Global Marketing - Term Paper Example

Marketing of the of the Concerned Professor November 2, 2010 Marketing 1. Individuals affiliated to a high-context culture tend to value group identity over individuality and mono-centric aspirations (Mead, 2004). They tend to imbibe meaning and information in a group scenario, without relying too much on explicit or direct communication (Mead, 2004). High-context people are more comfortable with indirect and non-verbal exchange of information and are explicit with their emotions. The communication in high-context cultures is simple and unambiguous (Mead, 2004). High context cultures prefer spiral logic over linear logic (Mead, 2004). Chinese culture is an apt example of a high-context culture. Business meetings in China revolve around group choices and the agreed upon decisions are mostly finalized in advance, courtesy the instinctive and listener responsible approach of group members (Browaeys & Price, 2008). The low-context cultures tend to be direct with the meaning inherent in any communication (Mead, 2004). They cherish individualism and are not very proficient in the non-verbal exchange of meaning and information (Mead, 2004). Low-context individuals predominantly rely on logic then on emotion to convey ideas (Mead, 2004). The communication patterns in low-context cultures are very structured with a preference for strategies that are rich in details (Mead, 2004). Low-context cultures value linear logic (Mead, 2004). US is a low-context culture where communications are direct and individualistic that are more targeted at specific situations and outcomes, rather than intending to communicate with the entire group (Browaeys & Price, 2008). 2. Some of the important analytical techniques used by global marketers are: Factor Analysis: Factor analysis tends to statistically determine variability amongst the observed variables, in relation to a small number of unobserved variables (Lehmann, Gupta & Steckel, 1997). Factor analysis can be suitably used in a situation when the data to be analyzed is quiet large (Lehmann, Gupta & Steckel, 1997). Cluster Analysis: Cluster analysis is ideally suitable for analyzing data having some natural groupings (Lehmann, Gupta & Steckel, 1997). It helps group raw data into clusters. This type of analysis helps determine similarities and variations between local and regional markets. Multidimensional Scaling: Multidimensional scaling is a statistical technique, which facilitates information visualization, thereby allowing for the sifting of similar and dissimilar patterns in a data (Grover & Vriens, 2006). This technique could be exploited, when a marketer is required to select between varied alternatives. It allows for a graphic or 3D-visualization of data (Grover & Vriens, 2006). Conjoint Analysis: Conjoint analysis helps the international market researchers understand as to how consumers value varied attributes or features associated with a product or a service (Grover & Vriens, 2006). This helps marketers come out with a combination having optimal number of attributes, preferable to the customers (Lehmann, Gupta & Steckel, 1997). Comparative Analysis: Comparative analysis helps marketers solve problems associated with two markets, products, services or processes that are almost same or comparable to a great extent (Lehmann, Gupta & Steckel, 1997). This enables marketers identify the reasons behind the disparate results for two markets or products that are comparable. 3. Global Strategic Partnership (GSP) refers to broad based cooperation and linkages between varied companies aimed at the achievement of specific envisaged goals (Kaynak & Culpan, 1993). In such a partnership, two or more than two companies agree upon pursuing a common long term strategy, targeted at soliciting a global leadership (Kaynak & Culpan, 1993). It is a two way process in which the involved companies learn from the specific strengths and weaknesses of all the partners. A GSP is essentially global in its vision, approach and strategy (Kaynak & Culpan, 1993). Such collaboration is unexceptionally always horizontal, with inputs and resources flowing laterally between the partners, adding to their collective strength and expertise (Kaynak & Culpan, 1993). One particular aspect of a GSP is that all the associated companies and firms continue to retain their distinct identity and autonomy, and the freedom to act as competitors in the markets lying beyond the scope of partnership (Kaynak & Culpan, 1993). Considering the globalization of world markets and fast shifting of consumer preferences towards new and better products on a continuous basis, GSMs allow the companies to benefit from each other’s specific forte in product development, technological knowhow and access to markets (Kaynak & Culpan, 1993). GSMs differ from Joint Ventures in the sense that Joint Ventures tend to focus on a single market or country in which the involved companies create a new business entity, over which the exercise a joint control (Harriqan & Newman, 1986). 4. While taking product design decisions, it is imperative for the global marketers, to extend beyond the regular straight jacketed thinking, so as to show sensitivity towards and cognizance of the cultural nuances and economic realities pertaining to the targeted markets (Bruce & Cooper, 2000). Though it is a business commonsense that a marketer needs to give customers exactly what they want, many global marketers tend to miss this point (Bruce & Cooper, 2000). While designing new products, marketers need to be conversant with the requirements of the targeted customers. For example, if an international food processing company entering Middle East decides to manufacture and market ‘Halal’ products, it definitely makes a sound business sense. Such an approach towards product designing depicts a thorough understanding of the needs and cultural nuances of the targeted market. Other important factor is the economic potential of the targeted customers. A high cost, multi-feature product doing well in Europe may not accrue same clientele in Africa. Decision of a marketer to opt for products carrying basic features and costing less in low income markets certainly makes sense. It goes without saying that a global marketer, while designing a new product ought to take into consideration, the laws, environmental statutes, compatibility requirements and quality standards specific to the targeted market (Keegan & Green, 2010). Such a well informed approach towards marketing makes way for the exploitation of standardized global product platforms that not only cut the cost of manufacturing, but facilitate cost-effective and efficient logistics and supply chain management (Keegan & Green, 2010). 5. How the individuals and organizations communicate with the masses tend to vary from one part of the world to other. Public relations approaches in varied parts of the world to a great extent depend on the cultural values and norms, religious mores, extent of print and digital media penetration, linguistic preferences, and levels of literacy, cultural dimensions and demography of the local markets (Sriramesh, 2003). Thus it is a must for an international marketer to be conversant with region specific approaches to public relations in a country. Many companies and organizations tend to adapt their public relations approaches in the targeted markets in consonance with those from the home country (Keegan & Green, 2010). This is apt in the sense that the primary objective of public relations is to build relationships and create product awareness. Many reputed brands like McDonalds have adopted this approach. However, they modified their standardized public relations practices to the regional realities and preferences. For example, in a nation with low literacy, it is necessary for the print and digital media advertisements to be more pictorial, verbal and in local languages and dialects, to assure maximum penetration (Keegan & Green, 2010). In a net savvy developed economy, the public relations practices need to be more web based and SEO optimized. Also local approaches and practices like the town crier, community leaders, wall posters, pamphlets, church groups, etc. are essentially valid and productive (Marken, 2002). The magnitude and nature of public relations activities is also influenced by the local festivals, weather, holidays, popular national issues, national celebrities, etc (Marken, 2002). 6. Companies do tend to prefer the existing technologies as they require minimal investment and expenditure and are as per the needs and requirements of their existing consumer base. However, in a fast digitizing world, new technologies are emerging that offer better features and product performance. In such a scenario, it is difficult for the companies to decide as to invest their resources on the existing technologies, or in developing new technologies (Christensen, 2000). This problem is referred to as Innovator’s Dilemma. Sustaining technologies are the technologies, which better product performance as perceived by the mainstream customer (Christensen, 2000). Disruptive technologies are the technologies that lower product performance in the short run, but offer novel features that are valued by a set of fringe customers (Christensen, 2000). Considering the fast pace and sophistication of innovation and R&D in the contemporary markets, the advocacy of excelling through being disruptive certainly makes sense. Many reputed and established brands like Sony, IBM and Microsoft dislocated the well entrenched competitors by embracing disruptive technologies (Christensen & Raynor, 2003). Christensen is also right and pragmatic in pointing out that it is only big companies who afford to invest in new technologies and agnostic marketing. Yet, one cannot overlook the fact that small but capable companies can also afford to go disruptive, if backed by a highly skilled workforce and a dedicated R&D. Sony became a global brand just by doing that. Also Christensen’s principle that some products may turn out to be too sophisticated for the consumers does not sound absolutely valid in the context of the contemporary markets. References Browaeys, Marie-Joelle & Price, Roger. (2008). Understanding Cross-Cultural Management. New York: Prentice Hall. Brace, Margaret & Cooper, Rachel. (2000). Creative Product Design: A Practical Guide to Requirements Capture Market. Chichester; John Wiley & Sons. Christensen, Clayton M. (2000). The Innovator’s Dilemma. New York: HarperCollins Publishers. Christensen, Clayton M & Raynor, Michael E. (2003). The Innovator’s Solution: Creating and Sustaining Growth. New York: Harvard Business Press. Grover, Rajiv & Vriens, Marco. (2006). The Handbook of Marketing Research. London: Sage Publications, Inc. Harriqan, Kathryn Rudie & Newman, William H. (1986). Managing for Joint Venture Success. Toronto: Lexington Books. Kaynak, Erdener & Culpan, Refik. (1993). Multinational Strategic Alliances. London: Routledge. Keegan, Warren & Green, Mark. (2010).Global Marketing (6th Edition). New York: Prentice Hall. Lehmann, Donald, Gupta, Sunil & Steckel, Joel H. (1997). Marketing Research. New York: Prentice Hall. Marken, GA. (2002). The Challenge of International Relations in an Internet World. Public Relations Quarterly, 47(3), 28-30. Mead, Richard. (2004). International Management: Cross-Cultural Dimensions. New York: Wiley-Blackwell. Sriramesh, Krishnamurthy (Ed.). (2003). The Global Public Relations Handbook. Mahwah, NJ: NJ. Publications. Read More