dismiss such statements as ―window dressing‖ and they could be, but the beginning of change is awareness. Responsibility for cleaning up the environment does not rest solely with governments, businesses, or activist groups. Each citizen has social and moral responsibility to include environmental protection among his/her highest goals.
5. 7. Pick a country and show how employment and topography affect marketing within the
country. Library project. 6. 8. Pick a country (other than Mexico) and show how significant historical events have
affected the country’s culture. 7. Library Project
8. 9. Discuss the bases of world trade. Give examples illustrating the different bases.
9. The basis for world trade is the differences between countries. One of these differences is the difference between people. Different heritages have resulted in the development of certain unique skills in the people of a country. An example would be the watchmaking skill developed by the Swiss. Thus, they have a unique skill on which to base trade. Another difference is the one of differing stages of economic development existing in the world today. Some countries are highly developed and industrialized. These nations, such as the United States and France, might be trading in luxuries, whereas an underdeveloped nation, such as Kenya, might be forced to trade only in essential capital goods. A third difference in countries serving as a basis for world trade is the availability of natural resources. Great Britain, poor in mineral resources, imports petroleum, where West Germany, rich in mineral resources but not food, imports large amounts of fruits and vegetables. Thus, trade is created by these differences: (1) Differences in skills – other countries seek the products of skills, (2) differences in economies – countries seek products they don’t produce but need, and (3) differences in national resources – countries buy and sell resources which they do not have or have an abundance of.
10. 10. The marketer ―should also examine the more complex effect of geography upon general
market characteristics, distribution systems, and the state of the economy.‖ Comment. There can be no doubt that geography has had a ―complex effect upon general market characteristics, distribution systems, and the state of the economy.‖ Therefore, the world marketer should be careful not to look just at how his product must be changed to fit into a foreign market. That is, he must not just fit his electric motors, say, with high-temperature operating characteristics and stop there.
There’s more to it than that. Consider the diverse nature of South America, for example. The channels of distribution that a domestic marketer has been accustomed to using might not even exist because of natural barriers. These same natural barriers also cause quite varied levels of economic development within the same country. Cities and rural areas might not even be on the same economic plane. Finally, as a result of these barriers and thus physical isolation of various population centers, areas of the same economic development might have entirely different cultures. Therefore, the general market
characteristics of these areas would also differ greatly and have a direct effect upon the success of marketing plans.
11.
The world population pattern trend is shifting from rural to urban areas. Discuss the marketing ramifications
There are many marketing ramifications to the world rural-urban population shift. One of the obvious ones is that the world market is becoming more unified in location. Thus, it is becoming easier to reach a larger segment of the market by just marketing in the urban population centers. The types of products marketed will also change with this population shift. For example, food might become a more important product in international
marketing with few people raising their own. Similarly, these shifts will result in greater industrialization in countries with presently low levels of industrialization. This again implies marketing changes that might affect the world marketer, increased sales of capital goods, for example. In summary, people living in cities have different needs than those living in the country. Thus, the shift from country to city means that the world marketer has a different market to serve with different characteristics.
12. Select a country with a stable population and one with a rapidly growing population.
Contrast the marketing implications of these two situations. Library Project
11. 13. ―. . . world trade routes bind the world together . . .‖ Discuss.
World trade routes bind the world together. This statement means that the world trade routes serve as avenues of minimizing differences between countries. Without these routes, countries would stand alone – each different from the rest in resources, economy, and people. The trade routes allow both people and products to flow, making more of a unified, balanced world. The physical imbalances overcome, also smooth, cultural and economic differences through the exchange of ideas as well as products. 12. 14. Discuss how your interpretation of Manifest Destiny and the Monroe Doctrine might
differ from a Latin American’s.
Manifest Destiny and the Monroe Doctrine were accepted basis for U.S. foreign policy during much of the 19th and 20th centuries. Manifest Destiny, in its broadest
interpretation, meant that Americans were a chosen people ordained by God to create a model society. More specifically, it referred to the desires of American expansionists in the 1840s to extend the U.S. boundaries from the Atlantic to the Pacific; the idea of ―Manifest Destiny‖ was used to justify U.S. annexation of Texas, Oregon, New Mexico, and California; and later, U.S. involvement in Cuba, Alaska, Hawaii and the Philippines.
The Monroe Doctrine, a cornerstone of U.S. foreign policy, was enunciated by President James Monroe in a public statement proclaiming three basic dicta: no further European colonization in the New World, abstention of the U.S. from European political affairs, and nonintervention of European governments in the governments of the Western Hemisphere.
After 1870, interpretation of the Monroe Doctrine became increasingly broad. In 1881, its principles were evoked in discussing the development of an interoceanic canal across the Isthmus of Panama. The Monroe Doctrine was further applied by Theodore Roosevelt with what became known as the Roosevelt Corollary to the Monroe Doctrine. The
corollary stated that not only would the U.S. prohibit non-American intervention in Latin
American affairs but it would police the area and guarantee that Latin American nations met their international obligations. The corollary sanctioning American intervention was applied in 1905 when Roosevelt forced the Dominican Republic to accept the
appointment of an American economic advisor who quickly became the financial director of the small state; it was used in the acquisition of the Panama Canal Zone from Colombia and the formation of a provisional government in Cuba in 1906.
According to U.S. history, these Latin American adventures were a justifiable part of our foreign policy; to Latin Americans, they were unwelcome intrusions in Latin American affairs. The way historical events are recorded and interpreted in one culture can differ substantially from those same events recorded and interpreted in another. A comparison of histories goes a long way in explaining the differences in outlooks and behavior of people on both sides of the border. Many Mexicans believe that their ―good neighbor‖ to the North is not reluctant to throw its weight around when it wants something. There are suspicions that self-interest is the primary motivation in good relations with Mexico, whether it be fear of Fidel Castro 25 years ago or eagerness for Mexican oil today. 15.
The telegraph, telephone, television, satellites, computer, and the Internet have all had an effect on how international business operates. Discuss how each of these communications innovations affects international business management.
An underpinning of all commerce is effective communications, knowledge of where goods and services exist and where they are needed and the ability to communicate instantaneously across vast distances. Facilitating the expansion of trade have been continuous improvements in electronic communications. First came the telegraph, then the telephone, television, satellites, the computer and the Internet. Each revolution in electronic technology has had a profound effect on human conditions, economic growth and the manner in which commerce functions. As each ―new‖ communications technology has had its impact, new business models have been spawned and some existing businesses re-invented to adapt to the new technology while other businesses have failed to respond and thus ceased to exist. The Internet revolution will be no different; it too affects human conditions, economic growth, and the manner in which commerce operates. As we will discuss in subsequent chapters, the Internet has already begun to shape how international business is managed. However, as the Internet permeates the fabric of the world’s cultures, the biggest changes are yet to come!
Chapter 4Cultural Dynamics in Assessing Global Markets
1Which role does the marketer play as a change agent?
Whether or not the marketer is aware of it, he assumes the role of a change agent when he introduces into another culture new ideas or new products requiring some form of change in behavior for acceptance and use of the new idea or product. The international marketer must concern himself with the impact of his actions upon the new culture.
2. Discuss the three cultural change strategies a foreign marketer can pursue.
There are three strategies. (a) Culturally congruent strategy, (b) Strategy of unplanned change, (c) Strategy of planned change. The culturally congruent strategy involves marketing products similar to ones already on the market in a manner as congruent as possible with existing cultural norms, thereby minimizing resistance. A strategy of planned change means deliberately setting out to change those aspects of a culture most likely to offer resistance to predetermined marketing goals. The strategy of unplanned change consists of introducing an innovation and then waiting for an eventful cultural change that will permit the culture to accept the innovation. The essence of unplanned change lies in the fact that the marketer does nothing to accelerate or help to bring about the necessary change where the marketer
deliberately sets about to overcome resistance and to cause change that will accelerate the rate of adoption of his product or innovation.
3. ―Culture is pervasive in all marketing activities.‖ Discuss.
Marketers are constantly in the process of adjusting their efforts to the demands of the culture of their markets. Although in the long run they may affect their market’s culture as a result of their efforts, most current activity involves reconciling marketing activity to the immediate culture.
4. What is the importance of ―cultural empathy‖ to the foreign marketer? How does he or she
acquire ―cultural empathy?‖
The importance of ―cultural empathy‖ to the foreign marketer is that being culturally sensitive allows him or her to objectively see, evaluate, and appreciate another culture. A marketer can obtain cultural empathy by studying the culture and living with it. The latter is not always possible, and it may be expedient to hire natives who speak your tongue and their own. This procedure will often give you the intuition which is necessary for success.
5. Why should a foreign marketer be concerned with the study of culture?
A foreign marketer should study culture in order to avoid making blunders which would not be made if he or she had cultural knowledge. Culture should be studied because it affects the consumer’s desire and ability to buy.
6. What is the popular definition of culture? What is the viewpoint of cultural anthropologists?
What is the importance of the difference?
The popular definition of culture is that a person is either ―cultured‖ or ―uncultured‖ according to his or her ability in certain specialized fields of knowledge. The cultural anthropologist defines culture as ―all the knowledge, beliefs, and skills he or she acquires as a member of society.‖ The importance to the marketer of the differences between these two definitions is the fact that the anthropologist’s definition includes all parts of life, and all of these parts affect a consumer’s desire and ability to pay for a product.
7. It is stated that members of a society borrow from other cultures to solve problems that they
face in common. What does this mean? What is the significance to marketing?
Cultural borrowing entails using the best solutions to a problem that different cultures face. This best solution, borrowed by one culture from another, is incorporated into the borrowing culture’s system, and becomes part of their cultural heritage. This fact is
significant to the marketer because although the solutions to the problems are similar they are put together in a unique manner which is strictly American, Chinese, French, etc. In realizing the ―similar but different‖ aspect of culture, the marketer is aided in gaining cultural empathy.
8. ―For the inexperienced marketer, the ―similar but different‖ feature of culture creates an
illusion of similarity which usually does not always exist.‖ Discuss and give examples. Although some cultures seem similar, they most likely are not. For example, two different countries speaking the same language may use words or phrases which are acceptable to one, but totally unacceptable to the other. Some cultures may have subcultures in which the ―similar but different‖ principle applies.
9. Outline the elements of culture as seen by an anthropologist. How can a marketer use this
―cultural scheme?‖ a. Material Culture
1. 2.
Technology Economics
b. Social Institutions 1. 2. 3.
Social organizations Education Political structures
c. Man and the Universe 1.
Belief systems
d. Aesthetics 1. 2. 3.
Graphic and plastic arts Folklore
Music, drama, and the dance
e. Language
The foreign marketer may use the above outline of cultural elements (1) to provide a meaningful framework to use in evaluating a marketing plan or in studying the potential of a foreign market, (2) to point out those things which must be learned about the culture