The rapid growth and dynamic changes in international business in the past several years made a magnificent unmatched value of international marketing for each scaled companies, customers as well as national economies. Both small and medium scaled companies as well as huge multinationals improved the opportunities to be able get into foreign markets as goods & services, technologies and ideas go straightforwardly to national borders. All companies can also make customers individually in abroad as providing effectively good products, services and ideas in the condition of analysing and evaluating international marketing as well as improving proper strategies.
International marketing and export management sixth edition Gerald albaum and Edwin duerr prentice hall (financial times) (2008) London sayfa 1
Having adaptation to environmental differences among markets is fundamental key to international marketing. People's needs may vary in terms of cultural in the markets of countries which are entered in by firms in order to benefit from economic advantages. Therefore, there should be detailed analysis, evaluations and studies regarding people's cultural structures and needs before getting in to country markets. Thus, it is most likely that firms can reach success in foreign markets. At this point, it is very important to ensure compliance to different country cultures.
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Terpstran (1987) has defined culture as follows: "The integrated sum total of learned behavioral traits that are manifest and shared by members of society". Notlarda ilk not chapter 3
ETHNOCENTRISM AND SELF - REFERENCE CRITERION (SRC)
Lee (1966) coined the term 'self - reference criterion' as a handy concept to keep away from cultural bias. He recommended firstly that issues should be identified in terms of cultural traits, habits or norms of home society. Afterwards, they should redefine foreign cultural traits, habits and norms without being bias. He mentioned that the difference between these two specifications is a kind of indicator of possible cultural bias, or SRC effect which can be eliminated and examined carefully in order to see how it influences the concept or the problem. Following this examination brings about that the problem is redefined with bias removed. The value of this approach lies in forcing the manager posing the problem to make specific his or her assumptions about the cultural elements affecting the problem and to question whether or not they hold for another culture. International marketing and export management sixth edition Gerald albaum and Edwin duerr prentice hall (financial times)(2008) London sayfa 128
"Ethnocentrism" is the tendency to see one's culture to be better to others. The key is to think about how these biases may appear in the way of dealing with members of other cultures. Gozluklu adam marshall unv.
Usunier and Lee (2005) suggests a four-step approach to eliminate SRC.
- Define the problem or goal in terms of home country cultural traits, habits and norms.
- Define the problems or goals in terms of the foreign culture, traits, habits and norms
- Isolate the SRC influence in the problem and examine it carefully to see how it complicates the problem
- Redefine the problem without the SRC influence and solve for the foreign market situation.
The problem about this approach is that culture may be unseen or invisible. However, the approach gives helpful procedures for the scope of need regarding standardisation or adaption in marketing planning. Notlarda ilk not chapter 3
The process of enculturation to obtain empathy through a foreign country market is not simple. It necessitates;
- Cultural empathy
http://books.google.co.uk/books?id=UU1yPY2UwhMC&pg=PA84&lpg=PA84&dq=self+reference+criterion&source=bl&ots=O078jltaS8&sig= 2pHt5hi6A_WEdoO_I2QnjpH4TNc&hl=en&ei=kv_ASpjTJ4usjAfUvMVC&sa=X&oi=book_result&ct=result &resnum=9#v=onepage&q=self%20reference%20criterion&f=false
CROSS - CULTURAL ANALYSIS
Dealing with dissimilar customs, perceptions and languages the most ordinary human being tendency is to stereotype the other party in a negative way. Understanding other cultures is frequently based on patience and tolerance. Showing trust, dignity and respect are precious circumstances for some cultures such as Japanese, Chinese, Mexican and most Latin American cultures. Furthermore, Japanese might need some meetings before real negotiation issues are talked about, while North Americans and North Europeans have tendency so that they do business within the shortest possible time. Culture affects the scope of strategies that are applied as well as so many ways involved. Israeli would rather direct forms of negotiation and Egyptian prefers an indirect forms. The Egyptians rates Israeli as directness, they are abused and aggressive, while Israelis views about Egyptian indirectness with impatience and consider it dishonest. Thus, this cultural differentiation puts in danger negotiations among business people in these two countries. Global marketing third edition svend hollensen prentice hall financial times (2004) uk sayfa 622
AIMS OF CROSS-CULTURAL ANALYSIS
Always on Time
Marked to Standard
Cross-cultural communication or inter cultural communication refers to how people are in communication from different cultural backgrounds. Besides, this gives some guidelines to people from different cultures how to communicate with each other in a better way.
Culture is shared particularly by members of a group, has an interpretative function. Even though, groups or societies share their own cultures, they may modify their expressions of culture-resultant behaviour individually in terms of their personalities, brought up style and life experiences. In the meantime, cross-culture analysis intends to activate this effective function of culture as a key for making communication goes up as well as human adaptation. Cross-culture is known as the discipline of international management concentration on cultural meetings, wants to catch out keys in order to touch on cultural disparities which are recognised as a complication and breakdown in communication. http://ezinearticles.com/?How-To-Understand-Cross-Cultural-Analysis&id=403111
THE ROLE OF CULTURE IN ENTRY DECISIONS
Country culture is defined as the key of environmental features emphasizing systematic differences in behaviours. Because of the power of cultural norms and beliefs, consumer perception, dispositions and behaviours are forced to shape. National culture strictly needs to be taken into consideration in terms of entering to international marketing. Thus, companies' goods & services as well as existence will be culturally satisfactory in customers' eyes.
International marketing ogenyi omar palgrave macmillan 2009 sayfa 151.china first edition
HIGH AND LOW CONTEXT CULTURES
Hall (1977) supported that the concept of high and low context cultures brings about how to understand different cultural orientations. For instance, in low context cultures such as Northern Europe, things must be explained in written way instead of stating verbally that's because of person's word is not trusted. On the other side, in high context cultures, such as Japan and the Middle East people's words are their bond. Above all, it is the matter of confidence. Notlarda ilk not chapter 3
context cultures; rely on spoken and written language for meaning. Senders of message encode their messages, expecting that the receivers will accurately decode the words used to gain a good understanding of the intended message.
context cultures; use and interpret more of the elements surrounding the message to develop their understanding of the message. In high - context cultures the social importance and knowledge of the person and the social setting add extra information and will be perceived by the message receiver. Global marketing a decision - oriented approach third edition svend hollensen2004 pearson education limited London
SELF REFERENCE CRITERION EFFECT
Strictly speaking, researcher or marketing managers are supposed to get rid of the SRC effects so that they are able to look into a phenomenon in other countries. Marketing managers need to check whether first assumption can be applicable or not because of other cultures. Being aware of effects of SRC is really precious that's because of assisting managers to strangle shifting of personal cultural norms on whole sale basis to foreign markets. Thus, managers will be able to have more customer orientation as well as new marketing strategies that are most likely produce real market requirements. Besides, fire insurance marketing can be used to specify the situation in a better way. For instance, to American consumers it is definitely reasonable and useful to buy fire insurance. On the other side, it is not easy to push Brazilian consumers to have fire insurance due to being superstitious. Apparently, there would be a fire if they purchased fire insurance because of their superstitions and beliefs. Because of this reason, even they do not want to think of buying.
International marketing, strategy and theory fifth edition sak onkvisit and john J. shaw 2009 India replica press sayfa 186
Michael Eisner, CEO of the Walt Disney World Company, said, "Fantasy is very hard work. However, hard work does not always lead to success, especially when international expansion occurs".
Euro Disney was established at $4 billion by Disney in France in 1992. In spite of planning and investigation sustained more than 7 years, Disney made a major mistake in its history did cost Disney to lose $1.03 billion. Because, Disney ignored a very serious thing was culture difference between Europe and itself especially French. According to Marty Sklar, Vice Chairman and Principle Creative Executive of Walt Disney Imagineering, "The Japanese told us from the beginning, 'Don't Japanese us.' What that meant was, 'we came here for Disney. We came here for America. Don't give us Japan, we know Japan." Disney thought about the same strategy may be brought off in Europe. Though, European people have got different point of view.
OVERCOME SELF-REFERENCE CRITERION AND ETHNOCENTRISM OBSTACLES
THE FUTURE OF EURO DISNEY S.C.A
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Euro Disney S.C.A had reasonably profit last 6 years. Though, the overall net loss of resort was more than $700 million in 1992. It has been flat since 1997 is record year with 12.5 million people, even though participation has been mostly high. In that regards, there should be made some changes about profitability to obtain and pick up holiday experiences of guests. Euro Disney's target is to make attendance go up and enhance expansion of guest's staying. To be able to reach the goal, there are some requirements should be come off. One of them is "Overcome Self-Reference Criterion and Ethnocentrism Obstacles"
Adaption to environmental disparities is essential to succeed in international marketing from market to market. Adaption is precious for international marketers so that they can predict the power of foreign and domestic factors are out of control over marketing mix as well as fixing marketing mix to reduce effects as much as they could. Self-reference criterion (SRC) and associated ethnocentrism (Cateora) is the first obstacles on international marketing to succeed. Disney management mainly has decided to use SRC- unconscious reference based on own experiences, cultural values as well as knowledge to decisions (Cateora) at the beginning of operation and improvement of Disneyland Paris. The idea in Ethnocentrism was recognised that companies or cultures have the best view to deal with things (Cateora), making decision culturally based on the control of obstacles. Euro Disney S.C.A has reached achievement by decreasing ethnocentrism as well as disregarding their SRC. Disney adapted to European culture through success of some training programs and community outreach teams. Basically, this success should be sustained and go up so that Disney can do well while taking care of the media in the future.
CROSS - CULTURAL SCENARIO: INSHALLAH
Stefan Philips who works as a manager for a big US airline company was transferred to Dhahran in Saudi Arabia for establishing a new office. Even though, he has gone for some works in Brussels and Paris, he has not got enough preparation to work in Arab business world. One day, he told his wife how frustrating to work with local employees because of they do not take responsibility. They say 'Inshallah' (if God wants ) when there is a problem about something. As coming from a culture there is no issue unsolved. He could not see the point how local employees are inactive to deal with and sort out problems. And he said that "if I hear one more inshallah, I will go crazy".
Marketing across cultures jean claude usunier pearson education limited third edition 2000 london
A Chinese subsupplier and brand manufacturer of motorcycles is aiming at the global market
In 1992 Yin mingshan established the Lifan Group in Chongqing together with nine employees. Yin Mingshan was then 54 years old. He came from a job as an editor in the Chongqing Publishing Agency. Lifan started out being a supplier of motorcycle parts to original equipment manufacturers (OEMs) of complete motorcycles and later became a supplier of complete motorcycle engines. Today it is a producer of its own branded Lifan motorcycle.
In ten years Lifan has developed into a state - level, large private enterprise Chongqing Lifan Industrial (Group) Co., Ltd. There are more than 3800 employees in the Group which includes eight companies, three marketing companies and one city level technical centre. Lifan was the first private company to establish a Party Committee within the company to help in the development of the company.
In September 2001 Lifan motorcycles were first sold to Japan, and overwrote the history of no motorcycles being exported to Japan from china. In Vietnam Lifan motorcycles have absolute predominance; the commercial counsellor of the Vietnam Embassy in China said: in Vietnam, the Lifan brand is more famous than Honda.
In order to make the best use of its brand Lifan is manufacturing as an outsourcer household electrical goods, wine, anti - theft doors, mineral water, garniture, sports shoes, etc. and building a Lifan pyramid with motorcycles, engines, automobile electrics, agricultural machines and media.
In 2002 the Lifan Group achieved the following sales:
- 714000 branded motorcycles, placing it fourth in the Chinese motorcycle industry
- 1840000 motorcycle engines, which made it number one in the Chinese motorcycle industry.
More than 1 million motorcycle engines were exported to foreign markets. In 2002 Lifan had total sales of $478 million, of which $117 million came from export. Its motorcycles were exported to over 70 countries.