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Explore the various customs and traditions of Valentine's Day in different countries, including the United States, Japan, France, Italy, Latin America, South Korea, and South Africa. Learn about unique celebrations, different dates, and special activities in each culture.
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Marketing ConceptsMarketing in the Big Wide World MKTG 3110 Fall 2015 Mrs. Tamara L. Cohen Class #7
Valentine’s Dayaround the world USA– express love for sweethearts, spouse, teachers, parents, others JAPAN– 2 different dates; 2 different levels FRANCE– strong association since Middle Ages ITALY– in Turin betrothed couples announced engagement on V. Day LATIN AMERICA - El Día del Amor y la Amistad SOUTH KOREA – White Day & Black Day SOUTH AFRICA – only for lovers or crushes; anonymous cards
KEY TERMS • Balance of Trade • SURPLUS • DEFICIT • Emerging Markets • Barter / Countertrade • Tariffs • Quotas • Global competition Global companies Global consumers Global brands • Globalization • Dumping • Semiotics • Ethnocentrism • Currency exchange rates
KEY CONCEPTS • Protectionism • World Trade Organization (WTO) • Cultural diversity • values, customs, symbols • language problems • Strategic alliances • European Union • NAFTA • Bottom of the Pyramid • Microfinance • Political risk • Market entry strategies • Exporting • Licensing / Franchising • Joint Ventures • Foreign Direct Investment
How much world trade is there? • A LOT (±$20 trillion) • “International trade is the exchange of capital, goods, & services across international borders… Without international trade, nations would be limited to the goods and services produced within their own borders.” • What grows global markets? • Globalization • Greater access to markets • Global competition • Multinational corporations US & world trade • Balance of Trade DEFICIT • Biggest US trading partners Canada, China, Mexico, Japan, Germany
Peopleaccelerate global trade. Who are the ‘Globalizers’?
Process of Globalization • Global transactions touch us every day • Imports & exports come from & go to remote areas • Technology & e-business facilitate spread of trade
Growth in Emerging Economies “We used to design the same products for global requirements and distribute the same product globally … we started … talking to emerging country customers, designing a product for emerging countries, and initially launching the product in only emerging countries.”¹ Dell LISTENED Changes in Dell’s global strategy: • sales & distribution • ‘experience centers’
Emerging Markets BUZZZZ • 28 - 150 emerging markets worldwide • 4 Tigers = Hong Kong, Singapore, South Korea, Taiwan • 4 Lions = Egypt, Morocco, Tunisia, South Africa BRIC = Brazil, Russia, India, China CIVETS = Colombia, Indonesia, Vietnam, Egypt, Turkey, South Africa
Comparing revenue of the world's 10 most global firms to the GDP of nations
Countertrade Global marketer must know: Which markets will require countertrade? • Eastern Europe • old USSR states • some Latin American countries • some African countries Why countertrade? • when cash reserves low Countertrade may include • direct exchange of goods • part payment in goods, part in cash
1972Pepsi concentrate bartered for Stolichnaya vodka. 1990Pepsi barter trade with Russia reached $3 billion 2005Coke > Pepsi in Russia 1959Pepsi introduced to Russia Pepsi’s famous barter deal with Russia
Barter Ships for oil - Brazil proposed that South Korea supply drill ships, in return for stakes in Brazil’s Santos oil fields, which Korea would also manage
Counterpurchase Fred Krupp Huttenwerke AG of Germany sold $9 million of large capacity hydraulic cranes to Machinoimport in USSR - used countertrade tools & equipment in German plants, or resold them.
Marketing in a borderless economic world? Is Protectionism really waning? Tariffs still most common barrier to entry Quotas discouraged by WTO GATT limited trade barriers & promoted world trade through reduction of tariffs; did not address non-tariff barriers WTO deals with rules of trade between nations; ensures trade flows smoothly
Protectionism hinders world trade when countries raise prices & limit supply through tariff & quota policies PROTECTIONISM TARIFFS QUOTAS INCREASE PRICE LIMIT SUPPLY DECREASE WORLD TRADE
Tariffs = government tax levied on a product as it enters or leaves a nation • directly increases price of imported product more expensive + less appealing • export tariff 2. transit tariff 3. import tariff + • protect domestic producers • increase government revenue _ • domestic producers less competitive • increase consumer prices
Quotas = restriction on quantity of a good that can enter or leave a country during a certain time • most common non-tariff barrier IMPORT QUOTA • protects domestic producers • foreign companies compete for market access competition consumer prices consumer choices EXPORT QUOTA supply of product in home market, e.g. natural resources essential to local business or long-term survival supply on world market global price
Strategic Alliances • Countries form strategic alliances to cooperate to reduce or eliminate barriers to facilitate the international flow of products, people, and capital. PROS specialization efficiency trade consumption standards of living political benefits CONS trade diverted to cheaper countries protectionism national sovereignty divergent rules /standards
North AmericanFree Trade Agreement NAFTA Pop: 444 million GDP: $16 trillion Members: 3 began: 1994
European Union Pop: 500 million GDP: $15 trillion Members: 28 began: 1951
Pop: 633 million GDP: $1.1 trillion Members: 10 Began: 1967 Association of SouthEastAsian Nations GOALS: • Promote economic, social, and cultural development • Safeguard economic and political stability • Serve as a forum to resolve disputes
Global Competition • when companies originate, produce & market their products & services worldwide • widens competitive landscape for marketers • can give rise to global strategic alliances
Global Companies • international company • multinational company (MNC) • transnational company
Global Brands • brand is marketed under the same name in multiple countries, using similar and centrally-coordinated marketing programs • strong corporate identity • same product formulation, same benefits, consistent advertising across borders • e.g. McDonald’s’ “food, fun, and families” in 118 countries; but some aspects customized
Global Consumers • consumer groups living in many countries or regions of the world, who have similar needs or seek similar features & benefits from products or services • global middle class; youth market; elites • companies that have developed these markets:
Networked Global Marketspace • Internet enables exchange of goods, services & information anywhere, any time, & at lower price • global electronic commerce grown especially by B2B • most active B2B commerce countries: US, Canada, UK, Germany, Sweden, Japan, India, China, Taiwan
Cultural literacy Cross-cultural analysis Values Customs Cultural symbols Language Ethnocentrism
Language Blunders Japanese knife manufacturer labeled its exports to the United States with “Caution: Blade extremely sharp! Keep out of children.” English sign in a Moscow hotel read, “You are welcome to visit the cemetery where famous Russians are buried daily, except Thursday.” Sign for non-Japanese-speaking guests in a Tokyo hotel read, “You are respectfully requested to take advantage of the chambermaids.” Sign in English at Copenhagen ticket office read, “We take your bags and send them in all directions.” Braniff Airlines’ English-language slogan “Fly in Leather” was translated into “Fly Naked” in Spanish.
Mixed Signals • Middle East, West Africa, South America, Iran, Sardinia, Bangladesh: rude, insulting; obscene gesture • Italy, Germany, Greece, Hungary: #1, or ‘okay’ • Russia, Finland, Australia: ‘good’, ‘well done’ • UK: farewell or greeting between young men • Japan: male gender • Egypt, Iraq, Israel: ‘perfect’ • SCUBA diving: “go up (to the surface)” • Hitchhiker: “I need a ride”
Economic Considerations • Developed or developing country • Economic infrastructure- communications, transportation, financial, distribution systems • Consumer income & purchasing power • Currency exchange rates - price of one currency in terms of another • Bottom of the Pyramid 2.5 billion people; < $2.50/day • Microfinance- offering small, collateral-free loans to people outside conventional capital markets