Culture and International Business

Geert Hofstede made up six dimensions of international marketing that are important to consider.

1. Power Distance

This represents the distance between equalities of workers and the head of business. 

Some cultures practice low power distance which means less formal relationships and more democratic environment between the leaders and the employees. 

High power distance cultures give importance to the hierarchical positions which causes unequal distribution of power and more autocratic environment.

2. Uncertainty Avoidance

This aspect relates to the near future and the changes. people who work in high uncertainty environment tend to be more stressed, emotional and have hard time adapting to changes. This is a result of many strict rules and being tight up. People with  low uncertainty environment have as few rules as possible which leads to more friendly, less stressful and easily adaptable environment.

3. Individualism versus Collectivism

Individualism is when people who have larger number of loose relationships but in fact it is a everyone-for-himself way of achieving goals. Collectivism is tight relationships and teamwork with benefit for all.

4. Masculinity versus Femininity

This is focusing on the quality of life vs quantity of life loved. Masculine features consists of more competitive, assertive and materialist behavior while femininity is represented by feelings, reason and maintenance of good relationships.

5. Long Term versus Short Term Orientation

Long term focuses on the future of the company, giving importance to persistence and  savings. Short term orientation focuses on the present and past and highlights traditions, tries to reach favorable return and therefore fulfills social obligations.

6. Indulgence versus Restraint

This concepts relates to the natural human drive to enjoy life. Indulgence is fulfilling obligations while enjoying life whereas resistant approach represents repression of this optimistic drive to fulfill higher expectations.

International Marketing

Why has International Marketing grown so much in recent decades?

 Global marketing reaches customers, markets and advertising beyond the borders of domestic region. The more a culture spreads, the more its products do. Since traveling is a lot easier as it used to be, people from different cultures visit different countries. Better communication, transportation and freer international markets are signs of globalization. These aspects lacked in the past and while it used to be risky, international marketing is in many cases a necessity for businesses. In recent decades, the global capital market has grown so rapidly because of the rise of privatizations. Privatization takes a potential role global capital market development. Capital markets arewinning the present and seem likely to dominate the future of corporate finance in developed and developing countries alike. Total proceeds raised by privatization programs, so it is clear that national governments have been among the biggest winners from privatization programs, since these have dramatically increased government revenues, which is clearly one reason the policy has spread so rapidly.

What are some of the factors that has allowed this to happen more easily now than in the past?

The factors include improved communications, transportation and businesses that are too big for their own market.

Identify five reasons why companies may decide to sell their product or service in foreign markets.

Home markets may be too saturated, so that the product is already maximized in given market and there is no more space to sell it anymore, foreign markets offer potential profits while it still emerges, this is result in rapid sales at low costs in the marketing, Spreading risks to different countries and poor trading conditions may caused to market globalization.

What considerations must a company have in these areas when undertaking international marketing? 

           Political differences
Changes in the government such as terrorist activity, increase the risk of business failure. For example Civil wars in Nepal dramatically decreased businesses.

           Economic differences
One must take in account the GDP and the rates of taxes, age structure of population and interest rates, the GDP vary from country such as United States that has GDP of $ 14 447 100 and China that has GDP of $ 5 739 358

        Social differences
  Sold of the products is also effected by cultures that include the importance of    marriage and the role of women in the society.  For example, IKEA's advertisements that had a happy women in nicely designed kitched in a European country, lacked the woman in the picture in an Arabic country.

      Legal differences 

      Very big impact of foreign businesses and may affect product safety and labeling. In USA Children under the age of 12 cannot be directly advertised to.

              

         Cultural differences
Cultural differences may have a huge impact. If a business doesn't recognise, the roles of women in the society, the business will fail.  

      Differences in business practices 

      It take different amount of time in different parts of the world to starts a business, the formalities and paper work around a new business. It depends on the country for example in Great Britain this process may take just a few days but in Slovakia it may take up to 2 years

Datamonitor Company

Who are they and what they do?

Datamonitor is an international world-leading provider of premium global business information  market intelligance data analysis and opinion across the Automotive, Consumer Packaged Goods, Energy & Sustainability, Financial Services, Logistics & Express, Pharmaceutical & Healthcare and Retail industries. Datamonitor Company assists over 6000 of the world’s leading corporations in making better strategic and operational decisions in marketing.

 They established a strong reputation for providing clients with the information they need to make better business decisions in their competitive environments. They collect otheir own data through an extensive global network using audited methodologies. They have highly qualified teams of analysts draw on their collective industry experience to deliver analysis, comment, opinion and advice on the latest market trends and conditions.

History

 The company was founded in 1989 by Mike Danson and Doug Wilson with its first report covering the UK Frozen Food Industry. The company then expanded its coverage to include a number of global markets and industries having secured further business intelligence companies. Datamonitor was then acquired by Informa in 2007 for £513m.

Where are they located?

Europe

London HQ, United Kingdom

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 What methods do they used?

Quality Data
With the Datamonitor Group you can be confident you are receiving reliable, useful and actionable data that is easy to access, use and reference in your business planning and data that has been collected through transparent, traceable and auditable research methods 
Our insight is built on high quality data your business can rely on. They developed a research methodology that guarantees sound planning and management of the research process, and rigorous control of the quality of our research at all stages.
They used sophisticated technology and techniques that are used to collect proprietary data.

Expert Analysis
They use analysts who analyze statistics, surveys, and interviews. Ongoing training and continuing professional development is a key part of our analyst team philosophy.
Expert interviews with leading industry participants and peer reviews are extensively employed to challenge and stimulate thinking. Analysts are trained in systematic pyramid writing techniques which guarantee that the presentation of research is conclusion oriented, strongly supported and with clear underlying argument structure.
Their research and analysis provides their clients an independent point of view that encompasses the whole picture, clear conclusions and actionable recommendations and information that is well presented and most importantly easy to use in  business

Independent Opinion
Our clients can expect to be engaged and challenged by views, and will find them well argued and well supported.  Clients may not always agree with what our analysts say, so cli8ents are welcome to discuss findings with analysts. Analysts offer view points and opinions that often stimulate debate and promote innovation amongst to management team of customer and provide new thinking on the latest and most important issues affecting business.

Promotion Case Studies

Museum gets huge membership boost

Museums are centers of education, it can be said that memberships are mainly aimed to attract people who either want to get educated for example students and families with kids.
As a promotion they used scratch-off cards with possible prices and therefore to "play the game". This is called Game Technique and it's effective because it, in a way, gets the target addicted to the possibility of winning.


AMC butters up sports fans with popcorn offer

In the hometown of AMC, Kansas City, this company decided to attract the home entertained couch potatoes, because many of these people like football sessions, AMC decided to give away 10,000 key chains that, if presented at the cinema, enables the owner one free popcorn. This raised AMC's customers by 40%. This type of promotion was targeted at sport fans and home-entertained people and was very successful because people love the sense of getting free stuff (in reality they had to pay for the ticket).


Nike Incentive Program Boosts Attendance

To improve the attendance of the workers, Nike created a one year plan, in which he giving out specialized mugs particular to each quarter of the year and given to the workers with perfect attendance. This created a competition between workers and the desire to get the different mugs and other accessories that Nike gave out. At the end of the campaign all the Nike facilities reported perfect and improved attendance by over 200%.


Unexpected product works for Fitness Center

APTCO worker realized that the people attending fitness centers already have their own items of this nature. Therefore she decided to give out an umbrella with the company logo. This gift attracts people who go to a fitness center. It was effective because umbrellas are always needed when it's raining, and the company logo will be therefore seen by all the people passing by the umbrella owner.

Ethics And Marketing

Ethics are actions that aren't required by law yet necessary for keeping businesses running, in terms of behavior towards others in the field.
Ethics are important, because they affect its success. If a business does something that disturbs its customers or sponsors, their income will decrease and may bankrupt.
The issue in Lance Armstron affair was that he created a very successful, non-profit , cancer fighting organisation,  called Livestrong. The reason is that the main representative of this organization, Lance Armstrong, was accused of using performance-enhancing drugs.
However the " plan to continue support of the Livestrong initiatives by Nike created to unite, inspire and empower people affected by cancer".Nike left its options open; if Armstrong is proven to be a cheater, Nike will withdraw its support. But if the cyclist proves his innocence, Nike will go back to fully supporting Livestrong and Armstrong.
This action may be beneficial, since the organization itself still gets some money. Nike may also inspire other organizations such as Michelob Ultra, Trek Bicycle and Radio Shack to do the same.
Lance Armstrong is the founder of a very successful non-profit organization who helped to raise $500 million over its operating years. Sponsors should realize that Armstrong's mistakes shouldn't affect people for whom this organization was build.

Marketing- Advertising Techniques

A slogan identifies product with a specific symbol. Benefits of slogan are defines the motivation of the company. Your purpose must appeal to the customers. Company slogans can make you stand out of the crowd. A slogan help people to remember the company. Once people like your company's name then every time they will think of that slogan, they will automatically think of the company and about your slogan. For example McDonald's with his slogan '' I'm Loving It''when you are eating in McDonald's you automatically connect yourself with that product.

A logo identifies product with a specific symbol. Benefits of Logo are: -Helps make a generic name unique so that uniqueness factor is what most every business should strive for setting yourself apart from others in your industry. Gives your product service a "personality" what mean that there has to be some image that is imprinted on the minds of most customers to make your brand strong.

Repetition is when business makes product familiar to the customer by that is mean the more familiar a customer is with your brand, the more credibility they attribute to it.  Benefit of Repetition is that you will let to people that you exist.

A jargon is when the sale man use a technical terminology to impress the customer. A benefit of it is that customer will start thinking that this product, for example a computer has to be very good because it is very specific. The marketing and public relations industries in particular have expanded the lexicon of business terms that marks the global business environment.

Testimonial endorsing an idea by a prominent person such as by actress, musical artists or sports giants. A benefit of this is that a product is promoting by a famous person. So if the celebrity uses the product, then it must be good, so I will purchase it too. An example of this si this picture where Jessica Simpson is backing a product and telling people it works from her own experiences.

Snob Appeal makes assumption that this product is better than others. A benefit of this is that a business uses a new technology and new possibilities to purchase the customer to their product by saying that this product is better than all previous. e.g. a coffee manufacturer shows people dressed in formal gowns and tuxedos drinking their brand at an art gallery.

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Plain folks make an appeal to the ordinary person. I am just like you, Your views are similar to mine, and I am working for you. A benefit of this technique is for example when a cereal manufacturer shows an ordinary family sitting down to breakfast and enjoying their product you will think that uhm, this product must be good if there is a family like mine and is eating cornflakes.

 Emotional appeal use emotional feelings that are connected to a product. They usually appeal to positive emotions like your desire for success. A major benefit to emotional appeals is that they can cut past the noise consumers are inundated with.

Name-Calling is a way of smearing your opponent. Intent is to damage opponent. It is usually used by politicians and product companies. A benefit of this is that it intended to provoke conclusions about a matter apart from impartial examinations of facts. Name-calling is thus a substitute for rational, fact-based arguments against the an idea or belief on its own merits of an idea, belief, or proposal. It is often employed using sarcasm and ridicule in political cartoons and writing.  In this example name calling is employed using sarcasm and ridicule.

 Transfer  is a technique used to carry over the authority and approval of something we respect and revere to something the propagandist would have us accept. Propagandists often employ symbols such as waving the flag to stir our emotions and win our approval.The benefit of it's is that we are asking ourselves when we are confronted with this technique a questions such What is the speaker trying to pitch? What is the meaning of the thing the propagandist is trying to impart? Is there a legitimate connection between the suggestion made by the propagandist and the person or product? Is there merit in the proposal by itself?. An example of it is this picture which is transferring your feelings of peace to protecting your country.

Business Objectives And Ethics In Commercials and Children

Children are our future and businesses future as well. Parents on the one hand have had their raising children and on the other hand a children that is attracted by commercials or adverts by businesses such as McDonald's, Burger King, Converse, Telecommunications, Toys, PC games or Apple, despite that governments and campaigners are fighting for better child advertising standards and regulations, or improved food quality there is in my opinion no chance for parents so save their children from advertising.

How do businesses target children as consumers and Usage of their resources to target children

Business target children by commercials on TV, on the internet, on billboards or in the shopping centers. For example the average American child watches an estimate between 25,000 to 40,000 television commercials per year. Teens in the US spend around $160 billion a year. Children up to 11 spend around $18 billion a year. Tweens between 8-12 year olds spent totaling more than $30 billion in other spending by parents. Children under 12 and teens influence parental purchases totaling over $130-670 billion a year. The resources shown that in 2004 were watched 25,600 commercials by children in the US. That suddenly moment when parent and a child are in a store, and you are walking through cereal aisle and children starts with high-pitched tone ,,mommy please I want a corn flakes " not because of it's healthy composition but because of thousands of hours of market research in a form af commercials on TV.

Limits for businesses to attract children and an idea of advertising products only to adults

In my opinion there should not be any limits except vulgar things in commercials, produce dangerous promoting things to children and promote addictive products in commercials such as alcohol or cigarettes before midnight. Otherwise it's propably som kind f right to attract children and teenagers to buy some products, because children are getting much more money today than in the past, so they can afford things, they would not be able to pay for in the past, so it's good to attract children and teenagers to buy some product or to use some service, because if the idea of the product`s existence is to be useful for a special age category, then it would not make much sense to be promoted on a generation not related to the product or service.