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1、marketing: real people, real decisions 4-1 marketing in a multicultural environment chapter 4 lecture slides solomon, stuart, carson, & smith your name here course title/number date marketing: real people, real decisions 4-2 chapter learning objectives when you have completed your study of this chap

2、ter, you should be able to: explain how complex relationships among firms, countries, and regions influence world trade. understand how political, legal, and cultural issues influence global marketing strategies and outcomes. explain the strategies a firm can use to enter global markets. understand

3、the arguments for standardization versus localization of marketing strategies in global markets, and understand how elements of the marketing mix apply in international markets. marketing: real people, real decisions 4-3 introduction to the topic this chapter is about marketing on a global scale, wh

4、ich poses many more challenges for an organization than competing on a regional, or even national basis. due to the limited size of our markets, canadian firms by necessity, must look beyond our borders to achieve growth. there are many factors that affect how a company chooses to enter foreign mark

5、ets, as shown in figure 4.2 of the text. marketing: real people, real decisions 4-4 types of companies a domestic firm confines its sales and marketing efforts to its home market. most companies start out this way, and many do not stray any further beyond, such as service providers. an exporting fir

6、m expands its operations by offering products for sale in other countries, usually those nearby. in canada, 85% of our exports go to the united states, for obvious reasons. a multinational firm operates in many markets, modifying its products to suit local tastes and preferences. the firm retains th

7、e business culture of its home market. a global firm views the world as its market, using one basic strategy for most markets, adapting when necessary for local conditions. marketing: real people, real decisions 4-5 types of trade countertrade: a type of trade in which goods are paid for with other

8、items instead of cash. also known as the barter system, this form makes us 25% of world trade, and it is used when currency restrictions are in place. example: much of the trade with the former soviet bloc is done on a countertrade basis, as few companies want their currency. trade flow: the pattern

9、 of economic interdependence among countries or regions. world trade is now greater than $5.6 trillion per year, and it is growing at a rate of 6% per year. trade between the americas and europe accounts for approximately 45% of this total. marketing: real people, real decisions 4-6 the basis of tra

10、de competitive advantage: the ability of a firm to outperform the competition, thereby, providing customers with a benefit the competition doesnt. porters four keys to a nations competitive advantage: demand conditions that drive quality and competitiveness related and supporting industries that con

11、tribute to success factor conditions such as the quality of natural resources, skilled and educated labour, and infrastructure company strategy, structure, and rivalry that foster competitiveness marketing: real people, real decisions 4-7 roadblocks to trade not all trade flows freely between countr

12、ies for a whole number of reasons, mostly political. governments will seek to protect their home industries from foreign competition when it suits their interests. protectionism: a government policy that gives domestic companies an advantage over foreign companies. “a country that cannot feed itself

13、 can be held hostage by those that can wars have been fought over things such as access to natural resources, however, most governments will seek to protect home industries because it will get them votes in the short term. there are different ways to restrict trade. marketing: real people, real deci

14、sions 4-8 roadblocks to trade (continued) import quotas: the limitations set by a government on the amount of a product allowed to enter or leave the country. there were quotas on importing japanese-made automobiles into the u.s. in the 1980s. the japanese “retaliated by building factories in north

15、america, which created jobs. embargo: a quota completely prohibiting specified goods from entering or leaving a country. tariffs: taxes levied on imported goods, thus making them more expensive relative to domestic goods. the problem with these restrictions is that they lessen competition for domest

16、ic firms, which discourages innovation and the drive for them to be more competitive. marketing: real people, real decisions 4-9 trade communities world trade organization (wto): an organization that mediates trade disputes between nations and deals with cases in which one country claims unfair prot

17、ectionism by another. this is a voluntary organization of 140 member countries whose main power is the threat of sanctions against offending countries. general agreement on tariffs and trade (gatt): an international treaty to reduce import tax levels and trade restrictions. this agreement has been a

18、 work in progress since its creation following ww ii, and rounds of negotiations take years to complete. the most serious issues facing gatt today are farm subsidies and intellectual property rights across borders. marketing: real people, real decisions 4-10 economic communities economic communities

19、: groups of countries that band together to promote trade among themselves and make it easier for member nations to compete elsewhere. north american free trade agreement (nafta): the worlds largest economic community, composed of canada, mexico and united states. the pre-cursor to this agreement wa

20、s the autopact, which provided for free flow of automotive parts and vehicles between the u.s. and canada. european union: an economic community that includes most of western europe. marketing: real people, real decisions 4-11 the global marketing environment the economic environment will influence

21、the potential for doing business on an international basis. indicators of economic health are: standard of living: an indicator of the average quality and quantity of goods and services consumed in a country. gross domestic product: the total dollar value of goods and services that a nations produce

22、s in a year. economic infrastructure: the quality of a countrys distribution, financial, and communications systems. marketing: real people, real decisions 4-12 levels of economic development less developed country (ldc): a country at the earliest stage of economic development. its economic base is

23、agricultural, standards of living and literacy rates are low. potential sources of wealth are natural resources, if they can be developed with outside help. developing country: a country in which the economy is shifting its emphasis from agriculture to industry. approximately 77% of the worlds popul

24、ation live in developing countries. developed country: a country that boasts sophisticated marketing systems, strong private enterprise, and bountiful market potential for many goods and services. marketing: real people, real decisions 4-13 the political and legal environment economic sanctions: tra

25、de prohibitions imposed by one country against another. usually done for political reasons. nationalization: a domestic governments takeover of a foreign company for its assets with some reimbursement, though often not for the full value. this is a the risk of direct investment in a developing count

26、ry, particularly if the political situation is unstable. expropriation: a domestic governments seizure of a foreign companys assets without any compensation. local content rules: a form of protectionism stipulating that a certain proportion of a product must consist of components supplied by industr

27、ies in the host country. marketing: real people, real decisions 4-14 the cultural environment cultural values: a societys deeply held beliefs about right and wrong ways to live. companies need to be sensitive to how other cultures perceive their products and promotional strategies. collectivist cult

28、ure: a culture in which people subordinate their personal goals to those of a stable community. ie. japanese culture. individualist culture: a culture in which people tend to attach more importance to personal goals than to those of the larger community. freedom and independence have long been corne

29、rstones of north american culture. marketing: real people, real decisions 4-15 the cultural environment (continued) norms: the specific rules dictating what is right or wrong, acceptable or unacceptable. shaking right hands on introduction is a norm of social interaction in most cultures. custom: a

30、norm handed down from the past that controls basic behaviors, such as having supper at 5:30 pm. convention: a norm regarding the conduct of everyday life, such as the “correct way to furnish a house. more: a custom with a strong moral overtone, such as our attitude towards polygamy, or the morality

31、of suggestive advertising such as the billboard shown. marketing: real people, real decisions 4-16 semiotics: the field of study that examines how meanings are assigned to symbols. this is very important for determining branding, packaging, and promotional strategies to be used in foreign markets. l

32、anguage will also play an important part in translating product names and slogans. “coke adds life literally translated into chinese meant “it will wake your dead relatives, not exactly the message intended. ethnocentrism: the tendency to prefer products or people of ones own culture. while we prefe

33、r the familiar, we also look for variety and new experiences, particularly in ethnically diverse places such as canada. the cultural environment (continued) marketing: real people, real decisions 4-17 export merchant: an intermediary that a firm uses to represent it in another country. this involves

34、 the least amount of commitment to a global program. licensing: an agreement in which one form gives another firm the right to produce and market its product in a specified location in return for royalties. franchising: a form of licensing involving the right to adapt an entire system of doing busin

35、ess. global entry strategies domestic strategy exporting strategy contracting: licensing, franchising, or subcontracting strategic alliance direct investment+ - level of commitment, risk and control marketing: real people, real decisions 4-18 strategic alliance: the relationship developed between a

36、firm seeking a deeper commitment to a foreign market and a domestic firm in the target country. joint venture: a strategic alliance in which two or more forms form a new entity, allowing the partners to pool their resources for common goals. direct investment by purchasing a local business or buildi

37、ng a facility in a foreign market requires the highest level of commitment, risk, and control. global entry strategies (continued) domestic strategy exporting strategy contracting: licensing, franchising, or subcontracting strategic alliance direct investment+ - level of commitment, risk and control

38、 marketing: real people, real decisions 4-19 choosing a marketing mix strategy the decision that needs to be made is between standardization and localization of marketing strategy. a standardization strategy keeps the same basic strategy used in the home market, and is used when the appeal of the product is likely to be because it is foreign. this is a more cost-efficient strategy. a lo

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