International Marketing Notes

INDIAN INSTI. OF PLANNING & MANAGEMENT AHMEDABAD. SATURDAY, 13 th SEPTEMBER,2 0 0 8 IM-2*Cultural Environment of Global Mkts-Busi.custom

Dr. PRADIP DESAI B.E. ,M.B.A. (I.I.F.T.), LL.B., Ph.D.(Management-U.S.A.),CMC CERTIFIED MANAGEMENT CONSULTANT ( C.M.C.) CHAIRMAN & C.E.O.

MOUN MARKETING CONSULTANTS { EXPORTS -MARKETING-IMPORTS -PROJECT-MGMT. CONSULTANTS}

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GEOGRAPHICAL GLOBEECONOMIC BLOCKS • Developed countries: USA-CANADA EU/JAPAN/Australia/S.KOREA/S.E.Asia • Developing countries:BRAZIL-RUSSIA-INDIAChina/E.Europe/Mexico/S.AFRICA/Middle East • Under developed countries:Africa/Indonesia /Latin American countries * Below Poverty Line(BPL) : zambia/malawi/uganda/tanzania/chaad/Ivory coast Moun Marketing Consultants

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5 Factors of Production • 4 FACTORS OF PRODUCTION : • LAND/LABOUR/CAPITAL/MACHINERIES (LLCM) • Land is given-can’t multiply-Prices always on rising curve. • Labour can be migrant e.g. E.U. is one country with single passport & single currency-EURO • Capital is highly mobile-goes where returns are moreFDI go to Brazil/Russia/India/China/Mexico(BRICM) • Machineries/Technology can be sourced with capital • 5th factor : Intellectual Capital =HRM functions most imp. This days e.g. Outsourcing from whereever services are cheapere.g.India-Phillipines-Mexico-China Moun Marketing Consultants 3

CULTURAL PARAMETERS • Culture of the class of people,socities,tribes, religious beliefs,contries & continents is vastly different. • Cultural differences deeply affect Intl.Mkts. /buyer behaviour which must be understood Attitude/Belief/Ritual/Motivation/Perception/ Morality/Truth/Superstition/Timeliness/qualiy /Service expectation/deliverables/satisfaction Moun Marketing Consultants

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UNDERSTANDING CULTUREFoundation for Intl.Mktg. • Definition of culture by Sir Edward Taylor: It is a complex whole which includes knowledge,belief,art,morals,law,custom and any other capabilities & habits acquired by individuals forming a group or society. • Elements of culture : 1. Material life 2. Social Interactions 3. Language 4. Religion & faith 5. Ethics & moral values 6. Role & responsibility 7. Pride & Prejudice Moun Marketing Consultants

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CULTURE & INTL.MKTG. •

CUSTOMER’S CULTURE | LIFE-STYLE ----------Behaviour Pattern | Action/strategies in the global market place | Impact on firm’s Mktg.Decisions e.g. Insha Allah=God willing in S.arabia is common Moun Marketing Consultants

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Edward T. Hall’s Cultural Map for crossCultural Analysis of Consumer Behaviour 1.Determine relevant Motivation in culture 2. “ characteristic behaviour pattern 3. “ broad cultural values for the PRODUCT 4. “ characteristic forms of decision makingPRICING keeping in mind `Value for Money’ 5. Evaluate PROMOTION methods appropriate to the culture 6. Determine appropriate DISTRIBUTION channels for the product suitable to consumers Moun Marketing Consultants

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Business customs in global marketing • Appointment time:USA/EU/JAPAN=V.IMP. e.g.Bullet Train Experience:Tokyo-Kyoto * Salutation:Good Morning/Bon Jour Meissure /Guten morgan & vanakkam/namaste * Japan/china/S.KOREA : Travel in big group as a commercial/technical/marketing/financeTeam • Speaks very less-does’nt make tall claims • India/Pakistan/Bangladesh:Loud mouth/show–off more than can deliver & fail in many commitment Moun Marketing Consultants

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