WEEK 3 Global Marketing Environment
WEEK 3 Global Marketing Environment IB7013-8
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This 8 page Class Notes was uploaded by JC11 on Saturday April 9, 2016. The Class Notes belongs to IB7013-8 at Northcentral University taught by in Spring 2016. Since its upload, it has received 8 views. For similar materials see Global Marketing Environment in General at Northcentral University.
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Date Created: 04/09/16
NORTHCENTRAL UNIVERSITY ASSIGNMENT COVER SHEET Student: THIS FORM MUST BE COMPLETELY FILLED IN Follow these procedures: If requested by your instructor, please include an assignment cover sheet. This will become the first page of your assignment. In addition, your assignment header should include your last name, first initial, course code, dash, and assignment number. This should be left justified, with the page number right justified. For example: Save a copy of your assignments: You may need to resubmit an assignment at your instructor’s request. Make sure you save your files in accessible location. Academic integrity: All work submitted in each course must be your own original work. This includes all assignments, exams, term papers, and other projects required by your instructor. Knowingly submitting another person’s work as your own, without properly citing the source of the work, is considered plagiarism. This will result in an unsatisfactory grade for the work submitted or for the entire course. It may also result in academic dismissal from the University. IB701383 Gisela Salas, PhD Global Marketing Environment Assignment 3 Faculty Use Only <Faculty comments here> <Faculty Name> 2 Introduction Blunders in the international marketing environment are common but in essence are easily avoided with the proper research. As a marketer, a business owner, or an individual working in the international environment, one can learn from the mistakes of others. By learning from those experiences, disasters can potentially be avoided. The purpose of this week’s assignment is to take a look at three blunders in the international environment and evaluate them to find ways to ensure the same issue is not made in the future. In addition, this assignment takes an in depth view of culture risk, language gaps, and how to make a product more attractive to other cultures. By making a few minor changes such as utilizing a local advertising agency in the new area, a company can avoid the pitfalls of doing business in the international environment. Culture Risk Culture risk is just as important as commercial or political risk in the international environment due to the potential impacts that each may cause. Culture risk can impact sales just as easily and as quickly as any other risk. If a particular culture is offended by a certain color or the drawing on the labeling of a product, the product can be very quickly boycotted. In addition, according to Madden, Roth, and Dillon (2012) there are three main areas that make up the overall perception people hold in regards to a product. Consumers base their perceptions on a company’s ethics, social responsibility, and environmental impacts. Kumar, Sunder, and Ramasehan (2011) discussed how global customer relationship management assists mangers to make rapid, data driven decisions that will impact customers on a global level. It is more effective for a company to utilize this method to ensure customer satisfaction than other methods. Melewar, Badal, and Small (2006) discussed the point that 3 under some circumstances a business will need to disassociate a product with the company to make headway. If a culture doesn’t have a positive view of a particular company but still want to move into another country, they can limit the association with the primary company. By utilizing a local advertising agency and identifying culture risk, a company can determine the best way to move forward into the new country. In addition, an alternative method while entering a new country could be to alter the products offered to meet the wants and needs of residents. While culture within a country can affect the level of a product’s success, the same problem exists within the culture of an organization. Gray, Greenway, and Metzger (2013) discussed the first marketing blunder while working within the culture of an organization. If a CEO only sits in the headquarters office and doesn’t make it out to see the operation abroad nor meet the people that run the business from day to day, the business can go under. If the headquarters’ staff remains reachable, the mission can be easily shared with the workers actually doing the job can learn from those implementing the policies. By opening up the channels of communication, and limiting the risk of the organization’s internal culture, the strategy can be understood and progress can be made more easily. Language Barriers Language barriers, even if the individuals are speaking the same language, certainly exist. Even while communicating within the same country, each region boasts a differing dialect. The same word in various regions may have a subtle differences or could have a significant difference. Czinkota and Ronkainen (2013) discussed the how translations from one language to another can be detrimental to a company or a company’s product. The first blunder example 4 provided was Kentucky Fried Chicken’s, “Finger lickin’ good” slogan. As the slogan was translated into Chinese, it read, “Eat your fingers off”. This was certainly not the theme the company was going for within the marketing campaign. The second translation blunder that was made was done so by the Ford Company. Ford launched Ford Fiera in Latin America without reviewing the meaning of the words when translated. What Ford did not know what that the word fiera in Spanish speaking countries translates into, ugly old woman. These are simple translation errors that if researched property beforehand, could be avoided altogether. Both companies could have simply sent out the marketing plan to various team members within the organization to review for any potential issues. A company should always ensure perspectives of the local population are taken into account. A company could do this by forming a team, or potentially even test marketing the plan with a small sector prior to releasing the product. To take this a step further, a marketer taking a business trip into the one of the South Asian countries, would certainly need to review local customs prior to traveling, even if the language is known. An individual may understand the words, but the individual may not understand the context of the cultural influences behind the words. For example, many countries do not utilize sarcasm, but in the U.S., this is a common form of speech. Now, take the example of an individual traveling abroad deciding to insist that everyone calls him/her by first name when conducting business. With something as simple as this, there may be a number of issues that follow. In the U.S., utilizing first names is a way to make another individual feel more comfortable and at ease. In South Asian countries the same informality would be seen as rude and disrespectful. South Asian countries are formal in communication and by diverting from the formality, could end any future business dealings. 5 Brand Values One of the main goals that every company needs to ensure is part of their business plan, is to develop a brand for the products and/or the company as a whole. Jack Daniel’s whiskey is extremely effective at their marketing and branding strategies. As a company or product develops a persona, the brand becomes apparent if done correctly. Jack Daniel’s is known for its strong, masculine, bourbon whisky, focused on hard core American values, with an air of sexiness. The appeal is placed towards men and towards women that identify as being one of the boys. As a dedicated connoisseur of Jack Daniel’s, and a prior bar owner who promoted this product, this definition certainly holds true. The bar was located in central Wisconsin and the clientele certainly matched the branding of the product. The bar, the whiskey, and the clientele were all part of the overall branding concept. Now, while this type of bar and branding are accepted and do very well in the United States and other Englishspeaking countries, the same values do not cross over into other cultures, like China. In order for Jack Daniel’s to do well in a more conservative country, or even one with differing values, the branding has to be altered. While a company may not want to change, it is necessary to appeal to other cultures. To appeal to country like China, Jack Daniel’s would need to tone down the hard core, nonbending, over the top, sex induced, male domineering type of marketing to a more conservative approach. In addition, the company can use this same concept to marketing to women. Women are not primarily known as whiskey drinkers. The way to appeal to a more feminine side would be to show women how Jack can be added into foofoo drinks or as an excellent product to cook with, primarily with red meat. By showing a different side of the use of the product, a company can identify with many different groups of people. 6 7 Conclusion Marketing in the international environment is a challenging process to say the least. By researching a country prior to placing a product, it will help to provide an understanding of how to best market the product. There are many blunders to review and analyze from past mistakes and a new company and/or marketer can learn how to refrain from offending the local population. Within this paper, three specific blunders were reviewed and potential interventions discussed. In addition, this assignment takes an in depth view of culture risk, language gaps, and how to make a product more attractive to other cultures. 8 References Czinkota, M. R., & Ronkainen, I. A. (2013) International Marketing. Mason: SouthWestern Gray, H., Greenway, C., & Metzger, C. (2013). Common blunders in corporate crises: how to weather the perfect storm practically. Journal of Private Equity, 16(3), 1922 Kumar, V., Sunder, S., & Ramaseshan, B. (2011). Analyzing the diffusion of global customer relationship management: a crossregional modeling framework. Journal of International Marketing, 19(1), 2339 Madden, T. J., Roth, M. S., & Dillon, W. R. (2012). Global product quality and corporate social responsibility perceptions: a crossnational study of halo effects. Journal of International Marketing, 20(1), 4257. doi:10.1509/jim.11.0016 Melewar, T. C., Badal, E., & Small, J. (2006). Danone branding strategy in China. Journal of Brand Management, 13(6), 407417
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