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Marketing:RealPeople,RealDecisionsMarketinginaMulticulturalEnvironmentChapter4LectureSlidesSolomon,Stuart,Carson,&SmithYourname

hereCoursetitle/numberDate1Marketing:RealPeople,RealDecisionsChapterLearningObjectivesWhenyouhavecompletedyourstudyofthi

schapter,youshouldbeableto:•Explainhowcomplexrelationshipsamongfirms,countries,andregionsinfluenceworldtrade.•Understandhowpolitical,legal,andcultur

alissuesinfluenceglobalmarketingstrategiesandoutcomes.•Explainthestrategiesafirmcanusetoenterglobalmarkets.

•Understandtheargumentsforstandardizationversuslocalizationofmarketingstrategiesinglobalmarkets,andunderstandhowelementsofth

emarketingmixapplyininternationalmarkets.2Marketing:RealPeople,RealDecisionsIntroductiontotheTopic•Thischapterisaboutmarketingonaglobalscale,whi

chposesmanymorechallengesforanorganizationthancompetingonaregional,orevennationalbasis.•Duetothelimitedsizeofo

urmarkets,Canadianfirmsbynecessity,mustlookbeyondourborderstoachievegrowth.•Therearemanyfactorsthataffecthowacompanychoosestoenterforeignmarkets,as

showninFigure4.2ofthetext.Figure4.23Marketing:RealPeople,RealDecisionsTypesofCompanies•Adomesticfirmconfi

nesitssalesandmarketingeffortstoitshomemarket.Mostcompaniesstartoutthisway,andmanydonotstrayanyfurtherbeyond,suchasserviceproviders.•Anexpor

tingfirmexpandsitsoperationsbyofferingproductsforsaleinothercountries,usuallythosenearby.InCanada,85%ofourexportsgototheUnitedStates,forobviousrea

sons.•Amultinationalfirmoperatesinmanymarkets,modifyingitsproductstosuitlocaltastesandpreferences.Thefirmretainsthebusinesscu

ltureofitshomemarket.•Aglobalfirmviewstheworldasitsmarket,usingonebasicstrategyformostmarkets,adaptingwhennecessaryforlocalconditions.4Marketi

ng:RealPeople,RealDecisionsTypesofTrade•Countertrade:atypeoftradeinwhichgoodsarepaidforwithotheritemsi

nsteadofcash.Alsoknownasthebartersystem,thisformmakesus25%ofworldtrade,anditisusedwhencurrencyrestrictionsareinplace.•Example:mucho

fthetradewiththeformerSovietblocisdoneonacountertradebasis,asfewcompanieswanttheircurrency.•Tradeflow:thepatternofeconomicinterdependencea

mongcountriesorregions.•Worldtradeisnowgreaterthan$5.6trillionperyear,anditisgrowingatarateof6%peryear.TradebetweentheAmericasandEuropea

ccountsforapproximately45%ofthistotal.5Marketing:RealPeople,RealDecisionsTheBasisofTrade•Competitiveadvantage:theabilityofafirmtooutperformthecomp

etition,thereby,providingcustomerswithabenefitthecompetitiondoesn’t.•Porter’sfourkeystoanation’scompetitiveadvantage:•Dema

ndconditionsthatdrivequalityandcompetitiveness•Relatedandsupportingindustriesthatcontributetosuccess•Factorconditionssuchasthequalityofnatura

lresources,skilledandeducatedlabour,andinfrastructure•Companystrategy,structure,andrivalrythatfosterco

mpetitiveness6Marketing:RealPeople,RealDecisionsRoadblockstoTrade•Notalltradeflowsfreelybetweencountriesforawholenumberofreasons,mo

stlypolitical.Governmentswillseektoprotecttheirhomeindustriesfromforeigncompetitionwhenitsuitstheirinterests.•Pr

otectionism:agovernmentpolicythatgivesdomesticcompaniesanadvantageoverforeigncompanies.•“Acountrythatcannotfeeditselfcanbeheldhostagebyth

osethatcan”•Warshavebeenfoughtoverthingssuchasaccesstonaturalresources,however,mostgovernmentswillseektoprotecthomeindustriesbecauseitwillgett

hemvotesintheshortterm.•Therearedifferentwaystorestricttrade.7Marketing:RealPeople,RealDecisionsRoadblockstoTrade(cont

inued)•Importquotas:thelimitationssetbyagovernmentontheamountofaproductallowedtoenterorleavethecountry.TherewerequotasonimportingJapanese-mad

eautomobilesintotheU.S.inthe1980’s.•TheJapanese“retaliated”bybuildingfactoriesinNorthAmerica,whichcreatedjobs.•Embargo:aquotacompl

etelyprohibitingspecifiedgoodsfromenteringorleavingacountry.•Tariffs:taxesleviedonimportedgoods,thusmakingthemmoreexpensiverelat

ivetodomesticgoods.•Theproblemwiththeserestrictionsisthattheylessencompetitionfordomesticfirms,whichdiscouragesinnovationandthedriv

eforthemtobemorecompetitive.8Marketing:RealPeople,RealDecisionsTradeCommunities•WorldTradeOrganization(WTO):anorganizationthatmediatestrade

disputesbetweennationsanddealswithcasesinwhichonecountryclaimsunfairprotectionismbyanother.Thisisavoluntaryorganizationof140membercountr

ieswhosemainpoweristhethreatofsanctionsagainstoffendingcountries.•GeneralAgreementonTariffsandTrade(GATT):aninternationaltreatytoreduceimpor

ttaxlevelsandtraderestrictions.•ThisagreementhasbeenaworkinprogresssinceitscreationfollowingWWII,androundsofnegotiatio

nstakeyearstocomplete.•ThemostseriousissuesfacingGATTtodayarefarmsubsidiesandintellectualpropertyrightsacrossborders.9Marketing:RealP

eople,RealDecisionsEconomicCommunities•Economiccommunities:groupsofcountriesthatbandtogethertopromotetradeamongthemselvesandmakeitea

sierformembernationstocompeteelsewhere.•NorthAmericanFreeTradeAgreement(NAFTA):theworld’slargesteconomiccommuni

ty,composedofCanada,MexicoandUnitedStates.•Thepre-cursortothisagreementwastheAutopact,whichprovidedforfreeflowofautomotivepa

rtsandvehiclesbetweentheU.S.andCanada.•EuropeanUnion:aneconomiccommunitythatincludesmostofWesternEurope.10Market

ing:RealPeople,RealDecisionsTheGlobalMarketingEnvironment•Theeconomicenvironmentwillinfluencethepotentialfordoing

businessonaninternationalbasis.Indicatorsofeconomichealthare:•Standardofliving:anindicatoroftheaveragequali

tyandquantityofgoodsandservicesconsumedinacountry.•Grossdomesticproduct:thetotaldollarvalueofgoodsandservicesthatanationsproducesin

ayear.•Economicinfrastructure:thequalityofacountry’sdistribution,financial,andcommunicationssystems.Figure4.211Marketing:RealPeopl

e,RealDecisionsLevelsofEconomicDevelopment•Lessdevelopedcountry(LDC):acountryattheearlieststageofeconomicdevelopment.Itseconomicbaseisagricultural,

standardsoflivingandliteracyratesarelow.Potentialsourcesofwealtharenaturalresources,iftheycanbedevelopedwithoutsidehelp.•Dev

elopingcountry:acountryinwhichtheeconomyisshiftingitsemphasisfromagriculturetoindustry.Approximately77%oftheworld’s

populationliveindevelopingcountries.•Developedcountry:acountrythatboastssophisticatedmarketingsystems,strongprivateenterprise,andb

ountifulmarketpotentialformanygoodsandservices.12Marketing:RealPeople,RealDecisionsThePoliticalandLegalEnvironment•Economicsanctions:tradepro

hibitionsimposedbyonecountryagainstanother.Usuallydoneforpoliticalreasons.•Nationalization:adomesticgovernment’stakeoverofaforeigncompanyforitsasse

tswithsomereimbursement,thoughoftennotforthefullvalue.Thisisatheriskofdirectinvestmentinadevelopingcountry,parti

cularlyifthepoliticalsituationisunstable.•Expropriation:adomesticgovernment’sseizureofaforeigncompany’sassetswithoutanycompensation.•Localcon

tentrules:aformofprotectionismstipulatingthatacertainproportionofaproductmustconsistofcomponentssuppliedbyindustriesinthehostcountry.13Marke

ting:RealPeople,RealDecisionsTheCulturalEnvironment•Culturalvalues:asociety’sdeeplyheldbeliefsaboutrightandwrongwaystolive.Com

paniesneedtobesensitivetohowotherculturesperceivetheirproductsandpromotionalstrategies.•Collectivistculture:acultu

reinwhichpeoplesubordinatetheirpersonalgoalstothoseofastablecommunity.Ie.Japaneseculture.•Individualist

culture:acultureinwhichpeopletendtoattachmoreimportancetopersonalgoalsthantothoseofthelargercommunity.•Freedomandindependencehavelongbe

encornerstonesofNorthAmericanculture.14Marketing:RealPeople,RealDecisionsTheCulturalEnvironment(continued)

•Norms:thespecificrulesdictatingwhatisrightorwrong,acceptableorunacceptable.Shakingrighthandsonintroductionisanormofsocialinteractioninmostcultures.

•Custom:anormhandeddownfromthepastthatcontrolsbasicbehaviors,suchashavingsupperat5:30PM.•Convention:anormreg

ardingtheconductofeverydaylife,suchasthe“correct”waytofurnishahouse.•More:acustomwithastrongmoralovertone,suchasourattitudetowardspolygamy,ort

hemoralityofsuggestiveadvertisingsuchasthebillboardshown.15Marketing:RealPeople,RealDecisions•Semiotics:thefieldofstu

dythatexamineshowmeaningsareassignedtosymbols.Thisisveryimportantfordeterminingbranding,packaging,andpromo

tionalstrategiestobeusedinforeignmarkets.•Languagewillalsoplayanimportantpartintranslatingproductnamesandslogans.•“Cokeaddslife”lite

rallytranslatedintoChinesemeant“Itwillwakeyourdeadrelatives”,notexactlythemessageintended.•Ethnocentrism:thetendencytopr

eferproductsorpeopleofone’sownculture.•Whilewepreferthefamiliar,wealsolookforvarietyandnewexperiences,particularlyinethnicallydiverseplacessucha

sCanada.TheCulturalEnvironment(continued)16Marketing:RealPeople,RealDecisions•Exportmerchant:anintermediarytha

tafirmusestorepresentitinanothercountry.•Thisinvolvestheleastamountofcommitmenttoaglobalprogram.•Licensing:anagreementinwhichoneformgivesanother

firmtherighttoproduceandmarketitsproductinaspecifiedlocationinreturnforroyalties.•Franchising:aformoflicensi

nginvolvingtherighttoadaptanentiresystemofdoingbusiness.GlobalEntryStrategiesDomesticstrategyExportingst

rategyContracting:licensing,franchising,orsubcontractingStrategicallianceDirectinvestment+-Levelofcommitment,riska

ndcontrol17Marketing:RealPeople,RealDecisions•Strategicalliance:therelationshipdevelopedbetweenafirmseekingadeeperc

ommitmenttoaforeignmarketandadomesticfirminthetargetcountry.•Jointventure:astrategicallianceinwhichtwoormoreformsf

ormanewentity,allowingthepartnerstopooltheirresourcesforcommongoals.•Directinvestmentbypurchasingalocalbusinessorbuildingafacilityinaforeignm

arketrequiresthehighestlevelofcommitment,risk,andcontrol.GlobalEntryStrategies(continued)Domesticstra

tegyExportingstrategyContracting:licensing,franchising,orsubcontractingStrategicallianceDirectinvestment+-Levelofcommitment,riskandc

ontrol18Marketing:RealPeople,RealDecisionsChoosingaMarketingMixStrategy•Thedecisionthatneedstobemadeisbetweenst

andardizationandlocalizationofmarketingstrategy.•Astandardizationstrategykeepsthesamebasicstrategyusedinthehomemarket,andisusedwhentheappe

aloftheproductislikelytobebecauseitisforeign.Thisisamorecost-efficientstrategy.•Alocalizationstrategyadaptseachstrategytoloc

alpreferences.•Productstrategiesinclude:–Straightextensionstrategy–Productadaptationstrategy–Productinventionstrategy•Pri

ce,promotion,andplacestrategiesmustalsobecarefullyadaptedtolocalconditions.19Marketing:RealPeople,RealDecisions•Grey

market:theimportingofproductsbyanunauthorizedparty,whothensellsthemforafractionoftheprice.Currencyfluctuationsandinconsistentp

ricingstrategiesusedbythemanufacturercreatetheopportunityforprofittobemade.•Thispracticedisturbsthemarketingstrategiesoftheprodu

cerinthemarketbeingsoldinto.•Dumping:pricingproductslowerinaforeignmarketthantheyareofferedinthehomemark

et.•Thisbecomesaproblembecauseitisseenasunfaircompetitionbylocalproducers.•Whilelegislationexists,itisverydifficul

tytoprovethatithasoccurred.ProblemsinGlobalMarketing20Marketing:RealPeople,RealDecisionsFamousLastWords…•Globalmarketingi

sanecessityforCanadiancompanieslookingtogrowlargerthanourlimitedmarketswillallow.•Internationaltradeisbigandgettingbigger.•Ourcountryiscommittedto“

freer”tradebecauseweknowthatasadevelopedcountry,wewillhaveanetgainfromit.21谢谢23.7.1706:15:3506:1506:1523.7.1

723.7.1706:1506:1523.7.1706:12023年7月17日星期一6时15分35秒