NEED FOR ENVIRONMENTAL ADAPTATION IN INTERNATIONAL MARKETING PDF

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The criterion of self-reference and ethnocentrism, development of a global conscience, stages of participation in international marketing, the orientation of international marketing....

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NEED FOR ENVIRONMENTAL ADAPTATION IN INTERNATIONAL MARKETING

To adjust and adapt a marketing program to foreign markets, marketing executives must be able to efficiently interpret the influence and impact of each of the uncontrollable elements of the environment on the marketing plan for each foreign market in which they expect to have commercial activity. In a broad sense, uncontrollable elements constitute culture; the difficulty facing the marketing professional in adjusting to the culture lies in the recognition of its impact. In an internal market, the reaction to much of the impact of the (cultural) environment on the activities of the marketing executive is automatic; the various cultural influences that fill our lives simply form a part of our socialization and we react in an acceptable way to our society without being aware of it. On the other hand, the work of cultural adaptation is the most challenging and important faced by international marketing executives; they must adjust their marketing efforts to cultures they don't know about. When dealing with unknown markets, professionals should be aware of the reference frameworks they use to make their decisions or to assess the potential of a market, because judgments stem from an experience that comes from adapting to the culture of the country of origin. Once a frame of reference is established, it becomes an important factor in determining or modifying the merchant's reaction to situations, whether social or otherwise. For example, Americans who are so concerned about punctuality are not culturally prepared to understand the nuances of the meaning of time for Latin Americans. It is necessary to learn this difference to avoid misunderstandings that can lead to a failure of marketing activity. Such errors occur every time a sale is lost when the "long waiting period" in the anteroom of a Latin American customer is cause for misinterpretations for an American sales executive. Transcultural misunderstandings also occur when a simple ademan has different interpretations in various parts of the world. When you want to indicate that something is right, many people in the United States raise a hand and form a circle with their thumb and forefinger. However, this same ademan means "zero" or "worthless" to the French, "money" to the Japanese and a sexual insult in Sardinia and Greece. An American president sent an unintentional message to some Australian protesters when he raised two fingers in the air with the back of his hand aimed at protesters. Although his intention was to show the "V" of victory, he was not aware that in Australia that same sign is equivalent to the meaning given in the United States to raise the middle finger of the hand. Cultural conditioning is like an iceberg: we can't see a tenth with the naked eye. In any study of the market systems of different peoples, their political and economic structures, religions and other elements of culture, foreign marketing executives must constantly protect themselves from measuring and evaluating markets based

on constant values and assumptions, derived from their own cultures. They should always take specific steps to become aware of the cultural references of their own country, which they are introducing into their analysis and decision-making. The criterion of self-reference and ethnocentrism: major obstacles The key to the success of international marketing is adapting to environmental differences from one market to another. Adaptation is a conscious effort on the part of the international marketing professional to anticipate the influences of the uncontrollable factors, both foreign and internal, on a marketing mix and then the adaptation of said mix to minimize the effects. The main obstacles to success in international marketing are a person's criterion of self-reference (CAR) and associated ethnocentrism. CAR is an unconscious reference to one's cultural values, experiences and knowledge as a basis for decisions. One concept that is closely related is ethnocentrism; that is, the notion that people within the company itself, culture or country know better how to do things. Ethnocentrism was a specific problem for American managers in the early 21st century, due to America's dominance over the world economy during the last years of the last century. In general, ethnocentrism is problematic when administrators in prosperous countries work with managers and markets in less prosperous countries. Both CAR and ethnocentrism affect the ability to assess a foreign market in a true perspective. When faced with a set of facts, we react spontaneously based on the knowledge we have assimilated throughout our lives, which is a product of the history of our culture. We rarely stop to think about a reaction, we just react. In this way, when faced with a problem in another culture, our tendency is to react instinctively and appeal to our CAR to find a solution. However, our reaction is based on the meanings, values, symbols and behaviors that are relevant to our culture and generally differ from those of foreign culture. Often, such decisions are not correct. To exemplify the impact of CAR, consider the erquivocals that occur in relation to personal space between individuals who come from different cultures. In the United States, people who do not have a mutual relationship establish a certain physical distance from others when chatting as a group. They do not think consciously of that distance; they just know without thinking it's the right thing to do. When someone is too close or too far away, they feel uncomfortable and can walk away or approach to correct the distance. This behavior depends on CAR. In some cultures, the acceptable distance between individuals is substantially less than that which is comfortable for Americans. When someone who comes from another culture approaches too closely an American, the latter, who is unaware of the acceptable distance in that culture, reacts unconsciously away to restore the proper distance (i.e., appropriate according to their own standards) and causes a state of confusion in both partners. Americans assume foreigners are dominant, while foreigners regard Americans as unfriendly and literally "distant." Both react

according to the values of their own CAR, which makes them both victims of a cultural misunderstanding. Your criterion of self-reference may prevent you from being aware of cultural differences or from recognizing the importance of such differences. In this way, you may not record the need to act, ignore cultural differences between countries, or react to a situation in an offensive way towards your host. A common mistake Americans make is refusing to accept food or drink when offered. In the United States it is certainly acceptable to refuse kindly, but in Asia or the Middle East, the host would be offended if you do not accept your hospitality. Although you don't have to eat or drink much, you do need to accept hospitality offerings. Understanding and dealing with CAR are two of the most important facets of international marketing. Ethnocentrism and CAR can influence the assessment of the suitability of a locally designed marketing mix that will target a foreign market. If American marketers are unascientious about this aspect, they could evaluate the marketing mix based on American experiences (i.e. their CAR), without fully appreciating the cultural differences that require adaptation. The well-known ESSO gasoline brand has a successful name in the United States, which would seem harmless in other countries: however, in Japan the name phonetically means "drowned car", which is an undesirable image for representing gasoline. Another example is the word "pet" in PET Milk evaporated milk. The name has been around for decades, but in France the word pet means, among other things, a "flatulence"; again, this would not be the desired image for a canned milk. Both are examples of real mistakes made by major companies that come from making decisions based on their CAR. When marketers take the time to see beyond their own self-reference criteria, the results are more positive. A British chocolate biscuit maker ignored his CAR because he knew he had to pack his cookies differently to suit the Japanese market. In Japan, McVitie cookies are individually wrapped and packed in cardboard boxes, with prices three times higher than in the UK — in Japan, cookies are used as gifts and should therefore appear and be perceived as something special. Unilever, which has recognized the unique nature of its markets, changed the packaging and formulation of its detergent for the Brazilian market. One reason was that the lack of washing machines among the poorest Brazilians indicated the need for a simpler formula for soap. Also, because people wash clothes in rivers, the dust was packed in plastic containers, rather than paper, to prevent it from getting wet. Finally, since low-income Brazilians are well aware of the price and buy in small quantities, soap was packed in small, low-priced containers. Even McDonald's has modified his Big Mac for India, where he is known as Maharaja Mac. Two medallions of ground ram meat are used in this burger, because most Indians consider cows sacred and do not eat their meat. In each of these examples, if decisions had been based on the criteria of self-

reference of marketers, none of these necessary changes, based on their experience within the home market, would have been obvious. The most efficient way to control the influence of ethnocentrism and CAR is to recognize its effects on our behavior. It is clear that it is humanly impossible to fully understand all cultures and learn all the important differences, but being aware of the need to become aware of differences and ask questions when you have business in other cultures can help you avoid many of the possible mistakes in international marketing. Asking the right questions helped the Vicks company avoid making a mistake in Germany. They found that, in German, "Vicks" sounds like the most offensive term in slang to describe "intercourse." So, before introducing their product, they changed the name to "Wicks". You should also be aware that not all activities within a marketing program are different from country to country; in fact, there are likely to be more similarities than differences. For example, The McVitie chocolate biscuits we mentioned earlier are sold in the United States with the same packaging as in the UK. However, these similarities can lead the marketing executive to falsely assume that there is apparent equality. This apparent equality, along with the criterion of self-reference, is often the cause of problems in international marketing. There is no problem overlooking similarities; however, letting go of that one difference can create the failure of marketing. To avoid errors in business decisions, the informed professional will carry out a transcultural analysis that isolates the influences of CAR and maintains vigilance regarding ethnocentrism. To create the structure of such an analysis we suggest the following steps: 1. Define the problem or business objective based on the characteristics, habits or cultural norms of the country of origin. 2. Define the problem or commercial objective based on the characteristics, habits or cultural norms of the foreign country by consultation with persons of the nationality of the target country. Do not make value judgments. 3. Isolate the influence of CAR on the problem and examine it carefully to see how it complicates the situation. 4. Redefine the problem without the influence of CAR and solve to achieve the optimal business goal. A U.S. sales manager, who recently transferred to Japan, decided that his Japanese sales representatives did not need to show up at the office every day for a morning meeting before starting visits with his customers in Tokyo. After all, that's how things were done in America. However, the new policy, which was based on both the manager's CAR and a certain level of ethnocentrism, caused the hasty decline in sales results. In his later analysis with his Japanese staff, he determined that the main motivation of sales reps in Japan was pressure from his peers. Fortunately he was able to recognize that his CAR and american "commercial

acumen" did not serve in the case of Tokyo. The return to the proven system of daily joints caused sales results to return to previous levels. The approach to transcultural analysis requires understanding the culture of the foreign market, as does the culture itself. Surprisingly, understanding one's culture may require additional study, because much of the cultural influence on market behavior is maintained at an unconscious level and cannot be clearly defined. Developing a global consciousness Opportunities in global business abound for those who are prepared to face a multitude of obstacles with optimism and willingness to continue learning new modes of action. The successful entrepreneur in the 21st century must have a global conscience and a frame of reference that transcends a region, or even a country, and encompasses the world. Global awareness implies 1) tolerance for cultural differences and 2) knowledge of cultures, their history, the potential of the global market, and global economic, social and political trends. Tolerance of cultural differences is essential in international marketing. Tolerance is about understanding the differences between cultures, and accepting and working with people whose behavior may differ from one's own. It is not necessary to accept as one's own the cultural attitudes of others, but it must be accepted that others can be different and equal. For example, the fact that punctuality is less important in some cultures does not mean that they are less productive, only that they are different. The tolerant person understands the differences that can exist between cultures and uses that knowledge to relate effectively. A person who has global awareness is informed of cultures and their history. Knowledge of culture is important for understanding behavior in the market or in the boardroom. Historical understanding is important because the way people think and act is based on their history. The reluctance of some Latin American countries to foreign investment or the Chinese's refusal to fully open the up to other countries are more understandable when you have a historical perspective. Global awareness also implies knowledge of the potential of the global market and global economic, social and political trends. Over the next few decades, big changes will occur in the market potential of almost every region of the world, all of which must be under the continuous surveillance of a person with global awareness. Finally, an individual with global awareness will remain informed about global economic, social, and political trends, because a country's prospects may change as these trends change direction or accelerate. The former republics of the Soviet Union, along with Russia, Eastern Europe, China, India, Africa and Latin America are undergoing economic, social and political changes that have already altered the course of trade and defined new economic powers. The well-known marketing executive will identify opportunities long before they become apparent to others.

Global awareness can and should be integrated within organizations through various approaches. The obvious strategy is to specifically select individual administrators, according to their proven global awareness. It is also possible to gain global awareness through personal relationships in other countries. In fact, market entry is often greatly facilitated through previously established social relationships. With certainty, successful long-term business relationships, with foreign clients, often lead to an organizational global consciousness, based on the series of interactions that trade demands. Foreign agents and partners can directly assist in this regard. But perhaps the most efficient approach is to have a senior management executive staff or a board of culturally diverse directors. Unfortunately, compared to managers in most other countries, U.S. administrators seem to consider the latter approach to be relatively lower in value. Stages of participation in international marketing Once a company has decided to go on the international market, it has to solve the degree of participation and marketing commitment that it is prepared to carry out. These decisions should significantly reflect the study and analysis of the market potential and capabilities of the company—a process that is not always followed. Research has revealed several factors that favor faster internationalization: 1) Companies that possess high technology, marketing-based resources, or both, appear to be better equipped to access international markets than more traditional types of manufacturing companies; (2) smaller domestic markets and higher production capacities appear to favour internationalization; and 3) companies with managers in key positions that have good international connections have the ability to speed up that process as well. Many companies tentatively start their international marketing activities, growing as they gain experience and gradually changing their strategies and tactics when engaged more broadly. Others enter international marketing after extensive research and with widely developed and long-range plans, prepared to make investments aimed at acquiring a position in the market and frequently demonstrating sudden ons of international activity. One study suggests the possibility that the balance between the two in seals will be the best work, with the evaluation of a variety of conditions and characteristics of the company. Regardless of the means used to achieve entry to an external market, a company may make a small investment in the market or even its investment may be zero, i.e. its marketing commitment may be limited to the sale of a product with little or no attention to the development of market control. Alternately, you may commit completely and invest large sums of money and effort to capture and retain a permanent and specific position in the market. In general, it is possible to describe with one of five stages (which often overlap) a company's commitment to international marketing. Although here we present the commitment stages in linear order, it should not be inferred that one company is progressing from one stage to the next; on the contrary, you may start your international commitment at any stage

and be simultaneously at more than one stage. For example, because their products have a short shelf life and a limited but widespread market, many hightech companies consider the entire world, even their home country, as a single market and strive to reach all their potential customers as quickly as possible. A company at this stage does not actively cultivate its customers outside its national borders; however, your products may reach foreign markets. Sales may be made with foreign trade companies as well as foreign customers, through wholesalers or in-house distributors selling abroad, with no explicit encouragement or knowledge of the manufacturer. As companies develop websites, many receive orders from international users over the internet. Often, an unexpected order from a foreign buyer is what pesses the interest of looking for aggregated international sales from a company. Temporary surpluses resulting from variations in production levels, or demand, may lead to infrequent marketing abroad. Surpluses have the characteristic of being temporary; therefore, sales to foreign markets are made when goods are available, with little or no intention of maintaining constant representation in the market. As domestic demand increases and surpluses are absorbed, foreign sales activity is reduced or even eliminated. At this stage there is almost no change in the organization of the company or its production lines. However, few companies are currently fit this model, because it is increasingly common for customers around the world to seek long-term business relationships. Evidence even suggests that the financial benefits of such short-term international expansion...