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INDIAN INSTI.

OF PLANNING & MANAGEMENT


AHMEDABAD. SATURDAY, 13 th SEPTEMBER,2 0 0 8
IM-2*Cultural Environment of Global Mkts-Busi.custom
Dr. PRADIP DESAI
B.E. ,M.B.A. (I.I.F.T.), LL.B., Ph.D.(Management-U.S.A.),CMC
CERTIFIED MANAGEMENT CONSULTANT ( C.M.C.)
CHAIRMAN & C.E.O.

MOUN MARKETING CONSULTANTS


{ EXPORTS -MARKETING-IMPORTS -PROJECT-MGMT. CONSULTANTS}
804, ‘SHILP’ COMPLEX , TEL :0 7 9 -6 6 3 1 0 7 4 0 / 3 0 0 7 1 0 3 0
OPP.STATE BANK OF INDIA , MOBILE : 9 8 2 5 0 -1 1 2 0 0
NAVARANGPURA, C.G.ROAD, TELEFAX : 91- 7 9 - 2 6 4 6 7 1 7 1
AHMEDABAD -38 00 09 RES. : 66 3 1 0 730 /2646 3218
E-MAIL: info @ mouncorp. co.in * WEBSITE: www. mouncorp. co.in/mounconsult.com/
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GEOGRAPHICAL GLOBE-
ECONOMIC BLOCKS
• Developed countries: USA-CANADA
EU/JAPAN/Australia/S.KOREA/S.E.Asia
• Developing countries:BRAZIL-RUSSIA-INDIA-
China/E.Europe/Mexico/S.AFRICA/Middle East
• Under developed countries:Africa/Indonesia
/Latin American countries
* Below Poverty Line(BPL) :
zambia/malawi/uganda/tanzania/chaad/Ivory coast

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5 Factors of Production
• 4 FACTORS OF PRODUCTION :
• LAND/LABOUR/CAPITAL/MACHINERIES (LLCM)

• Land is given-can’t multiply-Prices always on rising


curve.
• Labour can be migrant e.g. E.U. is one country with
single passport & single currency-EURO
• Capital is highly mobile-goes where returns are more-
FDI go to Brazil/Russia/India/China/Mexico(BRICM)
• Machineries/Technology can be sourced with capital
• 5th factor : Intellectual Capital =HRM functions most
imp. This days e.g. Outsourcing from whereever
services are cheapere.g.India-Phillipines-Mexico-China
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CULTURAL PARAMETERS
• Culture of the class of people,socities,tribes,
religious beliefs,contries & continents is
vastly different.
• Cultural differences deeply affect Intl.Mkts.
/buyer behaviour which must be understood
Attitude/Belief/Ritual/Motivation/Perception/
Morality/Truth/Superstition/Timeliness/qualiy
/Service expectation/deliverables/satisfaction
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UNDERSTANDING CULTURE-
Foundation for Intl.Mktg.
• Definition of culture by Sir Edward Taylor:
It is a complex whole which includes
knowledge,belief,art,morals,law,custom and any
other capabilities & habits acquired by individuals
forming a group or society.
• Elements of culture :
1. Material life 2. Social Interactions 3. Language
4. Religion & faith 5. Ethics & moral values
6. Role & responsibility 7. Pride & Prejudice
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CULTURE & INTL.MKTG.
• CUSTOMER’S CULTURE
|
LIFE-STYLE ----------Behaviour Pattern
|
Action/strategies in the global market place
|
Impact on firm’s Mktg.Decisions
e.g. Insha Allah=God willing in S.arabia is common
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Edward T. Hall’s Cultural Map for cross-
Cultural Analysis of Consumer Behaviour
1.Determine relevant Motivation in culture
2. “ characteristic behaviour pattern
3. “ broad cultural values for the PRODUCT
4. “ characteristic forms of decision making-
PRICING keeping in mind `Value for Money’
5. Evaluate PROMOTION methods appropriate to
the culture
6. Determine appropriate DISTRIBUTION
channels for the product suitable to consumers
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Business customs in global
marketing
• Appointment time:USA/EU/JAPAN=V.IMP.
e.g.Bullet Train Experience:Tokyo-Kyoto
* Salutation:Good Morning/Bon Jour Meissure
/Guten morgan & vanakkam/namaste
* Japan/china/S.KOREA : Travel in big group as a
commercial/technical/marketing/financeTeam
• Speaks very less-does’nt make tall claims
• India/Pakistan/Bangladesh:Loud mouth/show–off
more than can deliver & fail in many commitment
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