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9.1 Report Script

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10 views

9.1 Report Script

Uploaded by

Carmela Tuquib Rebundas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Global Trading’s Changing Front

Introduction:
The world of international business and trade is undergoing a significant
transformation, driven by a surge in global population, cultural diversity, and evolving
consumer demands. This lesson delves into the complexities of navigating this dynamic
environment, emphasizing the need for marketers to adapt their strategies to effectively
cater to a global audience.

The Diverse Landscape of International Trade:


The world is becoming increasingly interconnected, with a growing population
of 7.9 billion people (Worldometer, 2021), presenting a massive market for international
business and trade. This diverse population, with its unique cultural identities, also
poses challenges for marketers who need to understand and cater to the unique needs
and preferences of various cultures.
The trend in international business and trade is toward greater cultural, ethnic, political,
social, and religious diversity. This diversification demands adaptation from global
business participants. Distinct market segments (groups of consumers with similar
characteristics, needs, or behaviors that are used in marketing to identify
profitable target audiences.) cannot be effectively targeted with the same goods and
services. Each segment requires a tailored approach(a customized strategy or plan
that’s designed to meet the specific needs of a business), including specific products,
services, and marketing strategies.

The Impact of Culture on Business and Trade:


Culture plays a pivotal role in shaping consumer behavior and influencing
purchasing decisions. Marketers must consider traditions, languages, customs, beliefs,
and experiences when crafting messages. Multicultural marketing, which focuses on
understanding these cultural nu-ances, is crucial for effective communication with target
audiences.
Miscommunication due to cultural differences is a common pitfall in international
marketing. For example, a Perdue poultry company’s attempt to translate “it takes a
tough man to make a tender chicken” into Spanish resulted with “it takes a sexually-
aroused man to make a chick affectionate” highlighting the importance of avoiding literal
translations. Similarly, Pepsi’s Mandarin translation of “Pepsi brings you back to life”
inadvertently conveyed the meaning “Pepsi brings your ancestors back from the grave”.
This simply means that care should be exercised when businesses glocalize doing
marketing translations. They should avoid simple literal translations.

The Importance of Cultural Sensitivity:


Effective marketing to diverse populations requires more than simply
translating materials into different languages. It involves a deep understanding of the
target audience’s culture, motivations, needs, and behaviors. Literal translations (is a
translation of a text done by translating each word separately without looking at
how the words are used together in a phrase or sentence) can often sound forced,
lack meaning, and even be offensive. Instead, marketers must engage in culturally
sensitive marketing, tailoring their messages to resonate with the intended audience.
★Specific Cultural Nuances Impacting Marketing Decisions:
 Nonverbal Communication
 Color Symbolism
 Religious Beliefs
 Family Structure
 Time Orientation
 Values and Beliefs

The Influence of Immigrants on National Economies:


Immigrants play a significant role in shaping national economies, both as
consumers and as contributors to the workforce. In areas around the world, including
the US, immigrant communities create distinct market segments that marketers target
due to their substantial spending power.
In the US, the combined buying power of African-Americans, Asian-American, and
Native Americans is estimated at $2.4 trillion, while Hispanic spending power reaches
$1.5 trillion, exceeding the GDP of Australia. The Hispanic population in the US is
projected to reach 111 million by 2060.
Engaging the Latino market requires more than just literal translations. It demands a
deep understanding of their culture, motivations, needs, and behaviors to ensure that
marketing messages resonate with the intended audience.

The Importance of Minority Market Segments:


Marketers must recognize the significance of minority segments (a group
of people who share common characteristics) in their marketing strategies. These
groups often have unique preferences and purchasing habits, making it essential to
tailor products and services to meet their specific needs.
Examples of catering to minority segments include foreign language automated teller
machines, selling cuts of meat popular in immigrant communities, hospitals offering
foreign recipes, and clothing and apparel catering to specific immigrant groups.

The Role of Assimilation:


Assimilation(refers to the process through which individuals and
groups of differing heritages acquire the basic habits, attitudes, and mode of life
of an embracing culture), the process of integration into a new culture, varies across
different ethnic groups. Marketers need to be aware of the assimilation patterns within
each subgroup to determine the most effective marketing strategies. This may involve
catering to specific needs, such as providing foreign language services, offering
culturally relevant products, and adapting marketing materials to reflect the cultural
preferences of the target audience.

Conclusion
The changing face of international business and trade necessitates a deep
understanding of cultural diversity and the needs of various market segments.
Marketers must adopt a multicultural awareness and utilize tailored strategies to
effectively engage with a global audience. This involves considering cultural values,
avoiding literal translations, and understanding the impact of immigration on national
economies. By embracing these principles, businesses can navigate the complexities of
the global marketplace and achieve greater success.

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