curs master 9

8/10/2019 Curs Master 9

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Slide 5.1

Usunier & Lee, Marketing Across Cultures, 4E Pearson Education Limited, 2005

Chapter 5Local consumers and the globalization of

consumption

Marketing

AcrossCultures


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Slide 5.2


Trend towards homogenization

Globalization of demand

Consumer behaviour (Ch 5)

Marketing environments (Ch 6)

Globalization of supply & competition

(Ch6)

Globalization of offerings

(Ch8)


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Slide 5.3


Michael Porters view of world markets

1. Global Industries:Competition on aworldwide basis due to

absence of regulatory barriers high experience effects

homogeneity of consumerbehaviour across countries

quasi-absence of market barriers

relatively low transportation costs,

customs duties, and non-tariffbarriers

2. Multi-domestic Industries: Fragmented national markets

international competition within foreach domestic market(pharmaceuticals, motor insurance)

If products, consumer, behaviour,or elements of the marketing mix

depend on culture (culture-bound), multi-domesticity isstronger

There exists a continuum frompure global to fully multi-domestic

Service industries change from

multi-domestic to global (GATS) Optimal location of the value

chain is a key issue

A view of preventive and reactive strategy based on competitive forces

bargaining power vis--visboth customers and suppliers and

the pressure of substitute products and technological alternatives


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Slide 5.4


Key factors to be monitored:

Industry trends towards globalmarkets

Basic reasons for continued multi-domesticity (such asclimate, geography, resources)

Market deregulation / WTO or other worldwide treaty vs.persistence of local regulation (e.g. motor insurance)

International standards / certification

Consumer behaviour: remaining idiosyncrasies and theirdurability (over 5, 10, 20 years)

Local products / service solutions (e.g. bundled vs.unbundled insurance services for households)


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Slide 5.5


Defining market strategy

Basic concepts may differ: even seemingly similar,concrete concepts, such as syrup or coffee

The function(s) of similar products may vary across

markets; examples: beer, bicycle, TV Market surveys do not apply in the same way cross-

nationally because of local market researchinfrastructure and local response styles

How then to compare across national markets? Similarities and differences are in the eye of the observer: we

always start comparing from a reference point (issue ofethnocentrism)


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Slide 5.6


Demand forms and IM strategies Primary Demand (Dp) = demand to all potential suppliers for a

generic item (aggregate demand for aspirin in a particular country)or for broad generic needs (e.g. demand for transportation)

If primary demand is low (or nil) => Try to educate the consumer

Selective demand (Ds) = demand to the firm for all its brands in aparticular product category (demand for aspirin from Bayer)

If selective demand is low => Try to increase market share againstestablished competitors on the local scene

Demand to the brand (Dm )= demand for a particular brand(demand dAriel, Procters washing powder/liquid)

If Dm = 0 or => Try to establish brand locally, that is, gain consumerrecognition and build brand image

Dp = Ds

Ds = Dm


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Slide 5.7


Primary demand in a national/regional

context is influenced by Climate

Physical environment

Functional benefits searched for by consumers

Non-functional benefits (status, image, etc.)

Interface functional/non-functional (e.g. pens)

Education/socialization (Vegemite/Cenovis)

Habits in early childhood Purchasing power issues (they also matter and

they are too often forgotten !)


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Slide 5.8


Global Convergence

Broad product categories over a long time

Through imitation of foreign consumption

patterns and adoption of foreign items whichbecome progressively global and local

Globalization and modernization

Socio-demographic trendsAge, size of household, proportion of immigrants,

gender equality


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Slide 5.9


Major airline alliances (2004)Air Canada

Air New Zealand

All Nippon

Asiana

Austrian

Bmi British MidlandLOT Polish

Lufthansa

SAS

Singapore Airlines

Spanair

Thai Airways InternationalUnited Airlines

US Airways

Varig

Aer Lingus

American Airlines

British Airways

Cathay Pacific

Finnair

IberiaLAN-Chile

Qantas

Aeromexico

Air France

Alitalia

Continental

CSA - Czech

Delta Air LinesKorean Air Lines KLM

Northwest


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Slide 5.10


Wine consumption in northern and southern Europe.(Source: Smith and Heede, 1996, p. 1081)

0

10

20

30

40

50

60

70

80

90

100

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995

years

liters

per

capita

South

North

Ratio

Macro Trends


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Slide 5.11


Beer consumption in northern and southern Europe(Source: Smith and Heede, 1996, p. 1081)

0

20

40

60

80

100

120

140

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995

year

liters/

capita

North

South

Ratio

Macro Trends


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Slide 5.12


Global Chocolate yearly consumption in kg/capita(Sources : CAOBISCO and ICCO / USDA*) in kg / capita /year

0

2

4

6

8

10

12

1992 / 1993 1994 / 1995 1996 / 1997

Switzerland

Germany

United Kingdom

Belgium

France

Netherlands

Iceland*

Italy

United States*Canada*

Japan*

China*


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Slide 5.13


Cheese consumtion in Europe (2001)Greece 26.6 kg/capita/year

France 24.5 kg/capita/year

Italy 22.6 kg/capita/year

Germany 19.9 kg/capita/year

Denmark 19 kg/capita/year

Austria 18.4 kg/capita/yearNetherlands 17.8 kg/capita/year

Sweden 17.2 kg/capita/year

Finland 16.5 kg/capita/year

UEBL(Belgium+Lux) 16.1 kg/capita/year

Portugal 10.2 kg/capita/year

United Kingdom 9.7 kg/capita/year

Spain 9.6 kg/capita/year

Ireland 6.2 kg/capita/year

Source : www.datalait.com/fr/fromage/marche.asp#2
http://www.datalait.com/fr/fromage/marche.asphttp://www.datalait.com/fr/fromage/marche.asp


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Slide 5.14


Cheese Consumption worldwide

Yearly per capita consumption of cheese differs

worldwide

European consumption is on average much higherthan it is in other areas of the world

It still varies from 6.2 kg/capita/year in Ireland to 26.6

kg/ capita/year in Greece

In Latin America it only varies from 4.5 kg/ capita/yearin Brazil to 11 kg/ capita/year in Argentina


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Slide 5.15


Production of cheese in China (thousands of tons)

0

50

100

150

200

250

Year

Thousands

oftons

Source : www.fao.org
http://www.fao.org/http://www.fao.org/


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Slide 5.16


0

50

100

150

200

250

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Year

Thousands

oftons

ofcheese

Source : www.fao.org

Consumption of cheese in China (thousands of tons)
http://www.fao.org/http://www.fao.org/


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Slide 5.17


Why are there differences in local

consumption patterns? Climate (ice-cream example)

Local diets (for food and beverages especially)

Local regulations (genetic modifications) Local taste for similar items (s versus sucr)

Different use of similar items (Camembert paniert)

Different meaning in context for similar products

(colours => certain symbolic attributes) Differences in motivations and buying behaviour

Local consumption habits rooted in early childhood, andsocialization at school and in the family (Vegemite)


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Slide 5.18


Example of consumer behaviour for milk-

based products in France and China

Consumption/cap: 68 litres /year

Consumption of diversified milk-

based products: milk, cheese,

butter, yoghurt, etc.

Daily consumption.

Purchasing decision: basic quality

being well controlled, price is a

key factor

Consumers are used to milk-based

products and receptive to

symbols which emphasize

genuineness, origin, organic

manufacturing (labels, bio, etc.)

Consumption/cap: 3 litres/year

Consumption focused on yoghurt

(80%)

Product perceived as exotic

Purchasing decision: choice of

high quality imported products

perceived as having superior

quality when compared with

domestic products

Consumers are uneducated for

using this kind of product

properly (especially as concerns

conservation )

France China


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Slide 5.19


Product/Country Example: Rice

in Malaysia vs. The United States

Malaysia

Mainly local, Thai rice

manufacturers Differentiated by grade

Frequent main dish, crosses social

strata

Mainly plain white rice

10 kilogram bags of rice

Hands also used for serving

US

Minute Rice, Rice-a-Roni, Uncle

Bens Differentiated by brand, flavour,

convenience

Infrequent side dish, ethnic

consumption

A lot of flavoured rice Small, quick cooking portions

Silverware used for rice eating


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Slide 5.20


Breakfast Around the World China

rice porridge, steamed buns

Japan yakizana (broiled trout), nama tamajo (raw eggs) over gohan (steamed rice)

Australia Vegemite on toast, or bacon and eggs with broiled tomatoes and mushrooms

Scandinavia marinated herring

Austria dark bread with butter, jam, honey, chocolate, cheese, or ham, boiled eggs,

pastries

Mexico

huevos rancheros (eggs on a tortilla with hot sauce) and refried beans USA

pancakes, doughnuts, toast with butter, jam, or bacon and eggs

France Croissants (plain, butter and jam or chocolate)


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Slide 5.21


Vegemite

The official Vegemite website

http://www.vegemite.com.au

Some thoughts about Vegemite from non-Australians

http://www.cockeyed.com/inside/vegemite/vegemite.html
http://www.vegemite.com.au/http://www.cockeyed.com/inside/vegemite/vegemite.htmlhttp://www.cockeyed.com/inside/vegemite/vegemite.htmlhttp://www.cockeyed.com/inside/vegemite/vegemite.htmlhttp://www.cockeyed.com/inside/vegemite/vegemite.htmlhttp://www.vegemite.com.au/


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Slide 5.22


Emergence of a global consumer

culture

World standard package

Limitations?

'McDonaldization' of society: Standard (key benefit =

predictable performance);

the same for everybody;

the same everywhere in theworld;

the same over time

Ritzer (1993): 4 elements1. Efficiency

2. Systematic quantification

3. Predictability

4. Control: substitution ofnon-human for human


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Slide 5.23


Modern culture

1. Individualist orientation

2. Strong emphasis on material

achievementsdoing/having not being

3. Strongly economic, commoditized time

4. Tendency to discard past in favour of

future orientation

5. Fairly high degree of utilitarianism

S


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Slide 5.24


Culture-bound products

Rich cultural context Shopping, consuming,

disposing

Relationship to the physicalenvironment Climate, population density,

housing, flora, fauna

Cultural or national identity

Language

Relationship to others

Display, show, share

Complex

High level of interpretation

and local knowledge

Nature of the product

Non-durables, clothing,

food, cleaners

Slid 5 25


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Slide 5.25

Usunier & Lee Marketing Across Cultures 4E Pearson Education Limited 2005

Preference global / local

Global

Developing countries

Adoration

National

Developed countries

Nationalistictendencies

Animosity

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