Study Guide
The key to successful international marketing is adaptation to the environmental differences from one market to another. Adaptation is a conscious effort on the part of the international marketer to anticipate the influences of both the foreign and domestic uncontrollable factors on a marketing mix and then to adjust the marketing mix to minimize the effects. Two primary obstacles to success in international marketing are Self-Reference Criterion (SRC) and Ethnocentrism. They are explained in detail in the next few slides.
Self-Reference Criterion (SRC) is an unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decisions. The risks of SRC are great. SRC can prevent marketing managers from being aware of cultural differences or from recognizing the importance of those differences. This will result in firms failing to recognize the need to take action, discounting the cultural differences that exist among countries, and reacting to a situation in a way offensive to your hosts. A common mistake made by Americans is to refuse food or drink when offered. In the United States, a polite refusal is certainly acceptable, but in Asia or the Middle East, a host is offended if you refuse hospitality. Although you do not have to eat or drink much, you do have to accept the offering of hospitality. Also, SRC influences the evaluation of the appropriateness of a domestically designed marketing mix for a foreign market.
Closely connected to SRC is ethnocentrism – the notion that people in one’s own company, culture, or country know best how to do things. Ethnocentrism is generally a problem when managers from affluent countries work with managers and markets in less affluent countries. The risk of ethnocentrism is that it impedes the ability to assess a foreign market in its true light.
To avoid errors in business decisions, the international marketer will conduct a cross-cultural analysis that isolates the SRC influences and
Self-Reference Criterion (SRC) is an unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decisions. The risks of SRC are great. SRC can prevent marketing managers from being aware of cultural differences or from recognizing the importance of those differences. This will result in firms failing to recognize the need to take action, discounting the cultural differences that exist among countries, and reacting to a situation in a way offensive to your hosts. A common mistake made by Americans is to refuse food or drink when offered. In the United States, a polite refusal is certainly acceptable, but in Asia or the Middle East, a host is offended if you refuse hospitality. Although you do not have to eat or drink much, you do have to accept the offering of hospitality. Also, SRC influences the evaluation of the appropriateness of a domestically designed marketing mix for a foreign market.
Closely connected to SRC is ethnocentrism – the notion that people in one’s own company, culture, or country know best how to do things. Ethnocentrism is generally a problem when managers from affluent countries work with managers and markets in less affluent countries. The risk of ethnocentrism is that it impedes the ability to assess a foreign market in its true light.
To avoid errors in business decisions, the international marketer will conduct a cross-cultural analysis that isolates the SRC influences and