Term
*Chapter 12: Distribution and Sales Promotion
What is the difference between western and eastern styles of distribution? |
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Definition
Wester= short, more impersonal
Eastern= relationship oriented, more expensive, long (takes a long time to get $$ |
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Term
Chapter 12: Distribution and Sales Promotion
What is unique about Japanese distribution? |
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Definition
Products go through many different distribution channels causing inflated price and making business relationships very valuable.
The Keiretsus: Japanese distribution system
-physically rooted in the Japanese landscape and explains how it also depends on the Japanese national character.
-Channels involve a direct-relationship with final customers, serving and informing them, they deeply reflect cultural idiosyncrasies
-vertical and horizontal alliances along the banks |
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Term
Chapter 12: Distribution and Sales Promotion
What should be the considerations in setting up a distribution system? |
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Definition
Consumer beliefs such as -
-Where to shop, how (coverage)
-Expectations of service
-Attitude toward e-commerce, catalogs
-Attitude toward self-service
-Attitude toward imports
Choice of Distribution channel- consider these***
-product: image (luxury?) need for consumer training?
-competition: control over distribution, Power
-costs: transportation, insurance, warehousing
-system: bicycle rickshas in China and India
-Control: Coke developed their own distribution system in Japan
9 C's to remember:
1-Culture
2-Character: Image of Channel
3-Capital
4-Cost of Trade Margins
5-Competition
6-Coverage
7-Continuity
8-Control
9-Consumer Characteristics |
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Term
Chapter 12: Distribution and Sales Promotion
How do the logistics of direct marketing vary across countries? |
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Definition
Catalogs increasing:
-decreased cost- international credit card?
-Restrictive location: store hours
Cultural concerns:
-postal service
-custom delays
-mailing lists
-language & literacy
-ethics & privacy |
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Term
Chapter 12: Distribution and Sales Promotion
How do shoppers vary across countries? |
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Definition
-E-commerce
-Business to business
-Consumer to consumer
-Business to consumer
Vary across cultures by
-where they shop
-their expectations of service
-their attitude toward e-commerce catalogs
-attitude toward self-service- task centered/relationship
-attitudes toward imports
ALSO- characteristics/influences on shopping behavior
-shopping behavior-
-time wasted?
-return of goods standard?
-who is the shopper?
-degree of loyalty?
-hours of operation- do they conflict with religion/tradition
-attitude of sales associates or service in general
-attitude toward waiting lines
-attitude toward a company's ethical behavior |
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Term
Chapter 12: Distribution and Sales Promotion
How does sales promotion vary across countries? |
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Definition
-coupons
-level of literacy
-consumer/retailer sophistication
-low social status implications
-contests and sweepstakes
-legal requirements
-prize suits target market tastes
-stamps and collections
-future orientation needed
-high inflation
-levels of channel sophistication
-price offers
-absence of price displays
-bargaining
-free samples
-interpretation of gratuity
-trade misuse
-theft of sampled products
-gifts (In, on, or near packs)
-legal requirements
-theft by channel employees or customers |
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Term
*Chapter 12: Distribution and Sales Promotion
What are the differences between a long and short distribution system? |
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Definition
Long:
goes through many different people, very long chain, each step someone marks the price up, it takes a long time (delivery)(from manufacturer to retailer)
Short: |
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Term
Chapter 13: Communication
What is meant by "high" or "low" context? |
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Definition
High context:
relationship based, care about other people (e.g. China)
-relationships more important than tasks
-actual words not important
-context important, who says it, where, when implicit
Low context:
tasks are more important than relationships- get down to business, competition is welcome (e.g. USA)
-tasks*
-actual words are what count
-context: unimportant, explicit |
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Term
*Chapter 13: Communication
How does non-verbal language vary across countries? |
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Definition
High context cultures- actual words are not important
(e.g. US, Canada, context [status and deliver] is important)
Low context cultures- actual words are important |
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Term
*Chapter 13: Communication
What are the differences in how people use language? |
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Definition
High explicit:
what is said is not what is done
Low implicit:
they do what they say and say what they do |
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Term
*Chapter 13: Communication
How can languages vary within a country? |
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Definition
Anglo-Saxons- Northern Europeans = direct
Latin Americans= mixed
Asians and blacks= indirect and vague |
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Term
Chapter 13: Communication
*How is the way Japanese communicate different than Americans? |
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Definition
The Japanese: 9 ways to say 'no'
1. Vague 'no'
2. Vague and ambiguous 'yes' or 'no'
3. Silence
4. Counter question
5. Tangential responses
6. Exiting (leaving)
7. Lying (equivocation or making an excuse- i.e. sickness, previous obligation, etc...)
8. Criticizing the question itself
9. Refusing the question |
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Term
Chapter 13: Communication
What is the "Self reference criteria"? |
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Definition
1. Define the problem and objectives
-According to customs & standards (home)
-According to customs & standards (host)
2. Isolate the influence of SRC & identify the extent it complicates the problem
3. Redefine the problem without SRC bias and find solutions to fit the cultural context |
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Term
Chapter 14: Advertising
How do attitudes toward advertising vary across countries? |
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Definition
Similarities:
-Strategy- copy strategy to media planning, testing, and account management.
Differences:
-Targets an how they se products in local contexts
-Importance of benefits
-Availability, relative importance and cost of each media
-Advertising regulation
-Tactics |
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Term
Chapter 14: Advertising
How do advertising appeals vary across countries? |
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Definition
High context:
-visually oriented
-less facts
-how product feels
-indirect/implicit
Low Context:
-verbally oriented
-more facts
-how product works
-direct/explicit
Individualist:
-more lessons
-direct
-people alone
-uni-generational
Collectivist:
-fewer lessons
-indirect
-people in groups
-multi-generational
Masculine:
-associate with successful, rich, important people
Feminine:
-associate with nice, friendly people
High Power Distance:
-Older/celebrity presenters
Low Power Distance:
-Younger/ordinary (people) presenters
Japanese ads:
-Soft shell, more emotional appeals, less comparative appeals
Korean ads:
-family well-being, group goals, conservative, harmony, direct
USA ads:
-individuality, independence, self-improvement, ambition, personal goals/benefits |
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Term
Chapter 14: Advertising
How do media vary across cultures? |
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Definition
Copy:
-Target populations
-literacy rates
-languages
-cultural dimensions
Symbolism:
-Colors
-Male/female relationships
Media Types (vehicles):
-TV
-Cable TV
-Radio
-Internet
-Outdoor
-Direct mail
-mobile phone |
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Term
Chapter 14: Advertising
How do social customs across countries affect advertising? |
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Definition
***Tactics (more than strategy) depend on local social norms
-Visuals: Actors, houses, clothing
-Use of Humor (what is funny?)
-family models, individual roles, etc...
-Taboos-
-Nudity
-Illness and death
-guts and bowels
-drinking
-smoking
-legitimacy of comparative advertising
**What should be the stressed benefits?
*Affects the approach- standardize, customize, dub, maintain same feeling or theme?
E.g.
USA ads:
-individuality
-independence
-self-improvement
-ambition
-personal goals/benefits
Japanese ads:
-soft sell
-more emotional appeals
-fewer comparative appeals
Korean ads:
-family well-being
-group goals
-conservative
-harmony
-direct |
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Term
Chapter 14: Advertising
Should advertising be standardized or customized? |
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Definition
Pro-Standardization:
-consistent image across markets
-less confusion to consumers who travel
-less preparation time (campaign themes, copies and materials)
-control planning and execution of local campaigns (creative costs are lower but media costs are at their highest here)
Anti-Standardization:
-Use of same products and services are culture bound
-does not respond to local customs
-colonial orientation may be irritating
-"Global" often equates with US
-Higher creative costs
One opinion:
Advertising should be standardized because it provides a consistent image across markets, avoids confusing mobile customers, may decrease the cost of preparing campaign themes, enables firmer control over the planning and execution of campaign across markets. |
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Term
*Chapter 14: Advertising
In what different ways can international advertising be organized? |
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Definition
-In-house v. consulting firms/agencies
-international advertising agencies: local subsidiaries, local ad agencies, global networks
Also
-Targets: how they use certain products in local contexts.
-Importance of benefits
-Availability
-relative importance and cost of each media
-tactics |
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Term
*Chapter 14: Advertising
How does Asian advertising differ from American? |
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Definition
Asian Advertising:
-Japanese appeals- soft sell, more emotional appeals, fewer comparative appeals- Collectivism
United States Advertising:
-American appeals- Individuality, Independence, self-improvement, ambition, personal goals/benefits |
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Term
Chapter 15: Sales and PR
How do sales approaches vary across cultures? |
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Definition
-Most international sales are B2b
-Most are large contracts
-Most are on-going (need relationship)
-Trend is using local sales manager
Sales approaches vary by
-sales force (objectives)
-compensation or length of contracts
-Cultural values
Also-
You have to be aware of the differences in social status, influence of people on others and how it is exerted and be aware of the decision making process. |
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Term
**Chapter 15: Sales and PR
How does sale management vary across cultures? |
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Definition
| The current trend is to use a local sales manager... |
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Term
*Chapter 15: Sales and PR
Why does being international make PR more important? |
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Definition
Because the job of the PR department is to represent the company and the company image- international business makes PR even MORE important because the image, practices, motives, processes, beliefs, and ethics of the company will be communicated and perceived globally.
I t is important that the PR department is projecting an image that is consistent with the company's business plan and strategies otherwise consumers may negatively perceive the company or its reputation and this will lead to negative buzz marketing in which the PR department will responsible for "damage control" |
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Term
*Chapter 15: Sales and PR
What is the difference between bribes and "grease"? |
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Definition
Bribe:
when a person is using money to either hide something about themselves (their company) or to keep someone else's mouth shut
Grease:
When I go to the bar and slip the front guy 20$ to let me cut the line. |
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Term
Chapter 16: Negotiations
What is most important in international negotiations? |
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Definition
The MOST important aspect of international negotiations is building trust****
Trust facilitates negotiations
-Define in advance your interests
-learn behavior norms of your partner's culture
-DONT rush to get to know your partner
-PREPARE= learn the country + learn the culture
-BE PATIENT |
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Term
Chapter 16: Negotiations
How do negotiations vary across cultures? |
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Definition
negotiations vary by
-social trust
-problem solving orientation
-communication style and formality
-attitudes toward litigation
-business ethics and illegal payoffs
-frankness directness (low context v. high context)
-integrative strategy
Germany:
High generalized social trust, High formality (titles, last names, polite)
Brazil:
Low generalized social trust
USA:
Generalized social trust - was high, now lower
known for being litigious, but only as a last resort
Australia:
Low formality (first names, rough) |
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Term
Chapter 16: Negotiations
What are some problems Americans have in negotiations? |
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Definition
Americans are often described as lazy, physically and mentally so problems may occur in negotiations when Americans are too pompous to learn the culture of their foreign business partner. They can be disrespectful by not knowing the language, traditions, behavioral norms, and ESP business practices.
Americans are prone to bringing business to the court room. Sometimes that is bad because business should be done through negotiations not a court room. It's about both sides coming to an agreement, not a third party making the decision. |
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Term
Chapter 17: Negotiating Styles
What is the negotiation style of the Chinese? |
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Definition
The Chinese are collectivists and their business partnerships are based on quality relationships. They are relationship oriented so getting to know their foreign business partner is more important than keeping to a time schedule.
They often begin relationships with a tradition of drinking tea with foreign partners to build rapport before negotiations begin.
Also-
Negotiate like playing poker, don't show a face and try and make out his hand. |
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Term
Chapter 17: Negotiating Styles
What is the negotiation style of the Japanese? |
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Definition
-Well prepared
-Highly enthusiastic
-Buyer more powerful
-Conceal high degree of emotions
-Highly empathic
-Prefer personal agreement
-Long-term oriented
-High Context |
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Term
*Chapter 17: Negotiating Styles
What is the negotiation stye of the Americans compared to Black Africans? |
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Definition
Black Africa:
-Highly verbal
-Polyglots
-Enjoy debating
-Money has a different meaning
-Family and tribe very important
-Time is flexible
Americans:
-mostly use/know only english
-money is important
-independence/individualism more important
-Time is not flexible |
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Term
*Chapter 17: Negotiating Styles
What is the negotiation style of the British compared to the Mexicans? |
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Definition
Mexico:
-Family and political ties important
-High power distance
-Status important
-Truth not expected
-Competitive
-Relaxed Time
British:
-soft shell approach
-very confident
-can be pushed
-not intimidated by money
-influenced by a diplomatic negotiation |
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Term
Chapter 17: Negotiating Styles
What is the negotiation style of the French compared to the Germans? |
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Definition
Germany:
-High UA- follow rules!
-Want hard facts, sound arguments
-like formality
-work by consensus
-pride in technical ability
-low context
French:
-arrogant
- |
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Term
Chapter 17: Negotiating Styles
What should be in a Country Analysis? |
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Definition
-Banking and financial markets
-business regulations
-sales and marketing
-human resources
-infrastructure
-investment trends
-market outlook
-tax rules and trade conditions |
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Term
Chapter 17: Negotiating Styles
What should be in a International Marketing plan? |
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Definition
-SWOT analysis
&
-product selection
-place of distribution
-promotional activities and events
-price point (& pricing strategy) |
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