Professional Documents
Culture Documents
eting
P h i l i p R. C a t e o r a
John L. Graham
1-2
Selected U.S. Companies
and Their International Sales
Exhibit 1.2
1-3
International Marketing
• Multinational process of planning and
executing the conception, pricing, promotion,
and distribution of ideas, goods, and services
and to create exchanges that satisfy
individual and organizational objectives
1-5
Environmental Adaptation
• Ability to effectively interpret the influence and
impact of the culture in which you hope to do
business
– Cultural adjustments
1-6
Environmental Adaptation (Examples)
• Color of Mourning
- Westerner: Black (White considers bridal dress)
- Easterner: White
• Raise a hand and make a circle with the thumb and
forefinger (like zero)
- In US: OK
- In France: Zero / Worthless
- In Japan: Money
1-7
The Self-Reference Criterion
and Ethnocentrism
• The key to successful international marketing is
adaptation to the environmental differences
from one market to another
• Primary obstacles to success in international
marketing
– SRC
– Associated ethnocentrism
1-8
SRC and Ethnocentrism
• SRC is an unconscious reference to
– One’s own cultural values, experiences, and knowledge as a
basis for decisions
1-9
SRC and Ethnocentrism
• Ethnocentrism and the SRC can influence an
evaluation of the appropriateness of a
domestically designed marketing mix for a
foreign market
• The most effective way to control the influence
of ethnocentrism and the SRC is to recognize
their effects on our behavior
1-10
The Self-Reference Criterion and
Ethnocentrism
(Examples)
1-11
The Self-Reference Criterion and
Ethnocentrism
(Examples)
Successful Stories:
1. A British Manufacturer
In America: Cookies
In Japan: Chocolate Biscuits (McVitie)
2. Unilever
In UK: Paper pack and big in size
In Brazil: Plastic pack and small in size
3. McDonald’s
In America and Europe: Big Mac (with beef patties)
In India: Maharaja Mac (with mutton patties)
1-12
Framework
for Cross-cultural Analysis
1. Define business problem or goal
• Home-country vs. foreign-country cultural traits, habits, or
norms
• Consultation with natives of the target country
1. Make no value judgments
2. Isolate the SRC influence
• Examine it carefully to see how it complicates the
problem
1. Redefine the problem
• Without SRC influence
• Solve for the optimum business goal situation
1-13
Framework
for Cross-cultural Analysis
(Real Story)
1-14
Developing a Global Awareness
1-15
Approaches to Global Awareness
1-16
Stages of International
Marketing Involvement
1-17
No Direct Foreign Marketing
1-18
Infrequent Foreign Marketing
• Caused by temporary surpluses
– Variations in production levels
– Increases in demand
• Firm has little or no intention of maintaining
continuous market representation
– Foreign sales decline when demand or surplus
decreases
– May withdraw from international markets
• Little or no change in company organization or
product lines
1-19
Regular Foreign Marketing
• Firm has production capacity devoted to foreign
markets
• Firm employs domestic or foreign intermediaries
– Uses its own sales force
– Sales subsidiaries in important markets
• Products allocated or adapted to foreign markets
as demand grows
• Firm depends on profits from foreign markets
1-21
International Marketing
1-22
Global Marketing
1-23
Strategic Orientation
1-24
Domestic Market Orientation
• International operations viewed as secondary
• Prime motive is to market excess domestic production
• Firm’s orientation remains basically domestic
• Minimal efforts are made to adapt product or
marketing mix to foreign markets
• Firms with this approach are classified as ethnocentric
Example of Meter-Man
1-25
Multidomestic Market Orientation
• Companies have a strong sense that foreign country
markets are vastly different
• Market success requires an almost independent
program for each country
– Separate marketing strategies (mostly polycentric)
– Subsidiaries operate independently of one another in
establishing marketing objectives and plans
– Products are adapted for each market
• Control is decentralized
Example of Fedders
1-26
Global Market Orientation
• Company guided by global marketing orientation
– Marketing activity is global
– Market coverage is the world
1-27
Global Market Orientation
(Example)
McDonald’s:
1-28
The Orientation
of International Marketing
1-29