2. The global marketplace continues to grow –Capitalism is gaining acceptance –Advancement in technology –Reduction in trade barriers

3. International Trade Who Benefits from International Trade? –Consumers – Benefit from the competition –Producers – Able to expand their businesses –Workers – Higher employment rates –Nations – Increases standard of living

4. Global Marketplace The global marketplace causes companies to change their marketing approach Have to market according to the culture you are trying to sell to Marketers must be savvy with cultural diversity and a foreign society’s value system.

5. A cross-cultural analysis should be performed prior to conducting business in foreign countries –Language & Symbols: Unlucky Numbers #13 in the US; #4 in China –Holidays & Religious Observances: McDonalds sells chicken, fish, and veggie burgers instead of beef –Social & Business Etiquette: Gift Giving Standard & polite in some countries; bribery in others

6. Factors Influencing Buying Decisions Social Factors Individual Factors Psycho- logical Factors Cultural Factors CONSUMER DECISION- MAKING PROCESS BUY / DON’T BUY

7. Culture Set of values, norms, attitudes, and other meaningful symbols that shape human behavior and the artifacts, or products, of that behavior as they are transmitted from one generation to the next.

8. LO 5 Components of Culture Myths Language Values Customs Rituals Laws Material artifacts

9. Culture is... Learned Functional Pervasive Dynamic

10. Cultural Diversity The United States is becoming more diverse Rapid growth in the Hispanic culture affects –Food, Music, Clothing, & Entertainment African American women are the fastest- growing segments in America –Black women tend to drive family decisions –Advertisers target them as result

11. Value Enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct.

12. Core American Values Silent Generation (1945 or earlier) –Great Depression / WW II –Conservative, frugal Baby Boomers (‘45-’64) –Wealth, youth, & carefree Generation X –Accept Diversity & individualism Generation Y –More serious, socially aware, tech savvy Success Materialism Freedom Progress Youth Capitalism

13. Cultural Differences Marketers need to know how to reach each generation –The Marketing mix for each generation will vary Marketers need to know how to reach various cultures –In Brazil being skinny is most important –Will take drugs with side effects whereas in China they don’t really care about weight

14. Cultural Differences Companies are becoming more global –Rituals, Traditions, Appearance, Language, Interests will vary from one culture to the next –Need to know how customers will react to the advertisements you create

15. Coca-Cola Coca-Cola sells “Diet Coke” in Japan under the name “Coke Light” In India soft drinks are reserved for guests & that water is mainly consumed so Coca-Cola has to come up with ads that matched that preference

16. Marketing Adjustments UPS trucks in Spain had to repainted because they resembled hearses In Germany, the brown uniform was changed because no one had been required to wear brown since 1945

17. International Marketing Blunders General Motors tried to market the Chevy Nova in Mexico but the term “no va” means “no go” in Spanish The soft drink Fresca was marketed under that name in Mexico … before the company discovered that ‘fresca’ is a slang term for lesbian in parts of Mexico. Pepsi used the slogan “Come Alive With Pepsi” in Taiwan … or so they thought. The slogan was actually translated as: "Pepsi brings your ancestors back from the dead." The Coors slogan "Turn It Loose," was translated into Spanish as "Suffer From Diarrhea."

18. Approaches to Market Globally

19. International Marketing Company wants to expand internationally –Globalization –Adaptation –Customization

20. Globalization: Selling the same product and using the same promotion methods in all countries. Only a small portion of products that are common to all global customers can use this marketing strategy. Example: Coca-Cola, Microsoft

21. Adaptation is a company’s use of an existing product &/or promotion to which changes are made to better suit the characteristics of a country or region. Companies study characteristics of countries to identify that regions target market –Products and promotions are adjusted according to a particular country’s target market –In Sweden, McDonalds only uses adults in its advertising because it is illegal to advertise to children –French companies can’t use nude males in United States

23. Customization: involves creating specially designed products or promotions for certain countries or regions. Referred to as “Individual Marketing” because you tailor a product to meet specific needs Each geographical area where a product is sold or a service is offered becomes a unique market segment.

24. McDonalds & Customization McDonald’s is in 121 countries all over the world Brand is globally recognized but their menu is customized based on their location –Think Globally, Act Locally

25. Jordan

31. Assignment Based on the country you chose Friday Go online to learn that countries norms, culture, way of life –http://www.cyborlink.com/besite/http://www.cyborlink.com/besite/ –https://www.cia.gov/library/publications/the-world-factbook/https://www.cia.gov/library/publications/the-world-factbook/ Choose an existing product that can be adapted to meet the countries needs Create a customized product that meets that countries wants and needs

32. Assignment What is due? –A prototype of your adapted & customized product Drawing Photoshop Physical Item –Explanation as to why your adaptations & customizations will work

33. Country Person/Partner AustraliaLibby & Austin Brazil BritainJack & Eric CanadaLouie & Joe ChinaUthman & Dhiraj France GermanyAlec & John ItalyShannon & Maggie Japan MexicoRyan & Nate RussiaShannon & Maggie SpainJackson & Brett KhakistainMichael & Blake