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The Challenges of Entrepreneurial and Global Marketing

Marketing ManagementSession 8

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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.ukwww.marketingweek.co.ukwww.ft.com (Financial Times)

Plus the UAE newspapers.

Industry Current Affairs

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Learning Outcomes1.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.

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What is an entrepreneurial business?

Define it?

Give me some examples of entrepreneurs and

their companies?

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• "Entrepreneurship is a management style that involvespursuing opportunity without regard to the resourcescurrently controlled. Entrepreneurs identify opportunity,assemble required resources, implement a practical actionplan, 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?

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Do you recognise these?

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Sahlaman’s Alignment Model

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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

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A Short Checklist for EffectiveEntrepreneurial Marketing

•Relationships Matter!•How will the startup get close to customers?•How will they leverage alliances and

partnerships?•How will they influence the market’s

infrastructure and the industry’s key players?•Going global: what is their international

strategy?

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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

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Plus the Double-Chasm Challenge1.The Market Chasm – based on the earlymajority’s perceptions of the innovation’s risks2.The Cultural Chasm – based on …Lack of experience of the venture’s leaders in each new country’s local culture.Lack of trust among adopters in each new country in the “foreign” company and its leaders.

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Product Life Cycle

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Analyzing the New Market

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Stanford entrepreneurship videos. •http://ecorner.stanford.edu/userFavorites.

html?uid=63

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International Advertising

•Multicultural•Pan-regional•Transnational•Multinational•Global

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Choice often dependent on firm’s overall management approach.

1. EthnocentricOther countries viewed as secondary to domestic operations.

2. PolycentricSecondary markets operate independently taking note of local market conditions.

3. GeocentricFirm views the whole world as a single market and standardises where possible and adapts where necessary.

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GlocalisationThink 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)

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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?

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Generic global communication strategies

1. Single Global Ad CampaignSame execution across the globe.

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Generic global communication strategies

2. Global Theme

Same advertising theme

but local execution such

as visuals.

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Generic global communication strategies

3. Global Brand Approach

Same brand name and

logo but different advertising

executions.

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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?

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Global versus local debate

Standardization TheoryStarted in the 1960’s

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.

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Definition of Standardised Approach (Wells 1989)

“Mar comms designed to promote the same product in different countries and cultures.”

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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.

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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

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Certain product categories seem to suit standardisation approaches.

American/other heritage high tech luxury teenage products.

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Definition of Adaptive Approach (Yin 1999)

“The use of different mar comms for different

markets in order to adapt to local market conditions.”

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Reasons for Adaptation

•Different TA, stage in PLC, brand attributes and brand identity.

•Different marketing objectives.•Cultural differences.

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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

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Challenges with globalization

1. The Creative Challenge

2. The Media Challenge

3.The Regulatory Challenge

4.The Culture Challenge

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The Creative Challenge

•Written and spoken language•Translation difficulties•Culture-bound “picturing”•Assumptions and inferences•Identifying cross-cultural icons and

symbols

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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

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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.

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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?.

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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.

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The reasons for sub-cultures.•Urbanization and

tribes•Ageism•Political change•Family and social

change•Feminism•Immigration

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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

gree

/ ag

ree

stro

ngly

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The Cultural CardMacro 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.

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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

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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.

42What Mar Comms Ideas Travel

DemonstrationWhat the brand does,how it works

Myths & ArchetypesUniversal fantasies,symbols, metaphors

Cultural valuesBy definition local•Idiosyncratic lifestyles,sports habits, etc.•Language: accents,word games•Reference local mediacelebrities

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

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Creative Concept Problems USPs often don’t translate.E.G. TicTac.USA - UPS is 2 hours freshness for only 2

calories.UK - UPS is mint is a sweet. Don’t care

about fresh breath or calories. •Problems also with actors and body

language.•Problems with metaphors, pace of

commercial and humour.

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So come and see me sometime

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project

We will now have 60 mins of group work on the

project and an opportunity for you to ask me

questions.