marketing latam - 02 history & geography
TRANSCRIPT
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Global MarketingDoing Business in Latin America
2. History and Geography
This presentation (and extra material) belongs to Natalia Ceruti´s Global Marketing Course, within the Leading the Way to Success in Latin America Program. Should not be copied, nor reproduced, in full or in parts, without Natalia Ceruti´s permission.
Environmental Adaptation
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Environmental Adaptation
• Establish a frame of reference
• Avoid measuring and assessing markets against the fixed values and assumptions of your own culture
Ability to effectively interpret the influence and impact of the culture in which you hope to do
business.
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The Self-Reference Criterion and Ethnocentrism
• Primary obstacles to success in international marketing• SRC• Associated ethnocentrism
The key to successful international marketing is adaptation to the environmental differences from
one market to another.
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SRC and Ethnocentrism
• Dangers of the SRC• Failing to recognize the need to take action• Discounting the cultural differences that exist among
countries• Reacting to a situation in an offensive to your hosts
SRC is an unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for
decisions.
Ethnocentrism is the notion that one’s own culture or company knows best.
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Framework for Cross-cultural Analysis
1. Define business problem or goal • Home-country vs. foreign-country cultural traits, habits, or
norms• Consultation with natives of the target country
2. Make no value judgments
3. Isolate the SRC influence • Examine it carefully to see how it complicates the problem
4. Redefine the problem • Without SRC influence • Solve for the optimum business goal situation
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Developing a Global Awareness
Tolerance of cultural differences:
Understanding cultural differences and
accepting and working with others whose
behavior may be different from yours.
History and Geography
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What should we learn?
• The importance of history and geography in the understanding of international markets
• The effects of history on a country’s culture
• How culture interprets events through its own eyes
• The effect of geographic diversity on economic profiles of a country
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Global Perspective
• To understand a society’s actions and its points of view, you need to appreciate:
• The influence of historical events
• The geographical uniqueness to which a culture has had to adapt
To interpret a culture’s behavior and attitudes, a marketer must have some idea of a country’s
history and geography.
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Geography and Global Markets
• Affects a society’s culture and economy
• Physical makeup limits a nation’s ability to supply its people’s needs
• Altitude, humidity, and temperature extremes
Geography: element of the uncontrollable environment that confronts every marketer.
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Presentation - Argentina
QUICK FACTS:
Name: Argentine Republic
Population: 40.4 million (2008)
Capital: Buenos Aires
Other major cities: Cordoba, Rosario, Mendoza
Area: 1.1 million sq miles
Currency: Peso
GNI per capita: US$6,050 (WB, 2007)
Main exports: Grains, livestock, vegetable oils, machinery, cars
Language: Spanish
Religion: Catholic (70%), Protestant (9%), Muslim (1.5%), Jewish (0.8%)
Life expectancy: 72 years (men), 79 years (women)
Source: http://www.worldbank.org/
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Source: Inter American Development Bank - http://www.iadb.org
Geography
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Geography - Topography
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Geography - Resources
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Geography - Tourism
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Geography - Climate
Major population lives where temperatures are warm, but not extreme
-10 - 01 - 5
6 - 1011 - 1516 - 2021 - 30
Media Annual Temperature (C°)
Pacific Ocean
Atlantic Ocean
Amazonas
Patagonia
Río de la Plata
Andes Mountains
Amazonas River
Caribean Sea
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Rural/Urban Migration
• Result of a desire for greater access to:• Sources of education• Health care• Improved job opportunities
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Population is highly concentrated
7 countries concentrate
443 MM (78% of LATAM)
103
México
Chile
16
Argentina
40
182
Colombia
46
Venezuela
27
Perú
29
Brasil
Greatest 8 cities
concentrate 98 MM
(17% of Latam´s
population)
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Buenos Aires
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History - 500 Years of Trade
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History - Indians / Spanish
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History - First European Immigrations
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History - World´s Barn
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History - European Buildings
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History - Perón
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Emergency Villages
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History - Second European Immigrations
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History - Military Regimes
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History - Democracy
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History - 1to1 & Privatization
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History - 2001 Crisis
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History - Néstor & Cristina
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History - Private Neighbourhoods
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History - Private Neighbourhoods
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History Perspective in Global Business
• History helps define a nation’s mission• How it perceives its neighbors• How it perceives itself• Its place in the world
• Insights into history are important for understanding current attitudes
• It is necessary to study culture as it is now as well as to understand culture as it was (A country’s history)
History is Subjective: historical events always are viewed from one’s own biases and SRC.
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Summary
• A prospective international marketer should be reasonably familiar with the world, its climate, and topographic differences.
• Geographic hurdles must be recognized as having a direct effect on marketing and the related activities of communications and distribution.
• Without a historical understanding of a culture, the attitudes within the marketplace may not be fully understood.
• The study of history and geography is needed to provide the marketer with an understanding of why a country has developed as it has rather than as a guide for adapting marketing plans.
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www.nataliaceruti.com · [email protected]
Sources
• Cateora, P., Gilly, M. and Graham, J. (2009). International Marketing, 14th ed. New York: MacGraw-Hill.
• Czinkota, M. and Ronkainen, I. (2010). International Marketing, 9th ed. New York: Cengage Learning.
• Keegan, W. and Green, M. (2011). Global Marketing, 6th ed. New Jersey: Pearson Education.
• Kerin, R., Hartley, S. and Rudelius, W. (2007). Marketing The Core, 2nd ed. New York: MacGraw-Hill Irwin.
• Kotler, P. and Armstrong, G. (2006). Principles of Marketing, 11th ed. New Jersey: Pearson Education.
• Kotler, P. and Keller, K. L. (2009). Marketing Management, 13th ed. New Jersey: Pearson Education.