Download - Multicultural marketing 3rd Session
Multicultural Marketing
3rd Session
Cross culture consumer behavior & Local Consumer and Globalization of Consumption
Today’s Agenda
Convergence of Marketing Environments
Marketing Research
Group Work Class Assignment 2
Individual Quiz 3 (last quiz)
Slides for this can be found on Slideshare
Reminder
4 Quizzes = 30% (individual)
You have already done one quiz
4 Case Studies = 30% (to be done in groups)
1 Final Group Project
Details will be given at the end of the class with a link to
the details and deadline.
Rules:
Latecomers to come in class after break
If you are caught talking to much, you will be sent out of
the class.
Class Group Assignment
Please write on an A4 sheet of paper.
Write all group member names clearly.
Write the title as Assignment no. 1
All write down the question which is below
Why can 'word-of-mouth communication' among
people be considered as a fairly robust consumer
behavior concept cross-culturally?
Assignment Answer
The core concept : In all cultures, people communicate on a many topics, including what they buy, their consumption experiences, what they plan to buy. However, some aspects of word-of-mouth (WOM) may differ cross-culturally, such as:
The extent to which people speak about consumption experiences; it may be considered as trivial and a lack of “savoir-vivre” to speak about what one has bought or used.
The extent to which people consider it appropriate to speak about particular attributes of the consumption experience (price, for instance, may be tabooed).
The extent to which people consider it normal to emit negative WOM messages (defaming others).
The extent to which people consider that negative WOM can backfire on them, especially in small cultural communities where the source of negative WOM risks being identified by a powerful target.
The extent to which WOM influences future purchase decisions.
Quiz 2 - IndividualYou are free to use any resource (Internet, Dictionary, your notes)
No discussions amongst yourselves.
Use an A4 sheet and write your name and the Quiz Number clearly.
‘Dating’ is a very curious concept for many people. In any case it cannot be fully translated into many languages and simply means ‘making an appointment’.
Compare what dating means to Americans with what it means in other cultures, demonstrating how the complex process of finding a partner for life can be commercialized in different contexts.
Hint: Choose a country (France, Taiwan) or a society (Asian, Muslims) and compare it to American Dating sites.
Quiz Answer
There has been a number of articles in the Journal of Consumer Research about 'dating' and the forms of consumption, gifts, restaurants, etc. which are associated with dating in the United States.
Some phrases are typically associated with dating such as 'boy friend' or 'girl friend', often used untranslated in other languages.
The purpose of this comparison is to understand how cultural differences in this area (what a date means, acceptance of non-married couples, of people kissing each other in the street, etc.) are associated with consumption rituals such as gift-giving, birthday presents, first-buy-ever, etc. (his first car, her first ring, etc.).
Convergence of Marketing Environments
Local Marketing Environments
Marketing: Borrowed Concepts and Practices
Regional Convergence
Limitations of Convergence
Local Marketing Environments
Local knowledge is important because it is
operational
Understanding local marketing environments:
Self-criticism is a necessary perspective because we
understand our environment from our own perspective.
There is always a reference point that force us to
make a judgment
High-context international marketing is infused with
local knowledge.
Local Marketing Environments
Local Marketing Environment
Economic Environment
prices are adapted by global marketers so that they fit
with local purchasing power
Income and wealth inequalities are closely related to
power distance
Political Environment
Political aspects of the local environment are generally
associated with political risk (nationalization, coups)
Joint Ventures, Licensing, Contribute to country’s
economy
Legal Environment
No real universal law.
Communist Law, civil code, shariah, socialist law.
Marketing: Borrowed Concepts
Marketing concepts and practices were initially developed in the USA and have continued to spread because of the success of US-based companies in global markets.
Marketing vocabulary is now used worldwide: ‘mailing’, ‘media planning’ and ‘merchandising’ are all familiar
words.
In French companies one often finds a directeur du marketing (vice president, marketing) and a directeur commercial (vice president, sales). The French directeur commercial is actually responsible for a large
part of what Americans call ‘marketing’ as a functional area.
In the United States a vice president, marketing, would more commonly deal with marketing strategy as well as sales and advertising.
Regional Convergence
Regional integration is now under way, based mostly on trade agreements.
The basic assumptions, interaction models and attitudes are to be taken into account in negotiations between nation-states.
Therefore, convergence is basically economic (as in the case of the North American Free Trade Agreement, NAFTA), more rarely political (as in the case of the EU, and this with obvious pains).
Cultural convergence is a more difficult process: it certainly happens but over a very long period and with people largely unaware of it.
Groups of countries can be identified for the purpose of marketing on 2 elements: similarities (which unite them against the rest of the world) differences (which account for the intraregional diversity).
Regional Convergence
Limitation of Convergence
While economic systems are converging towards a
market economy, the degree of poverty of a
significant group of developing countries has been
increasing over the years.
Buying and consumption patterns in affluent counties
appear to have in fact diverged as much as
converged.
After 9/11, tourism, hotel, airline, and education
industry in countries like the US has faced a lot of
decline.
Cross Cultural Market Research
The Market Research Procedure
Types of Marketing Research
International Challenges
Legal and Ethical Issues
The Marketing Research Procedure
1. Define the research problem (not symptom) and
establish research objectives:
Broad enough?
Influence of local culture?
2. Determine the sources of information needed to
answer the research objectives
Availability, reliability, cost, etc.
3. Gather the relevant data from secondary and/or
primary sources
4. Analyse, interpret, and present the results
Marketing Research
Problem
Identification
Research
Problem-solving
Research
•Market Potential
•Market Share
•Market characteristics
•Image
•Sales
•Forecasting
•Business Trends
•Segmentation
•Product
•Pricing
•Promotion
•Distribution
Types of Marketing Research
Qualitative An exploration of what people do or say
Observation
Depth interviews
Focus groups
Quantitative Structured questions where the response options have
been predetermined
Survey research
Experiments
Observation
International Challenges
Lack & inaccuracy of secondary data
Time & cost of primary data
Co-ordination across countries
Environmental differences leading to complex
designs
Comparability across countries
General Problems in Secondary Data
Availability of Data
entire country, regions?
Reliability of Data
optimistic, understated?
quality in developing markets
Comparability of Data
categories, currencies, frequency, base years, sampling unit
Who collected the data?
For what purpose?
Any reason for purposely misrepresenting the facts?
How were data collected?
Methodology
Are the data internally consistent and logical in light of known data sources or market factors?
General Problems with Primary Data Who should respond?
Ability to communicate opinions?
Willingness? truthful, taboos, taxes
Method suitability? mail, phone, personal interviews, internet
Sample adequacy? Lists and techniques
Language/comprehension translation
meanings
attitudes of interviewers and respondents
willingness to respond
illiteracy & education level
Cross Culture Equivalence Conceptual Equivalence: Similar meaning
equivalently weighted or articulated Self image: beauty, youth, friendliness, etc. Perceived risk:
social, physical, financial, etc.
Functional Equivalence: Similar activities, different functions? preparing a meal? bicycle? watch?
Examine the social setting where the product is consumed
Translation Equivalence Back Translation, and Parallel Translation
E.g. warm/hot vs. Chaud; hair vs. Cheveux and poil
Measure Equivalence Perceptual: Colors, smells
Metric: scale, meaning
Calibration: weight, distance
Data Collection Equivalence Willingness to co-operate
Response bias: Lessen embarassment
Legal and Ethical Issues
Regulatory issues Regulations and guidelines to prevent unfair and deceptive acts
Industry standards to guide research activities
Privacy issues Included in both regulatory and ethical issues
Violating promises of anonymity
Identifying unsuspecting respondents
Ethical issues Honesty throughout the research process
Rights of others (e.g. using competitor information)