Flashcards: Week 5-7 - Business Customs in Global Marketing-Political environment
Business customs and practices
International Adaption
International Adaption
willingness to adapt the business customs, practices, attitudes of other countries.
Guide to adaption
Open tolerance, Flexibility, Humility, Justice and fairness, Adjustability to varying tempo, curiosity, Knowledge of the country, linking for others, ability to commend respect, integrated ability
Guide to adaption (a)
Open tolerance
Guide to adaption (b)
Flexibility
Guide to adaption (c)
Humility
Guide to adaption (d)
Justice and fairness
Guide to adaption (e)
Adjustability to varying tempo
Guide to adaption (f)
curiosity
Guide to adaption (g)
Knowledge of the country
Guide to adaption (h)
linking for others
Guide to adaption (i)
ability to commend respect
Guide to adaption (j)
integrated ability
Open tolerance
you have to accept the miss behavior of the people for the sake of business interest.
Flexibility
to adapt with new culture, marketers should show their flexible attitude.
Humility
Polite and gentleness can wine the world; it is not only for domestic but also for global business.
Justice and fairness
avoid all kinds of fraud and cheating; maintain a basic principles and ethics.
Adjustability to varying tempo
you have to adjust yourself with changing environment.
Curiosity
show your interest and curiosity about the history, culture, and traditions of the country.
Knowledge of the country
different aspects of the country such as politic, legal, social or govt.
Linking for others
maintain a strong relationship identify their sensitive issues and do accordingly.
Ability to commend respect
you must behave in such a way that other person must respect you.
Integrated ability
Adjusting ability with every situation
Degree of adaptation
Awareness level, Communication level, Education level, Personalization
Degree of adaptation (a)
Awareness level
Degree of adaptation (b)
Communication level
Degree of adaptation (c)
Education level
Degree of adaptation (d)
Personalization
Awareness level
if the awareness level of the people is very high then adaptation process will be first
Communication level
if the communication level of the people is very high then adaptation process will be first
Education level
if the education level of the people is very high then adaptation process will be first
Personalization
if personal interest level of the people is very high then adaptation process will will be first.
Adaptation forms
Cultural imperatives, Cultural electives, Cultural exclusives
Adaptation forms (i)
Cultural imperatives
Adaptation forms (ii)
Cultural electives
Adaptation forms (iii)
Cultural exclusives
Cultural imperatives
are those business customs that are not avoidable. Friday is holiday.
Cultural electives
customs to which adaptation is helpful but not necessarily. Offering tea or gifts.
Cultural exclusives
customs in which an outsider must not participate. A Christian attempting to act like a Muslim.
Adaptation Aspects
different methods of doing business or different aspects of adaptation in international marketing.
top authority take decision and direct control the business operation.
Authority Patterns (b) Decentralized decision
it allow executives at different levels of mgt. to exercise authority over their own function.
Authority Patterns (c) Committee decision
is by group or consensus. It may be operated on centralized or decentralized basis.
Management Objectives
of the foreign delegates
Management Objectives (a) Personal goal
American executives’ emphasis on salary; Bangladeshi executives’ emphasis on other benefits.
Management Objectives (b) Security
To American, security means financial benefits; To Bangladeshi, security means job security.
Management Objectives (c) Personal life
To Japanese, personal life means company life, Bangladesh, family life is personal life.
Management Objectives (d) Social acceptance
To Japanese, business executives have the high social status; opposite in Bangladesh.
Management Objectives (e) Power
To Japanese, Govt. people hold the high power; political people hold the high power in Bangladesh.
Communication
status in the foreign country
Communication (a) Internal communication
downward, upward, vertical, horizontal, formal or informal communication.
Communication (b) Face to face communication
foreign marketers use translators; English is preferable by the British.
Communication (c) E-communication
communication through e-media. 4) P-time vs. M-time
Communication (a) P-time
(poly-chronic): highly flexible and humanistic; human transaction is highly emphasis than work schedule, (may come from 8 to 12).
Communication (b) M-time
(mono-chronic): not flexible and robotic; work schedule is highly emphasis than human transaction, (close at 8 pm).
Formalities
in Japan, business formalities is very simple and dynamic; in Bangladesh, business formalities are very complex and traditional.
Negotiation
it is the fundamental business rituals; the basic elements are the same in any country; they related to product, price, place, promotion, or other business issues but terms and conditions are different.
Gender Bias
It is a very sensitive issues in international marketing; against women managers that exists in some countries (Saudi Arabia); some countries are women dominated.
Business Ethic
serious problems in international marketing; That which is commonly accepted as right in one country may be completely unacceptable in another. In many countries of the world gifts are accepted and, in many countries, gifts are not allowed.
Bribery
In some culture ____is crime and in some culture it is highly accepted; it is not only money matter but also have other forms.
Bribery
willingly or voluntary offered payment by someone seeking unlawful advantages is____. Executives offer secretary for appointment.
Bribery ii) Extortion
not willingly or pressurizes offered payment by someone seeking unlawful advantages is extortion. Secretary offer executives for giving permission.
Lubrication
relatively small sum of cash or gifts or a service given to a low-ranking officials in country where such offerings are not prohibited by low.
Subornation
large sum of money designed to enteric an official to commit an illegal act on behalf of the one offering the bribe.
Agent’s fee
when a businessperson in uncertain of a country's rules and regulations, an agent may be haired to represent the company in that country.
Cultural Change
Borrowing, Similarities, Resistance to change, Cultural change agent
i) Borrowing
learn from other culture; our food habit, dress, have been change due to cultural borrowing.
ii) Similarities
different language same culture (France- Canada), same language cultural difference (US-Inland).
iii) Resistance to change
changes influence on values or ideology; now Bangladeshi people accept birth control.
iv) Cultural change agent
when marketers want to change a part of culture; three strategies for changes
three strategies for changes of Cultural change agent
Planned change, Unplanned change and forced change
(a) Planned change
free offering by company and they become habituated, tea offering by British company.
(b) Unplanned change
first identify the issue then offer the product; first food or mineral water accepted by people.
(c) Forced change
marketers take some aggressive marketing strategy, promotional appeal change culture.
Changing Dimensions
Cultural variability, Cultural complexity, Cultural hostility, Cultural heterogeneity, Cultural independency
a) Cultural variability
refers to the degree to which conditions within a culture are changing at a low or high and stable or unstable rate (fashion is very unstable).
b) Cultural complexity
refers to the degree to which understanding within a culture is depend on information processing (convert from suspect to partners).
c) Cultural hostility
refers to the degree to which conditions within a culture are threatening to organizational goal (acceptance by the stakeholder).
d) Cultural heterogeneity
refers to the degree to which separate cultures are dissimilar or similar. Dissimilarity means company needs to take centralized decision.
e) Cultural independency
refers to the degree to which conditions in one culture are sensitive to developments in other culture. It reduces subsidy, autonomy.
Attitude Changes Strategies (a-h)
Classical conditioning, Advertising, Mere exposure, Change beliefs, Shift importance, add beliefs, Change ideal, Group pressure
a) Classical conditioning
a stimulus audience like such as music is consistently paired with the brand name.
b) Advertising
use advertising appeal and slogan; bank for saving attitude "using a woman with ornaments".
c) Mere exposure
repetition is critical for affect-based campaigns, repetition can change the attitude.
d) Change beliefs
American cars are not as well made as Japanese cars; about the performance of brand.
e) Shift importance
more important than others; vegetables roles reduce the risk of heart disease.
f) Add beliefs
add with beliefs structure; we are born to die; so, what is the harm of drinking beer.
g) Change ideal
change the perception of people; change the perception about food habit or product use or brand.
h) Group pressure
accept drink when offered by friend, some people use alcohol within group involvement.
Attitude Changes Strategies(i-l)
Social system, Use of fear, Co-opting approach, Creative program, Word of caution, Information
i) social system
sometimes we should avoid or accept the products or services by the new rules and regulations. j) Learning: coupons, free sampling or price reduction are common techniques for including trail behavior.
k) Use of fear
fear can causes some people to change their attitude; target selling change attitude of salesman.
I) Co-opting approach
customers are very much attached with a supervisor; he can influence customers.
j) Creative program
through mass media such as talk shows in the television, open discussion change attitude.
k) Word of caution
some word of caution such as highest production, stock limited, no smoking have impact.
I) Information
provide new and informative information create confidence to the people and influence attitude. m) Persuasion: it is a common methods to change attitude of people; implement different motivational strategies.