International Marketing - Chapter 3: History and Geography: The Foundations of Culture

Chapter 3History and Geography:The Foundations of CultureInternational Marketing15th edition Philip R. Cateora, Mary C. Gilly, and John L. GrahamIntroductionTo understand a society’s actions and its points of view, you need to appreciate:The influence of historical events The geographical uniqueness to which a culture has had to adaptCulture can be defined as society's accepted basis for responding to external and internal eventsTo interpret a culture’s behavior and attitudes, a marketer must have some idea of a country’s history and geographyRoy Philip 2History Perspective in Global BusinessHistory helps define a nation’s missionHow it perceives its neighborsHow it perceives itselfIts place in the worldInsights into history are important for understanding current attitudesIt is necessary to study culture as it is now as well as to understand culture as it wasA country’s history3Roy Philip Geography and Global MarketsGeography – an element of the uncontrollable environment that confronts every marketerAffects a society’s culture and economy Physical makeup limits a nation’s ability to supply its people’s needs 4Roy Philip Climate and TopographyAltitude, humidity, and temperature extremesSouth AmericaBritish resistance of the English ChannelTrade through the Alps5Roy Philip 6Geography, Nature and Economic GrowthAs countries prosper, natural barriers are overcomeEnvironmental issuesDisruption of ecosystemsRelocation of peopleInadequate hazardous waste managementIndustrial pollution7Roy Philip Social Responsibility and Environmental ManagementEnvironmental protection is not an optional extraPollution is on the verge of getting completely out of controlChina has 16 of the world’s 20 most polluted citiesCritical issue: the disposal of hazardous wasteSustainable development 8Roy Philip Resources (1 of 2)The availability of minerals and the ability to generate energy are the foundations of modern technologyThe principal supplements to human energy AnimalsWoodFossil fuelNuclear powerOcean tidesGeothermal powerThe sun9Roy Philip Resources (2 of 2)United States in perspective1942 – nearly self-sufficient1950 – major importer1973-2000 – increased dependency from 36% to 66%Mid-2000’s – predicted to be importing more than 70% of needsThe location, quality, and availability of resources will affect the pattern of world economic development and trade well into the 21st century10Roy Philip Dynamics of GlobalPopulation TrendsGlobal population trends determine today’s demand for goodsRural/urban population shiftsRates of growthAge levelsPopulation controlChanges in population will profoundly affect future demandThe most important deterrent to population control is cultural attitudes about the importance of large families11Roy Philip Controlling Population GrowthProcreation is one of the most culturally sensitive uncontrollable factorsPerhaps the most important deterrent to population control is cultural attitudes about the importance of large familiesFamily planning and all that it entails is by far the most universal means governments use to control birthrates, but some economists believe that a decline in the fertility rate is a function of economic prosperity and will come only with economic development12Roy Philip Rural/Urban MigrationResult of a desire for greater access to:Sources of educationHealth careImproved job opportunities13Roy Philip Population Decline and AgingPopulation growth in many countries has dropped below the rate necessary to maintain present levelsA nation needs a fertility rate of about 2.1 children per womanNot one major country has sufficient internal population growth to maintain itself14Roy Philip Summary A prospective international marketer should be reasonably familiar with the world, its climate, and topographic differencesGeographic hurdles must be recognized as having a direct effect on marketing and the related activities of communications and distribution15Roy Philip