Essential Concepts in Global Marketing and Cultural Dimensions
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Global Marketing and Cross-Cultural Business Concepts
Cultural Dimensions and Context
- In high-context cultures, time is typically polychronic (flexible and simultaneous).
- Lawyers are generally more important in low-context cultures due to reliance on explicit contracts and written rules.
- The cultural environment of a country is best described by its attitudes, beliefs, and values.
- The power distance dimension reflects the degree of trust: the higher the power distance, the lower is the level of trust.
- Two countries that score high in uncertainty avoidance are Greece and Portugal.
Values and Attitudes in Global Markets
- If "vegetarianism" represents a value, then "dislike McDonald's" represents an attitude.
- Long-term values include all of the following except: dynamism.
- A concept often not considered a long-term value is the search for truth.
Innovation Diffusion and Product Adoption
Key Elements of Everett Rogers' Diffusion Theory
- One of the basic elements of sociologist Everett Rogers' Diffusion theory is awareness.
- The correct order of the innovation adoption process stages is: awareness → interest → evaluation → trial → adoption.
- Together, innovators and early adopters constitute 16.0% of the total market.
- A factor that can negatively influence product adoption is high complexity.
- To speed adoption of a new product, ensure that features and benefits can be communicated or demonstrated.
- The obsolescence of products, such as floppy disks being dumped, relates to the concept of relative advantage.
- Regarding innovation characteristics, All of the above are true (referring to typical characteristics like relative advantage, compatibility, complexity, trialability, and observability).
Product Complexity and Market Adaptation
- Products arranged starting with the lowest complexity/fastest adoption might be: food → computers → integrated circuits.
- The greater the level of environmental complexity, the greater the need for local adaptation.
- In the 1990s, Philips Electronics developed a new consumer product focusing on compatibility.
Global Marketing Challenges and the SRC
Avoiding the Self-Reference Criterion (SRC)
- The lesson derived from understanding the SRC is that unbiased perception is a vital and critical skill in global marketing.
- Procter & Gamble's introduction challenges often highlight the danger of the self-reference criterion.
- When global marketers fail, they often fall victim to the self-reference criterion.
Case Studies in Global Missteps
- The Walt Disney Company's decision regarding its theme park in France showed that Disney executives were blinded by their prior success and ethnocentrism.
- When planning the theme park in France, Disney executives should have adopted a geocentric management orientation.
- In China, Dell had to find a meaningful interpretation of direct orders (adapting its business model to local norms).
Linguistic and Symbolic Considerations
Language and Semiotics in Marketing
- Linguists divide the study of language into various components, including morphology (the study of word structure).
- When the Coca-Cola Company was developing product names, they likely used phonology (the study of sound systems).
Color and Symbolism
- The use of the color Blue dates back millennia.
- There is nothing inherently "good" or "bad" about colors; for example, Red color is highly preferred in some African countries.
Market Trends and Business Practices
- While some food preferences remain deeply embedded, this is challenged by the growing number of McDonald's restaurants globally.
- Regarding "coffee culture," American entrepreneurs found success in England with the Seattle Coffee Company, which Starbucks later acquired.
- Insisting on competitive bidding can cause issues in cultures that are not low-context cultures (where relationships are prioritized).
- Venice is threatened by modern environmental factors. (TRUE)
- Westerners doing business in the Middle East must be aware of cultural nuances. (TRUE)