Ch. 9 10/28/15 12:25 PMBRICS

Foreign languages

IranVIDEO- Iranians Eating at a table talking about how theyre not all bad and the good things about people of IranVIDEO- Teenagers in Iran

Driving in cars Iranian Pizza

VIDEO- Emerging Markets forecast How much will sell in which market over a period of time

Stages of Economic development The UN groups countries into 3 categories

o MDC More developed countries

Canada England France Germany

Japan USA

o LSC Less developed countries

Asia Latin America

o LLDC Least developed countries

Central Africa Asia

o NIC Newly industrialized

Countries that are experiencing rapid economic expansion and industrialization

Do not exactly fit as LDC or MDC Have moved away from restrictive trade practices Institututed significant free market returns Brazil

Exports everything from alcohol based fuels to carbon steel

Brazil OJ, poultry, soybeans, and weapons compete with the US’ products for foreign markets

The Brazilian aircraft manufacturer, Embracer, provides a substantial portion of the commuter aircraft used in the US and elsewhere.

VIDEO- Evolution of Russia Plan for your careers and company’s for a longer term than just

what is happening today

Objectives of developing countries Industrialization is the fundamental objective of most developing

countrieso That would include farming on an industrial scale

Economic growth is seen as the achievement of social as well as economic goals

o Better educationo Better and more effective governmento Elimination of many social inequitieso Improvements in moral and ethical responsibilities

Jamaica has been called the richest poor nation on earth. Jamaicans take pride in their islands abundance of fruits and vegetables, and hunger is not an extreme problem. On the other hand, rural farmers remain poor, and scratching out a living that will support a family is hard. Trade liberalization has hurt Jamaica’s ability to be a major global supplier for items such as bananas, and at the same time, Jamaica is importing foods easily grown on the island.

VIDEO- Trading Injustice: The Ghana tomato story Italian company that’s come to Ghana Poor peoples ideas aren’t accepted and they have no effect on

people no one wants to listen to them

Infrastructure and Development Infrastructure includes types of capital goods that serve the

activities of many industries such as paved roads, railroads, seaports, communication networks, etc

The quality of an infrastructure directly affects a country’s economic growth potential anf the ability of an enterprise to engage effectively in business

VIDEO- Brazil in Africa

Big Emerging Markets The US department of commerce estimates that over 75% of the

expected growth in world trade over the next two decades will come from more than 130 developing and newly industrialized countries

Big emerging markets share important traits:o Geographically largeo Significant populationso Represent sizable populationso Represent sizable markets for a wide range of productso Have strong rates of growth or the potential for significant

growtho Have undertaken significant programs of economic reformo Are of major political importance within their regionso Are regional economic driverso Will engender further expansions in neighboring markets as

they growEconomic growth factors

For NIC’so Political stability in policies affecting their developmento Economic and legal reformso Entrepreneurshipo Planning

o Outward orientationso Factors of productiono Industries targeted for growtho Incentives to force a high domestic rate of savings and to

direct capital to update the infrastructure, transportation, housing, education, and training

o Privatization of state-owned enterprises (SOEs) that placed a drain on national budgets.

VIDEO- India & gold Weddings Being decked in gold makes a statement

VIDEO- Alibaba sales in an hour on singles day over 8 billion dollars in one day in china

Chinas Says: US no hope to win South China Sea showdown Calling the USS Lassen’s intrusion a “regular occurrence” the US

military implied that more warships might be sent within the 12 nautical mile-limit around china controlled islands. China will have to escalate its countermeasures if Washington does so, and the situation will worsen for the US

If such provocations continue, china’s warships will have to engage in more face-offs with their US counterparts in the South China Sea. Beijing will be forced to accelerate military development in the region

Evolution of the Marketing Process

NAFTA When NAFTA was ratified and became effective in 1994, it became a

single market of 360 million people with a $6 trillion GNP NAFTA required the three countries to remove all tariffs and barriers

to trade over 15 years In 2008, all tariff barriers were officially dropped The purpose was to

o Generate income and employment gainso Enhance global competitiveness of NAFTA firms

US Central American free trade agreement- Dominican republic free trade agreement (DR-CAFTA)

In august 2005, GW Bush signed into law a comprehensive free trade agreement among costa Rica, the Dominican republic, el Salvador, Guatemala, Honduras, Nicaragua, and the USA

The agreement includes a wide array of tariff reductions aimed at increasing trade and employment among the 7 signatories

Southern cone free trade area and common market (mercosur) Mercosur (including Argentina, Bolivia, brazil, chile, Paraguay, and

Uruguay) is the second largest common market agreement in the Americas after NAFTA

The treaty of Asunción, which provided the legal basis for mercosur, was signed in 1991 and formally inaugurated in 1995

The treaty calls for a common market that would eventually allow for the free movement of goods, capital labor, and services among the member countries, which a uniform of external tariff

Because mercosur members were concerned about sacrificing sovereign control over taxes and other policy matters

Successful global trade agreements require china’s participation

TPP cannot isolate china

Ch. 10 10/28/15 12:25 PMRegional Market Regions and regional economic cooperation

Multinational market regions are groups of countries that seek mutual benefit from reducing interregional trade and tariff barriers- are the most important global trends today

The most successful one is the EU, the world’s largest multinational market region and foremost example of economic cooperation’s

Multinational market groups form large markets that provide potentially significant opportunities for international business

However, governments and businesses worry that the EU, NAFTA, and other cooperative trade groups will become trading blocks without internationals change

Overview The reason for economic union

o More trade Profits Jobs Higher standard of living Satisfied citizens Political stability

Economic integration has its positive and negative sides

VIDEO- The European union explained Countries pay membership dues Vote on laws Citizens of all of the countries

o Can work and live in all the others Norwegians, Icelanders, Lichtenstein

o Pay dues to EUo You can live and work theiro European economic area

Euro is used by many of the EU countries but not all Eurozone Schengen

o Switzerland

VIDEO- Spokes person from chinese govt talking about their stand with the

islands that are disputed in the south china sea

Amazon’s 2014 Holiday sees mobile shopping approach 60% of total volume

Patterns of multinational cooperation Regional cooperations groups Free trade area Customs union Common market Political union

Regional Cooperation groups The most basic economic integration and cooperation is the regional

cooperation for development (RCD) Governments agree to participate jointly to develop basic industries

beneficial to each country

Free Trade Area A free trade area (FTA) requires more cooperation and integration

than the RCD Its an agreement between two or more countries to reduce or

eliminate customs duties and nontariff trade barriers among partner countries

Members maintain individual tariff schedules for external countries An fta provides its members with a mass market without barriers to

impede the flow of goods and services

Customs union A customs union represent the next stage in economic cooperation It enjoys the free trade area’s reduced or eliminated internal tariffs

and adds a common external tariff on products imported from countries outside the union

The European union was a customs union before becoming a common market

Customs unions exist between France and Monaco, Italy and san Marino, and Switzerland and Lichtenstein, as some examples

Common Market A common market agreement eliminates all tariffs and other

restrictions on internal trade Adopts a set of common external tariffs and removes all restrictions

on the free flow of capital and labor among member nations

It’s a unified economy and lacks only political unity to become a political union

Political Union Political union is the most fully integrated form of regional

cooperation It involves complete political and economic integration either

voluntary or enforced The most notable enforced political union was the council for mutual

economic assistance (COMECON), a centrally controlled group of countries organized by the soviet union

Two new political unions came into existence in the 1990so The commonwealth of independent states (CIS) is made up of

the republics of the soviet uniono The EU

The EU 500 million people 28 countries Enlarged from 6 countries to 28 countries 23 official languages

VIDEO- Anti EU Anger Breakout People getting angry about being anti the EU

Liverpool becomes the first city to open fast walking lanes

Ch.16: Integrated Marketing communications and International Advertising 10/28/15 12:25 PM

Integrated Marketing Communications

Once a market offering is developed to meet target market needs, intended customers must be informed of the offering

Integrated marketing communications (IMC) compriseso Advertisingo Sales promotionso Personal sellingo Direct sellingo Public relations

All these mutually reinforce elements of the promotional mix have as their common objective the successful sale of a product or service

Weird print add about ketchup that made me uncomfortable with food that was dressed to look like a naked lady…Weird print add of girls snorting cokeMeant to ask you if this is successful marketing

VIDEO- Print adds and brochures about Marriott Social Media is talking about them

VIDEO- Heineken ad People screaming Ladies having a party

VIDEO- Panda cheese Man in office

o Panda Gives a pitiful looko Panda Destroys the officeo “never say no to panda

Nurse brings panda cheese to hospital bedo Panda appears singingo Panda rips out the guys IVo “never say no to panda

People cooking in kitcheno Panda shows up pushes things

Boy and dad shopping at grocery storeo Boy wants panda cheeseo Dad says no we have too mucho Panda shows up and knocks over the grocery carto Dad then lets the kid gets it and says “get one more”

VIDEO- Tic Tac commercial People put on a show in NYC singing and dancing with tic tac

It can never be assumed that “if it sells well in one country it will sell well in another”

An add may be memorable, funny, or cute and still not meet the objectives for it

Taylor swift ad pulled Says if you use the cosmetic product (mascara) youll look like her

Introduction Integrated marketing communications (IMC) are composed of

advertising, sales promotions, trade shows, internet and social media, personal selling, direct selling, and public trlations

All of these mutually reinforcing elements of the marketing mix have their common objectives as the successful sale of a product or service

Decision making process Business to business

o Problem recognitiono General need descriptiono Product specificationo Supplier searcho Proposal requests to supplierso Supplier sectiono Purchase order

o Performance review B2C

o AIDS An acronym used in marketing and advertising that

describes a common list of events that may occur when a consumer engages with an advertiser

Consumer purchase decision makingo High involvement decisions

Problem recognition -> extensive search -> extended alternative evaluation -> complex choice -> acquisition evaluation

o Low involvement decisions Problem recognition -> limited search -> minimal

alternative evaluation -> simple choice processes -> acquisition evaluation

China 1$ day or something

For all international marketing communication its all based on cultural understanding and respect

VIDEO- step out of the car Cop screaming at a little girl

VIDEO- Seinfeld in England American express ad Does a standup ad for a British audience

o They don’t laugh He goes around England using his American express card to learn

the culture

Then he redoes the standup act and they think he’s funny

VIDEO- Thailand good deeds ad Feeds the dog Gives money to the poor He wont be richer or appear on tv or be famous

o He’s still be anonymous o But he receives emotionso He witnesses happinesso He reaches a deeper understandingo He feels the loveo He gets what money cant buy

A world made more beautiful What do you desire most in life Believe in good- buy life insurance

VIDEO- German online tech store Saturn Robot Dragons fighting

VIDEO Beer flavored lip gloss Shiny lips with golden highlights and an irresistible taste Awkward kiss An ad for Heineken

Sales promotions ins international markets Sales promotions

o Marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation

o Short term efforts directed to the consumer or retailer to achieve specific objectives

In markets with media limitations the percentage of the promotional budget allocated to sales promotions may have to be increased

Product sampling would be a promotional item

Creative promotionsBrussels VIDEO- Carlsberg stunts with bikers in cinema

Walks into movie Its so full they cant find a seat When they find one people all have beer and they start cheering That calls for a Carlsberg

UK VIDEO- make a billboard

invite everyone over to come eat their billboard took 10,000 case the whole billboard is edible took 7 hours to makecake billboard

UK VIDEO- New Brown ale not superbowl ad Superbowl 48 4 million for a 30 second spot perfect stage for Newcastle to sell beer new castle didn’t have the money for it they set out to hijack the game they made teasers for the ad they would have made

o got more press revealed people that may have been in their ads fake superbowl spot that is not airing anna Kendrick showed it to real focus groups

o made films revealing what they thought days before the game revealed the story they would have shown 600 earned media placements 10 million views became #1 trending topic 2 days in a row

commercial they would have made was named one of the top commercials

you don’t actually have to be in the big game to win the big gamePoland- local beer

Popular Carlsberg billboard dispenses a free pink of beer (in london)South Korea VIDEO- Coca cola dispensing machine

People come on it Hey come here Asks them to do a move If they do it they get a coca cola

VIDEO- Coca cola london university Brings a coke machine to a university A hand pops out handing people things from it

o Coca colao Twistero Popcorno Cupcakes

VIDEO- Picadilly square mcdonalds billboard The billboard displays a barbell People take pics infront trying to hold it up Steam from ears Umbrella

Bouncing a socerball on your head Thinking about mcdonalds food A speech bubble Holding a balloon A top hat A hammer banging on their head Blowing out candles With earmuffs on

Exhibit 16.1 Top 20 global advertisers

Exhibit 16.2 top 100 advertisers’ global spending by category

International advertising Perform marketing research Specify the goals of the communication

Global Advertising and the communications process If not properly considered, different cultural contexts can increase

the probability of misunderstandings Effective communication

o Demands the existence of a “psychological overlap” between the sender and the receiver

o Even when using English think about common words that can confuse someone to whom it is not a second language:

Right (correct) v. Right (not left) v. writes Ties

o Always put yourself in the mind of the receiver

The international Communications process

McDonald’s print ads in france and Germany Scream guy eating a big mac Something about veggie burgers

Bankok ad Pig holding a plate

o Fight the pig for the plate

Pepsi lime ad Lime peeing in a glass of pepso

European cobblestone street ad

Mr. Clean has different names in different countries

i.e. mr. proper

VIDEO- Boy running through the streets World War Hes trying to walk next to them as they walk Made it home for a piece of bread

VIDEO- baby wee wee Theyre ticking the doll and it laughs The dad does it too The doll has a penis and he “wee wees”

VIDEO- Belgium shopping child ad Boy throws a temper tantrum in the grocery store Ad for zazoo condoms “use condoms”

VIDEO- VW ad in Australia Girl says a naughty thing that’s not naughty to us “bollacks”

o A part of the bull you remove when you nuter it

She says it everytime something happenso She falls ocero She knocks things ov

Shes sitting in a VW and he hits his head on the car pumping gas and he says it

VIDEO- MTV Talking parrot Asks the boy to take him where theres more light Parrot yells loser as he flies out the window Ad for MTV

VIDEO- Denmark public bus system The bus is coming

o They’re excited The bus driver is cool There’s nice seats Theres panoramic windows Theres designer bells Theres free handles Its big and long It has its own lane

It drives at night “get up early to get a good seat”

o Midtraffik (or something)

VIDEO- Australian beer worker application He wants to be a brewer but has no experience as a brewer

o He says he really likes beer He starts dancing in a leotard

o The flash dance dance Throws beer in his face while dancing

o Keeps going Carlton drought

o “flash beer”

VIDEO- Australia mcdonalds inner child (mcdonalds is upposed to appeal to your inner child)

Kid comes out of a hole in adult’s chest “come feed your inner child”

VIDEO- Ronald McDonald’s daughter in Japan

VIDEO- Ronald McDonald’s son in Japan

VIDEO- McDonald’s ad from the Middle East

VIDEO- India Strong teeth Anchor toothpaste

VIDEO- Ad from financial stock banking company Stuck a guy to the side of a bus ING “our customers are our best advertisers”

VIDEO- wall sale Sony recycling Giant advertising tarp that people put on buildings When theyre used up sony cuts them up

o They make pants out of them How should they sell these?

o They put them back up on the wallo People use binoculars to see them

o A staff member ropes down the wallo Gets the selected jeanso And sells them right there and then

No advertising medium costs Campaign expenses were covered by the sale Extra money was donated

VIDEO- Midsummer 2 Uncivilized people drinking at a table They start throwing food at each other Ikea

Linguistic limitations Language is one of the major barriers to effective communication

through advertising Translation challenges Low literacy in many countries Multiple languages within a country In-country testing with the target consumer group avoids problems

caused by linguistic differences

Legal Constraints A variety of restrictions on advertising of pharmaceuticals is

restricted in many countries

Advertising on television is strictly controlled in many countrieso Ex) in Germany commercials must be spaced at least 20

minutes apart and total ad time may not exceed 12 minutes per hour

Comparative advertisingo Not allowed in Germany, Belgium, parts of Asia

Advertising specific productso Often not allows pharma

Control of advertising on television Accessibility to broadcast media Limitations on length and number of commercials Internet services Special taxes that apply to advertising

China is willing to promote realization of ASEAN community: ambassador

Ch. 19: Negotiating with International Customers, Partners, and Regulations 10/28/15 12:25 PM

Negotiating the business process Traditional (multiple bidders) Just-in-time (sole source)

Introduction Negotiation

o A crucial aspect of all international commercial relationships Taking cultural differences into account

o Enhances business agreementso Leads to long-term, profitable relationships across borders

VIDEO- Monsanto genetically modifies crops GMO crops You can spray monsantos pestiside onto monsantos crops

Dangers of Stereotypes Negotiations are conducted between people, not national

stereotypeso But still cultural factors often make huge ____(differences?)

Negitioations in sports Rutgers

Baskball coach University of Minnesota coach

o Salaryo Private jeto Bonuses

Negotiations in academics E Gordon Gee president of Ohion State

o Makes less than football coach Urban meyer foorball coach of ohio state

American culture – Chinese culture American

o Individualo Equalitarian

All people are equal and deserve equal rights and opportunities

o solution orientedo reductionist/linearo argument culture

Chineseo collective

o hierarchalo relationship orientedo holistic/circularo haggling culture

Typical American phrasing v. chinese phrasing that saves “face” American

o Do you understando What o We cannot do thato What is the problem? You said ___ would happen but ____

happened Chinese

o Are we being clearo Could you please repeat that as we didn’t understando That may be difficult for us to doo There must be a problem with ____ because ____ happened

(fed ex)

Comparing American and chinese negotiation styles American

o Impatient- time is money- fast meetingso Full authority negotiator

o Proposals and solutions firsto Aggressive in the sense of offering solutionso Good talkerso Looking for a win wino Uncomfortable with negotiation

Chineseo Getting to know you- drawn out multiple meetings- enduringo Limited authority negotiatoro Explains desired goals firsto Questioning in the sense of gathering informationo Good listeners, particularly listening for what is the most

important, than uses that knowledge against youo Looking for a wino Comfortable with haggling – they push and expect a push

back (if not you lose their respect)

At the Negotiations table Everywhere around the world we have found that business

negotiations proceed through 4 stages:o Nontask soundingo Task-related exchange of informationo Persuasiono Concessions and agreement

Nontask sounding Learn the mood of the other side Try to find someone’s opinions, ideas, feelings, etc by talking to

them Learn about the clients background and interest for cues about

appropriate communication styles Judgments about the “kind” of person in the negotiation

Task-related information exchange Let the foreign counterparts bring up business Expect a large number of questions but little feedback Allow periods of silence Use multiple communication channels Understand the lack of, of the bluntness, of negative feedback Meet aggressive first offers with questions, not anger

Persuasion Task related information exchange versus persuasion Avoid threats, warnings, and other aggressive negotiation tactics Avoid emotional outbursts Ask more questions Use third parties and information channels of communication

Concessions and agreement Write down concession-making strategies Understand differences in decision making styles In many cultures, no concessions are made until the end of

negotiation

Exhibit 19.4

VIDEO- U Verse Americans make proposals upfront Chinese talk about goals and principals first Chicken and pig

Comparing American and chinese negotiation styles

Negotiation styles of 15 cultural groups Japan

o Least aggressive, very polite Korea

o More aggressive, very interrupting China (northern)

o Asking questions

Taiwano Fewer questions, more information

Russiao Asking questions, silent periods

Israelo

Spaino More interruptions few self disclosures

Franceo More aggressive, very interrupting

Brazilo More aggressive, physical touching

Mexicoo Less interruptions

French-speaking Canadao More aggressive, more interruptions

English speaking Canadao Less aggressing, more interruptions

VIDEO- Negotiation video Germany

What the semester was all about Spent a whole semester learning how to create value for customers

and consumers