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INTERcultural MARKETING

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Presentation on theme: "INTERcultural MARKETING"— Presentation transcript:

1 INTERcultural MARKETING

2 GLOBALIZATION a set of interrelated economic, ideological, technological and cultural changes Globalisation is the growing interdependence of countries worldwide through the increasing volume and variety of cross-border transactions in goods and services and of international capital flows, and through the more rapid and widespread diffusion of technology. (IMF)

3 GLOBALIZATION a set of interrelated economic, ideological, technological and cultural changes Globalisation is the growing interdependence of countries worldwide through the increasing volume and variety of cross-border transactions in goods and services and of international capital flows, and through the more rapid and widespread diffusion of technology. (IMF) the alignment of consumer needs worldwide and the idea of a global consumer? there is little doubt that the globalization of competition is driven by decreasing trade barriers and increasing global supply or economies of scale, rather than by the homogenization of consumer preferences

4 GLOBALIZATION Positives – reduction of costs through economy of scale, local companies included in the production process (and benefit from globalization), product meets global standards, medium and small companies involved Negatives – loss of political control over the economy of a country, global companies are not regulated in a wide range of activities by anyone; globalization threatens the healthy development of national cultures because it forces them to merge with other cultures. This can lead to ”resistance“ against globalization through localization or regionalization

5 GLOBALIZATION Negatives the part of the society will benefit from it, while the other part lives in poverty because of it - rationalization of production, which lowers wages, increases unemployment, reduces the income tax of countries, which effectively undermines any concept of the welfare state and makes huge differences in the income of citizens. All this leaves the space for an intercultural approach, which takes into account local specifics and develops products accordingly. Americanization, westernization

6 INTERNATIONAL MARKETING
numerous strategic orientations of how companies should penetrate foreign markets According to Kotler et al. (2007), companies entering international market can decide between two basic strategic approaches: (a) standardization - implementation of domestic marketing mix to international markets; and (b) adaptation - marketing mix adaptation based on the target market requirements under its cultural conditions for the purpose of achieving improved competitiveness.

7 INTERNATIONAL MARKETING
adaptation or standardization (70s) globalization versus localization (80s) global integration versus the local responsibility (90s) Does the global convergence of consumer tastes makes room for global standardization of marketing mix? The theoretical approaches that mainly use standardization are global marketing and euromarketing. Theoretical approaches for adaptation are intercultural and local marketing.

8 INTERNATIONAL MARKETING
Global marketing the company perceives the world (including its home market) as one market and segmentation is not focused on national borders anymore. global marketing does not mean that the company has to enter every market in the world. The decision to enter the foreign market depends entirely on company’s resources and the nature of threats and opportunities that are awaiting there.

9 INTERNATIONAL MARKETING
INTERCULTURAL MARKETING the approach of intercultural marketing is equally based on globalization as well as localization. the basic principle is to adapt the product and the marketing strategy to various local customer needs, but still having the global strategy in mind. it is trying to find the balance in differences across cultures that require local adaptation and similarities of those cultures which enable the company to have the profit thanks to economy of scale. Think global, act local ethno-marketing – focus on cultural differences that appear within a country

10 INTERCULTURAL MARKETING
How to adapt particular elements of marketing mix according to local taste: Product Price Distribution Communication

11 INTERCULTURAL MARKETING
intercultural marketing is facilitated when the conditions for product identification are present in the target market Geographical cultural affinity zones – national cultural groups Cultural affinity classes – other segmentation bases

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