Paper No. 1 – Chapter 4
After reading Chapter 4 and Lecture, answer the following questions:
1. Discuss and describe the three cultural change strategies that a foreign marketer may pursue.
Cultural congruence strategy. Marketing products similar to ones already on the market, which is to minimize resistance. For example, Amazon came out with a tablet Fire that is very much similar to the IPad but has a little bit more of innovations by applying more features in order to compete against Apple Inc.
Unplanned change strategy. A company is using this strategy when they decide to leave acceptance, introduce the product, and hope for the best. An example would be that McDonald and KFC is replacing some major restaurants in China which is changing Chinese eating habit as what they’ve done to other Asian countries. More and more local companies is introducing the western menus to their own food business.
Planned change strategy. The meaning is when a company sets out to change those aspects of the culture offering resistance to predetermined marketing goals. For example, when the first touch screen smart phone came out, it was a product similar to before but with higher and better innovations and features. This new cell phone idea has taken over the majority of the culture and old regular cell phones are not used as much anymore in the U.S
2. Cultural sensitivity is a significant consideration in planning foreign marketing strategy. What does this mean? Give an example of a mistake that marketers may make as it relates to the culture of a country.
Cultural sensitivity means being aware of the differences and similarities exist and have an effect on values, learning, and behavior. The more exotic the situation, the more sensitive, tolerant, and flexible one needs to be. Being culturally sensitive will reduce conflict and improve communications which will result in a success in collaborative relationships.
Examples: in some Mideast countries, it is considered customary to greet one another with a hug. If you are doing business in a culture such as this and you greet your business...