-Education - Level

Analyzing educational for relevant markets gives the firm an insight into the nature and sophistication of consumer in different countries. In some countries many people are not formally educated in the three -Education - Level Rs, although they may be educated in ways of culture.

In marketing a new product in a foreign country, the firm is itself trying to educate consumers in uses and benefits -Education - Level of the product. The success of this sales communication will be constrained by the general level of education within the culture.

If consumers are largely illiterate, then company advertising, packaging and labeling will -Education - Level need to be adapted. Complex products that need written instructions may need to be modified into diagrams to meet the educational level and skills of the particular culture.

Module 7 Sales & Marketing Operations -Education - Level 5 Selected Marketing Applications
The language of a culture is important. For example, a literal translation by someone not familiar with its deeper cultural meaning may result in serious mistakes. If the brand name is -Education - Level standardized worldwide in English it may be found to have an unfavorable meaning in some countries, or not be pronounceable in languages that lack certain letters of the alphabet. A famed -Education - Level example of the former is that the Rolls-Royce Silver Shadow was nearly called Silver Mist which would have been most unfortunate when selling to the German market. A good example of -Education - Level the latter is Signal toothpaste, which was called Shield toothpaste.

^ -Social organization
Social organization differs between cultures. The primary kind of social organization is based on kinship and in many less -Education - Level-developed nations this takes the form of a large extended family. A company operating in such a society must realize that the extended family means that decisions on

consumption are taken by a -Education - Level larger unit and in different ways. A firm selling overseas may find difficulty determining the relevant consuming unit.

In many Asian and African countries, social organization is in tribal groupings -Education - Level which may be a clue to effective market segmentation. Social class is more important and more rigid in many foreign countries, e.g. the Indian caste system. The selling firm must be aware -Education - Level of the cultural variation in social organization when targeting sales efforts to a particular social segment of the population.

^ -Political factors
Cultures include all activities that characterize the behavior of particular -Education - Level communities such as legal, political and economic factors. Nationalism and dealings with governments are often considered to be a major problem facing firms selling overseas. Most governments play either participating of regulatory roles -Education - Level in their economies. In India, for example, certain sectors of the economy are reserved exclusively for government enterprise.

Government legislation and economic policy may affect a firm’s pricing and credit policy -Education - Level and there may be regulations concerning products and promotions. Factors like nationalism, international relations, political stability and the level of capitalism and democracy in the foreign country will have an impact -Education - Level on overseas sales strategy.

^ General cultural attitudes and values
In some cultures selling and trade in general have low social approval. A company selling overseas may thus have difficulty in recruiting appropriate sales personnel and -Education - Level selling products through the channel of distribution. Many Eastern cultures put spiritual values before material values.

Different cultures also have different ‘time values’. A much quoted example is in Latin American cultures -Education - Level, where sales representatives are often kept waiting a long time for a business appointments. In our culture this would be unorthodox and at best would be seen as being ill mannered. A -Education - Level delay in answering correspondence in the UK usually indicates that the matter has low priority. A similar delay in Spain could mean something different because their close family relatives take absolute priority -Education - Level. No matter how important other business deadlines, but in many Middle Eastern cultures a deadline is taken as an insult and such behaviour may well lose business for the overseas -Education - Level salesperson.

The concept of space has a different meaning to different cultures. In the West the size of an executive’s office is often an indication of his or her status. In the Arab -Education - Level world this is not so. The

Module 7 Sales & Marketing Operations 5 Selected Marketing Applications

managing director may use the same office as the general clerks, so the salesperson must be careful how -Education - Level she/he speaks to people. In the West business agreements are carried out at a distance, say two meters or more. In Middle Eastern and Latin American countries, business discussions are carried out -Education - Level in very close proximity, involving physical contact, which many Western salespeople fid strange.

In the West, business is discussed over lunch or dinner in the businessman’s home. In India, to discuss -Education - Level business at home or at any social occasion is a violation of hospitality rules. In the West we rely on the law of contract for all business agreements, but in the Muslim -Education - Level culture a man’s word is just as binding. In fact, a written contract often violates a Muslim’s sensitivities because it challenges his honor.

Subcultural influences must not be -Education - Level overlooked, because these are sometimes the dominant force in the country. Examples include the following:

^ Cultural change
A company following the marketing concept overseas – trying to satisfy needs and wants of target markets at a profit – must keep abreast of -Education - Level changes in the cultural environment that affect people’s attitudes and values and hence, indirectly, their needs and wants of products and services. In our own society the cultural values towards debt -Education - Level have changed. Debt has lost its stigma and is part of everyday life with the universal acceptance of credit cards.

Our society’s moral values have changed and we are -Education - Level more liberal and tolerant of matters like entertainment. Products and services demanded have reflected this change in cultural values. A firm must therefore be aware that its products may face obsolescence in overseas -Education - Level markets, not because of technical advance but because of cultural change.

Not only are a firm’s existing products vulnerable to cultural change, but the company may also miss new opportunities by not being -Education - Level informed of changes in culture. The impact of culture is especially important if the company is dealing with a foreign culture seeking rapid industrialization. It is necessary for a -Education - Level company operating in this type of environment to monitor trends and adapt as necessary. Not only must the firm selling overseas be versed in the economics, law and politics of a foreign country -Education - Level, but it will also have to understand the more subtle, less tangible, meanings, values and languages of the culture itself.

^ Organization for international selling
Organization to implement international sales operations can be complex. Decision -Education - Level must be мейд on arranging the interface between manufacturing and sales and in delegating responsibility for international operations. Each problem can have alternative solutions and an optimal decision must -Education - Level be tailored for each firm.

Some companies are so deeply are so deeply involved in international trade that it forms the majority of sales turnover, whilst others are simply content to supply -Education - Level export orders. A distinction

Module 7 Sales & Marketing Operations 5 Selected Marketing Applications

is мейд between multinational marketing, international marketing and exporting and each is now considered:

  1. Multinational marketing relates to companies whose business interests, manufacturing -Education - Level plants and are spread throughout the world. Although their strategic headquarters might be in an original country, multinationals operate independently at national levels. Multinationals produce and market goods within the countries they have chosen -Education - Level to develop. Examples of multinationals are shell, форд, coca-cola, Microsoft and McDonald’s. To be successful multinationals need to understand their competences and weaknesses. The Microsoft case history examines -Education - Level this company’s bright and dark side.

  2. International marketing covers companies that have мейд a strategic decision to enter foreign markets have мейд appropriate organizational changes and marketing mix adaptations.

Whatever -Education - Level the form of organization for overseas selling, it is important that there should be a senior manager charged with responsibility for exporting who is able to advice and influence colleagues. In choosing how to -Education - Level organize for international selling there is a division into indirect and indirect methods. Some of the more common forms of overseas sales organization are now described.

The choice of organization -Education - Level depends on a number of factors: the proportion to total turnover accounted for by overseas business, the nature of the product, relative advantages and disadvantages of each form of organization. There is no single -Education - Level uniform approach to the task. The keynote is flexibility and adaptability. We first consider indirect approaches to international selling.

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