Midterm 2-Part 2 PDF

P time versus M-Time - Managers in Anglo cultures such as the US tend to be concerned with time management than managers form either Latin or Asian cultures Edward T-Hall defines two systems in the world: - Monochronic - North Americans, Swiss, Germans- concentrate at one thing at a t...

P time versus M-Time - Managers in Anglo cultures such as the US tend to be concerned with time management than managers form either Latin or Asian cultures Edward T-Hall defines two systems in the world: - Monochronic - North Americans, Swiss, Germans- concentrate at one thing at a time - M-TIME- most low context cultures operate on M-time - Polychronic Time - more dominant in high-context cultures - completion of human transaction is emphasized more than holding on to schedules - simultaneous occurrence of many things and by “ a great involvement with people” Marketing Orientation - The extent of a company’s marketing orientation has been shown to relate positively to profits Business Ethics – the meaning of the world corruptions varies considerably around the world - ex. communist countries profits is seen as corruption The Western Focus on Bribery - Transparency International - dedicated to “curbing corruption through international and national coalitions” - Transparency International Bribe Payers Index 2011- the index ranks the likelihood of companies from 28 leading economies to win business abroad by paying bribes - Higher scores correspond to perceived lower levels of bribe paying internationally - People would assume Japan would be increasing because “relationship based culture” would attract bribery but they are decreasing on the scale Bribery and Extortion - The distinction between bribery and extortion depends on whether the activity resulted form an offer or demand for payment Lubrication and Subornation - Lubrication - involves a relatively small sum of cash ( a “tip”) - Subornation - involves giving large sums of money frequently not properly accounted or - designed to entice an official to commit and illegal act on behalf of the o the one offering the bribe - a request for officials to turn their heads Agents Fees - When a business person is uncertain of a countries rules and regulations, an agent may be hired to represent the company in that country - Ex , an attorney may be hired to file and appeal for a variance in a building code o the basis that the attorney will do more efficient and thorough job than someone unfamilailr with such procedures - Foreign Corrupt Practices Act - prohibits American executive and firms form bribing officials of foreign governments, has had a position effect Ethical Decisions Utilitarian ethics- does the action optimize the “common good” or benefits of all constituencies? And who are the pertinent constituencies? Rights of the Parties- does the action respect the rights of the individuals involved? Justice or fairness- does the action respect the canons of justice or fairness to all parties involved Culture’s Influence on Strategic Thinking - Entrepreneurial tendencies are stronger erin countries with less UAI ( China) - as people in those cultures tend to prefer venturing out on their own rather than the known of working for an established company Synthesis: Relationship-Orientated vs. Information-Oriented Cultures - Low context American culture score relatively low on power distance and high on individualism, whereas high context Arab cultures score high on power distance and low on individualism Chapter 13 - Products and Services for Consumers Physical or Mandatory Requirements and Adaptation - A product may have to change in a number of ways to meet the physical or mandatory requirements of a new market, ranging from simple package changes to total redesign of the physical core product - Product homologation - changes mandated by local product and service quality - Ex of homologation - oreos were first introduced in 1996, but the company didn’t adapt to Chinese tastes until 9 years later- now they are the top selling biscuit in the country -  after consumer research suggested reducing the sugar content and reducing package sizes and prices Green Marketing and Product Development Green marketing 0 term used to identify concern with the environmental consequences of a variety of marketing activitiies - Prctr and Gamble introduced Lenor, a abruc softener in superocnetrated form, and sold it in a plastic refill pich that reduced packing by 85 percent Products and Culture - The market relates to more than a products physical form and primary function - The values nad cusotmes within a culture confer much of the importance of these benefits - procut is sum of hte phsyciala nd psychological satsifactins it provides the user - Reseag also has shown that firms with storng organizaitonal identities cna have more difficulty in adapting products adequately Innovative Products and Adaptation - Any idea perceived as new by a groupof people is “innovation” from a sociological viewpoint - Diffusion - the adoption or spread across markers by increasing numbers of consumers Diffusion of Innovations - The goals of the diffusion researcher and the marketer are to shorten the tme lag between introduction of an idea or product and its widespread adoption - 3 extraneous variables effect the rate of diffusion - - 1) the degree of perceived newness - 2) the perceived attributes o the innovation - 3) the method used to communicate the idea - The more innovative a product is perceived to be, the more difficult it is to gain market acceptance 5 Characterisitics of Innovation 1) Relative advantage ( the perceived marginal value of the new product relative to the old) 2) Compatibility - tis comptabililty with acceptable ebhaviiour, norms, vlauesm and so forth) 3) Compelxitiy ( the degree of comeplexiy associated with product use) 4) Triabuilty ( the degree o economic and/or social rusk associated with product use) 5) Observabililty ( the ease with which the products benefits can be communicated) - The evaluator must remember that it is the perception of product charcaterisitics by the potential deopter, not the makreter, that is crucial to the evaluation Production of Innovations  - 3 main factors seem to favor conversion in pharmaceutical industryL 1) patience 2) focus on few important innovation 3) experience - Product Component Model - a tool for characterizing how a product may be adapted to a new market by separating the product’s many dimensions into three components: support services, packaging, and core component Core Component - The core component - consists of the physical product- the platform that contains the essential technology - and all its designs and functional features - It is on the product platform that the product variations can be added or deleted to satisfy local differences - Major adjustments in the platform aspect of the core component may be costly because a change in the platform can affect product processes anx this require additional capital investment Packaging COMPONENT - Packaging component - includes style features, packaging, labeling, trademarks, brand name, quality, price, and all other aspects of a product’s package Support Services Component - The support services includes repair and maintenance, instructions, installation, warranties, deliveries, and the availability of spare parts Marketing Consumer Services Globally  - Services are distinguished by four unique characteristics - intangibility, inseparability, heterogeneity, and perishability - and thus require special consideration - Products are often classified as tangible, whereas services are intangible - The intangibility of services results in characteristics unique to a service: it is inseparable in that its creation cannot be separated by its consumption; and it is heterogenous in that it is individually produced and is thus is unique; and it is perishable in that once created it cannot be stored but must be consumed simultaneously with its creation - It's easy to forget that in low-literacy countries, pictures and symbols are taken literally as instructions and information Brands in International Markets - Global brand is defined worldwide use of a name, term, sign, symbol ( visual and/or auditory), design, or combination of thereof intended to identify goods or services of one seller and to differentiate them from those of competitors - A successful brand is the most valuable resource a company has - Brand image is at the very core of business identity and strategy Global Brands - Naturally, companies with strong brands strive to use those brands globally - Perceived “globaness” can lead to increases in sales National Brands - Company is described a preferring brands to be local, people to be regional, and technology to be global - Ex. ex. Unilever company introduced Omo detergent brand ( sold in many other countries), but also purchased a local brand, Pollena 2000 Country-of-Origin Effect and Global Brands - Consumer associates value of the product with the brand - Country-of-origin-effect (COE)- can be defined as any influence that the country of manufacture, assembly, or design has on a consumer;s positive or negative perception of a product - Ethnocentrism also can have country-of-origin effects; feelings of national pride - the “buy local” effect - can influence attitudes towards foreign products - One might generalize that more technical the product, the less positive is the perception of something manufactured in a less-developed or newly industrializing country - More knowledgeable consumers are more sensitive to a products COE than those less knowledgeable