The Challenges of Entrepreneurial

and Global Marketing

Marketing Management
Session 8
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I expect you to know what is happening in the
marketing discipline on a weekly basis.

Good sources for information would be:
www.marketingmagazine.co.uk
www.marketingweek.co.uk
www.ft.com (Financial Times)

Plus the UAE newspapers.
Industry Current Affairs
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Learning Outcomes
1.Understand both the entrepreneurship and
new product development process.
2.Learn to apply the Diffusion of Innovation
and Double Chasm Challenge models.
3. Be able to evaluate standardised, adaptive
and glocalised campaigns.
4. Be able to discuss the impact of the cultural
card on marketing and mar comms decisions.


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What is an entrepreneurial business?

Define it?

Give me some examples of entrepreneurs and
their companies?
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"Entrepreneurship is a management style that involves
pursuing opportunity without regard to the resources
currently controlled. Entrepreneurs identify opportunity,
assemble required resources, implement a practical action
plan, and harvest the rewards in a timely, flexible way.

Any attempt at new business or new venture creation,
such as self-employment, a new business organization,
or the expansion of an existing business, by an
individual, a team, or an established business.

Tom Byers.
What is Entrepreneurship?
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Do you recognise these?
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Sahlamans Alignment Model
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Brassington, Petit, 2003
New Product Development process
Idea Generation
Idea Screening
Concept Testing
Business Analysis
Product Development EG Robin Hood
Test Marketing
Commercialisation
Monitoring and evaluation

A Short Checklist for Effective
Entrepreneurial Marketing
Relationships Matter!
How will the startup get close to customers?
How will they leverage alliances and
partnerships?
How will they influence the markets
infrastructure and the industrys key players?
Going global: what is their international
strategy?
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Diffusion of Innovation
the spread of a new idea from its source of
invention or creation to its ultimate users and
adopters

Innovators
Early adopters
Early majority
Late majority
Laggards
Ryan & Gross

Plus the Double-Chasm Challenge
1.The Market Chasm based on the early
majoritys perceptions of the innovations risks
2.The Cultural Chasm based on
Lack of experience of the ventures leaders in
each new countrys local culture.
Lack of trust among adopters in each new
country in the foreign company and its
leaders.

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Product Life Cycle
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Analyzing the New Market
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Stanford entrepreneurship videos.
http://ecorner.stanford.edu/userFavorites.html
?uid=63

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International Advertising

Multicultural
Pan-regional
Transnational
Multinational
Global
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Choice often dependent on firms
overall management approach.
1. Ethnocentric
Other countries viewed as secondary to
domestic operations.
2. Polycentric
Secondary markets operate independently
taking note of local market conditions.
3. Geocentric
Firm views the whole world as a single market
and standardises where possible and adapts where
necessary.
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Glocalisation
Think global but act local.

This is a another school of thought that offers a
compromise between the standardise and
adaption concepts.

A glocal strategy standardises certain core
elements and localise others.
(Kotler 1994)
International marketing strategies
Straight extension of both product and mar
comms strategy
Mar comms adaptation
Product adaptation
Dual adaption
New product invention.

What have you noticed when you travel?
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Generic global communication
strategies

1. Single Global
Ad Campaign
Same execution
across the globe.

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Generic global communication
strategies

2. Global Theme

Same advertising theme
but local execution such
as visuals.

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Generic global communication
strategies

3. Global Brand
Approach

Same brand name and
logo but different
advertising executions.

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Trends promoting global marketing
Global communications
Global youth
Universal demographics and lifestyle trends
Americanization of consumption values
Increasing discretional spend.

Is this good or bad?

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Global versus local debate
Standardization Theory
Started in the 1960s

Elinder argued that EU consumers are increasing
living under similar conditions although language
differs so comms can be similar.

Levitt in The Marketing Imagination stated that
markets are becoming increasingly alike world-
wide thus indicating a global approach.
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Definition of Standardised Approach
(Wells 1989)
Mar comms designed to promote the
same product in different countries and
cultures.
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Marketing Reasons for Standardisation
No-cultural bound product.
Similar legal and regulation conditions
Same product with similar competition.
Same TA
Same stage in PLC
Users appreciate same product attributes.
Same brand name, logo, packaging.
Massive cost savings.
Arguments for using standardisation
cont.
Savings through economies of scale
Messages are complementary and reinforcing
Maintenance of central control
Global media opportunities
Little or no competition in many foreign markets

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Certain product categories seem to
suit standardisation approaches.

- American/other heritage
- high tech
- luxury
- teenage products.
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Definition of Adaptive Approach
(Yin 1999)
The use of different mar comms for different
markets in order to adapt to local market
conditions.
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Reasons for Adaptation
Different TA, stage in PLC, brand attributes and
brand identity.
Different marketing objectives.
Cultural differences.
Arguments against globalization
Audiences in different cultures place value on
different brand attributes.
Global campaigns can defy local customs or
ignore local competition.
Local managers will not support a global
campaign and message.
Differing advertising literacy levels.
Differing product life levels
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Challenges with globalization

1. The Creative Challenge

2. The Media Challenge

3.The Regulatory Challenge

4.The Culture Challenge
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The Creative Challenge
Written and spoken language
Translation difficulties
Culture-bound picturing
Assumptions and inferences
Identifying cross-cultural icons and symbols
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The Media Challenge
Availability and Coverage
Too few quality options
Too many unmeasured options
Too little knowledge of media /TA match.

Costs and Pricing
Complex due to many options
No set pricing in some markets
Global coverage is expensive


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The Regulatory Challenge
What are the . . .
Products that can be marketed and advertised?
Appeals that can be used?
Times that products may be promoted?
Rules regarding foreign language use?
Restrictions on using national symbols?
Marketing to vulnerable groups.



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Many macro culture countries like the UAE now
have many micro cultures operating.

Note that ethnic differences are just
one trigger but how can you del with this?.
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The Culture Challenge

Definition

The learned behaviours of a people that come
from traditions passed on from generation to
generation. Or

The way we do things around here.
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The reasons for
sub-cultures.
Urbanization and
tribes
Ageism
Political change
Family and social
change
Feminism
Immigration
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Acculturation - How do consumers feel they Fit in?
49%
53%
54%
64%
75%
74%
32%
30%
29%
25%
21%
27%
27%
24% 24%
20%
15%
11%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Up to 1 year 1-3 years 3-5 years 5-10 years 10-20 years 20+ years
'Feel comfortable with way of life in host country'
'Feel like I'm in the minority'
'Difficult to fit in with the host country way of life'
%

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The Cultural Card
Macro and micro cultural differences often
impact on the standardisation decision.

Note that these differences may be
international or within a single country or
within a single neighbourhood.
Culture - manifestations
How they dress
What they eat
What they listen to
Their religion
Their entertainment
How they act and think
How they look at the world
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High Concept
(not explicit cues)
Low Concept
(explicit cues)
Hierarchical
(high power difference)
Egalitarian
(low power difference)
Collectivism Individualism
Feminine
(Quality of life, caring)
Masculine
(achievement, success)
High Risk Tolerance
(risk, ambiguity, uncertainty)
Low Risk Tolerance
(predictable, avoid uncertainty)
Japan, China, Britain, Argentina U.S., Canada, Australia
Malaysia, Japan, Mexico, France, India U.S., Canada, Australia, Denmark, Austria, Hungary
Japan, Italy, Korea, Portugal, China U.S., U.K., Australia, Hong Kong, Taiwan
Sweden, Brazil, Netherlands, France, Spain Japan, Korea, Hong Kong, Taiwan, Germany, U.S., U.K.
Sweden, U.K., U.S., Denmark, Hong Kong Japan, Germany, Austria
Cultural Profiling. Gert Hofstede.
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What Mar Comms Ideas Travel
Demonstration
What the brand does,
how it works
Myths & Archetypes
Universal fantasies,
symbols, metaphors
Cultural values
By definition local
Idiosyncratic lifestyles,
sports habits, etc.
Language: accents,
word games
Reference local media
celebrities
News and fashion
Movies/television
Celebrities
Current events
Basic human emotions
Animals as human
Children as vulnerable, curious, etc.
The human condition - love, hate, fear, pain, joy
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Creative Concept Problems
USPs often dont translate.
E.G. TicTac.
USA - UPS is 2 hours freshness for only 2 calories.
UK - UPS is mint is a sweet. Dont care about fresh
breath or calories.
Problems also with actors and body language.
Problems with metaphors, pace of commercial
and humour.
So come and see me sometime
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project

We will now have 60 mins of group work on the
project and an opportunity for you to ask me
questions.
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