Transcript May 21 International Marketing BMI3C

International & Global
Marketing
Global Marketing
Marketing on a worldwide scale.
 involves recognising that people all over the
world have different needs
 Must understand regional differences –
ie: currency, language, customs, interests,
values, etc

Why Go Global?




Some foreign markets have higher profit
opportunities
Poor success in domestic markets means
company needs a larger or new customer base
Reduces dependency on a single market
especially if your product is in maturity or decline
stage. For example, Starbucks, Coke and
Blackberry etc…
More success!
Understanding the Global
Environment
Understanding the Political/Legal
Environment:
• Government bureaucracy & attitudes
• Political (in)stability
• Monetary regulations
• Trade regulations/tariffs – extra costs
• Product food and safety – rules around different
materials coming into the country
Economic Environment:
Developed countries (Canada/US/EU/Japan)
 •Private and public sectors are huge
 •Many different markets/competition
Developing countries
 •Process of moving from agriculture to industrial
Third World countries:
 Term developed after the Cold War but often used to describe
the developing countries of Africa, Asia, Latin America and
Oceania. Many poorer nations adopted the term to describe
themselves.
Cultural Environment:
• Sellers must examine the ways consumers in different
countries think about and use products and tailor their
marketing activities toward those consumer preferences
• Norms and cultural symbols vary from country to country
(ex. Scotch-Brite; Tiffany & Co.)
• Companies that understand cultural differences can position
their products to an international market
Ie: KFC offers poutine in Canada – this is known as Global
Marketing Adaptation
What is Culture?
Language, customs, religion, body
language, beliefs and attitudes.
 Culture is learned

What is Canadian culture?
Hockey, beer, maple leaf, beaver, French
Canada
BUSINESS ETIQUETTE TIPS
Japan:
Do not open a gift in front of a
Japanese counterpart unless asked
and do not expect the Japanese to
open your gift.
Avoid ribbons and bows as part of
gift wrapping. Bows as we know
them are considered unattractive.
Latin America:
Gifts should be given during
social encounters, not
Europe:
in the course of business.
Avoid red roses and white flowers,
Avoid the colors black and
even numbers, and the number 13.
purple, both are associated
Do not wrap flowers in paper.
with the Catholic lent
Do not risk the impression of bribery
season.
by spending too much on a gift.
The 4 P’s in International Marketing
Product
 Is the product use or design offensive to the culture?
 Do the colours of the packaging and product communicate the same
message?
 Is the product used in the country?
Place
 Where is this type of product/service sold in the country?
 What kind of transportation is available to move product?
Price
 What currency does the country use? What is the exchange rate?
 Is the domestic price of the item reasonable for the foreign country when
converted to the foreign currency or does it need to be adjusted?
Promotion
 Is the domestic marketing message offensive to the culture?
 What kind of translation do we need to do?
 What type of media is available for advertising? What is most effective?
Cross Cultural Research Activity
•Research two world cultures.
•Explain where they are in the world,
something unique about the culture and
identify some ‘do’s and taboo’s’ –
•what should you do or NOT do as a traveller
(or if travelling on business) and why?
•We stopped here today. Tomorrow we will
start from next slide.
Two Cultures, Two Barbies
The Barbie Doll didn't do very well in Japan, until
Mattel gave the manufacturing license to Takara, a
Japanese toy and doll specialist.
Takara did some marketing research and found that
most Japanese disliked Barbie.
Her breasts were far too big, her legs were
exaggeratedly long.
So Takara made the appropriate modifications to
Barbie's anatomy, converted her blue eyes to brown
as well, and found instant success in the market.
What sells in America does not
necessarily sell in Japan
In India it was a totally different story.
India loves this little doll just as she is, golden
blonde, blue eyed and leggy, if a bit plastic.
This Barbie is a precise copy of her American
incarnation, right down to the design of her
miniskirt, her lounger and end table set, her
diary, and antique telephone.
BUT…There is no place for a Ken doll in the market.
The concept of a boyfriend may be too advanced in
India where premarital relationships are frowned on
and many wedding couples don't meet until their
wedding day.
VIDEO
Meetings and cultural importance
http://www.youtube.com/watch?v=JK_NinOmFWw
&NR=1
Traveling
http://www.youtube.com/watch?v=v1vvLQd53Ps
Gift giving
http://www.youtube.com/watch?v=8jrbu0lCWjk&feat
ure=related
Personal space
http://www.youtube.com/watch?v=sLLTQgQHClI
Product/Promotion Strategy
PRODUCT
Same
Different
Straight
Extension
Product
Adaptation
Same
PROMOTION
Communication
Different Adaptation
Dual
Adaptation
Products Suitable for Standardized
Advertising
Luxury products
 High-tech products
 Mass appeal products
 Favorable country image products

Coca-Cola: “Pattern Advertising”

Basic approach
• Specific communication strategy
• Specific Audience

Local adjustments
• Words and the lyrics are translated
• Basic adjustments made to the copy
• Visual adjustments made to the copy
Tailoring Global Campaigns
Coca-Cola
A thousand children singing the praises of CocaCola
21 localized versions with
a youngster from the local market
Tailoring Global Campaigns
Coca-Cola
A thousand children singing the praises of CocaCola
21 localized versions with
a youngster from the local market
Task
Working in a group, you will be assigned a
country and given a country profile.
American Eagle Outfitters wants to open
stores in the country you have been
assigned.
Read through the profile and outline what AE
should do for each of the 4 P’s of marketing
in that country.
You may change the style of products,
advertising message etc. to suit the country’s
culture.
Body Language
http://www.youtube.com/watch?v=pxoB6M
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