Unit 3 Flashcards
What are values
Values are ๐ฏ๐ฎ๐๐ถ๐ฐ ๐ฎ๐ป๐ฑ ๐ณ๐๐ป๐ฑ๐ฎ๐บ๐ฒ๐ป๐๐ฎ๐น ๐ฏ๐ฒ๐น๐ถ๐ฒ๐ณ๐ ๐๐ต๐ฎ๐ ๐ด๐๐ถ๐ฑ๐ฒ ๐ผ๐ฟ ๐บ๐ผ๐๐ถ๐๐ฎ๐๐ฒ ๐ฎ๐๐๐ถ๐๐๐ฑ๐ฒ๐ ๐ผ๐ฟ ๐ฎ๐ฐ๐๐ถ๐ผ๐ป๐. They help us to determine what is important to us.
-freedom
-honesty
-loyalty
-justice
-responsibility
-personal relations
Social norms vs. norms
norms: Are rules or expectations that are socially enforced by society.
do not cheat
do not steal
be honest๐
๐ค
โโโโโโโโโโโโโโโโโโโโโโโโ
Social norms are the unwritten rules of beliefs, attitudes, and behaviors that are considered acceptable in a particular social group or culture
๐ฃ๏ธ
shake hands when you meet someone๐ค
arrive to appointments on timeโฐ
donโt talk with your mouth full of food๐คข
What is a society? What is culture?
Society : ๐ญ๐ฏ๐บ๐
A group of people who share a common culture
Culture: ๐๐ฝ๐งง๐ชฌ
The knowledge, experience, beliefs, values, attitudes, religion, symbols and possessions acquired by a group of people who have lived in the same region or country for years.
It is transmitted from one generation to the next through education and example
Subculture and examples of
๐ฆ๐จ๐๐๐จ๐๐ง๐จ๐ฅ๐
๐ ๐ฐ๐๐น๐๐๐ฟ๐ฎ๐น ๐ด๐ฟ๐ผ๐๐ฝ ๐๐ถ๐๐ต๐ถ๐ป ๐ฎ ๐น๐ฎ๐ฟ๐ด๐ฒ๐ฟ ๐ผ๐ฟ ๐ฝ๐ฟ๐ฒ๐ฑ๐ผ๐บ๐ถ๐ป๐ฎ๐ป๐ ๐ฐ๐๐น๐๐๐ฟ๐ฒ, ๐ฑ๐ถ๐๐๐ถ๐ป๐ด๐๐ถ๐๐ต๐ฒ๐ฑ ๐ณ๐ฟ๐ผ๐บ ๐ถ๐ ๐ฏ๐ ๐ณ๐ฎ๐ฐ๐๐ผ๐ฟ๐ ๐๐๐ฐ๐ต ๐ฎ๐ ๐ฐ๐น๐ฎ๐๐, ๐ฒ๐๐ต๐ป๐ถ๐ฐ ๐ฏ๐ฎ๐ฐ๐ธ๐ด๐ฟ๐ผ๐๐ป๐ฑ, ๐ฎ๐ป๐ฑ ๐ฟ๐ฒ๐น๐ถ๐ด๐ถ๐ผ๐ป, ๐ฎ๐ป๐ฑ ๐๐ป๐ถ๐ณ๐ถ๐ฒ๐ฑ ๐ฏ๐ ๐๐ต๐ฎ๐ฟ๐ฒ๐ฑ ๐ฏ๐ฒ๐น๐ถ๐ฒ๐ณ๐ ๐ฎ๐ป๐ฑ ๐ถ๐ป๐๐ฒ๐ฟ๐ฒ๐๐๐.
๐ ๐ฎ๐ป๐ ๐ถ๐บ๐บ๐ถ๐ด๐ฟ๐ฎ๐ป๐ ๐ฐ๐ผ๐บ๐บ๐๐ป๐ถ๐๐ถ๐ฒ๐ ๐ฒ๐ ๐ถ๐๐ ๐ฎ๐ ๐๐๐ฏ๐ฐ๐๐น๐๐๐ฟ๐ฒ๐ ๐ถ๐ป ๐๐ฎ๐ป๐ฎ๐ฑ๐ฎ.
(little Italy ๐ฎ๐น, greektown, chinatown)
(New people (immigrants) entering a region can either:
Assimilate into the existing culture quite easily as their language, values habits and attitudes are similar to the people who are already there
Form their own subculture if their culture is quite different from the existing one.)
The Determinants of Culture
Culture Norms and value systems:
History
Religion
Topography/Geography
Social
Structure
Political
philosophy
Language
Economic
philosophy
Education
Counter culture and examples of
A culture that has values or lifestyles that are in opposition to those of the current accepted culture
Oppose mainstream values and attitudes usually with a view to influence change.
(hippies๐ผ, emo punk๐ค๐ฝ)
Cultural marketing vs cultural intelligence
CULTURAL MARKETING
๐บ๐ฏ๐ต๐บ๐ธ๐
Uses marketing resources to create effective international marketing campaigns that will appeal to consumers in specific countries
Sees the world as composed of individual markets, all based on unique cultures
Tailors its marketing approach to each countryโs specific tastes
ex.FINLAND - in a grocery store they use Viking boats to display the fruit
NORWAY - promote oranges in ski resorts as a high-energy food
CULTURAL INTELIGENCE
The capability to adapt, relate, and work effectively across various cultures.
Adapting to Cultural Differences:
Need to understand consumer cultural differences and how it affects consumer choices:
1.Identify if people in the specific culture would buy the product
2.Are they familiar with the brand or logo?
3.Does the colour have to be changed?
4.Ensure the translation makes sense
cool video(companies that failed outside US): https://youtu.be/5ljy85q9vVo
Explain the 4 factors that determine the need for cultural awareness in international business relationships: (CEND)
1. Control of foreign operations
2. Extent of foreign operations
3. Number of foreign operations
4. Degree of cultural difference
control, extent number (of foreign operations) degree (of cultural diff)
- ๐๐ผ๐ป๐๐ฟ๐ผ๐น ๐ผ๐ณ ๐ณ๐ผ๐ฟ๐ฒ๐ถ๐ด๐ป ๐ผ๐ฝ๐ฒ๐ฟ๐ฎ๐๐ถ๐ผ๐ป๐
Companies that have distribution outlets/plants in other countries managed by local people doesnโt need to spend a lot of time learning about cultural differences
Local employees will have that knowledge!
Soooโฆ. businesses should research the culture to ensure that there is a market for its product before deciding to set up a plant in a foreign country.
If all of a businessโs foreign dealings are handled domestically, the required level of cultural awareness is very high
- ๐๐
๐๐ฒ๐ป๐ ๐ผ๐ณ ๐ณ๐ผ๐ฟ๐ฒ๐ถ๐ด๐ป ๐ผ๐ฝ๐ฒ๐ฟ๐ฎ๐๐ถ๐ผ๐ป๐
The extent to which a business needs to be aware of a countryโs culture depends on the depth and type of business the company does in the foreign country
Canadian businesses that strictly export a commodity (oil, gas), require less cultural awareness
A business that operates a manufacturing plant, corporate office, retail store or restaurant in partnership with foreigners, needs to be cultural aware
๐ฏ. ๐ก๐๐บ๐ฏ๐ฒ๐ฟ ๐ผ๐ณ ๐๐ผ๐ฟ๐ฒ๐ถ๐ด๐ป ๐ข๐ฝ๐ฒ๐ฟ๐ฎ๐๐ถ๐ผ๐ป๐
The more operations a business has in foreign markets, the greater the need for cultural knowledge
General Motors (GM) success in China with its Buick brand was no accident.
GM understood that ownership of foreign-owned vehicles is a status symbol in China
- GM adapted to the market by introducing a luxury Buick minivan (Buick GL8) when it noticed that business executives in China preferred roomier minivans over cars for doing business on the road
GM no longer produces minivans in Canada and the USA and focuses on the larger SUVs, which is demanded by consumers
By adapting to the Chinese consumer, GM became the minivan leader in that country.
๐ฐ. ๐๐ฒ๐ด๐ฟ๐ฒ๐ฒ ๐ผ๐ณ ๐๐๐น๐๐๐ฟ๐ฎ๐น ๐๐ถ๐ณ๐ณ๐ฒ๐ฟ๐ฒ๐ป๐ฐ๐ฒ
If the culture in the foreignn market is very similar to Canadaโs, it doesnโt need to spend a great deal of time examining cultural differences
Differences can include language, habits, beliefs, and attitudes
Learning the language or hiring a native speaker to manage foreign operations is exceptionally helpful
SUMMARY OF EVERYTHING:
https://docs.google.com/presentation/d/12LyfYE9Mg8dShFu4NG4GtqLEgNhSH8CXaxumFJ6mSDY/edit#slide=id.p20
5 steps in creating a Successful Global Brandโ
๐
๐ญ.๐๐ต๐ผ๐ผ๐๐ฒ ๐๐ผ๐๐ฟ ๐๐ฎ๐ฟ๐ด๐ฒ๐ ๐บ๐ฎ๐ฟ๐ธ๐ฒ๐๐ ๐ฐ๐ฎ๐ฟ๐ฒ๐ณ๐๐น๐น๐ ๐ฏ
๐ฎ.๐ ๐ฎ๐ธ๐ฒ ๐๐๐ฒ ๐ผ๐ณ ๐น๐ผ๐ฐ๐ฎ๐น ๐ธ๐ป๐ผ๐๐น๐ฒ๐ฑ๐ด๐ฒ
๐ฏ.๐ง๐ฒ๐ฎ๐บ๐๐ผ๐ฟ๐ธ ๐ฎ๐ ๐๐ต๐ฒ ๐ด๐ฟ๐ผ๐๐ป๐ฑ ๐น๐ฒ๐๐ฒ๐น
๐ฐ.๐๐ฑ๐ฎ๐ฝ๐ ๐๐ผ ๐น๐ผ๐ฐ๐ฎ๐น ๐ฐ๐๐น๐๐๐ฟ๐ฒ
๐ฑ.๐๐ผ๐ปโ๐ ๐ฎ๐ฑ๐ฎ๐ฝ๐ ๐ฏ๐ฒ๐๐ผ๐ป๐ฑ recognition
๐ญ.๐๐ต๐ผ๐ผ๐๐ฒ ๐๐ผ๐๐ฟ ๐๐ฎ๐ฟ๐ด๐ฒ๐ ๐บ๐ฎ๐ฟ๐ธ๐ฒ๐๐ ๐ฐ๐ฎ๐ฟ๐ฒ๐ณ๐๐น๐น๐๐ฏ
Before expanding, it is essential to thoroughly ๐ฟ๐ฒ๐๐ฒ๐ฎ๐ฟ๐ฐ๐ต ๐๐ต๐ฒ ๐บ๐ฎ๐ฟ๐ธ๐ฒ๐.
๐๐ป๐ผ๐ ๐๐ต๐ฒ ๐น๐ผ๐ฐ๐ฎ๐น ๐ฐ๐ผ๐บ๐ฝ๐ฒ๐๐ถ๐๐ผ๐ฟ๐, and the local customs and regulations, and how these will impact your business.
๐๐ป๐ผ๐ ๐๐ต๐ฒ ๐ฐ๐ผ๐ป๐๐๐บ๐ฒ๐ฟ๐ so that the level of demand for your product can be gauged.
Taco Bell Failed in Dubai - Video:https://www.cnbc.com/video/2019/01/29/taco-bell-yum-kfc-pizza-hut-dubai.html
Taco Bell recently managed to successfully expand their brand to South Korea. Consumers were identified as having a strong appetite for novel western dining experiences and buzz was created through the use of influential โpower bloggersโ in the country.
๐ฎ.๐ ๐ฎ๐ธ๐ฒ ๐๐๐ฒ ๐ผ๐ณ ๐น๐ผ๐ฐ๐ฎ๐น ๐ธ๐ป๐ผ๐๐น๐ฒ๐ฑ๐ด๐ฒ๐ง ๐
โNo amount of research can make up for this.
โPartnering with local experts is one of the best things you can do to avoid cultural misunderstandings of translation mistakes.
โWal-Mart pulled out of the German market with an estimated loss of $1 billion. If they had researched the local consumers better, they would have known that German shoppers prefer smaller shops, are skeptical of low prices, and the U.S. style of customer service a little overbearing.
๐ฏ.๐ง๐ฒ๐ฎ๐บ๐๐ผ๐ฟ๐ธ ๐ฎ๐ ๐๐ต๐ฒ ๐ด๐ฟ๐ผ๐๐ป๐ฑ ๐น๐ฒ๐๐ฒ๐น๐ณ๐ฏ
Having local teams on the ground making the decisions about how to deliver your brand to the local market is one of the best ways to increase your chances of success.
Coca-Cola employs this strategy in their โThink Global, Act Localโ approach. It seems to be working as Coca-Cola is available in nearly every country in the world, and 80% of their sales are derived from outside the U.S.
๐ฐ.๐๐ฑ๐ฎ๐ฝ๐ ๐๐ผ ๐น๐ผ๐ฐ๐ฎ๐น ๐ฐ๐๐น๐๐๐ฟ๐ฒ
โบA successful domestic business model canโt simply be transplanted into another country.
โบDifferent cultures, customs and habits can all impact the success of your business.
โบYou need to recognize the role your business can play in the market and adapt it accordingly.
ยปWhen eBay first entered the Chinese market, it failed to take into account the way business is done in China. Chinese buyers want to build trust with sellers through direct contact rather than relying on other usersโ reviews; thus they preferred a local competitor that incorporated an instant messaging function.
ยปWhen eBay relaunched in China after this initial attempt, they focused instead on helping domestic sellers market their products to international consumers.
๐ฑ.๐๐ผ๐ปโ๐ ๐ฎ๐ฑ๐ฎ๐ฝ๐ ๐ฏ๐ฒ๐๐ผ๐ป๐ฑ ๐ฟ๐ฒ๐ฐ๐ผ๐ด๐ป๐ถ๐๐ถ๐ผ๐ป
When Subway first entered the Japanese market, they tried so hard to adapt their menus to the Japanese culture that they became essentially unrecognizable. They have since returned to their six-inch and foot long sandwiches and basic menu structure, with a few cultural adaptations
Monochronic vs. Polychronic time perceptionโณ
Every country has a meeting culture that is based on the following factors:
1) Time perception
2) Spatial perception - individual comfort levels with personal space and physical contact
3)Non-verbal communication - eye contact and body language
4)Business etiquette - appropriate topics of conversation, whether or not you should present a gift, etc.
Members of different cultures perceive time in
one of two ways:
๐ ๐ข๐ก๐ข๐๐๐ฅ๐ข๐ก๐๐
๐ง๐ถ๐บ๐ฒ ๐ถ๐ ๐๐ฒ๐ฒ๐ป ๐ฎ๐ ๐น๐ถ๐ป๐ฒ๐ฎ๐ฟ ๐ฎ๐ป๐ฑ ๐๐ฒ๐พ๐๐ฒ๐ป๐๐ถ๐ฎ๐น.
๐๐ผ๐ฐ๐๐ ๐ถ๐ ๐ฝ๐น๐ฎ๐ฐ๐ฒ๐ฑ ๐ผ๐ป ๐ผ๐ป๐ฒ ๐๐ต๐ถ๐ป๐ด ๐ฎ๐ ๐ฎ ๐๐ถ๐บ๐ฒ ๐ถ๐ป ๐ฎ ๐น๐ผ๐ด๐ถ๐ฐ๐ฎ๐น ๐ฝ๐ฟ๐ผ๐ด๐ฟ๐ฒ๐๐๐ถ๐ผ๐ป.
๐ ๐ผ๐๐ ๐ฐ๐ผ๐บ๐บ๐ผ๐ป ๐ถ๐ป ๐ฐ๐๐น๐๐๐ฟ๐ฒ๐ ๐๐ถ๐๐ต ๐๐๐ฟ๐ผ๐ฝ๐ฒ๐ฎ๐ป ๐ถ๐ป๐ณ๐น๐๐ฒ๐ป๐ฐ๐ฒ๐.
๐ฃ๐ข๐๐ฌ๐๐๐ฅ๐ข๐ก๐๐
๐ง๐ถ๐บ๐ฒ ๐ถ๐ ๐๐ฒ๐ฒ๐ป ๐ฎ๐ ๐ถ๐ป๐๐ผ๐น๐๐ถ๐ป๐ด ๐บ๐ฎ๐ป๐ ๐๐ต๐ถ๐ป๐ด๐ ๐ต๐ฎ๐ฝ๐ฝ๐ฒ๐ป๐ถ๐ป๐ด ๐๐ถ๐บ๐๐น๐๐ฎ๐ป๐ฒ๐ผ๐๐๐น๐ ๐๐ถ๐๐ต ๐๐ต๐ฒ ๐ฝ๐ฎ๐ฟ๐๐ถ๐ฐ๐ถ๐ฝ๐ฎ๐๐ถ๐ผ๐ป ๐ผ๐ณ ๐บ๐ฎ๐ป๐ ๐ฝ๐ฒ๐ผ๐ฝ๐น๐ฒ.
๐ง๐ถ๐บ๐ฒ ๐ถ๐ ๐ณ๐น๐ฒ๐
๐ถ๐ฏ๐น๐ฒ ๐ฎ๐ป๐ฑ ๐ฟ๐ฒ๐๐๐น๐๐ ๐บ๐ผ๐ฟ๐ฒ ๐ถ๐บ๐ฝ๐ผ๐ฟ๐๐ฎ๐ป๐ ๐๐ต๐ฎ๐ป ๐๐ฐ๐ต๐ฒ๐ฑ๐๐น๐ฒ๐.
๐ ๐ผ๐ฟ๐ฒ ๐ฐ๐ผ๐บ๐บ๐ผ๐ป ๐ถ๐ป ๐ ๐ฒ๐ฑ๐ถ๐๐ฒ๐ฟ๐ฟ๐ฎ๐ป๐ฒ๐ฎ๐ป ๐ฎ๐ป๐ฑ ๐๐ฎ๐๐ถ๐ป ๐ฐ๐๐น๐๐๐ฟ๐ฒ๐ ๐ฎ๐ ๐๐ฒ๐น๐น ๐ฎ๐ ๐๐ผ๐บ๐ฒ ๐๐ฎ๐๐๐ฒ๐ฟ๐ป ๐ฎ๐ป๐ฑ ๐๐ณ๐ฟ๐ถ๐ฐ๐ฎ๐ป ๐ฐ๐๐น๐๐๐ฟ๐ฒ๐.
Spatial Perception - personal space and physical contact (examples for certain countries)
Refers to individual comfort levels with personal space and physical contact.
PERSONAL SPACE
May feel that these business associates may stand too close and invade your personal space when speaking one-on-one.
Opposite
Maintain at least half a metre between speakers.
PHYSICAL CONTACT
Common in the Mediterranean and Latin America.
Canada, America, British and Asian cultures it is seen as intimate.
Business situations only a handshake or pat on the back is acceptable.
In some cultures touching is unnecessary and even offensive especially if it is cross-gender.
nonverbal communication:
https://docs.google.com/presentation/d/1YV9_LjFYHwB3qVDn4EdLF17OkLTUvgKJhB5Dwkdul-w/edit#slide=id.p7
Business ettiquite refers to:
Refers to:
Appropriate topics of conversation
Whether or not you should present a gift
Should you present a business card? If so, how and when?
What should you wear?
What if you are late?
How should you greet your hosts?
What topics should you avoid?
What is Rationalizationโ
Any attempt to increase a companyโs effectiveness or efficiency including:
Downsizing
Cutbacks
Layoffs
Relocating corporate functions and activities to countries that have cheaper labour and few or no union problems.
READ ALL SLIDES!! Slides on Cultural Impact on Candian Products and Services๐
https://docs.google.com/presentation/d/1xdYGXi8E6HnUe9gm1PBEi9ARG6TycyxB20i2dodt0Kk/edit#slide=id.p10
Definition of marketing and definition of international marketing?
(Activities included in marketing)
Is all the activities involved in getting goods and services from the producer to the ultimate consumer such as:
Market research
Product development
Pricing
Advertising and promotion
Sales
Logistics (distribution)
INTERNATIONAL MARKETING
Is the application of marketing principles to more than one country.
Marketing to people or companies outside of your own domestic market.
Discretionary income
๐๐ถ๐๐ฝ๐ผ๐๐ฎ๐ฏ๐น๐ฒ/๐๐ถ๐๐ฐ๐ฟ๐ฒ๐๐ถ๐ผ๐ป๐ฎ๐ฟ๐ ๐๐ป๐ฐ๐ผ๐บ๐ฒ
income left over after necessary
expenses (needs) are paid for.
๐๐ถ๐๐ฐ๐ฟ๐ฒ๐๐ถ๐ผ๐ป๐ฎ๐ฟ๐ ๐๐๐๐ถ๐ป๐ด = ๐ฃ๐๐ฟ๐ฐ๐ต๐ฎ๐๐ถ๐ป๐ด ๐ฃ๐ผ๐๐ฒ๐ฟ
ability to purchase non-essential items (wants)
What is a demographic profile
Age, gender, family lifestyle, income etc.
see these slides!! https://docs.google.com/presentation/d/1PXFhPzOIdLEtQ3PsetNZVFzt6UIwqoS5kOEaP_s4gp4/edit#slide=id.p9
๐
Primary vs. secondary data
Market research collects, analyzes and interprets data used to make marketing decisions.
Secondary Data
Data collected by another source
The Internet
Newspapers, magazines, publications
Primary Data
Data collected first-hand
4 pโs of marketing
Product
Service or good; what is trying to be sold to the consumer
Price
Price at which the product or service is being sold; Pricing strategy
Place
How and where the product gets to the consumer
Promotion
Strategy used to inform consumers about the product or service
International Marketing Strategies
โพAcquisition (with example)
โพCentralized Marketing (with example)
โพDecentralized Marketing (with example)
๐ญ. ๐๐ฐ๐พ๐๐ถ๐๐ถ๐๐ถ๐ผ๐ป ๐ฆ๐๐ฟ๐ฎ๐๐ฒ๐ด๐๐ฅค
When a company purchases another company in a foreign country.
Could eliminate competition in the market.
Advantages are that it buys:
โผemployees
โผmanagement
โผreputation
โผcultural expertise
In 1993, Coca Cola bought Thums Up, the #1 cola sold in India.
It considered killing the competitor but decided to buy it to compete against Pepsi
๐ฎ. ๐๐ฒ๐ป๐๐ฟ๐ฎ๐น๐ถ๐๐ฒ๐ฑ ๐ ๐ฎ๐ฟ๐ธ๐ฒ๐๐ถ๐ป๐ด ๐ฆ๐๐ฟ๐ฎ๐๐ฒ๐ด๐ (starbucks)
๐
Selling largely the same products and using the same marketing mix domestically worldwide.
It does not take into account any barriers presented from specific countries.
Rather than listening to what you like, they tell you what to want!
Advantages:
cost savings
opportunity to build a global brand
๐ฏ. ๐๐ฒ๐ฐ๐ฒ๐ป๐๐ฟ๐ฎ๐น๐ถ๐๐ฒ๐ฑ ๐ ๐ฎ๐ฟ๐ธ๐ฒ๐๐ถ๐ป๐ด ๐ฆ๐๐ฟ๐ฎ๐๐ฒ๐ด๐
๐
Tailors the marketing elements specifically to the country.
The company will hire local advertising agencies, market research firms & sales reps.
Can include changes to:
promotional plans
distribution methods
pricing
size of products
advertising
-In India, McDonaldโs serves chicken, fish, and vegetable burgers, and the Maharaja Macโtwo all-mutton patties, special sauce, lettuce, cheese, pickles, onions, on a sesame-seed bun.๐ฎ๐ณ
-In Japan, McDonaldโs offers a Teriyaki Samurai burger, shrimp nuggets, an ebi burger and a green tea milkshake.๐ฅท
Marketing Mix - Product (goods/services)
3 decisions to be made with international products?
(PIS)
ingredients, style, packaging
๐ญ. ๐ฃ๐๐๐๐๐๐๐ก๐
Package Weights
Canada uses the metric system (G and KG)
The United States uses the imperial system (Ounces and pounds)
Package Colours
Colours have symbolic meanings that vary from one culture to another.
Legal Requirements
Every country has laws that affect the packaging of goods (related to environmental impact).
https://shorturl.at/aquLY
Labelling Requirements
Different regulations with regards to ingredient and food value labelling, product warning and even the picture of the product.
E.g. In California cars must have a label that provides consumers with the vehicleโs global warming score.
Language Requirements
Info. on the package must be translated into the language of the target country.
Some may have two or more languages!
๐ฎ. ๐๐ก๐๐ฅ๐๐๐๐๐ก๐ง๐ฆ
Strong taboos (religion and cultural) that prohibit the use of certain products (food).
E.g. Islam, Hinduism, Buddhism and some branches of Christianity do not permit the consumption of alcohol.
๐ฏ. ๐ฆ๐ง๐ฌ๐๐
fashion differs among countries & cultures
lost in translation lol: https://classroom.google.com/u/2/w/NjQ3MDQ5ODY4NzY1/t/all
Channel of distribution
Refers to where the organizationโs goods or services are made available for sale.
It is the mechanism (channel of distribution) through which goods and/or services are moved from the manufacturer/ service provider to the user or consumer.
Logistics
Logistics consists of the flow of goods and services both into and out of an organization.
Consists of:
โนโ๐๐transportation
โนโ๐๐inventory management
โนโ๐๐warehousing and storage
โนโ๐๐packaging
Centralized vs. decentralized strategy
CENTRALIZED STRATEGY ๐ต
all of a companyโs manufacturing and marketing is performed in one location.
DECENTRALIZED STRATEGY ๐
a company sets up a manufacturing plant in another nation;
or hires a sales force there;
or even licenses its brand to a local manufacturer;
does not perform all manufacturing and marketing in one location.
6 ways to enter foreign markets (BEST LA)
๐๐ฅ๐๐ก๐๐ ๐ฃ๐๐๐ก๐ง,๐-๐๐ข๐ ๐ ๐๐ฅ๐๐,๐ฆ๐๐๐๐ฆ ๐๐๐๐ก๐ง/๐๐๐๐ก๐๐ฌ , ๐ง๐ฅ๐๐๐ ๐ฆ๐๐ข๐ช,๐๐๐๐๐ก๐ฆ๐๐ก๐ ๐๐๐ฅ๐๐๐ ๐๐ก๐ง, ๐๐๐ค๐จ๐๐ฆ๐๐ง๐๐ข๐ก๐ฆ
๐๐ฅ๐๐ก๐๐ ๐ฃ๐๐๐ก๐ง๐ญ
Building and staffing a branch plant is the most expensive market entry strategy, but could be the most effective.
The three major advantages to owning a branch plant in a foreign country are:
Shipping costs are lower
Import regulations and tariffs are not an issue
Product modifications are easier
๐-๐๐ข๐ ๐ ๐๐ฅ๐๐๐ป๐ธ
The use of the Internet to sell products and services to customers in a much larger areas than could be reached through a traditional retail location.
Anywhere in the world can be an international business.
Quality of the website is important.
Cost of shipping to consumers and payment options.
๐ฆ๐๐๐๐ฆ ๐๐๐๐ก๐ง/๐๐๐๐ก๐๐ฌ ๐คต
An individual hired and paid a commission by a company to market its product to potential buyers and distributors, often in a foreign country.
E.g. menโs clothing rep; show rep; giftware rep; jewellery rep;
Can provide:
Info on local business practices
Help navigate through a countryโs complex trade laws
Offer a database of good sales leads
Appropriate marketing and distribution strategies for the product in that country.
๐ง๐ฅ๐๐๐ ๐ฆ๐๐ข๐ช๐
A collection of manufacturers and distributors of similar products who:
rent space
set up display booths
sell to registered buyers seeking products for their retail
businesses.
Can save them hundreds of hours and thousands of dollars in buying trips.
๐๐๐๐๐ก๐ฆ๐๐ก๐ ๐๐๐ฅ๐๐๐ ๐๐ก๐ง๐
Is a contract giving someone the right to use a patent or trademark.
Manufacturers pay the owner of the trademark a fee, usually a royalty, which is a percentage of the sale of the licensed product.
Three types of licensing agreements:
Manufacturing agreements
the rights to manufacture a product
Distribution agreements
the rights to sell a product (exclusive distribution deal)
Franchising agreements
grants the ownership of a manufacturing or distribution company to a local franchisee
๐๐๐ค๐จ๐๐ฆ๐๐ง๐๐ข๐ก๐ฆ๐ธ๐ค
Buy the company it competes with in a foreign market.
Then can close it or use its marketing connections to expand your own market.
Can be the most effective way for a company to deal with competition in a foreign or domestic market.
Penetration vs. Price Skimming
- Penetration Pricing (walmart,dollarama)
Where the organization sets a ๐น๐ผ๐ ๐ฝ๐ฟ๐ถ๐ฐ๐ฒ to increase sales and market share.
In an international market, this would influence buyers to try your product
- Price Skimming
เผบโฅเผปEntering a market at a high price during the introductory phase
เผบโฅเผปEarly adopters can help migrate the high cost of entering the new country
เผบโฅเผปSkimming provides the image that the product is innovative and exclusive
เผบโฅเผปOnce the early adopters have tried the product, the company then lowers the price
Example: Game consoles (PlayStation, Xbox)
Product line pricing, Premium pricing, Competition and Psychological pricing
โCompetition Pricingโ
Setting a price in comparison with competitors.
A firm has three options, price lower, price the same, or price higher.
โProduct Line Pricingโ
Pricing different products within the same product range at different price points.
An example would be Ford offering different F 150โs with different features at different prices. The greater the features and benefits obtained the greater the consumer will pay.
โPremium Pricingโ
The price is set high to reflect the exclusiveness of the product.
Evokes an illusion of luxury and high quality
High price is sustained
Example:
Rolls Royce
A Rolex watch
โPsychological Pricingโ
The seller will consider the psychology and the positioning of price within the market place.
The seller will therefore charge $199 instead of $200.
Provides an illusion of less money because consumers tend to concentrate on the first number rather than the whole number
This is important for international pricing
because numbers have different meanings in
different cultures
read the slides if u want. cool facts at the end: https://docs.google.com/presentation/d/1UnP4Q8fUhmOmMIHJLsu0ftwspeq7aCwTVEDTvhNEmYU/edit#slide=id.g1ca832370ff_2_5
What is promotion?
Is needed to convince the customer to buy the product.
It lets consumers know the product/service:
1.is available
2.itโs features
3.how it can be useful
4.itโs advantages and disadvantages
5.how it compares to the competition
Businesses must identify the best way to reach their target market, taking into consideration the cost of different methods.
E.g. An ad on social media may be reach more people than an ad in a newspaper.
6 methods of promotion CCAPPS
1.Coupons
2.Contests
3.Advertising
4.Premiums (free goods offered with purchase)
5.Personal Selling (direct contact/talking with a salesperson)
6.Social media
What is consumer behaviour
Is the study of the process by which
customers come to purchase and
consume a product or service.
Target market
Target market is the segment of the consumer market to which a particular good is targeted.
Target markets are typically defined by demographic information, which is statistical data about various aspects of the population such as:
Age
Stage in family life cycle
Occupation
Economic circumstances
Lifestyle
Social influence variables (family background, reference groups, roles and status)
4 factors that influence consumer behaviour
(CPPS) (can ppl plz shut up)
(๐๐จ๐๐ง๐จ๐ฅ๐๐,๐ฃ๐๐ฅ๐ฆ๐ข๐ก๐๐,
๐ฃ๐ฆ๐ฌ๐๐ข๐๐ข๐๐๐๐๐, ๐ฆ๐ข๐๐๐๐)
CULTURAL
Culture (Canadian, American)
Generation (x, Y, Boomer)
Religion
Social Class (upper, middle, lower)
Ethnicity
PERSONAL
Income
Age
Family role (parent, child, sibling)
Education
Gender
Life cycle stage (single, married)
Occupation
Economic Situation (rich, poor)
Lifestyle (outdoors, high flyer)
Personality (outgoing, shy)
PSYCOLOGICAL
Motivation (why you want to buy something)
Perception (
Beliefs (about product, brand, company)
Attitudes
Values (value environment)
SOCIAL
Family
Peer group
Friends
Organized groups (girl guides, sports teams)
Ethnocentrism
Canadian businesses wanting to sell abroad must avoid ethnocentrism.
Ethnocentrism is the belief that your own culture, values, beliefs, and customs represent the right way of doing things, and that other value systems are not important.
WAYS TO AVOID ETHNOCENTRIC THINKING
Visit the country you want to include in your marketing plan.
Read country profiles, especially information provided by the Department of Foreign Affairs and International Trade.
Offer your product on the Internet in the language of the target nation to determine if there is demand for it.
Direct vs indirect competition
DIRECT
Businesses that provide products or services that are almost identical to those offered by the company.
INDIRECT
Consumers in every country have a certain amount of discretionary income, and regular spending habits.
Any product that vies for consumersโ spending money is competition.
4 types of competitive advantages
( ๐ฃ๐ฅ๐ข๐๐จ๐๐ง ๐๐๐๐๐๐ฅ๐๐ก๐ง๐๐๐ง๐๐ข๐ก, ๐๐ฅ๐๐ก๐ ๐๐ค๐จ๐๐ง๐ฌ, ๐๐ข๐ช๐๐ฅ ๐ฃ๐ฅ๐ข๐๐จ๐๐ง๐๐ข๐ก ๐๐ข๐ฆ๐ง๐ฆ, ๐๐ข๐ช๐๐ฅ ๐๐๐ฆ๐ง๐ฅ๐๐๐จ๐ง๐๐ข๐ก ๐๐ข๐ฆ๐ง๐ฆ)
In marketing it refers to the ability of one company to produce a product more cheaply than another company.
Typical competitive advantages are:
๐ญ. ๐๐ข๐ช๐๐ฅ ๐ฃ๐ฅ๐ข๐๐จ๐๐ง๐๐ข๐ก ๐๐ข๐ฆ๐ง๐ฆ
According to the theory of economies of scale, the more products you can make in one factory, using the same labour and sharing overhead costs, the cheaper each individual unit is to make.
๐ฎ. ๐๐ข๐ช๐๐ฅ ๐๐๐ฆ๐ง๐ฅ๐๐๐จ๐ง๐๐ข๐ก ๐๐ข๐ฆ๐ง๐ฆ
Companies with factories in their target market have lower costs.
๐ฏ. ๐ฃ๐ฅ๐ข๐๐จ๐๐ง ๐๐๐๐๐๐ฅ๐๐ก๐ง๐๐๐ง๐๐ข๐ก
Difference in flavour, quality, packaging, scent, etc.
๐ฐ. ๐๐ฅ๐๐ก๐ ๐๐ค๐จ๐๐ง๐ฌ
The number of consumers that can identify the brand.
