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GLOBAL ENVIRONMENTAL SCAN

7. GLOBAL ENVIRONMENTAL SCAN. C HAPTER. Pages 183-190. By Brandon Miller. Joke Time: The Real Reason Behind the Andersen/Enron Fiasco . Global Environmental Scan. Uncontrollable factors that affect global marketing: Cultural factors Economic factors Political-Regulatory factors.

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GLOBAL ENVIRONMENTAL SCAN

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  1. 7 GLOBAL ENVIRONMENTALSCAN CHAPTER Pages 183-190 By Brandon Miller

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

  3. Global Environmental Scan Uncontrollable factors that affect global marketing: • Cultural factors • Economic factors • Political-Regulatory factors

  4. Overview • Cultural Diversity (cultural factors) • Cross-cultural analysis • Values • Customs • Foreign Corrupt Practices Act • Cultural Symbols • Semiotics • Language • Back translation • Cultural ethnocentricity • Consumer ethnocentrism

  5. Overview Continued • Economic Factors • Stage of Economic Development • Economic Infrastructure • Consumer Income and Purchasing Power • Currency Exchange Rates

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

  7. Cultural Environmental Factors: Values • A society’s 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 India • Visa example in Germany

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

  9. Cultural Environmental Factors: Customs • The 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

  10. Cultural Environmental Factors: Symbols • Cultural 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 Japan • Coke example with the Parthenon

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

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

  13. Cultural Environmental Factors: Consumer Ethnocentrism • Consumer 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

  14. Economic Environmental Considerations • Economic Factors: • Stage of Economic Development • Economic Infrastructure • Consumer Income and Purchasing Power • Currency Exchange Rates

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

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

  17. Economic Environmental Factors: Consumer Income & Purchasing Power • Marketers must consider the average household incomes of the consumers.

  18. FIGURE 7-5 How purchasing power differs around the world

  19. Economic Environmental Factors: Currency Exchange Rates • A currency exchange rate is the price of one country’s currency expressed in terms of another country’s currency. • Failure to consider exchange rates can have severe consequences • Mattel Barbie example

  20. Review Global marketing is affected by uncontrollable factors that include: • Cultural factors • Values • Customs • Cultural Symbols • Language • Cultural ethnocentricity • Economic factors • Stage of Economic Development • Economic Infrastructure • Consumer Income and Purchasing Power • Currency Exchange Rates

  21. Any Questions or Comments? Thanks for listening By Brandon Miller

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