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International Marketing15thedition

Philip R. Cateora, Mary C. Gilly, and John L. GrahamMcGraw-Hill/Irwin Copyright 2011 by The McGraw-Hill Companies, Inc !ll rights reser"e#

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Introduction (1 of 2)

Culture, including all of it element, profoundlyaffect management tyle and o!erall "uineytem

Culture not only eta"lihe the criteria for day#to#day "uine "eha!ior "ut alo form generalpattern of !alue and moti!ation

$ariou tudie ha!e identified %orth &merican

a 'indi!idualit,( Japanee a 'conenuoriented,( and )uropean a 'elitit and rankconciou(

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Introduction (2 of 2)

& lack of empathy for and kno*ledge of foreign"uine practice can create inurmounta"le"arrier to ucceful "uine relation

+no*ledge of the management style the

"uine culture, management !alue, and"uine method and "eha!ior e-iting in acountry and a *illingne to accommodate thedifference are important to ucce in aninternational market

Culture ha an important influence on trategicthinking

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Overview

he neceity for adapting to cultural difference*ith imperati!e, electi!e, and e-clui!e

/ifferent management tyle !ary around the*orld

he e-tent and implication of gender "ia inother countrie

he importance of cultural difference in

"uine ethic he difference "et*een relationhip#oriented

and information#oriented culture

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Global PerspectiveDo Blondes Have More Fun in apan!

$ery odd in Japan to ee a *oman, *ho i "londe,young, and !ery tall "y Japanee tandard, leading"uine negotiation

he Japanee *ould not e!en look at the lead

negotiator "ecaue he *a a *oman

Mattell Inc. reearch ho*ed that the original0ar"ie, *ith her yello* hair and "lue eye, played a*ell in ong +ong a it did in olly*ood

0ut thi tandardi2ed approach taken "y Mattellince the reearch caued ale to plummet

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"e#uired $daptation

&daptation i a key concept in internationalmarketing

en "aic criteria for adaptation13 4pen tolerance

3 6le-i"ility73 umility83 Jutice9fairne53 &"ility to ad:ut to !arying tempo;3 Curioity9interet

3 &"ility to command repect1?3 &"ility to integrate oneelf into the en!ironment

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De%ree of $daptation

)ential to effecti!e adaptation&*arene of one@ o*n culture and the

Recognition that difference in other can cauean-iety, frutration, and miundertanding of thehot@ intention

he elf#reference criterion ABRC3 i epeciallyoperati!e in "uine cutom

he key to adaptation i to remain &merican "utto de!elop an undertanding of and *illingneto accommodate the difference that e-it

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I&peratives' lectives'and clusives

*ultural i&peratives # 0uine cutom ande-pectation that mut "e met and conformed to ora!oided if relationhip are to "e ucceful

In ome culture a peron@ demeanor i more critical than inother

Imperati!e !ary from culture to culture

*ultural electives # Relate to area of "eha!ior or tocutom that cultural alien may *ih to conform to orparticipate in "ut that are not reuired

& cultural electi!e in one county may "e an imperati!e inanother

*ultural eclusives # Cutom or "eha!ior patternreer!ed e-clui!ely for the local

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+,e I&pact of $&erican *ultureon Mana%e&ent -t.le

'Mater of detiny( !ie*point Independent enterprie a the intrument of

ocial action

Peronnel election and re*ard "aed onmerit

/eciion "aed on o":ecti!e analyi

Dide haring in deciion making %e!er#ending uet for impro!ement

Competition producing efficiency

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Mana%e&ent -t.lesaround t,e /orld

&uthority and deciion making

Management o":ecti!e and apiration

Communication tyle

6ormality and tempo P#time !eru M#time

%egotiation emphai

Marketing orientation

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$ut,orit. and Decision Ma0in%

Influencer of the authority tructure of"uineE

igh P/I Countrie

Me-ico, Malayia

Lo* P/I Countrie

/enmark, Irael

hree typical authority patternE

op#le!el management deciion

/ecentrali2ed deciion

Committee or group deciion

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b i

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Mana%e&ent Obectivesand $spirations

Becurity and mo"ility Relate directly to "aic human moti!ation and therefore

ha!e *idepread economic and ocial implication

Peronal life

Dorld*ide tudy of indi!idual apiration, A/a!idMcClelland3

&ffiliation and ocial acceptance

In ome countrie, acceptance "y neigh"or and fello*

*orker appear to "e a predominant goal *ithin"uine

Po*er and achie!ement # Bouth &merican countrie

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$nnual Hours /or0ed

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Exhibit 5.1

5-13

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*o&&unication -t.les

6ace#to#face communication Manager often fail to de!elop e!en a "aic undertanding of :ut

one other language

Much "uine communication depend on non!er"al meage

Internet communication %othing a"out the De" *ill change the e-tent to *hich people

identify *ith their o*n language and culture

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$&erican -lan%s Forei%n Interpretations

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'Let@ do a deal(

'Dhat@ the "ottom line(

'4kay( or 'hat@ okay(

'hat@ a hame(

'I get a kick from that(

'Can *e cloe on thi(

'hat i too good to "e true(

&ra"H'Let@ do omethingunethical(

JapaneeH'Dhat i yourtarting "id(

Chinee '%ot really good,

could "e "etter(

IndianH'ou ha!e inultedme(

JapaneeH 'It hurt(

ChineeH 'De hould top,cancel thi(

MalayianH 'ou mut "echeating me(

5-15

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For&alit. and +e&po

0ree2y informality and hate characteri2e&merican "uine relationhip

)uropean not necearily '&mericani2ed(

igher on oftede@ Po*er /itance Inde-AP/I3

May lead to "uine miundertanding

ate and impatience mot common mitake

made "y &merican in the Middle )at

6or ma-imum ucce marketer mut deal *ithforeign e-ecuti!e in accepta"le *ay

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* l B 0 d

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*ontetual Bac0%roundof 3arious *ountries

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Exhibit 5.2

5-17

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P4+i&e versus M4+i&e

Monochronic time end to concentrate on one thing at a time /i!ide time into mall unit and are concerned *ith

promptne Mot lo*#conte-t culture operate on M#ime

Polychronic time /ominant in high#conte-t culture Characteri2ed "y the imultaneou occurrence of many

thing &llo* for relationhip to "uild and conte-t to "e

a"or"ed a part of high#conte-t culture Mot culture offer a mi- of P#time and M#time "eha!ior & glo"al market e-pand more "uinepeople from

P#time culture are adapting to M#time.

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-peed is "elative

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Exhibit 5.3

5-19

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5e%otiations &p,asis

0uine negotiation are perhap the motfundamental "uine ritual

he "aic element of "uine negotiation arethe ame in any country

hey relate to the product, it price and term,er!ice aociated *ith the product, and finally,friendhip "et*een !endor and cutomer

4ne tandard rule in negotiating i 'kno*thyelf( firt, and econd, 'kno* yourcounterpart(

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Mar0etin% Orientation

he e-tent of a company@ market orientationha "een ho*n to relate poiti!ely to profit

6irm in other countrie ha!e not "een a"le tomo!e from the traditionalproduction,product,and salesorientation to the marketingorientation

Reearch ha ho*n that ometime in can "e

difficult to encourage a marketing orientationacro di!ere "uine unit in glo"alcompanie

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G d Bi

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Gender Biasin International Business

Domen repreent le than ?F of the employee *hoare choen for international aignment

In many culture A&ia, Middle )at, Latin &merica3*omen not typically found in upper le!el of

management, and are treated !ery differently from men Pre:udice to*ard *omen in foreign countrie

Cro#mentoring ytem intituted "y Lufthana

)-ecuti!e *ho ha!e had international e-perience are

more likely to get promoted,

ha!e higher re*ard, and ha!e

greater occupational tenure

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F l Di t

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Fe&ale Directors on*orporate Boards

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Exhibit 5.4

5-23

B i t,i

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Business t,ics*orruption

Dhat i Corruption Profit AMar-im3

Indi!idualim AJapan3

Rampant conumerim AIndia3

Miionarie AChina3 Intellectual property la* ABu"#Bahara &frica3

Currency peculation A Boutheat &ia3

Criticim of Mattel and 0ar"ie

Bale of 0ar"ie declined *orld*ide after the glo"altandardi2ation

Parent and go!ernment did react

Mattel@ trategy "ooted ale of it competition

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+,e /estern Focus on Briber.

In the 1>

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+ransparenc. International*orruption Perception Inde

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Exhibit 5.5

5-26

+ I t ti l

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+ransparenc. InternationalBribe Pa.er6s Inde

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Exhibit 5.6

5-27

B ib

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Briber. 3ariations on a +,e&e (1 of 2)

0ri"ery and )-tortion 0ri"ery i !oluntary offered payment "y omeone eeking

unla*ful ad!antage i "ri"ery

)-tortion take place only if payment are e-tracted underdure "y omeone in authority from a peron eeking only *hat

he or he i la*fully entitled to

Bu"ornation and Lu"rication

Lu"rication in!ol!e a relati!ely mall um of cah, a gift, or aer!ice gi!en to a lo*#ranking official in a country *here uch

offering are not prohi"ited "y la* Bu"ornation in!ol!e gi!ing large um of money, freuently not

properly accounted for, deigned to entice an official to commitan illegal act on "ehalf of the one offering the "ri"e

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B ib

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5-29

Briber. 3ariations on a +,e&e (2 of 2)

&gent@ 6eeDhen a "uineperon i uncertain of a country@

rule and regulation, an agent may "e hired torepreent the company in that country

he 6oreign Corrupt Practice &ct A6CP&3

Change *ill come only from more ethically andocially reponi"le deciion "y "oth "uyer and

eller and "y go!ernment *illing to take a tand Bince 1>>8, B "uinee ha!e "o*ed out of >8

ma:or o!erea commercial contract !alued atK185 "illion rather than paying "ri"e

5-29

t,ical and -ociall.

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t,ical and -ociall."esponsible Decisions

/ifficultie arie in making deciion, eta"lihing policie, andengaging in "uine operation in fi!e "road area

)mployment practice and policie

Conumer protection

)n!ironmental protection

Political payment and in!ol!ement in political affair of the country 0aic human right and fundamental freedom

La* are the marker of pat "eha!ior that ociety ha deemedunethical or ocially irreponi"le

)thical principle to help the marketer ditinguih "et*een rightand *rong, determine *hat ought to "e done, and :utify action

tilitarian )thic A/oe it achie!e a common good3

Right of the Partie A/oe the action in!ol!e the right of theindi!idual3

Jutice or 6airne A/oe the action repreent fairne for all3

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*ulture6s Influence

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*ulture6s Influenceon -trate%ic +,in0in%

0ritih#&merican Indi!idualitic

Japan Germany

Communitarian

In the le indi!idualitic culture la"or andmanagement cooperate

& competiti!e, indi!idualitic approach *ork *ell in theconte-t of an economic "oom

6ourth kind of capitalim Common in Chinee culture

Predicted "y culture

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$ - , i " l i ,i O i d

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$ -.nt,esis "elations,ip4Orientedvs7 Infor&ation4Oriented *ultures

Btudie are noting a trong relationhip "et*een all@high9lo* conte-t and oftede@Indi!idualim9Collecti!e and Po*er /itance inde-e

%ot e!ery culture fit e!ery dimenion of culture in a

precie *ay Information#oriented culture

nited Btate

Relationhip culture

Japan

Bynthei of cultural difference allo* u to makeprediction a"out unfamiliar culture

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Di&ensions of *ulture

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Di&ensions of *ulture $ -.nt,esis

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Exhibit 5.7

5-33

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-u&&ar. (1 of 2)

Bome culture appear to emphai2e the importance ofinformation and competition *hile other focu more onrelationhip and tranaction cot reduction

0uineperon *orking in another country mut "e

eniti!e to the "uine en!ironment and mut "e*illing to adapt *hen neceary

ndertanding the culture you are entering i the onlyound "ai for planning

0uine "eha!ior i deri!ed in large part from the "aiccultural en!ironment in *hich the "uine operate and,a uch, i u":ect to the e-treme di!erity encounteredamong !ariou culture and u"culture

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-u&&ar. (2 of 2)

)n!ironmental conideration ignificantly affect theattitude, "eha!ior, and outlook of foreign"uinepeople

$arying moti!ational pattern ine!ita"ly affect method

of doing "uine in different countrie he international trader mut "e contantly alert and

prepared to adapt *hen neceary

%o matter ho* long in a country, the outider i not a

local in many countrie that peron may al*ay "etreated a an outider

&uming that kno*ledge of one culture *ill pro!ideaccepta"ility in another i a critical mitake

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