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GlobalMarketingManagement

Chapter3SocialandCulturalEnvironmentsGlobalMarketingManagement

Ch1OverviewBasicAspectsofSociety&CultureAnalyticalApproachestoCulturalFactorsImpactonIndustrialProductsImpactonconsumerProductsCross-CulturalComplicationsSummaryOverviewBasicAspectsofSocie2LearningObjectivesUnderstandinghowimportantcultural&socialdifferencesareinglobalmarketingLearningfundamentalconceptsthatprovideanunderstandingofculturaldifferencesUnderstandingwherepotentialconflictsmayariseinglobalbusinessrelationsKnowinghowculturaldifferencesimpactthemarketingofproductsandservicesLearningObjectivesUnderstandi3BasicAspectsofSocietyandCultureCultureas“waysofliving”Consciousandunconsciousvalues,ideas,attitudes,andsymbolsthatshapehumanbehaviourCultureislearned,notinnateCulturedefinestheboundariesbetweendifferentgroupsAllfacetsofcultureareinterrelatedBasicAspectsofSocietyandC4TheSearchforCulturalUniversalsUniversal=ModeofbehaviourexistinginallculturesUniversalaspects=opportunitiestostandardizesomeorallelementsofamarketingprogramCulturaluniversals:athleticsports,bodyadornment,religiousrituals,musicIncreasingtravel&improvingcommunicationsare leadingtoconvergenceTheSearchforCulturalUniver5TheAnthropologist’sStandpointMustunderstandhumanexperiencefromthelocalpointofview&becomeinsiderswithculturalempathyNeedcombinationoftough-mindedness&generosityTough-mindedness:besecureinyourownconvictions&traditionsGenerosity:Appreciatetheintegrity&valueofotherwaysoflifeTheAnthropologist’sStandpoin6High-andLow-ContextCultures(1)Low-contextculture:MessagesareexplicitWordscarrymostoftheinformationincommunicationUnitedStates,Switzerland,GermanyHigh-andLow-ContextCultures7High-andLow-ContextCultures(2)High-contextcultureLessinformationiscontainedintheverbalpartofthemessageMoreinformationresidesinthecontextofcommunication(background,associations,basicvaluesofcommunicators)Japan,SaudiArabiaHigh-andLow-ContextCultures8High-andLow-ContextCultures(3)Factors High-Context Low-ContextLawyers -lessimportant -veryimportantAperson’sword -his/herbond -‘getitinwriting’Time -everythingisdealt -‘timeismoney’

withinitsowntimeNegotiations -lengthy -quickCompetitive -infrequent -frequent

BiddingHigh-andLow-ContextCultures9CommunicationandNegotiationChallengesin:VerbalcommunicationNon-verbalcommunicationKnowledge&understandingofcross-culturaldifferencesiscrucialduringnegotiations“Youcanbuyinyourhome-countrylanguagebutyouneedtolearnyourcustomers’languagetosell.”CommunicationandNegotiationC10AnalyticalApproachestoCulturalFactors(1)Maslow’shierarchyofneedsSELF-ACTUALISATIONESTEEMSOCIALNEEDSSAFETYNEEDSPSYCHOLOGICALNEEDSAnalyticalApproachestoCultu11AnalyticalApproachestoCulturalFactors(2)Maslow’shierarchyofneeds–AsiaEquivalentSTATUSADMIRATIONAFFILIATIONSAFETYNEEDSPSYCHOLOGICALNEEDSAnalyticalApproachestoCultu12AnalyticalApproachestoCulturalFactors(3)Hofstede’sculturaltypologyCulturesofdifferentnationscanbecomparedintermsoffourdimensionsPowerdistanceIntegrationintogroupsMasculinityUncertaintyavoidanceAnalyticalApproachestoCultu13AnalyticalApproachestoCulturalFactors(4)Self-referencecriterion(SRC)andperceptionPerceptionofmarketneedsisframedbyownculturalexperienceFour-stepframeworkDefineproblemintermsofhomecountrynormsDefineproblemintermsofhostcountrynormsIsolateSRCinfluence.SeehowitcomplicatesproblemRedefineproblemwithoutSRCinfluence.SolveforhostcountrymarketsituationAnalyticalApproachestoCultu14AnalyticalApproachestoCulturalFactors(5)EnvironmentalSensitivityTheextenttowhichproductsmustbeadaptedtotheculture-specificneedsofdifferentnationalmarketsEnvironmentalsensitiveproductsRequiresignificantadaptationtotheenvironmentsofvariousglobalmarketsEnvironmentalinsensitiveproductsDonotrequiresignificantadaptationAnalyticalApproachestoCultu15HandlingCulturalDiversity(1)Impactofsocial&culturalenvironmentsonmarketingindustrialproductsIndustrialproductsmightexhibitLowerlevelsofenvironmentalsensitivityHigherlevelsofenvironmentalsensitivityHandlingCulturalDiversity(116HandlingCulturalDiversity(2)Impactofsocial&culturalenvironmentsonmarketingconsumerproductsConsumergoodsareusuallymoresensitivetoculturaldiversitythanindustrialgoodsCultureischangingsorapidlythatinnovativemarketingmaybeabletochangeestablishedconsumptionpatternsrootedinculturaldifferencesHandlingCulturalDiversity(217HandlingCulturalDiversity(3)Example:ConsumptionofSoftDrinks(Y)

Y=f(A,B,C,D,E,F,G)

A=influencesofotherbeverages’relativeprices,quality,taste

B=advertisingexpenditureandeffectiveness,allbeverage

categories

C=availabilityofproductsindistributionchannel

D=culturalelements,tradition,custom,habit

E=availabilityofrawmaterials

F=climaticconditions,temperature,relativehumidityHandlingCulturalDiversity(318HandlingCulturalDiversity(4)CulturealwayshasbeenamajorsourcefordisagreementandmisunderstandingsCross-culturalcomplicationscanleadtocostlyfailuresCompaniesrealizetheimportanceoftrainingandsupportingpeopleinculturalawarenessHandlingCulturalDiversity(419CulturalDiversity

WhyPeopleFail:EthnocentricOrientationIgnoranceArroganceTimeFactorCulturalDiversityWhyPeople20SummaryCulturehasbothapervasive&changinginfluenceoneachnationalmarketenvironmentGlobalmarketersmustrecognizetheinfluenceofcultureNationscanbeclassifiedashigh-orlow-contextculturesMaslow’shierarchy,Hofstede’stypology,andtheself-referencecriterioncanprovidecluesaboutculturaldifferences&similaritiesSummaryCulturehasbothaperv21GlobalMarketingManagement

Chapter3SocialandCulturalEnvironmentsGlobalMarketingManagement

Ch22OverviewBasicAspectsofSociety&CultureAnalyticalApproachestoCulturalFactorsImpactonIndustrialProductsImpactonconsumerProductsCross-CulturalComplicationsSummaryOverviewBasicAspectsofSocie23LearningObjectivesUnderstandinghowimportantcultural&socialdifferencesareinglobalmarketingLearningfundamentalconceptsthatprovideanunderstandingofculturaldifferencesUnderstandingwherepotentialconflictsmayariseinglobalbusinessrelationsKnowinghowculturaldifferencesimpactthemarketingofproductsandservicesLearningObjectivesUnderstandi24BasicAspectsofSocietyandCultureCultureas“waysofliving”Consciousandunconsciousvalues,ideas,attitudes,andsymbolsthatshapehumanbehaviourCultureislearned,notinnateCulturedefinestheboundariesbetweendifferentgroupsAllfacetsofcultureareinterrelatedBasicAspectsofSocietyandC25TheSearchforCulturalUniversalsUniversal=ModeofbehaviourexistinginallculturesUniversalaspects=opportunitiestostandardizesomeorallelementsofamarketingprogramCulturaluniversals:athleticsports,bodyadornment,religiousrituals,musicIncreasingtravel&improvingcommunicationsare leadingtoconvergenceTheSearchforCulturalUniver26TheAnthropologist’sStandpointMustunderstandhumanexperiencefromthelocalpointofview&becomeinsiderswithculturalempathyNeedcombinationoftough-mindedness&generosityTough-mindedness:besecureinyourownconvictions&traditionsGenerosity:Appreciatetheintegrity&valueofotherwaysoflifeTheAnthropologist’sStandpoin27High-andLow-ContextCultures(1)Low-contextculture:MessagesareexplicitWordscarrymostoftheinformationincommunicationUnitedStates,Switzerland,GermanyHigh-andLow-ContextCultures28High-andLow-ContextCultures(2)High-contextcultureLessinformationiscontainedintheverbalpartofthemessageMoreinformationresidesinthecontextofcommunication(background,associations,basicvaluesofcommunicators)Japan,SaudiArabiaHigh-andLow-ContextCultures29High-andLow-ContextCultures(3)Factors High-Context Low-ContextLawyers -lessimportant -veryimportantAperson’sword -his/herbond -‘getitinwriting’Time -everythingisdealt -‘timeismoney’

withinitsowntimeNegotiations -lengthy -quickCompetitive -infrequent -frequent

BiddingHigh-andLow-ContextCultures30CommunicationandNegotiationChallengesin:VerbalcommunicationNon-verbalcommunicationKnowledge&understandingofcross-culturaldifferencesiscrucialduringnegotiations“Youcanbuyinyourhome-countrylanguagebutyouneedtolearnyourcustomers’languagetosell.”CommunicationandNegotiationC31AnalyticalApproachestoCulturalFactors(1)Maslow’shierarchyofneedsSELF-ACTUALISATIONESTEEMSOCIALNEEDSSAFETYNEEDSPSYCHOLOGICALNEEDSAnalyticalApproachestoCultu32AnalyticalApproachestoCulturalFactors(2)Maslow’shierarchyofneeds–AsiaEquivalentSTATUSADMIRATIONAFFILIATIONSAFETYNEEDSPSYCHOLOGICALNEEDSAnalyticalApproachestoCultu33AnalyticalApproachestoCulturalFactors(3)Hofstede’sculturaltypologyCulturesofdifferentnationscanbecomparedintermsoffourdimensionsPowerdistanceIntegrationintogroupsMasculinityUncertaintyavoidanceAnalyticalApproachestoCultu34AnalyticalApproachestoCulturalFactors(4)Self-referencecriterion(SRC)andperceptionPerceptionofmarketneedsisframedbyownculturalexperienceFour-stepframeworkDefineproblemintermsofhomecountrynormsDefineproblemintermsofhostcountrynormsIsolateSRCinfluence.SeehowitcomplicatesproblemRedefineproblemwithoutSRCinfluence.SolveforhostcountrymarketsituationAnalyticalApproachestoCultu35AnalyticalApproachestoCulturalFactors(5)EnvironmentalSensitivityTheextenttowhichproductsmustbeadaptedtotheculture-specificneedsofdifferentnationalmarketsEnvironmentalsensitiveproductsRequiresignificantadaptationtotheenvironmentsofvariousglobalmarketsEnvironmentalinsensitiveproductsDonotrequiresignificantadaptationAnalyticalApproachestoCultu36HandlingCulturalDiversity(1)Impactofsocial&culturalenvironmentsonmarketingindustrialproductsIndustrialproductsmightexhibitLowerlevelsofenvironmentalsensitivityHigherlevelsofenvironmentalsensitivityHandlingCulturalDiversity(137HandlingCulturalDiversity(2)Impactofsocial&culturalenvironmentsonmarketingconsumerproductsConsumergoodsareusuallymoresensitivetoculturaldiversitythanindustrialgoodsCultureischangingsorapidlythatinnovativemarketingmaybeabletochangeestablishedconsumptionpatternsrootedinculturaldifferencesHandlingCulturalDiversity(238HandlingCulturalDivers

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