Understanding Other Cultures Around the World
Adjusting to cultural differences is perhaps the most difficult task facing marketing
municators who operate in other
Before entering a foreign market, a company
must decide to what
it is willing to customize its marketing efforts to accommodate
each foreign market. Naturally, the
the company standardizes its effort, the less trou-
ble it incurs and the greater
profitability. But is some customization inevitable?
More is said about this in
later chapter
Forecasts of the Future
are literally hundreds of companies and forecasters who claim to have a handle on
the future. One that
excellent track record is Roper
a research firm that has
been looking at trends for over 50 years. The 2000 Roper Report identified four concepts
that help marketers understand Americans in the new millennium:9
1. "High Pace/High Peace: Americans' high-speed lifestyles create new goals and
needs ": Silicon Valley ma:keters often talk about a phenomenon called
tech-high touch" ; the more technology becomes part of people's lives (tech), the
more the need
personal interaction (touch) . We think a similar, possibly
powerful phenomenon, is unfolding
in today's frenetic, high-speed world
of drive for success, "Internet time,"
business, and multitasked lifestyles.
As the pace of life is picking up (high pace), there is growing desire/demand for
peace. T he shift to
PacelHigh Peace" is evident in the marketplace. Increas-
ingly, brands seem to be "high-pace" (efficiency-oriented, intense brands like the
Internet broker E-Trade; personalities like
chief and bestselling author
Bill Gates) or "high-peace" (relaxing, spa-pace brallds like Banana Republic,
Canyon Ranch; personalities like spiritual leader and bestselling author the Dalai
Lama. The shift is reflected in Roper data as well). Americans are working harder
than ever to get
Work is spilling into all corners of life: a record 39% of
say they often spend leisure time
work, a three-fold increase from
the beginning of the decade.
technologies are making it possible to be ever
more productive. Americans generally recognize that hard work is the price for
getting ahead. At the same
is a growing yearning for peace. Most agree
the best leisure time is the time alone. But declining
are getting such
time to rest, relax, and renew. More, instead, are feeling stressed ou:.. This ten-
sion oetween high pace and high peace shows no
that it will go away. At the
same time, data suggest
there are
for marketers to become a
bridge to get people to both
high pace and high peace goals.
2. "Kinnections: The movement to connection in technology, relationships, and
brands ":
increasing pace of life
not the only characteristic of
since
the tum of the new century. Empowered by new technology,
strong economy,
and a growing command of self-reliance and other skills, Americans have begun
to reach out and take the next siep to extend their sense of connection.
a whole
host of areas-from communications and computing to attitudes towards family
ano community--connections are up. These connections are different from the
past. They can
fast changing and dynamic (kinetic). And they appear to be part
of a desire for a greater sense of association (kinship). The movement to connections,
thus , is actually a move toward "kinnections." The results are reflected in the data.
Communications technologies are taking off. This is most evident in the explo-
sive growth of cellular communications. But it is
apparent in the computer
FACTORS THAT AFFECT PLANNING
121
industry, where increasing interest in
computers to connect (e-mail, the Web)
is driving interest. Many Americans say that these technologies are improving the
quality of their connections, making it easier to stay in touch with friends and fam-
ily, and, overall,
life better." The growth in connections is reflected in
personal relationships as well: Americans are feeling better about the family and
more connected to their communities. Indeed, satisfaction with many aspects of
community is at record levels. Many are pursuing
connections. And this
sense of connection is apparent in the marketplace as well in cause-related mar-
keting and a greater desire for brands to go beyond the basics like quality and value
(which are now expected) to connect in new ways with consumers.
3. "Diversity/Destiny": Diversity is destiny for America. And not
in some
off future. The U.S. increasingly is "the world's nation": our foreign-born popu-
lation has almost tripled in the past thirty years. African-Americans, Hispanics,
and other minorities make up the majOllty of the nation's population growth in
the past decade-and will account for an even larger proportion of the nation's
growth in
decade to come. The result is creating new, distinctive demographic
segments that must be understood.
is also changing society. America is becom-
ing multicultural. Americans are much more appreciative of ethnic customs and
traditions compared to two decades ago. Where past generations may have defined
the American character in
of pioneer heritage, Americans today see strength
in our status as "a melting pot." Indeed, being a melting pot is now seen
a core
source of America's greatness, almost equal to the work ethic, the free enterprise
the Constitution and system of government, and the nation's natural splen-
dor. Multiculturalism defines the nation 's tastes in areas from food to popular music.
Roper analysis shows that Americans share many basic values and concerns across
racial and ethnic groups.
the
time, the data suggest that there continue
to be many
as well. To succeed in this year of diversity/destiny, mar-
keters need
both sides.
4. "Marketing by life stage": Marketers have traditionally relied on standard demographics to understand and predict consumer behavior. Our research shows, how-
ever, that life stage can be a more powerful predictor of consumer attitudes and
behavior than traditional demographic analysis.
example, a 49-year-old woman
starting a second marriage and second career may have more in common with a
29-year-old woman starting her first marriage and first career than she does with
another 49-year-old woman whose last child just moved out of the house Clas-
sifying Americans by the life events they have experienced, rather than by demo-
graphic traits, can yield insights and understanding into a market that might
otherwise have been overlooked. In conjunction with Modem Maturity, Roper has
identified seven life stage segments that demonstrate the appeal and rewards of
marketing to consumers by life stage.
THE WALL STREETJOURNAL.
IN
analysis on technology in
Cen-
in the Interactive Journal be uti-
Internal planning processes in mar-
ter. From the Front Section, select
lized to help organizations take
keting organizations focus on an
Tech Center. You can use this new
advantage of market opportuni-
organization's strengths and weak-
menu to read the iates t on tech
ties? Divert threats?
nesses, bUl organizations must aiso
stocks and personal technology.
consider the impact of external
Select Tech
to find out what
environmental factors. By under-
is happening with leading compa-
standing how external elements of
nies. On
right side of your
the marketplace affect an organiza-
screen yOU'll find headings with dif-
tion's planning process, marketers
ferent topics. Page down to locate
can develop strategies that capital-
Tech Resources. Here you'll find
ize on opportunities and minimize
links to Company Profiles, Issue
threats.
Briefings, and a Dot-Com Layoffs
Legal and ethical issues pose
and Shutdowns list. Select one of
complex challenges for marketers.
these links now.
From product liability to
The Interactive Journal also
tion, the external environment
features a weekly personal technol-
varies by state and country, The
ogy column . Under Free WSJ.com
Interactive Journal helps you keep
Sites on the Front Section, select
up with legal and ethical issues that
Personal Tech.
affect organizations, On the Front
Section, select Marketplace. On the
DELIVERABLE
left menu in Marketplace, select
Sclect Microsoft under the Com-
Law. Here you will find articles
pany
link in the Tech
about discrimination suits, recent
Resources Section of Tech Center.
legal rulings, and product liability
search the interactive Journal
claims, Articles are both national
by using the Search feature under
and international in scope.
Journal Atlas on the left menu for
Economic and political issues
articles about Microsoft. Discuss the
are as variable as legal issues, and
legaL e thica;, and political issues in
are impacted by government/indus-
the antitrust suit filed against the
try relationships, consumer spend-
company.
discuss the implica-
ing habits, and political leadership.
tions of the suit on the company's
The Interactive
helps you
technology.
keep up with these issues as well.
On the Front Section, select Politics
DISCUSSION QUESTIONS
& Policy under In this Section on
1. To what extent can marketers
the left menu, Here you will find
foresee
and
articles
pending legislation,
threats posed by the external
government mandates, tax propos-
environment? What factors can
als, and policy directives. These arti-
alter forecasts?
cles are also national and
2. What steps can organizations
international in scope.
take to ensure external ele-
Technology is rapidly changing
ments are factored into the
the external environmenLThe
strategic planning process?
Interactive Journal provides you
3. How can the information found
in-depth information and
122
DISCUSSION QUESTIONS
123
SUMMARY
In this chapter, the importance Of understanding environmental forces was discussed. Marketing decisions are affected by external agencies, competitors, regulators, the economy, technology, and the social factors. Each of these elements of the marketing environment must be monitored continuously for
changes that are taking place. Changes affect the way marketers go about providing want- and need-satisfying products.
Information about external forces must be gathered for each stage of the strategic marketing
planning process.
purpose of collecting and analyzing
information is to reduce the uncer-
tainty associated with marketing decision making. While experience is an important resource, new problems or old problems that require new solutions require that marketers stay abreast of marketplace developments so that they can continue to offer successful products and service to the marketplace.
MARKETER'S VOCABULARY
External
Forces external to the organization that affect organization and marketing
decision making.
External analysis
The identification of trends, opportunities, and threats that will influence mar-
keting strategy and
Marketing research supplier
An external agency that specializes in the conduct of marketing
research demography-the study of important population statistics such as age, income, sex, and
location of people.
Business
The pattern that is generally followed by a fluctuating economy.
Prosperity
period of time during which the economy is growing.
Recession
A period of time that is characterized
a decrease in the rate of growth of the
economy.
Depression
A long-lasting recession during which unemployment is very high , buying power is
very low, and consumers are unwilling to spend.
Recovery
A period of time in which unemployment begins to decline, buying power increases,
and consumers become more willing to purchase products.
Technology
The knowledge of how to accomplish tasks and goals.
Buying power
The ability of a consumer to make purchases.
Regulators
The set of laws, agencies, and policies established to ensure that marketers compete
legally in their efforts to provide want- and need-satisfying products and services.
DISCUSSION QUESTIONS
1. Describe the role of external analysis in the strategic marketing planning process.
2. Of what importance is environmental scanning to marketing decision makers?
3. Several external forces were presented in this chapter. Describe each and provide a brief statement as to the impOltance of each of these to the marketing planner.
124