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intel marketing
| Question | Answer |
|---|---|
| Important for marketers | Cultural analysis and understanding gives competitive edge • Business etiquette a crucial component |
| Criteria to Do Business in a Foreign Country | 1. Open tolerance 2. Flexibility 3. Humility 4. Justice/fairness5. Ability to adjust to varying tempos 6. Curiosity/interest7. Knowledge of the country 8. Liking for others9. command respect 10. integrate oneself into the environment |
| Adaptation | Be aware of self-reference criterion (SRC) • Own cultural background impacts understanding of other culture • Importance of customs varies by country |
| Cultural Imperatives | Business customs and expectations that must be met and conformed to or avoided |
| Cultural Electives | Behavior or customs that cultural aliens may wish to conform to or participate in, but not required |
| Cultural Exclusives | Customs or behaviors that foreigners are barred from and must not participate in |
| management style | Master of destiny” viewpoint • Independent enterprise as instrument of social action • Personnel selection and reward based • Decisions based on objective analysis • Wide sharing in decision • Never-ending improvement • Competition |
| Low-PDI countries | subordinates often challenge bosses |
| High-PDI countries | subordinates less likely to contradict |
| authority patterns | Top-level management decisions 2. Decentralized decisions 3. Committee or group decisions |
| Objectives and Aspirations | Personal security and job mobility Personal life Affiliation and social acceptance • Power and achievement |
| Communication involves | Time, space, things, friendships, agreements |
| Face-to-Face communication | Meanings of words differ widely among languages • High-context: heavy dependence on nonverbal communication • Low-context: heavy dependence on explicit, verbal communication |
| Internet communications | Once message is posted, can be read anywhere at any time • High opportunity for miscommunication • Loss of contextual information |
| Monochromatic: | linear view, time is important, promptness |
| Polychronic: | multi-tasking, involvement with individuals |
| Strategic philanthropy | Providing expertise or products to sponsorship projects • Targeted at local communities or specific segments of population |
| Utilitarian ethics | optimize the “common good” or benefits of all constituencies? |
| Rights of the parties | action respect the rights of the individuals involved |
| Justice or fairness | action respect the canons of justice or fairness to all parties involved |
| Individualistic capitalism | Competition between labor, management, and government |
| Communitarian capitalism | Cooperation between labor, management, and government |
| Information-Oriented | Low context • Individualism • Low power distance • Bribery less common • Low distance from English |
| Relationship-Oriented | High context • Collectivism • High power distance (including gender) • Bribery more common* • High distance from English |
| Causes of instability | Inherent instability 2. Political shifts during elections impact trade conditions 3. Nationalism 4. Animosity toward specific countries 5. Trade disputes |
| Monarchy/dictatorship – | rule by one |
| Aristocracy/oligarchy – • | rule by few |
| sovereign States | Most have nominally representative governments with universal suffrage |
| Democracy | rule by many |
| Nationalism | directed generally to all foreign countries |
| Targeted animosity | directed toward a particular country |
| Confiscation | Seizing of a company’s assets without payment |
| Expropriation | Government seizes investment but makes some reimbursement for the assets •Investment sometimes becomes government-run entity |
| Domestication | Host country gradually gains control of investment •Series of government decrees that mandate local ownership and national involvement in company’s management |
| Exchange controls | When there is a shortage of foreign exchange in the country and the government restricts the spending in foreign currency |
| Local-content laws | When countries often require a portion of any product sold within the country to have local content—that is, to contain locally made parts |
| Import restrictions | Selective restrictions on the import of consumer products, raw materials, machines, and spare parts to force foreign industry to purchase more supplies within the host country and thereby create markets for local industry. |
| Nationalism | Intense feeling of national pride and unity • National interest and security more important than international relations |
| Targeted animosity: | directed toward a particular country |
| Confiscation | Seizing of a company’s assets without payment |
| Expropriation | Government seizes investment but makes some reimbursement for the assets •Investment sometimes becomes government-run entity |
| Domestication | Host country gradually gains control of investment •Series of government decrees that mandate local ownership and national involvement in company’s management |
| Exchange | controls When there is a shortage of foreign exchange in the country and the government restricts the spending in foreign currency. |
| Local-content laws | When countries often require a portion of any product sold within the country to have local content—that is, to contain locally made parts. |
| Import restrictions | Selective restrictions on the import of consumer products, raw materials, machines, and spare parts to force foreign industry to purchase more supplies within the host country and thereby create markets for local industry. |
| Tax control | s Taxes must be classified as a political risk when used as a means of controlling foreign investments. In such cases, they are raised without warning and in violation of formal agreements. |
| Price controls | Essential products that command considerable public interest, such as pharmaceuticals, food, gasoline, and cars, often are subjected to price controls. |
| Labor problems | In many countries, labor unions have strong government support that they use effectively in obtaining special concessions from business. |
| Political Sanctions | • Nations can boycott others, stopping all trade • Possible to boycott or issue sanctions against trade of specific products |
| Cyberterrorism and Cybercrime | Growing potential with rise of the Internet • Can inflict real harm • Viruses can spread and do damage quickly before being stopped |
| Vulnerable companies | Subject to political attention • May face unpredictable government restrictions • Less vulnerable companies |
| foreign investors are self- serving • | Exploit country’s wealth at expense of population • Relations between governments and MNCs are generally positive if the investment: • Improves balance of payments • Uses locally produced resources • Transfers capital, technology, and skills |
| Strategies to reduce political vulnerability and risk | Joint ventures • Expanding the investment base • Licensing/franchising Planned domestication • Political bargaining • Political payoffs |
| Four heritages | Common law 2. Civil or code law 3. Islamic law 4. Commercial legal system |
| Common Law | • Based on tradition ownership established by prior use • First to use is typically considered the rightful owner • Not all-inclusive • Ownership of intellectual property based on use |
| Code Law | written rules • Catchall provisions with broad ownership established by registration • typically considered rightful owner • Use of the property does not matter interpretations possible • Ownership of property based registration |
| Marxist-Socialist Tenets | Pattern for development of economy differs by country Law is subordinate to prevailing economic conditions • Development of commercial legal system necessary |
| Law Disputes | Between governments • Resolved by The World Court at the Hague 2. Between a company and government • Handled by a court in one of the countries involved or through arbitration 3. Between two companies • Handled by a court in one of the countries |
| Which Law Governs? | Jurisdiction generally determined by: 1. Jurisdictional clauses included in contracts 2. Where a contract was entered into 3. Where the provisions of the contract were performed |
| Arbitration | Disinterested and informed party chosen as referee • Determine the merits of the case • Make judgment both parties in conflict can honor |
| Litigation | • Commonly initiated by a lawsuit; held in formal court • Most try to avoid litigation • Expensive and requires a lot of time • Loss of confidentiality |
| Intellectual Property | • Global brand names and trademarks • Used to symbolize quality of product or company • Entices consumers to buy good or service |
| Important to protect | • Among most valuable assets to a company • Companies spend millions of dollars on establishing property rights |
| Counterfeiting and Piracy | Occurs in a range of industries • Costs companies billions of dollars in lost revenue Collusion between manufacturer and illegitimate sellers • Makes counterfeiting more possible |
| Inadequate Protection | Leads to loss of legal rights in profitable markets • Patents, processes, trademarks, and copyrights Valuable in all countries • Lack of adequate protection against foreign exploitation •companies losing rights to own trademark |
| International Conventions | Designed for mutual recognition and protection of IP rights • Three main conventions • The Paris Convention for the Protection of Industrial Property • The Inter-American Convention • The Madrid Arrangement |
| Managerial Approaches | Traditional, but feeble, remedies • Prevention, engage local representation and diligently register intellectual property with appropriate agencies |
| Marketing Laws • | Countries have unique laws in marketing • Promotion, development, labeling, pricing, sales, distribution • Laws vary in strictness by country and industry • Discrepancies create challenges for marketers and traders |
| National Security Laws | • Sale of products cannot affect U.S. national security • Applies to American firms, their foreign subsidiaries, and foreign licensees of U.S. technology |
| U.S. Policy on Exports | Businesses can export without a formal license • Exports may need a license in certain situations |
| Marketing Research | Systematic gathering, recording and analyzing of data • Provides useful information for decision making |
| Three basic market research needs | 1. General info about the country, area, and market 2. Info to forecast future marketing requirements (social, economic, consumer, industry trends) 3. Specific info to develop marketing plan (product, promotion, distribution, price) |
| Unisys Corporation’s Planning Steps | 1. Economic and demographic information 2. Cultural, sociological, and political climate 3. Overview of market conditions 4. Summary of the technological environment 5. Competitive situation |
| Problems of Availability | Availability of data • Language and privacy concerns limit access • Reliability of data • Willful errors common to improve image of country or company |
| • Comparability of data | • Data collected at random times and through random methods • Some data reported in too broad of categories |
| Primary Data | Collected specifically for the project at hand Pursued if secondary data leaves unanswered questions |
| Qualitative Research | Seeks to interpret what people in sample are like • If questions are asked, they are usually open-ended • Unstructured responses reflect person’s thoughts and feelings |
| Ability to Communicate Opinions | Product’s value or use may not be understood • Respondent unable to provide accurate survey responses Willingness to Respond • Culture impacts desire and ability to respond • Leaders might prevent market research altogether |
| Sampling in Field Surveys | • Some countries lack adequate demographic data • Difficult to draw reliable, accurate sample groups |
| Obtaining and analyzing data is half the job | mportant to provide executives with analyses and interpretation in timely manner • Decision makers should be involved in process • Problem definition and question formulation |
| Decentralization | Foreign-based entity does research for company • Becoming more widely used • Local analysts have more intimate knowledge of culture • Results are quick and more accurate |
| Disadvantages | • Possible ineffective communications with home-office executives • Potential dominance of large-market studies in decisions about global standardization |
Created by:
Jennatu