The global marketplace continues to grow –Capitalism is gaining acceptance –Advancement in technology –Reduction in trade barriers.

• The global marketplace continues to grow– Capitalism is gaining acceptance– Advancement in technology– Reduction in trade barriers

International Trade

• Who Benefits from International Trade?– Consumers – Benefit from the competition

– Producers – Able to expand their businesses

– Workers – Higher employment rates

– Nations – Increases standard of living

Global Marketplace

• The global marketplace causes companies to change their marketing approach

• Have to market according to the culture you are trying to sell to

• Marketers must be savvy with cultural diversity and a foreign society’s value system.

• A cross-cultural analysis should be performed prior to conducting business in foreign countries– Language & Symbols: Unlucky Numbers

• #13 in the US; #4 in China

– Holidays & Religious Observances: • McDonalds sells chicken, fish, and veggie burgers instead of beef

– Social & Business Etiquette: Gift Giving• Standard & polite in some countries; bribery in others

Factors Influencing Buying Decisions

Social Factors

Individual Factors

Psycho-logical Factors

Cultural Factors

CONSUMERDECISION-

MAKINGPROCESS

BUY /

DON’T BUY

Culture

CultureCulture

Set of values, norms,

attitudes, and other

meaningful symbols that

shape human behavior and

the artifacts, or products, of

that behavior as they are

transmitted from one

generation to the next.

LO5

Components of Culture

MythsMyths

LanguageLanguage

ValuesValues

CustomsCustoms

RitualsRituals

LawsLaws

Material artifactsMaterial artifacts

Culture is. . .

LearnedLearned

FunctionalFunctional

PervasivePervasive

DynamicDynamic

Cultural Diversity• The United States is becoming more diverse

• Rapid growth in the Hispanic culture affects– Food, Music, Clothing, & Entertainment

• African American women are the fastest-growing segments in America– Black women tend to drive family decisions– Advertisers target them as result

Value

ValueValueEnduring belief that a

specific mode of conduct is

personally or socially

preferable to another

mode of conduct.

Core American Values

• Silent Generation (1945 or earlier)– Great Depression / WW II– Conservative, frugal

• Baby Boomers (‘45-’64)– Wealth, youth, & carefree

• Generation X– Accept Diversity & individualism

• Generation Y – More serious, socially aware,

tech savvy

SuccessSuccess

MaterialismMaterialism

FreedomFreedom

ProgressProgress

YouthYouth

CapitalismCapitalism

Cultural Differences• Marketers need to know how to reach each

generation– The Marketing mix for each generation will vary

• Marketers need to know how to reach various cultures– In Brazil being skinny is most important– Will take drugs with side effects whereas in

China they don’t really care about weight

Cultural Differences

• Companies are becoming more global– Rituals, Traditions, Appearance, Language,

Interests will vary from one culture to the next

– Need to know how customers will react to the advertisements you create

Coca-Cola• Coca-Cola sells “Diet Coke”

in Japan under the name “Coke Light”

• In India soft drinks are reserved for guests & that water is mainly consumed so Coca-Cola has to come up with ads that matched that preference

Marketing Adjustments• UPS trucks in Spain had to repainted

because they resembled hearses

• In Germany, the brown uniform was changed because no one had been required to wear brown since 1945

International Marketing Blunders• General Motors tried to market the Chevy Nova in Mexico but the

term “no va” means “no go” in Spanish

• The soft drink Fresca was marketed under that name in Mexico … before the company discovered that ‘fresca’ is a slang term for lesbian in parts of Mexico.

• Pepsi used the slogan “Come Alive With Pepsi” in Taiwan … or so they thought. The slogan was actually translated as: "Pepsi brings your ancestors back from the dead."

• The Coors slogan "Turn It Loose," was translated into Spanish as "Suffer From Diarrhea."

Approaches to Market Globally

International Marketing

• Company wants to expand internationally– Globalization– Adaptation– Customization

• Globalization: Selling the same product and using the same promotion methods in all countries.

• Only a small portion of products that are common to all global customers can use this marketing strategy.

Example: Coca-Cola, Microsoft

• Adaptation is a company’s use of an existing product &/or promotion to which changes are made to better suit the characteristics of a country or region.

• Companies study characteristics of countries to identify that regions target market– Products and promotions are adjusted according to a

particular country’s target market

– In Sweden, McDonalds only uses adults in its advertising because it is illegal to advertise to children

– French companies can’t use nude males in United States

• Customization: involves creating specially designed products or promotions for certain countries or regions.

• Referred to as “Individual Marketing” because you tailor a product to meet specific needs

• Each geographical area where a product is sold or a service is offered becomes a unique market segment.

McDonalds & Customization

• McDonald’s is in 121 countries all over the world

• Brand is globally recognized but their menu is customized based on their location– Think Globally, Act Locally

Jordan

Assignment• Based on the country you chose Friday

• Go online to learn that countries norms, culture, way of life– http://www.cyborlink.com/besite/ – https://www.cia.gov/library/publications/the-world-factbook/

• Choose an existing product that can be adapted to meet the countries needs

• Create a customized product that meets that countries wants and needs

Assignment

• What is due?– A prototype of your adapted & customized

product• Drawing• Photoshop• Physical Item

– Explanation as to why your adaptations & customizations will work

CountryCountry Person/Partner

Australia Libby & Austin

Brazil

Britain Jack & Eric

Canada Louie & Joe

China Uthman & Dhiraj

France

Germany Alec & John

Italy Shannon & Maggie

Japan

Mexico Ryan & Nate

Russia Shannon & Maggie

Spain Jackson & Brett

Khakistain Michael & Blake