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International Marketing Communication SIS6, Spring 2006

Course plan 1. Session 1a) Course introductionb) Cross-cultural consumer behaviourTextbook: Chapters 1, 2, 3 and 4 (please focus on chapter 4)Session 2Standardization vs. adaption 1Textbook: Chapters 5, 6, 8From the text collection:Theodore Levitt: The Globalization of MarketsWilliam

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International Marketing Communication SIS6, Spring 2006

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    1. International Marketing Communication SIS6, Spring 2006

    2. Course plan 1 Session 1 a) Course introduction b) Cross-cultural consumer behaviour Textbook: Chapters 1, 2, 3 and 4 (please focus on chapter 4) Session 2 Standardization vs. adaption 1 Textbook: Chapters 5, 6, 8 From the text collection: Theodore Levitt: The Globalization of Markets William B. Werther, Jr.: Toward Global Convergence Marieke De Mooij: Convergence and divergence in consumer behaviour: implications for global advertising Session 3 Standardization vs. adaption …continued See lecture 2 Session 4 Cross-cultural marketing research Textbook: chapter 7 From the text collection: Eastin and Daugherty: Past, Current, and Future Trends…..

    3. Course plan 2 Session 5 Workshop: strategy/creative briefs Session 6 Workshop: continued Session 7 Aspects of international marketing communication and strategy Textbook: chapters 13, 14, 15 From the text collection: H. David Hennessey: Marketing Communications Trends in the…… O’Connor, Galvin and Evans: Electronic Marketing and Marketing….. Percy, Rossiter & Elliott: The Strategic Planning Process Jon Steel: Serendipity – “got milk?” Session 8 a) Aspects of international marketing communication and strategy b) Course evaluation See lecture 7

    4. From SIS4 Marketing communication studies advice: Be critical - always! Right or wrong usually don’t exist! There are no easy solutions or to-do-lists! ”We” expect arguments, reflections and contemplation! High level of abstraction is expected too!

    5. ”Expected knowledge”/terminology Differences between advertising, PR, sales promotion etc. Basic consumer behavior principles Segmentation criteria, targeting, positioning Standardization >< differentiation Basic marketing research Basic information types Branding Marketing mix/4Ps – integrated marketing com. SWOT, PLC etc.

    6. Marketing communication 2005! ”Worldwide advertising expenditure grew by almost 7% in 2004 to $370 billion…” ”The ad market in 2004 was boosted by some special factors, such as a presidential election [..] and the Olympics.” ”Television remains the most powerful advertising medium, with a 38% global share of spending on major media in 2004.” ”Some people, especially young men, now spend more time surfing the internet than watching TV. The internet is the fastest growing advertising medium.” (The Economist, Jan. 1, 2005)

    7. Marketing communication – what is it? This course: Marketing communication = The old-fashioned promotion ”P” Advertising Sales promotion Public relations Direct marketing (Personal selling)

    8. Remember, it’s still about moving people from A to B

    9. Marketing Communication in the New Millennium

    10. Marketing Communication in the New Millennium

    11. Marketing Communication in the New Millennium

    12. Usunier & Lee + eye-opener + source of inspiration + starting point for further studies + good discussion starter + not like the other books on the subject Repetitive Structure Focus Factual – not a lot of models etc. Not marketing communication focus

    13. Usunier, Lee and Culture - 1 ”In an increasingly interdependent world where barriers to trade and to international exchanges constantly diminish, cultural differences remain the single most enduring feature that has to be taken into account for localizing marketing strategies.” ”Part 1 of this book introduces key concepts in cultural studies that have great influence on the understanding of local markets and the design of international marketing strategies.” (Usunier & Lee , p. 2)

    14. Usunier, Lee and Culture - 2 ”International marketing automatically allocates a prominent place to the cultural variable, but not everything is culture based. It would be dangerous to equate the behaviour of individuals entirely with that of the cultural grouping to which they belong.” (P. 4) ”In fact, the cultural variable is difficult to isolate and operationalize. (P. 4) The cultural is more complex and the way in which it influences behaviour is difficult to analyze.” (P. 4) This course: No definition of culture put forward

    15. Usunier, Lee and Culture - 3 ”Cultural differences exist, but this is no reason for judging a particular culture as globally superior or inferior to others.” (P. 9) ”Nevertheless an attempt to equate culture directly with the nation-state, or country, would be misguided...” (P. 10)

    16. Usunier, Lee and Culture – 4 Sources of culture on an individual level ”The national element is not always the main source of culture when regarded from an ’operational culture’ perspective. (Goodenough, 1971).” Language(s) Nationality Education (general) Profession Group (ethnicity) Family Sex Social class Religion Corporate or organizational culture (Usunier & Lee, p. 10 and 11)

    17. Usunier, Lee and Culture - 5 ”Most international market segments are based on geographical/geopolitical divisions, which are convenient and may be also efficient segmentation criteria depending on homogeneity. However, sociodemographic variables or lifestyles may also be relevant for international segmentation.” (P. 12) ”In fact, firms have difficulty deciding on whether to target a transnational ethnic segment, a national segment or a cross-border regional segment. Lenartowicz and Roth (1999) suggest a process that begins with a review of the cultural literature to gather invormation that identifies and details cultural groupings befor segmenting the market” (P. 12) PsychographicsPsychographics

    18. Usunier, Lee and Culture - 6 Goodenough is particularly relevant – or interesting - to marketers in today’s ”fragmented world”: ”…culture is a set of beliefs or standards, shared by a group of people, which help the individual decide what is, what can be, how to feel, what to do and how to go about doing it.” (Usunier & Lee, p. 5)

    19. Usunier, Lee and Culture - 7 Usunier on Goodenough: ”On the basis of this definition there is no reason for culture to be equated with the whole of one particular society. It is, however, related to activities that are shared by a particular group of people. Thus individuals may share different cultures with several different groups and in a particular cultural situation they can ’switch into’ the culture that is operational. The term ’operational’ describes a culture that is shared by those who must cooperate on a task. (Usunier and Lee, p. 5) In Danish: Det situationsbestemte forbrug? Challenge: How to communicate effectively with people who constantly ”switch into” new ”consumption roles.” Goodenough’s defi. Reflects modern marketing view that consumers have several ”consumer personalities”.Goodenough’s defi. Reflects modern marketing view that consumers have several ”consumer personalities”.

    20. Context, culture and SOFT DRINKS From 4th semester She buys Coca-Cola Light for the refrigerator at home Her boyfriend buys Coca-Cola for the refrigerator at home In connection with sports she drinks Carlsberg Kildevćld In cafés she drinks Sřbogĺrd In bars she drinks gin/tonic When meeting girlfriends to talk she drinks tea She never drinks Cola when she is alone She drinks water when she is alone

    21. Kotler on Culture "Culture is the most fundamental determinant of a person's wants and behavior. The growing child acquires a set of values, perceptions, preferences, and behaviors through his or her family and other key institutions."   (Kotler in Marketing Management (9th ed.) p. 172)

    22. Hoecklin on Culture What culture is: - a shared system of meanings  - relative. There is no cultural absolute. - learned - about groups   What culture is not: - right or wrong - inherited - about individual behaviour (Source: Lisa Hoecklin: Managing Cultural Differences)

    23. Culture as an onion - Hofstede

    24. Culture – Basic problems/cultural orientations Dealing with uncertainty What's action - deed or speech Appraising oneself How to schedule tasks Why act? Is time money? How to treat unknown people How to deal with rules Relying on oneself or other Appraising others   How to deal with physical space Relating the individual to the group Self-reliance vs. Dependence (Source: Usunier & Lee tables 2.1, 2.2, 3.1, 3.2, 3.5)

    25. Simon Anholt on Culture

    26. Usunier and Lee, chapter 4 Usunier and Lee basically uses consumer behavior (cultural differences) as an argument against standardization. ”Although global convergence seems undeniable, some basic traits of local consumption experience will tend to resist to change.” (p. 84) ”The cross-cultural approach to international marketing that is presented in chapters 4 to 7 should enable future international marketers to understand local consumer behaviour in its full complexity.” (p. 84)

    27. Usunier and Lee, chapter 4 Consumer behaviour theories Universal (etic) Specific (emic) Consumers Universal (1) Global perspective (3) Ethnic consumption perspective Its purest form Rarely found except in Levitt Specific (2) ’Imported perspective (4) Cultural meaning perspective Offerings tailored to the local markets but the basic underlying theories are not changed The etic approach is primarily The emic approach holds that concerned with identifying universals. attitudinal or behavioural phenomena are expressed in a unique way in each culture.

    28. Usunier and Lee, chapter 4 ”’researchers in other cultures to study their own reality rather than to replicate American studies’.” (p. 87) ”…we will progressively move towards questioning the cross-cultural transposability of CB theories.” (p. 87) ”’Although there is evidence of convergence of economic systems, there is no evidence of convergence of peoples’ value systems. On the contrary, there is evidence that with converging incomes, peoples habits diverge.’” (de Mooij in Usunier and Lee p. 87) ”It is important to know what one is looking for: similarities or differences. Both exist; it is just a matter of being clear about which models one applies: those that let differences emerge or those that favour the discovery of similarities. This corresponds with the etic (universal) approach and the emic (specific) approaches.” (p. 87)

    29. Usunier and Lee, chapter 4 Some essential points of cultural influence on consumer behaviour: Hierarchies of needs, which shape demand across product categories. Culture-based values, especially individualist or collectivist orientations, which influence purchasing behaviour and buying decisions. Institutions, which influence consumer behaviour, given that most consumption is rooted in social life, a large part of which is institutionalized.

    30. Possible impact of cultural differences on some aspects of consumer behaviour (Usunier, table 4.2)        Age       Self-concept         Group influence         Social class         Perception         Motivation         Learning and memory         Sex roles         Attitudes change         Decision making        Purchase         Post-purchase

    31. Keys to international marketing communication success? A thorough understanding of consumers and their behavior. BUT where do we start? Making cultural knowledge/awareness operational – is it even possible? BUT where do we start? Convincing others about the importance of e.g. culture BUT where do we start?

    32. On marketing communication! ”Jeg konfronteres med en masse postulater om ting, der kan gřre mig lykkelig. Dem forholder jeg mig til. Jeg analyserer postulaterne. Jeg evaluerer de nye reklamer. De er en stor del af gadebilledet. Og jeg lćrer noget om dem, der vil sćlge mig noget. Det er bare interessant. Jeg lćrer hvad de mener er attraktivt. – og det foreholder jeg mig til. Jeg forholder mig til reklame som en slags kunst: Et maleri, et fotografi, et budskab, en historie. Det er vore dages eventyr”. (Source: firstmove 2004)

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