Ese international marketing 2013

1
Massimiliano G. Falcone
MICRI VI a.a. 2011/2012 Massimiliano G. Falcone

Marketing communication
and Business strategy

Who?
Target Mkt Target Mkt

How?

Product Organization Mktg Mix Organization

From vision… … to the business
What?
concept
2 Massimiliano G. Falcone

Marketing

(archaic, until the 1920’s), shopping, going to market

Buying and selling in a market

Marketing
Marketing is the social process by which individuals and
groups obtain what they need and want through creating and
exchanging products and value with others
Kotler

Marketing is the activity, set of institutions, and processes for
creating, communicating, delivering, and exchanging offerings
that have value for customers, clients, partners, and society at
large.
American Marketing Association

Social, Political,
Corporate
Institutional
Marketing &
Marketing &
Communication
Communication

Market Analysis Stakeholders’
Requirements
& Selection Analysis

Designing
Entry Mode
strategic relations
Strategies
and local alliances

Communication Communication
strategies strategies


International Marketing consists of
• finding and satysfying global customer needs better
than competition, both domestic and international
• and of coordinating marketing activities with the
constraints of the global environment

Target
Market


World's Wealth distribution Year 2015 (forecast)

By Global Finance


The Next Eleven

Globalization 2.0

Falling of
First
Half Transportation
Cost

• Steam Engine

• Rail Road
.

Globalization 2.0 Infrastructure

11 MICRI VI a.a. 2011/2012 Massimiliano G. Falcone

Globalization 2.0 Infrastructure


Average cargo cruising speed
1000
800
km/h

600
400
200
0
Before 1930-60 Today Today
1930s (train) (airjet)

Source C.Altomonte (Bocconi)


Falling of
Second Half Telecommunic. Cost

.

Brief description of falling costs (Tlc, Transport)


Porter’s Diamond

• How the national playing field can contribute to the
competitive advantage of the industry? (1/6)

• What is nations’ e.g., Japan: “an island
position in terms of nation with no natural
Factor
factors of resources” – invented
conditions
production (labour, JIT to save space
land, infrastructure,
capital, natural
resources, etc.)?


Porter’s Diamond


• Does the home demand
gives the companies a
clearer or earlier picture
of emerging buyer
Factor needs? Demand
conditions conditions
• Do demanding buyers
push for innovation?

• Is the size of the home
market permit to get the
“critical mass”?


Porter’s Diamond


• Do national suppliers
offer most cost-effective
inputs of the needed
quality in an efficient,
Factor Demand
rapid way?

Supporting
industries


Porter’s Diamond


Firms
strategy,
structure &
Rivalry

Factor • Do national property andDemand
conditions capital markets structure
conditions
reflect the needs of a
particular industry?

e.g., family firms in Italy who
Supporting extraordinary
offer an
industries
flexibility, niche marketing,
customized products in
furniture, footwear, lighting
industry

Porter’s Diamond

competitive advantage of the industry?(5/6)

Firms
Government • Does government contribute
strategy,
to structure & of specialized
the creation
factors (skilled labour,
Rivalry
R&D)..?
Factor • Does it avoid intervening in Demand
conditions markets and protects conditions
competition?
• Does it enforce safety,
product and environmental
standards?
Supporting
industries


Porter’s Diamond


Firms
Government strategy,
structure &
Rivalry

Factor Demand
Industry

Supporting
Case
industries


Welcome  欢迎  Hoşgeldin 
BenvenuO  Huānyíng 
Bienvenue  歓迎 
 ‫ﻣﺮﺣﺒﺎ ﺑﻜﻢ‬
Bem‐vindo  (Kangei) 
Mrḩbā Bkm‫ ﺭ‬
Bienvenido  Спасибо  
23
Добро  пожаловать      
Willkommen  (Spasibo)  Dobro pozhalovat′

A Challenge
Please draw a map of the world as best you can within 5 minutes
Name as many of the countries as you can
Mark an country you have visited for a week or longer


The true size of
Africa

Source:
The Economist

By kay Krause
October 2010


Population

Major religions
ranked by size

Source: CIA Factbook

Another way to
view the world
Languages Number of speakers
Mandarin 1,213,000,000
Spanish 329,000,000
Languages
English 328,000,000
Hindi-Hurdu 221,000,000
Arabic 182,000,000
Bengali 181,000,000 Source: Ethnologue,
16th Edition
Portuguese 178,000,000
(2009)
Russian 144,000,000

Japanese 122,000,000
German 90,000,000


Cultural Map
of
the World

Inglehart-Welzel


Another way to
view the world
If we could shrink the world into a village of 100 people:
50 would be female: 50 would be male
26 would be children
8 would be over 65
60 would be Asian
• 5 would speak English
• 16 would suffer from malnutrition
• 23 would have not a place to shelter them from the wind and the rain
• 13 would not have access to clean, safe drinking water
• 7 would have a college education
• 22 would own or share a computer
In 2006, only 1 person out of 100 would have had a college education

The world’s 1,210 current billionaires, Forbes reported in March 2011,
hold a combined wealth that equals over half the total wealth


“Why we are here!”


Communication Process

Through a Medium:

• verbal: low context – high context
• non verbal

Encode Decode

Sender/Encoder Message Receiver/Decoder

Rumor

Feed-back Response

33

• Message  
  It consists of both verbal (spoken and wriTen) and non‐verbal symbols in order to 
transfer an informaOon 

• Sender – Encoder  
    As a sender – encoder, you use symbols that express you message and create the 
desired response 

• Receiver – Decoder  
   The message receiver is your reader or listener also known as decoder, as s/he 
decodes your encoded message. Receiver is inﬂuenced by his context and by his 
mental ﬁlter 

• Feedback 
   Feedback can be a desire acOon, an oral or wriTen message, or simply a silence  


Cross Cultural Communication


Coca-Cola in China was first rendered as Ke-kou-ke-la
Coke did not discover until
after thousands of signs had
been printed that the phrase
means or “female horse
stuffed with wax,”

Coke then researched 40,000
Chinese characters and found a
close phonetic equivalent, “ko-
kou-ko-le,” which can be loosely
translated as “happiness in the
mouth.”


The American slogan for Salem cigarettes, “Salem—Feeling Free”

translated in the Japanese market into “When smoking Salem, you feel
so refreshed that your mind seems to be free and empty”

Nike Air shoes showing flaming logo Nike Air flaming logo Nike offended
Muslims in June, 1997 when the "flaming air" logo for its Nike Air sneakers
looked too similar to the Arabic form of God's name, "Allah”

Nike pulled more than 38,000 pairs of sneakers from the market

Drakkar Noir: Sensuality and touch culture
in Europe and Saudi Arabia
Source: Field (1986)


Colgate introduced a toothpaste in France called Cue

was the name of a local porno magazine

Scandinavian vacuum manufacturer Electrolux


Verbal 
Lost in transla6on 
Business / Busy    Negocio / Ocio 
Coca‐Cola: “Can’t beat the feeling” “I feel Coke” “The feeling of life” “Sensazione 
unica” 
“Today is a  
beauOful day” 

Visual (colors, nude…) 

Role (gender, age, dressing codes/look, context…) 

Symbolic language (6ger in Esso, Jeans) 

41

Culture Context  

Low‐context countries: more  High‐context countries:  meaning is 
emphasis is placed on words,  determined by nonverbal cues, social 
directness, and 6me (deadlines and  rela6onships and indirect 
schedules)  communica6on such as metaphors 
and aphorisms 


Technology Political
Educational Dress Structure
Theory
Family Patterns System Language
Development
Customs Music
Social
Stratification Behavior Economic
Food System
Architecture

Climate Demography

Beliefs, values,
assumptions and norms

History

Geography Genetics

Culture is the collective programming of the mind which distinguishes the
members of one human group from another.
• ulture is learned
C
• ulture is interrelated
C
• ulture is shared
C

Individual culture
National/
behaviour/
Regional culture
opinions

Culture

Business/
Company culture
industry culture


A Challenge

Please write words that relate to
“Cross - Culture”


A Challenge: Words

Did any of the following words appear into
your definition?
For Cross Culture:

 Cultural Interaction  Two or more
 Global  Different Cultures
 Intercultural (Syn)  Cultural Spheres
 Human Activities  Multiple Cultures
 Together  Understanding
 Interdisciplinary  Languages
 Orientation

Definition: Cross-Cultural

Interacting with &/or
comparing two or more
cultures, & understanding
their values, beliefs, &
norms.


Cultural Dimensions


Culture Context

Low-context countries: more High-context countries: meaning
emphasis is placed on words, is determined by nonverbal cues,
directness, and time (deadlines social relationships and indirect
and schedules) communication such as
metaphors and aphorisms


Cultural Dimensions (Geert Hofstede )

Uncertainty
Power Distance
Avoidance

Cultural
Dimensions

Feminine Vs. Collectivism Vs.
Masculine Individualism


Hofstede’s Cultural Dimensions

• Extent to which less powerful members of
Power Distance
institutions and organizations accept that
power is distributed unequally
– High power distance countries: people blindly
obey the orders of their superiors, centralized
and tall organization structures
– Low power distance countries: flatter and
decentralized organization structures, smaller
ratio of supervisors



• Extent to which people feel threatened by ambiguous
Power situations and have created beliefs and institutions that
Distance try to avoid such situations
– High uncertainty avoidance countries: people
Uncertainty have high need for security, strong belief in
experts and their knowledge, structured
Avoidance
organizational activities, more written rules, less
risk taking by managers
– Low uncertainty avoidance countries: people
are more willing to accept risks associated with
the unknown, less structured organizational
activities, fewer written rules, more risk taking
by managers, higher employee turnover, more
ambitious employees



• Individualism: Tendency of people to look after
Power Distance
themselves and their immediate family only
– Countries high in individualism: tend to be
wealthier, support protestant work ethic, greater
Uncertainty individual initiative, promotions based on market
Avoidance
value
• Collectivism: Tendency of people to belong to
Individualism/ groups or collectives and to look after each other in
Collectivism
exchange for loyalty
– Countries high in collectivism: tend to be poorer,
less support for protestant work ethic, less
individual initiative, promotions based on
seniority



• Masculinity: a culture in which the dominant social
Power Distance
values are success, money and things
– Countries high in masculinity: great importance
on earnings, recognition, advancement,
Uncertainty challenge, and wealth. High job stress.
Avoidance
• Femininity: a culture in which the dominate social
values are caring for others and the quality of life
Individualism/ – Countries high in femininity: great importance
Collectivism
on cooperation, friendly atmosphere,
employment security, group decision making,
and living environment. Low stress and more
Masculinity/
employee freedom.
Femininity


Country PDI IDV MAS UAI
Power Distance Individualism Masconlinity Uncertainty Avoid.

Arab World 80 38 52 68
Australia 36 90 61 51
Brazil 69 38 49 76
Canada 39 80 52 48
China 80 15 55 40
Colombia 67 13 64 80
Denmark 18 74 16 23
East Africa 64 27 41 52
France 68 71 43 86
Germany 35 67 66 65
India 77 48 56 40
Indonesia 78 14 46 48
Italy 50 76 70 75
Japan 54 46 95 92
Mexico 81 30 69 82
Norway 31 69 8 50
Philippines 94 32 64 44
South Africa 49 65 63 49
Uk 58 35 89 66 Massimiliano G. Falcone
35
Usa 40 91 62 46

Time and Truth


Time

Monochronic Polychronic

• Time viewed as scarce resource; • Time is seen as plentiful,
tangible commodity; “time is indefinitely available; no
money”. economic value.
• Prefer to deal with one task at a • Stress involvement with people;
time; low tolerance for able to do several things at the
interruptions. same time; interruptions the
• Linear view of time: divided into norm.
precise, distinct units; • Cyclical view of time: more
scheduling, deadlines and patience and less urgency;
punctuality valued. natural rhythm to events.

Temporal Orientations:

Past: Emphasize Present: Focus on Future: Emphasis
role of past in “here and now”; on planning, setting
present situation. fatalistic element. goals; future will be
“bigger and better”.


Nature of Reality and Truth
Facts vs Feeling

• Truth is synonymous with • Truth is determined
facts and figures. through interpretation,
reasoning and logic.
• Rationality is valued over
emotion. • Intuition and emotion are
valued to balance
• An inductive approach is
rationality.
favored : theory is derived
from data and experience. • A deductive approach is
favored: solutions are
derived from theory.


A framework for conceptualizing underlying
cultural assumptions
Bridging Assumptions

• rientation to Space
O
External Adaptation Internal Integration
Distant/Intimate • uman Nature
H
• an’s Relationship with Nature
M Basically good / Basically
Control/Harmony/ • rientation to Time
O • ature of Human Relationships
N
Constraint Task /Relationship
High Tolerance /Low Monochronic /Polychronic
Masculinityfemininity
Tolerance of uncertainty Past/Present/ Future
• ature of Human Activity
N Individualistic/Collectivist
• ommunication Style
C
Doing / Being Universal/Particular
• ature of Reality and Truth
N
Egalitarian / Hierarchical
Facts feelings High Context /Low Context

Instrumental/Expressive

Adapted from: Schneider, S.C. & Barsoux, J-L., 2003. Managing Across cultures, 2nd Ed. Harlow England: Prentice Hall/FT.


Nonverbal Communication



all elements of communication that do not involve words

Functions of Nonverbal Communication

• To provide information

• To regulate interaction

• To express or hide emotion and affect

• To express power and control



Proxemics
• an individual’s perception & use of space

Kinesics
• study of body movements, including posture

Facial & Eye Behavior
• movements that add cues for the receiver

Paralanguage
• variations in speech, such as pitch, loudness, tone,
duration, laughing-crying

Proxemics: Territorial Space

Territorial Space –
bands of space extending outward from the body;
territorial space differs from culture to culture
a = intimate < 15 cm
to 46 cm
b = personal 46 to 76 cm
76 to 120 cm
c = social 1.2 to 2.1 m a
2.1 to 3.7 m b
c
d = public 3.7 to 7.6 m d


SPACE

BODY LANGUAGE


Facial and eye behaviour
Paralanguage


the GLOBE Project: Global Leadership
and Organizational Behaviour Effectiveness

• 9 Dimensions:
– Uncertainty avoidance
– Power distance
– Collectivism I: Social collectivism
– Collectivism II: In-group collectivism
– Gender egalitarianism
– Assertiveness
– Future orientation
– Performance orientation
– Humane orientation


Introduction to GCI

Policies
the set of
Institutions

Factors
responsible
for the level
of economic
prosperity

Measured by the Global
Competitiveness Index

Impossibile trovare nel file la parte immagine con ID relazione rId1. Impossibile trovare nel file la parte immagine con ID relazione rId2. Impossibile trovare nel file la parte immagine con ID relazione rId3.

Factor Efficiency Innovation
Driven Driven Driven
Economy Economy Economy


Criteria of deciding the stages
• Percent of specific types of goods allocated in total
export

• Level of GDP per capita at market exchange rates:

Stage 1 Factor Driven GDP/Cap < 2.000

• Transition from stage 1 to stage 2 2.000-3.000

Stage 2 Efficiency Driven GDP/Cap 3.000-9.000

• Transition from stage 2 to stage 3 9.000-17.000

Stage 3 Innovation Driven GDP/Cap > 17.000


•

1) Institutions
Key for
Basic 2) Infrastructure
3) Macroecon. stability factor-driven
requirements 4) Health and primary economy
education

1) Higher education
2) Goods mkt efficiency Key for

Efficiency 3) Labor mkt efficiency efficiency-
Enhancer 4) Financial mkts driven
5) Technology economy
6) Mkt size

Key for
1) Business
Innovation sophistication innovation-
factors driven
2) Innovation
economy


“Strategy” derives from the Greek:
* "stratos" – meaning army.
* "ago" – which is the ancient Greek for leading/guiding/moving.

Rooted in the Military
Originated in business with
the emergence of the business
schools (Wharton and Harvard)


The AFI Strategy framework
External
Analysis:
- Market
- Industry
- Competition

Internal
Analysis:
Implementation
Resources and
Competencies

Formulation:
Corporate Formulation:
Strategy: Business
Diversification, Strategy:
differentiation, Innovation and
cost leadership. competitive
Acquisitions, advantage
alliances


Home Country Target Country
Factors Factors

PEST
Foreign Market
Entry Mode
Decision
SWOT

Firm’s Firm’s
Products/Services Resources/Capabilities


From Environmental uncontrollables to controllable resources and capabilities

Political Economic
Legal Forces

Cultural Political Compet. Competitive

forces Legal Price Product Forces

Promotion Distribution

Economic climate

Geography Level of
Infrastructure Technology
Structure of
Distribution


SWOT Analysis

Strengths S W
Weaknesses
Opportunities
Threats

O T

SAMPLE SWOT ANALYSIS FRAMEWORK

Internal External
Threats
Factors Strengths Weaknesses Factors Opportunities

 Management  Economic

 Marketing  Competition

 Manufacturing  Consumer

 R&D  Technology

 Finance  Legal/Regulatory

 Offerings  Industry/Market
Structure


Adapted from: Mintzberg, H. “The Strategy Concept

Deliberate versus Emergent Strategies

Sustained
Superior
Realized Performance
Unrealized Strategy
Strategy

Emergent Strategy


Abell’s Framework
for Defining the Business

Source: D. F. Abell, Defining the Business: The Starting Point of
Strategic Planning (Englewood Cliffs, Prentice Hall, 1980)

Ambidexterity

capable of exploiting existing competencies as well as exploring
new opportunities with equal dexterity

EXPLOIT EXPLORE
Refinement, choice, search, variation,
production, risk taking,
efficiency, selection, experimentation,
implementation, play, flexibility,
execution discovery,
innovation

90 MICRI VII a.a. 2012/2013 Massimiliano G. Falcone

Ese international marketing 2013

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