Professional Documents
Culture Documents
MARKETING
ENVIRONMENT
1. Economical Environment
2. Political Environment
3. Cultural Environment
4. Technological Environment
1. Economical Environment
Economical Environment 3
1
1. Economical Environment
Consumption Patterns
Economical Environment 5
Trading environment
Regulated by Governments
2
Measuring Markets: Income
Economical Environment 7
Age
Location
Economical Environment 8
Measuring Markets:
Physical Quality of life
Economical Environment 9
3
Measuring Markets: Infrastructure
Economical Environment 11
Economical Environment 12
4
Foreign Exchange Issues: Dynamics
Economical Environment 13
Economical Environment 14
Financial Management:
Types of Financial Risk
Commercial risk
Political risk
Economical Environment 15
5
Financial Management:
Coping with Recession
Kotabe and Helsen (2000) propose eight strategies:
Pull out
Emphasis a product’s value
Change the product mix
Repackage goods
Maintain stricter inventory
Look outside the region for expansion opportunities
Increase advertising in region
Increase local procurement
Economical Environment 16
World’
World’s 100 Largest Industrial
Corporations (Annual Revenues)
Economical Environment 17
Marketing implication
Provides knowledge:
To target specific markets
Nature of customers and demand
Most important segments
Entry strategy
Marketing mix
Market potential
Economical Environment 18
6
Market implication
Economical Environment 19
1. Economical Environment
2. Political Environment
3. Cultural Environment
4. Technological Environment
20
Political Environment 21
7
The Role of Government
in the Economy
Political Environment 22
Political Environment 23
8
Nature of Political Risk
Ownership risk
Operating risk
Transfer risk
Political Environment 25
1. Product-related factors
2. External factors
3. Company factors
Political Environment 26
9
Company Behavior
Political neutrality
companies should be conscious of which political
labels are acceptable and which are not
Political Environment 30
10
Localization of Operations
Political Environment 31
International Law
Political Environment 32
Political Environment 33
11
Legal Jurisdiction
Political Environment 34
Political Environment 35
Political Environment 36
12
Law and the Marketing Mix
Price
Political Environment 37
Political Environment 39
13
In conclusion, specific Marketing Laws
1. Economical Environment
2. Political Environment
3. Cultural Environment
4. Technological Environment
41
Definition
Culture is learned
Culture is subjective
Cultural Environment 42
14
Impact of Culture on International
Marketing
Buy understanding the culture, marketer can
know
Cultural Environment 43
Cultural Universals
Physical
desire to look beautiful, keep track of time
Social
desire to co-operate, to be a member of a group,
differentiate according to status
Emotional
such as courtship, religious observance,
mourning
Cultural Environment 44
Elements of Culture
Rituals
Marriage
Funerals
Symbols
Language
• Linguistic distance
Aesthetics as symbols
• Insensitivity to aesthetic values can offend, create a
negative impression, and, in general, render marketing
efforts ineffective or even damaging
Cultural Environment 45
15
Elements of Culture
Beliefs
To make light of superstitions in other cultures can be
an expensive mistake
Thought processes
Difference in perception
• Focus vs. big-picture
Cultural Environment 46
Global Comparisons
Cultural Environment 47
5. Long-term
Cultural vs. short-term orientations: extent to which
Environment 48
cultures exhibit a pragmatic, future-oriented perspective as
16
3-8
Hofstede’
’s classification
Hofstede’s
Hofstede
Time
Space
Language
Education
Familiarity
Consumption patterns
Business customs
Social organization
Cultural Environment 50
Patterns of Consumption
(annual per capita)
Cultural Environment 51
17
We All Love Flowers – Why?
Geography
History
Technology and economics
Social institutions
Cultural values
Aesthetics as symbols
Cultural Environment 52
Hofstede’
Hofstede’s Indexes
Language, and Linguistic Distance
Cultural Environment 53
Cultural Communication
Verbal communication
Non-verbal communication
Cultural Environment 54
18
Non-
Non-verbal Communication
Cultural Environment 55
Cultural Environment 56
Degree of Adaptation
Cultural Environment 57
19
An orientation toward time:
P-Time versus M-
M-Time
Monochronic time:
Tend to concentrate on one thing at a time
Divide time into small units and are concerned with
promptness
Most low-context cultures operate on M-Time.
Polychronic time:
Dominant in high-context cultures
Characterized by the simultaneous occurrence of many
things
Allows for relationships to build and context to be absorbed
as parts of high-context cultures.
Cultural Environment 58
Social sensitivity
Ethical considerations
Cultural Environment 59
Background to negotiation
The environment of international negotiation
Culture and the conduct of negotiations
Preparing for international negotiation
Stages in international negotiation
The atmosphere of international negotiations
Styles of negotiation
Cultural Environment 60
20
Culture & the conduct of
Negotiations
There are a number of culturally influenced factors
that need to be kept in mind when negotiating with
people from other countries:
Cultural Environment 61
Cultural Environment 62
The Atmosphere of
International Negotiations
Cultural Environment 63
21
In Summary…
Summary…
Cultural Environment 64
1. Economical Environment
2. Political Environment
3. Cultural Environment
4. Technological Environment
65
E-learning
Internet commerce
Customer support
Technological Environment 66
22
The Challenges & P ossibilities for
International or Global Marketing
Technological Environment 69
23
International Diffusion of Innovation
Technological Environment 70
Summary
Technological Environment 71
24