Cross Cultural Marketing - Lecture Notes

CROSS CULTURAL MARKETING 2021
LECTURE NOTES

LECTURE 1 – 29/03/21

Analyzing environmental factors: Perspectives and things that happen around us, they are
briefed up as PRESTCOM (Political, Regulatory, Economic, Social, Technological,
Competition, Organization & Market).

They can be long-term or short-term, and can influence you, your interests or your
company.

Eg. Population Growth, GDP per Capita PPP, GINI coefficient (money dispersion), Hapiness,
Populism, AI, Voice recognition, IoT, Climate change, Covid-19.

BASICS OF MARKETING
3 PREMISES:
- Customer orientation: the primary focus of the organization is on the needs of the
customer.
- Organizational integration: everyone in the organization accepts and implements a
customer orientation. It is not just the responsibility of the marketing department.
- Mutually beneficial exchange: these has to be a balance between the needs of the
customer and the strengths of an organization so that it too can get its needs met.

MARKETING AND ITS CHALLENGES
- Sometimes marketing doesn’t seem to work – crisis offline retailing
- Sometimes new successful businesses pop up that are not developed from
marketing research but from individual intuition – Apple.
- Marketing can be non-social business: only looking at the customer and the
company- Philip Morris)
ORIENTATIONS
- Product orientation
- Production orientation: producing as efficiently as possible.
- Sales orientation: being different from competitors, making an emphasis on having
as many sales as possible – how do we get people to buy out product?
- Marketing orientation: having the customers perspective and adapting in order to
satisfy those needs, this then results in the creation of value on the product.
- Cocreation: Looking at customers wants and adapting the product to them, similar
to creating with the customer.
- Stakeholder orientation: Taking into account societies wants and harming as less as
possible.

SOCIETAL INFLUENCES ON MARKETING
- Industrial evolutions
- Psychological studies
- Commercial television/Mass media
- Internet/Digital revolution

, - Environmental/Financial change


CHANGING DEFINITIONS




MARKETING IS ABOUT: EXCHANGES
Exchanges back and forth between the following parties: Customer exchanges value with
seller, in exchange of the product for the price it has been set to, and so on.

MARKETING AND GLOBALIZATION
- Cultural Globalization (A more individualized culture around the globe)
- Financial Globalization (ING all around the globe, bank services with them)
- Technological Globalization (phones)
- Educational and Sociological Globalization
- Economic Globalization (Eg. European Union, African Union, etc)

Resulting in challenges and paradoxes:
- Adaptation vs. Standardization
- Marketing penetration vs. Marketing development
- Rich vs. Poor

PARADOXES IN GLOBAL MARKETING
- Paradox: statement that seems contradictory but is actually true.
- Belonging important individual achievement is a core value
- Economic globalization is accompanied by increasing focus on local identity
- Global media vs. Local preferences
- Local segmentation vs. Global standardization in marketing


PARADOX: INCREASED WEALTH LEADS TO DIVERGENCE
More discretionary income gives people more freedom to express themselves
- WEALTH BRINGS CHOICE
The wealthier countries become the more manifest values and value differences

TUTORIAL CASE ASSIGNMENT 1: MARKETING AUDIT
WHAT IS A MARKETING AUDIT
Marketing audit: obtaining and analyzing information that is relevant to the marketing
strategy, tactics and implementation phase of your plan.

 EXTERNAL ANALYSIS
- (Macro) PESTEL Analysis

, - Porters Five Forces

 INTERNAL ANALYSIS
- (Micro)
- Your company
- Your product
- Your target group
If applicable – review of the current marketing plan

ENVIRONMENTAL FACTORS ANALYSIS
- PRESTCOM
- Explanation down below


Then put all together (INTERNAL & EXTERNAL) into a SWOT Analysis:
- Strengths & Weaknesses (internal)
- Opportunities & Threats (external)

IMPACT ANALYSIS
Takes the strengths and weaknesses and evaluates the situations impact on the
organization.

MODELS AND THEIR USE
Marketing is about creating value using the 4P’s (Price, Place, Product, Promotion)

PRESTCOM:
- PESTEL/PREST/DEPEST: Macro environment
- FIVE FORCES: Meso environment (Competition and Market)
- VALUE CHAIN: Macro environment (Organization)

Culture is a big influence on the way you create value, Marketing has to therefore deal with
cultural differences.
Companies use different approaches towards the changes from global to local tastes and
vice versa.