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Cultural issues in International Marketing Research

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Jochen Schrag

on 23 June 2015

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Transcript of Cultural issues in International Marketing Research

WELCOME
CULTURAL ISSUES IN INTERNATIONAL MARKETING RESEARCH
Intercultural Management SoSe 2015
by Jochen Schrag

AGENDA
1. Difference between Market Research and Marketing Research
2. Culture
3. Reasons and objectives of International Marketing Research
4. Steps of International Marketing Research
5. Failures in International Marketing
6. Conclusion
7. Quiz
8. Exercise
Source: http://www.switchvideo.com/2015/02/13/21st-century-marketers-can-learn-1950s-mad-men/
1. Difference between Market Research and Marketing Research
Main difference:
Scope of the concept

Market Research:
more narrow and focused on a specific market
subset of Marketing Research

Marketing Research:
much broader level
includes Marketing Mix ("Four P´s")
Source: A Concise Guide to Market Research : The Process, Data, and Methods Using IBM SPSS Statistics / by Marko Sarstedt, Erik Mooi
American Marketing Association 2004
(ICC/ESOMAR international code on market and social research 2007
2. Culture
Elements of culture:

Norms and values
Patterns of behavior
Beliefs
Habits
Language
Institutions
8. Exercise
3. Reasons and objectives of International Marketing Research
Source: https://www.youtube.com/watch?v=GOHvMz7dl2A.Y

3. Reasons and objectives of International Marketing Research
Reasons:
National differences between countries
cultural, social, economic, legal and political
Language differences
Differences in the way that products or services are used
Problem of comparability
Diversity and complexity of the international environment

Objectives:
Avoid mistakes
Common Understanding
Increase International trades
Comparability of results

4. Steps of International Marketing Research
6. Conclusion
THANK YOU
FOR
YOUR ATTENTION
QUESTIONS
Never underestimate the importance of local knowledge
Be aware of cultural differences
Research in order to avoid mistakes ( private life)
1. Problem/ Opportunity Definition
What is the Problem?

Consider all aspects of a problem
Problems may differ among countries
The purpose to use a product can differ among countries
Example: Bicycles
Source: httpwww.altfunnixsiel-ostfriesland.deimagesfahrradfahren-01.jpg
http://www.fid-gesundheitswissen.de/bilder-responsive/gallery/768-Fahrradfahren-fahrradfahren-Fotolia-42537134-c-lassedesignen.jpg
Source: http://www.gosocial.co/23-of-the-most-overloaded-vehicles-you-have-ever-seen/
What are bicycles made for?
References
Books
:

Shao, A & Zhou, K 2006, Marketing Research: An aid to decision Making, 3rd edn, Atomic Dog.

Gates, C & McDaniel, R 2008, Marketing Research Essentials, 7th edn, John Wiley & Sons Inc.

Kumar, V 2000, International Marketing Research.

Usinier, J & Lee, JA 2013, Marketing across cultures, 6th edn, Pearson.

De Mooij M, 2010, Global Marketing and Advertising: Understanding Cultural Paradoxes, 3rd edn, SAGE.

Hollendsen, S 2014, Global Marketing, 6th edn, Pearson.



References
Academic Articles and Papers:

Becker-Olsen, K, Taylor, C, Hill, R, & Yalcinkaya, G 2011, 'A Cross-Cultural Examination of Corporate Social Responsibility Marketing Communications in Mexico and the United States: Strategies for Global Brands', Journal Of International Marketing, 19, 2, pp. 30-44, Business Source Premier.

Bhalla, G, & Lin, L 1987, 'Cross-Cultural Marketing Research: A Discussion of Equivalence Issues and Measurement Strategies',Psychology & Marketing, 4, 4, pp. 275-285, Business Source Premier, EBSCOhost, viewed 9 June 2015.

Buil, I., De Chernatony, L. & Martínez, E. 2012, "Methodological issues in cross-cultural research: An overview and recommendations", Journal of Targeting, Measurement and Analysis for Marketing, vol. 20, no. 3-4, pp.

Hollis, N 2011, 'Globalization In Context', Journal Of Advertising Research, 51, pp. 37-41, Business Source Premier, EBSCOhost, viewed 9 June 2015.

Javalgi, R, Granot, E, & Brashear Alejandro, T 2011, 'Qualitative Methods in International Sales Research: Cross-Cultural Considerations', Journal Of Personal Selling & Sales Management, 31, 2, pp. 157-170, Business Source Premier.


References
Online Sources:

http://geert-hofstede.com/national-culture.html

http://www.switchvideo.com/2015/02/13/21st-century-marketers-can-learn-1950s-mad-men/

https://www.youtube.com/watch?v=GOHvMz7dl2A.Y

https://www.wto.org/english/res_e/statis_e/its2013_e/its2013_e.pdf

http://glantz.net/blog/campaigns-that-failed-to-translate

http://de.slideshare.net/GrahamMcInnes1/international-marketing-blunders?
next_slideshow=1

http://www.businessnewsdaily.com/5241-international-marketing-fails.html

A Concise Guide to Market Research : The Process, Data, and Methods Using IBM SPSS Statistics / by Marko Sarstedt, Erik Mooi
American Marketing Association 2004
(ICC/ESOMAR international code on market and social research 2007



References
Images:

http://www.altfunnixsiel-ostfriesland.deimagesfahrradfahren-01.jpg

http://www.fid-gesundheitswissen.de/bilder-responsive/gallery/768-Fahrradfahren-fahrradfahren-Fotolia-42537134-c-lassedesignen.jpg

http://www.gosocial.co/23-of-the-most-overloaded-vehicles-you-have-ever-seen/

http://www.kfc.fr/medias/images/thumb.jpg

http://www.hul.co.in/Images/Packshot-Pepsodent-Centrefresh-450x450_tcm114-298130.jpg

http://www.grayflannelsuit.net/blog/wp-content/uploads/2013/07/united-airlines-logo_1974-1993.png

http://blog.evacuumstore.com/image.axd?picture=2010/5/nothing_sucks_like_electrolux-600x299.jpg

3. Reasons and objectives of International Marketing Research
International trade is booming:

In 2012 merchandise exports of WTO members totalled
US$ 17.3 trillion





The United States was the world’s biggest merchandise trader in 2012:

Exports: US$ 1,546 bn
Imports: US$ 2,336 bn
Source: https://www.wto.org/english/res_e/statis_e/its2013_e/its2013_e.pdf
5. Failures in International Marketing
Source: http://glantz.net/blog/campaigns-that-failed-to-translate
http://de.slideshare.net/GrahamMcInnes1/international-marketing-blunders?next_slideshow=1
http://www.businessnewsdaily.com/5241-international-marketing-fails.html
http://www.kfc.fr/medias/images/thumb.jpg
http://www.hul.co.in/Images/Packshot-Pepsodent-Centrefresh-450x450_tcm114-298130.jpg
http://www.grayflannelsuit.net/blog/wp-content/uploads/2013/07/united-airlines-logo_1974-1993.png
http://blog.evacuumstore.com/image.axd?picture=2010/5/nothing_sucks_like_electrolux-600x299.jpg
4. Prepare for Data Collection
Decision about how to and what kind of data should be collected

Not all methods of data collection can be used the same way in every country

5. Collect Data
6. Analyze Data
Primary Data VS. Secondary Data



5. Collect Data
Secondary Data




Collection and analysis is fast
Cost-effective
Uses already collected data
5. Collect Data
Primary Data

Necessary when secondary data is not available
Time and cost intense

Focus groups
Telephone interviews
Personal interviews
Survey research
Necessary data may not be available
Lack of accuracy
Data not comparable across countries
Outdated
5. Collect Data
5. Collect Data
Cultural issues regarding collecting data:

Surveys
:
Germany: Very conscientious about time
France/ Italy: More relaxed about time
England: Too polite to stop a interview

Language:
China (Asia): no adequate translation
In general: Translation is crucial


Source: http://geert-hofstede.com/national-culture.html
Usunier, J & Lee, J (2013)
Source: Shao, A & Zhou, K. (2006)
Kumar, V. (2000)
Source:
Source: Kumar, V. (2000)
Gates, C & McDanieal, R (2008)

Source: Shao, A & Zhou, K. (2006)
Kumar, V. (2000)
Hollensen, S. (2014)
Bhalla & Lin (1987)
Source: Becker-Olsen, Taylor, Hill & Yalcinkaya (2011)
Kumar, V. (2000)
Source: Kumar, V. (2000)
de Mooij, M. ((2010)
Source: Shao, A & Zhou, K. (2006)
Kumar, V. (2000)
Source: Hollis (2011)
Buil, De Chernatony & Martinez (2012)
Kumar, V. (2000)
Source: Kumar, V. (2000)
Javalgi, Granot & Brashear Alejandro (2011)
Hollis (2011)
World picture test

- Form groups
- Each group gets a sheet of paper and pen

Task:
- Draw a map of the world as best you can
- Draw the borders between the countries
- five minutes duration




7. Exercise
Results & discussion
In the best case it could look like this... ;)
Source: http://www.clker.com/cliparts/Q/o/7/o/s/P/black-white-outline-world-map-no-background.svg
4. Steps of International Marketing Research
4. Steps of International Marketing Research
4. Steps of International Marketing Research
4. Steps of International Marketing Research
4. Steps of International Marketing Research
4. Steps of International Marketing Research
Different perceptions across countries:

Rating Scale:
Germany: 1 = very good
Norway/ Sweden: 1 = very bad

France: 20 point scale normal
Germany/ USA: 5 or 7 point scale





Source: Kumar, V. (2000)
7. Quiz
bit.ly/1K6RxSV

Cultural issues regarding collecting data:

Telephone interviews:
US: acceptable (96%)
China: inappropriate (7%)

Personal interviews:
Saudi Arabia: Not allowed to interview women
Asia: preferred, moreover they like to interact
Brazilian & Italian: "The courtesy effect"

Focus groups:
Saudi Arabia: Mixed-gender focus groups are forbidden
Latin America: Tend to be missleading

Full transcript