This document discusses the challenges of entrepreneurial and global marketing. It provides learning outcomes on understanding the entrepreneurship process, applying innovation models, and evaluating standardized, adaptive and glocalized marketing campaigns. It also discusses defining entrepreneurial businesses, examples of entrepreneurs, the new product development process, and factors to consider for entrepreneurial marketing. Challenges of globalization discussed include creative, media, regulatory and cultural challenges.
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Power Global Markerting and Entrepeneurial Stuff That will make you rich
This document discusses the challenges of entrepreneurial and global marketing. It provides learning outcomes on understanding the entrepreneurship process, applying innovation models, and evaluating standardized, adaptive and glocalized marketing campaigns. It also discusses defining entrepreneurial businesses, examples of entrepreneurs, the new product development process, and factors to consider for entrepreneurial marketing. Challenges of globalization discussed include creative, media, regulatory and cultural challenges.
This document discusses the challenges of entrepreneurial and global marketing. It provides learning outcomes on understanding the entrepreneurship process, applying innovation models, and evaluating standardized, adaptive and glocalized marketing campaigns. It also discusses defining entrepreneurial businesses, examples of entrepreneurs, the new product development process, and factors to consider for entrepreneurial marketing. Challenges of globalization discussed include creative, media, regulatory and cultural challenges.
Marketing Management Session 8 1 I expect you to know what is happening in the marketing discipline on a weekly basis.
Good sources for information would be: www.marketingmagazine.co.uk www.marketingweek.co.uk www.ft.com (Financial Times)
Plus the UAE newspapers. Industry Current Affairs 2 Learning Outcomes 1.Understand both the entrepreneurship and new product development process. 2.Learn to apply the Diffusion of Innovation and Double Chasm Challenge models. 3. Be able to evaluate standardised, adaptive and glocalised campaigns. 4. Be able to discuss the impact of the cultural card on marketing and mar comms decisions.
3 What is an entrepreneurial business?
Define it?
Give me some examples of entrepreneurs and their companies? 4
"Entrepreneurship is a management style that involves pursuing opportunity without regard to the resources currently controlled. Entrepreneurs identify opportunity, assemble required resources, implement a practical action plan, and harvest the rewards in a timely, flexible way.
Any attempt at new business or new venture creation, such as self-employment, a new business organization, or the expansion of an existing business, by an individual, a team, or an established business.
Tom Byers. What is Entrepreneurship? 5 Do you recognise these? 6 Sahlamans Alignment Model 7 8 Brassington, Petit, 2003 New Product Development process Idea Generation Idea Screening Concept Testing Business Analysis Product Development EG Robin Hood Test Marketing Commercialisation Monitoring and evaluation
A Short Checklist for Effective Entrepreneurial Marketing Relationships Matter! How will the startup get close to customers? How will they leverage alliances and partnerships? How will they influence the markets infrastructure and the industrys key players? Going global: what is their international strategy? 9 10 Diffusion of Innovation the spread of a new idea from its source of invention or creation to its ultimate users and adopters
Innovators Early adopters Early majority Late majority Laggards Ryan & Gross
Plus the Double-Chasm Challenge 1.The Market Chasm based on the early majoritys perceptions of the innovations risks 2.The Cultural Chasm based on Lack of experience of the ventures leaders in each new countrys local culture. Lack of trust among adopters in each new country in the foreign company and its leaders.
11 Product Life Cycle 12 Analyzing the New Market 13 Stanford entrepreneurship videos. http://ecorner.stanford.edu/userFavorites.html ?uid=63
14 International Advertising
Multicultural Pan-regional Transnational Multinational Global 15 Choice often dependent on firms overall management approach. 1. Ethnocentric Other countries viewed as secondary to domestic operations. 2. Polycentric Secondary markets operate independently taking note of local market conditions. 3. Geocentric Firm views the whole world as a single market and standardises where possible and adapts where necessary. 16 17 Glocalisation Think global but act local.
This is a another school of thought that offers a compromise between the standardise and adaption concepts.
A glocal strategy standardises certain core elements and localise others. (Kotler 1994) International marketing strategies Straight extension of both product and mar comms strategy Mar comms adaptation Product adaptation Dual adaption New product invention.
What have you noticed when you travel? 18 Generic global communication strategies
1. Single Global Ad Campaign Same execution across the globe.
19 Generic global communication strategies
2. Global Theme
Same advertising theme but local execution such as visuals.
20 Generic global communication strategies
3. Global Brand Approach
Same brand name and logo but different advertising executions.
21 Trends promoting global marketing Global communications Global youth Universal demographics and lifestyle trends Americanization of consumption values Increasing discretional spend.
Is this good or bad?
22 Global versus local debate Standardization Theory Started in the 1960s
Elinder argued that EU consumers are increasing living under similar conditions although language differs so comms can be similar.
Levitt in The Marketing Imagination stated that markets are becoming increasingly alike world- wide thus indicating a global approach. 23 24 Definition of Standardised Approach (Wells 1989) Mar comms designed to promote the same product in different countries and cultures. 25 Marketing Reasons for Standardisation No-cultural bound product. Similar legal and regulation conditions Same product with similar competition. Same TA Same stage in PLC Users appreciate same product attributes. Same brand name, logo, packaging. Massive cost savings. Arguments for using standardisation cont. Savings through economies of scale Messages are complementary and reinforcing Maintenance of central control Global media opportunities Little or no competition in many foreign markets
26 Certain product categories seem to suit standardisation approaches.
- American/other heritage - high tech - luxury - teenage products. 27 28 Definition of Adaptive Approach (Yin 1999) The use of different mar comms for different markets in order to adapt to local market conditions. 29
Reasons for Adaptation Different TA, stage in PLC, brand attributes and brand identity. Different marketing objectives. Cultural differences. Arguments against globalization Audiences in different cultures place value on different brand attributes. Global campaigns can defy local customs or ignore local competition. Local managers will not support a global campaign and message. Differing advertising literacy levels. Differing product life levels 30 Challenges with globalization
1. The Creative Challenge
2. The Media Challenge
3.The Regulatory Challenge
4.The Culture Challenge 31 The Creative Challenge Written and spoken language Translation difficulties Culture-bound picturing Assumptions and inferences Identifying cross-cultural icons and symbols 32 The Media Challenge Availability and Coverage Too few quality options Too many unmeasured options Too little knowledge of media /TA match.
Costs and Pricing Complex due to many options No set pricing in some markets Global coverage is expensive
33 The Regulatory Challenge What are the . . . Products that can be marketed and advertised? Appeals that can be used? Times that products may be promoted? Rules regarding foreign language use? Restrictions on using national symbols? Marketing to vulnerable groups.
34 Many macro culture countries like the UAE now have many micro cultures operating.
Note that ethnic differences are just one trigger but how can you del with this?. 35 The Culture Challenge
Definition
The learned behaviours of a people that come from traditions passed on from generation to generation. Or
The way we do things around here. 36 The reasons for sub-cultures. Urbanization and tribes Ageism Political change Family and social change Feminism Immigration 37 Acculturation - How do consumers feel they Fit in? 49% 53% 54% 64% 75% 74% 32% 30% 29% 25% 21% 27% 27% 24% 24% 20% 15% 11% 0% 10% 20% 30% 40% 50% 60% 70% 80% Up to 1 year 1-3 years 3-5 years 5-10 years 10-20 years 20+ years 'Feel comfortable with way of life in host country' 'Feel like I'm in the minority' 'Difficult to fit in with the host country way of life' %
a g r e e
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s t r o n g l y
38 39 The Cultural Card Macro and micro cultural differences often impact on the standardisation decision.
Note that these differences may be international or within a single country or within a single neighbourhood. Culture - manifestations How they dress What they eat What they listen to Their religion Their entertainment How they act and think How they look at the world 40 High Concept (not explicit cues) Low Concept (explicit cues) Hierarchical (high power difference) Egalitarian (low power difference) Collectivism Individualism Feminine (Quality of life, caring) Masculine (achievement, success) High Risk Tolerance (risk, ambiguity, uncertainty) Low Risk Tolerance (predictable, avoid uncertainty) Japan, China, Britain, Argentina U.S., Canada, Australia Malaysia, Japan, Mexico, France, India U.S., Canada, Australia, Denmark, Austria, Hungary Japan, Italy, Korea, Portugal, China U.S., U.K., Australia, Hong Kong, Taiwan Sweden, Brazil, Netherlands, France, Spain Japan, Korea, Hong Kong, Taiwan, Germany, U.S., U.K. Sweden, U.K., U.S., Denmark, Hong Kong Japan, Germany, Austria Cultural Profiling. Gert Hofstede. 41 What Mar Comms Ideas Travel Demonstration What the brand does, how it works Myths & Archetypes Universal fantasies, symbols, metaphors Cultural values By definition local Idiosyncratic lifestyles, sports habits, etc. Language: accents, word games Reference local media celebrities News and fashion Movies/television Celebrities Current events Basic human emotions Animals as human Children as vulnerable, curious, etc. The human condition - love, hate, fear, pain, joy 42 43 Creative Concept Problems USPs often dont translate. E.G. TicTac. USA - UPS is 2 hours freshness for only 2 calories. UK - UPS is mint is a sweet. Dont care about fresh breath or calories. Problems also with actors and body language. Problems with metaphors, pace of commercial and humour. So come and see me sometime 44 project
We will now have 60 mins of group work on the project and an opportunity for you to ask me questions. 45