:
- Two official languages (French and English)
- theater featuring a movie about European history
- Re-emphasizing European roots of Disney characters
In first full fiscal year lost $900 million
Why did Euro Disney Fail
Problems with introduction:
- European recessionl
- Strong French franc compared to other European currencies
- opened during Cold weather
- Marketing to the French proved difficult
- Misjudgments about European habits
• An initial ban on alcohol
• An erroneous calculation that visitors would stay at Disney hotels while visiting Paris and surroundings
- timely lunch of french= Long lines at 1:00
CHANGES: accommodate European tastes
• Beer and wine now served in theme park
•Frenchman took over as chairman of Euro Disney
What is the crux of international marketing?
Culture Issues in IM:
1. International marketing is really a segmentation
problem
- One difference
• Must consider cross-cultural differences on the consumer side BUT ALSO management side - A major reason that marketers are interested in
culture is for developing international marketing
strategies
• But culture is also important for developing marketing strategies in the domestic market
3 major ways culture affects
consumers:
3 ways culture affects consumers:
- Individual decision-making
- The structure of consumption
- Symbolic meanings assigned to products
Cross-Cultural Differences in Cognitions and Behavior
- Food
- Dogs, insect, horses
• Horse meat is tasty good value vs. Mr. Ed - Americans eat corn, considered pig food in some cultures
- Role of spiciness or hotness
- Dogs, insect, horses
- Cleaning
- Importance of brand name
- Celebrity advertising
- Much more widely used in Japan than in the U.S.
- Retailing and distribution
- Emotion
How can marketers react to culture
factors when developing marketing
strategies?
3 options: CAS
1. Change the local culture
(Starbucks coffee in Tea-drinking china)
- Adaptation to local culture
(Campbell soups in china- duck gizzard soup- McDonalds) - Standardization across cultures
(PC vs. Mac Ads tries to bring overseas- but different ideas of what is funny)
Interpreting the Iceberg Analogy
We often interpret others’ behavior according to our own values BUT
We should interpret others’ behavior according to their own values
Toolkit for Getting Information in Different Cultures: Understand “Form” and “Function” of behavior and communication
Important to understand both form and function of behavior and communication
Form: Surface behaviors
Function: Underlying meaning
Cross-Cultural Analysis of Consumer Behavior
- Determine relevant motivations in the culture
- Determine characteristic behavior patterns
- Determine what broad cultural values are
relevant to this product - Determine characteristic forms of decision
making - Evaluate promotion methods appropriate to the
culture - Determine appropriate institutions for this
product in the mind of consumer
