Bài tập cuối kì môn học marketing quốc tế discuss how governmental instability can affect marketing (question 8, chapter 6, page 183)

The marketer cannot determine what he believes the management objectives of a foreign business are based on what they are in similar firms in his own nation.. Concerns that may threaten

ĐẠI HỌC UEH TRƯỜNG KINH DOANH KHOA KINH DOANH QUỐC TẾ - MARKETING

Bài tập cuối kì

Môn học: Marketing quốc tế

Giảng viên: Hoàng Cửu Long

Mã lớp học phần: 21C1MAR50309601 Sinh viên: Lê Hoàng Phúc

Khóa – Lớp: K45 – IBC03 MSSV: 31191025878

Part I:

Question 1: “In dealing with foreign business, the marketer must be particularly aware of the varying

objectives and aspirations of management.” Explain (Question 4, Chapter 5, Page 155) 3

1 Mobility and security 3

2 Private Life 4

3 Social Acceptance and Affiliation 4

4 Power and Achievement 4

Question 2: Discuss how governmental instability can affect marketing (Question 8, Chapter 6, Page 183) 5

Stability of Government Policies 5

1 Forms of Government 5

2 Political Parties 6

3 Nationalism 6

4 Targeted Fear and/or Animosity 7

5 Trade Disputes 7

Part II: Select a country and analyze it politically from a marketing viewpoint (Question 16, Chapter 6, Page 183) 8

I Overview 8

II Hurdles that marketers face in their attempts to gain a foothold on the island of Castro and Communism 9

1 The effect of the internet in Cuba 9

2 Tourism 10

3 Marketing revolution 10

4 Media challenge 11

5 Regulatory hurdles 11

6 Limited brand awareness 12

7 Ongoing difficulties of outsiders 12

III Guidelines for marketer 13

IV Unusual techniques to entering the Cuban market 14

V Conclusion 15

1 Marketing must have a consistent message 15

2 More head speak and less heart respond 15

3 Replace the engine, but keep the body 15

References 17

Question 1: “In dealing with foreign business, the marketer must be particularly aware of the varying objectives and aspirations of management.” Explain (Question 4, Chapter 5, Page 155)

Culture refers to the values, beliefs, behavior, traits, attitudes, actions, and conducts that individuals in a particular community observe and engage in

It is stated that when interacting with overseas organizations, the marketer should keep in mind the varying objectives and aspirations of management This phrase might be understood by noting that each culture is distinct from the culture followed and seen in various areas and nations People living in different regions and places follow diverse cultures and, as a result, look forward to purchasing certain items and services that are highly important and unavoidable for their cultural standards This is connected to the type of marketing activities which an organization engages in at a specific cultural community concerning the products and services that the organization provides to the people

Cultural change refers to the changes that have occurred in a community’s culture as they relate to the conduct and worldview of its members Depending on this, a firm selects the most exemplary marketing and promotional approach for its products and services, capable of attracting and enticing the targeted demographic to the supplied products and services In this approach, marketers should consider the various customs and goals that other cultures go through when making marketing efforts in those locations

1 Mobility and security

with far-reaching economic and societal implications The term "security" is highly vague, and this ambiguity reveals considerable managerial variety To some, security includes a high salary and the ability to move from company to business within the

company; and to still others, it entails adequate retirement benefits and other welfare programs

Companies in Europe, particularly in more hierarchical (PDI) nations like France and Italy, have a strong paternalistic orientation, and it is anticipated that workers would work for one firm for the bulk of their life Managers in the United Kingdom, for example,

a high value on competent supervision, solid business regulations, fringe benefits, security, and suitable working circumstances French managers have far less mobility

According to research, such inequalities are widespread—employee loyalty to their company tended to be higher in nations with a greater level of individuality (IDV) but a lower level of power distance (PDI)

2 Private Life

For many people, having a fantastic personal and/or family life takes precedence above money, security, or any other goal In his international study of human desires, David McClelland discovered that the value of a decent personal existence was far more important than profit or achievement Work was clearly portrayed in ancient Greece's hedonistic perspective as an unwelcome factor that impeded the pursuit of pleasure or a respectable personal life Optionally, according to Max Weber, at least some of the high standard of living experienced in the United States today may be attributed to the hard-working Protestant ethic that underpins much of our business culture

consider their jobs to be the most essential aspect of their life The Japanese work ethic stems from business loyalty and usually results in the Japanese employee keeping

people, significant evidence suggests that the country's struggling economy has impacted professional development patterns, and that the status of the Japanese "salary man" has shifted from one of Japan's corporate elite to one of some contempt Japan's corporate culture is rapidly changing away from lifelong work, which has resulted in extreme firm loyalty

3 Social Acceptance and Affiliation

Recognition by neighbors and coworkers appears to be a fundamental goal of business in several countries The importance of collective decision-making in Japan reflects the Asian mindset, and the Japanese place a high priority on fitting in with their group

he works for Sumitomo, Mitsubishi, or Toshiba, rather than mentioning he is a driving

4 Power and Achievement

Although corporate managers crave power worldwide, power appears to be a more powerful motivator in South American countries Many corporate executives in these nations are not simply profit-driven but also use their positions to become social and political leaders The reasons for performance identified by management scholars in the United States are related but distinct Money in the bank is one method to assess success; high rank is another—both of which are particularly significant to the United States

The marketer cannot determine what he believes the management objectives of a foreign business are based on what they are in similar firms in his own nation Management ambitions and aspirations range from one organization to the next in our country As a result, they may differ in other nations To make a sensible commercial decision that will not offend potential partners, the marketer must minimize the amount of SRC in his choices

Question 2: Discuss how governmental instability can affect marketing (Question 8, Chapter 6, Page 183)

Government instability occurs when a country’s government does not remain in power for a predetermined time and often changes

Stability of Government Policies

A stable, friendly government is ideal for a multinational firm Nevertheless, governments are not always persistent and pleasant, and governments that are stable and friendly do not always remain steady and positive Concerns that may threaten a government's stability include radical changes in government doctrine when an alternative political party ascends to power, pressure from nationalist and self-interest groups, deteriorating economic conditions, anti-foreign-investment prejudice, and disputes among governments Because multinational firms are appraised by criteria as different as the nations themselves, the stability and hospitality of each country's government must be examined on an ongoing basis

The stability or volatility of current government policies is at the top of the list of political concerns affecting international firms Governments may change, or new political parties may be elected Still, the multinational corporation’s priority is the continuity of the set of standards or codes of behavior and the rule of law—regardless of which government is in power

Multinational corporations can exist under any sort of government as long as there is some long-run predictability and stability and there is the opportunity for profit

There are five major political causes of instability in international markets: (1) some forms of government appear to be inherently unstable, (2) changes in political parties during elections can have a significant impact on trade conditions, (3) nationalism, (4) trade disputes themselves and (5) hatred directed at specific countries,

1 Forms of Government

Around 500 BC, the ancient Greeks proposed and critiqued three basic systems of government: rule by one, rule by a few, and rule by many Today, these types are commonly referred to as monarchy (or dictatorship), aristocracy (or oligarchy), and democracy

Around “the same period in history, Persia's ruler, Cyrus the Great, declared that the objective of government was to serve the people, not the other way around Cyrus' idea is enshrined in the constitutions of the majority of modern nations Following the fall of colonialism beginning with World War II and communism around 1990, the world appeared to have agreed that free market democracy was the greatest answer to all of the objections of government that had been raised from the time of Aristotle, Cyrus, and

Thus, practically all of the world’s more than 200 sovereign states have at least nominally representative governments with universal suffrage for those aged 18 and up Voting is compulsory in around 10% of the world’s countries, while optional in the rest A few nations have peculiar suffrage rules: In Bolivia, you may vote at 18 if you are married and 21 if you are single; in Peru, police and military people are not allowed to vote; and

in Croatia, you can vote at 16 if you are working

2 Political Parties

In most places throughout the world, marketers need to understand the ideologies of all main political parties inside a country because they might become dominant and change prevalent views and the broader business climate

In nations where two major political parties generally replace one another in government control, it is critical to understand the route each party is likely to pursue In the United

international commerce than the Conservative Party When the Labour Party was in

liberalized international commerce A foreign firm in the United Kingdom should anticipate to seesaw between the Conservatives' free trade policies and Labour's restrictive ones Of course, the Democratic Congress in the United States was hesitant to approve free trade treaties negotiated by George Bush's Republican government in the White House

To be fully educated about the political climate, a savvy international marketer must comprehend all facets of the political scene Unpredictable and dramatic swings in government policy discourage investment, regardless of the source In short, a current evaluation of a country’s political philosophy and views is critical in determining a government’s stability and attractiveness in terms of market potential

3 Nationalism

Economic and cultural nationalism, which occurs to some extent in all nations, is another significant issue to consider when judging the business climate Nationalism is best defined as a passionate sense of national pride and unity and an awakening of a people’s pride in their country This pride can manifest itself as an anti-foreign business attitude,

in which modest harassment and limits on foreign investment are tolerated if not celebrated One of the primary goals of economic nationalism is the maintenance of national economic autonomy, in which inhabitants link their interests with the preservation of the sovereignty of the state in which they live In other words, national

Nationalism manifests itself in a variety of ways, including a demand to “purchase our country’s products solely” (e.g., “Buy American”), import bans, stringent tariffs, and other trade obstacles They may also lead to control over foreign investment, which is frequently viewed with mistrust and becomes the subject of intense examination and control In general, the more a country feels threatened by an outside power or the home economy suffers, the more nationalistic it becomes in defending itself against invasions Militant nationalism had diminished by the late 1980s; now, the foreign investor, formerly feared as a controlling dictator threatening economic growth, is frequently sought as a source of needed capital investment Nationalism ebbs and flows as situations and sentiments shift, and foreign firms accepted today may be persecuted tomorrow and vice versa

4 Targeted Fear and/or Animosity

It is essential for marketers not to confuse nationalism, whose hatred is generally directed

toward all foreign countries, with a widespread fear or animosity directed at a particular

country

vehicle sales were falling in the United States, so an advertising campaign was created and implemented that suggested the problem was American nationalism However, nationalism was certainly not the issue because German automobile sales were not declining at the same rate "Americans' dread of Japan" was a well-defined concern Indeed, at the time, Americans saw Japan's economic menace as bigger than the Soviet Union's military threat So, when Toyota invested millions on an advertising campaign depicting Camrys being manufactured by Americans in a Toyota factory in Kentucky, it

As a result, it is evident that no nation-state, no matter how safe, will allow foreign corporate infiltration into its market and economy if it senses a social, cultural, economic,

or political danger to its well-being

5 Trade Disputes

Finally, minor trade disagreements have the potential to damage larger global economies Several contentious problems surfaced in 2010, including an undervalued Chinese yuan, a prohibition on beef imports into Japan, Chinese that seemed to violate WTO principles, agriculture subsidies in industrialized nations, and the long-simmering

AIRBUS–Boeing subsidy dispute Some of these concerns might erupt and influence other elements of international commerce, but for the time being, cooler heads—along with the WTO's dispute settlement systems—appear to be in command

Part II: (4 marks) Select a country and analyze it politically from a marketing viewpoint (Question 16, Chapter 6, Page 183)

I Overview

Overall, the Cuban economy is planned and dominated by state-owned firms The government owns and operates the vast majority of the country’s industry As a result, the majority of the employees are employed by the government Following the demise of the Soviet Union, the Communist Party promoted cooperatives and self-employment

Communications between the United States and Cuba strengthened dramatically in 2016 The two countries had diplomatic relations, and President Obama's trip to Havana to reestablish relations was the first visit to Cuba by a US head of state after a half-century

of Cold War hostility It was expected to have significant economic ramifications for Cuba

For more than a half-century following Fidel Castro's takeover in 1959, Cuba's marketing was confined to patriotic propaganda, with late revolutionary hero Ernesto "Che" Guevara's face plastered on buildings around the island rather than Coca-Cola Cuba, recognized for its world-famous cigarettes, sugar white sandy beaches, and a distinct threat of nuclear war, captured the global attention and has recently been the subject of numerous discussions It's all about a game-changing marketing development in this case Despite the small improvements, Cuba's economic situation remains fraught with uncertainty For starters, Cuba has failed to make headway on economic reform and is presently facing a fiscal crisis Since 2012, private advertising has been authorized in Cuba Advertising bans, on the other hand, remain in effect for restaurants, nightclubs, and coffee shops, among many other service-industry businesses If and when the government decides to allow these services to be provided, communication will continue

to be restricted and monitored

Businesses are only permitted to advertise on their own territory As a result, Havana's exquisite architecture stays free of advertisements Images of Castro or "Che," as well as statements like "Homeland or death," are still prominent on the roadways Newspapers and television stations are censored by the government and do not broadcast ads Only the government and its joint ventures with multinational firms, such as Havana Club rum, are undertaking integrated advertising campaigns, mostly in foreign markets

Marketing for foreign companies and agencies in Cuba is tough since the market is not based on supply and demand Every facet of marketing is new in this location Prior to

the revisions, businesses such as Carballo's beauty salon existed but were illegal, so they did not advertise and hid in run-down living rooms There is no denying that reaching out

to a mainly untapped demographic of 11 million people is an enticing prospect for brands and agencies However, because government regulations mostly prohibit enterprises from advertising their products, it is complex In other words, Cuba will most likely wish to limit promotion and consumption The pace is established by the government Foreign firms can't make many movements on their own, and talks with Havana were "very useful."

So far, multiple large communications corporations have dispatched personnel to Cuba, but only WPP has established a presence there It has yet to make any commercial announcements Martin Sorrell, the quickly — chairman of the world's most widely advertising firm WPP, gave aspiring creatives with a master class on the industry and how they may expand it on the communist-run nation in a striking indicator of the transition He used facts, numbers, and wine label illustrations to demonstrate the importance of brands to a captive audience that had grown up without witnessing the twentieth century's marketing revolution WPP wasted little time in launching operations

in Cuba, establishing a representative in Havana through a partnership with the state-owned Palco Group This allows them to advise international clients interested in investing in Cuba as well as assist Cuban institutions and organizations wanting to internationalize the country's products and services However, due to limited budgets at local businesses at local enterprises and a continuing suspicion of capitalist consumerism

in Cuba, corporations such as WPP, the first global telecommunications conglomerate to set up shop here, were unlikely to earn lots of money anytime soon

Nonetheless, an increasing number of firms remain unfazed Unilever said in January that

it would develop a $35 million homecare plant in collaboration with the state-owned Intersuchel When it opens in early 2017, the facility will produce brands sold in Cuba, such as Sedal, Rexona, Omo, Lux, and Close-Up

II Hurdles that marketers face in their attempts to gain a foothold on the island

of Castro and Communism

1 The effect of the internet in Cuba

Giving sensual services to prospective American tourists to Cuba may be the most profitable opportunity for businesses However, marketers will be unable to reap the benefits of improved ties in Cuba due to restricted and insufficient mobile data and

Wi-Fi networks, at least at the beginning Because of the low rate of mobile phone and Internet expansion in Cuba, infrastructure is a challenge Furthermore, the lengthy bureaucracy connected with Cuba, as well as marketing norms, will take longer to shift than brands and agencies would want Few businesses, particularly those in the lucrative tourist industry, can afford to advertise on the web due to limited and costly Internet access Tourism in the United States, on the other hand, may boost infrastructure development, allowing for better mobile communications and marketing operations

When reaching out to mobile visitors, advertisers must be open about the Internet speed issue When developing mobile advertising targeting locals, it is essential to remember that most mobile phones in Cuba are feature phones

Since most Cubans have been separated for more than 50 years, modern mobile marketing methods may be less effective than in other countries On the other side, the rise of consumer brands may create an opportunity for mobile marketers However, it is envisaged that mobile marketing would start with SMS before moving on to more complicated strategies like geolocation

Notwithstanding the slight advantages marketers earn by creating a new branding point for American visitors visiting Cuba, being the first to market will pay dividends if prohibitions are entirely lifted

2 Tourism

After years of travelers from Europe and Latin America, the Cuban people have grown used to the brand As the number of American visitors expands, American comfort brands will have a better opportunity of gaining market share rapidly However, because

to some of the region's mobile and internet infrastructure issues, it will initially proceed more traditionally, rather than being led by innovation in the short term Formerly, just cultural groups, educational, and religious were legally authorized to visit Cuba, except with the authorization of the US State Department Americans, on the other hand, must employ a State Department-approved Cuba travel agency Furthermore, the agreement between the United States and Cuba prohibits the inclusion of purely recreational activities such as scuba diving or beach visits in tour packages

3 Marketing revolution

The reopening of doors – though by a crack – to international enterprise represents a stunning turnaround Following the 1959 revolution, the great majority of Cuba’s stores were closed, forcing citizens to rely on their libreta rationing booklet to purchase state-approved, unbranded commodities from government-run distribution centers

For many years, Cuba’s product landscape was characterized by officially sanctioned, state-produced commodities, with limited choice as a result However, Cuba’s stance toward both local and international private sectors has softened in recent years, notably following Raul Castro’s election as president in 2008 This has allowed companies like Heineken to undertake projects like providing refrigerated vans to the Ministry of Trade, which may use them for any purposes the department deems suitable, giving the Dutch brewer a brand presence on Cuban roadways

Another firm making advances into Cuba is Rose Marketing, which joined the former Soviet Union in 1989 and is now located in Moscow According to John Rose, the