Global Enviro Scan

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GLOBAL ENVIRONMENTAL SCAN 7 CHAPTER By Brandon Miller Pages 183-190
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Transcript of Global Enviro Scan

  • GLOBALENVIRONMENTAL SCAN7CHAPTERBy Brandon MillerPages 183-190

  • Joke Time:The Real Reason Behind the Andersen/Enron Fiasco

  • Global Environmental ScanUncontrollable factors that affect global marketing:Cultural factorsEconomic factorsPolitical-Regulatory factors

  • OverviewCultural Diversity (cultural factors)Cross-cultural analysisValuesCustomsForeign Corrupt Practices ActCultural SymbolsSemioticsLanguageBack translationCultural ethnocentricityConsumer ethnocentrism

  • Overview ContinuedEconomic FactorsStage of Economic DevelopmentEconomic InfrastructureConsumer Income and Purchasing PowerCurrency Exchange Rates

  • Cultural Environmental FactorsA cross-cultural analysis involves the study of similarities and differences among consumers in two or more nations or societiesThe cross-cultural analysis creates an understanding about values, customs, symbols, & languages of other societies.

  • Cultural Environmental Factors: ValuesA societys values represent personally or socially preferable modes of conduct or states of existence that are enduring. Values influence the behavior of the consumers.McDonalds example in IndiaVisa example in Germany

  • Cultural Environmental Factors: CustomsCustoms are the norms and expectations about the way people do things in a specific country.Cosmetics example in FranceJapanese Valentines Day example

  • Cultural Environmental Factors: CustomsThe Foreign Corrupt Practices Act makes it a crime for U.S. corporations to bride an official of a foreign government or political party to obtain or retain business in a foreign country.Bribes are a tax deductible expense in France & Greece

  • Cultural Environmental Factors: SymbolsCultural symbols are things that represent ideas and concepts. Semiotics is the study of these symbols. Improper use of symbols can be disastrous for global marketers.Tiffany & Company example in JapanCoke example with the Parthenon

  • Cultural Environmental Factors: Language & Back TranslationThe best language to communicate with consumers in is their own. Over 3,000 languages spoken world-wideVicks example in Germany

  • Cultural Environmental Factors: Language & Back TranslationIn back translation, a translated word or phrase is retranslated into the original language by a different interpreter. (error checking control)Nike flames example

  • Cultural Environmental Factors: Consumer EthnocentrismConsumer ethnocentrism is the tendency to believe that is inappropriate or immoral to purchase foreign-made products.Observed in segments of the U.S., France, Japan, Korea, & Germany

  • Economic Environmental ConsiderationsEconomic Factors:Stage of Economic DevelopmentEconomic InfrastructureConsumer Income and Purchasing PowerCurrency Exchange Rates

  • Economic Environmental Factors: Stage of Economic DevelopmentDeveloped Countries: Mixed economies (Ex: U.S., Japan, Canada, & Western Europe)Developing Countries: Usually moving towards an industrialized economy (Ex: Hungary, South Africa, & Pakistan)

  • Economic Environmental Factors: Economic InfrastructureEconomic infrastructure is a countrys communication, transportation, financial, & distribution systems.Critical for determining how, where, & to whom to market.Coke example in India

  • Economic Environmental Factors: Consumer Income & Purchasing Power

    Marketers must consider the average household incomes of the consumers.

  • FIGURE 7-5 How purchasing power differs around the world

  • Economic Environmental Factors: Currency Exchange Rates

    A currency exchange rate is the price of one countrys currency expressed in terms of another countrys currency.Failure to consider exchange rates can have severe consequencesMattel Barbie example

  • ReviewGlobal marketing is affected by uncontrollable factors that include:Cultural factorsValuesCustomsCultural SymbolsLanguageCultural ethnocentricityEconomic factorsStage of Economic DevelopmentEconomic InfrastructureConsumer Income and Purchasing PowerCurrency Exchange Rates

  • Any Questions or Comments?Thanks for listeningBy Brandon Miller

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