Values

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Values

• International Advertising

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Housekeeping

• To do
• M Wrap-up, guide
• W EXAM 2
• F Ethical, social issues.

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Integration

• Make a team of 5 members
• Different countries (assignment 2)
• The objectives of this session are
• Get to know the product
• Determine the cultural, market issues that might
  affect ( or -) the introduction of this product
  
• Determine the likelihood of success if product is
  launched in your assigned country
  
• Distribute 100 million for the launching of the
  campaign in all the teams countries.
  
• Standardized campaign You need to use 20 of
  your allocation in production of advertising/
  product adaptation
  
• The brand manager who gets the most resources for
  her/his country gets 2 pts in the 2nd assignment
  

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Example of x-credit

• Watching UF basketball game
• The US preoccupation with success and
  achievement as dominant values becomes evident
  with a glance at American sports.
  
• Athletes are some of our biggest celebrities and
  this holds true at the collegiate level.

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Example of x-credit

• Worked out at a Fitness Center
• This is an individualistic event because not all
  of my friends or in group work out at the gym.
  I do it because it makes me feel good and I
  really like it. I went by myself.

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Values and Marketing

• Values are the basis for
• segmentation and
• positioning decisions.
• Acquiring values is a sociocultural process.
• Differences in value orientations lead to
  differences in preferences for products and
  brands.

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What is a Value?

• Preference for one mode of behavior over another
  mode.
  
• Conception of the desirable.
• Describes what people in general think the world
  ought to be in an absolute way.
  
• Specific, single belief, that guides and
  determines actions, attitudes judgments.

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Rokeachs Value Typology

• Terminal Values-
• refer to desirable end-state of existence
  (central or core values)
  
• Ex a world at peace
• Ex freedom
• Ex equality
• Ex self-respect

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Rokeachs Value Typology

• Instrumental Values-
• refer to desirable modes of conduct (are
  moderators to reach end-states of existence)
  
• Ex cleanliness
• Ex politeness
• Ex forgiveness
• Ex broad-mindedness

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Difference between Values, Attitudes Needs

• A Value - specific, single belief - guides
  actions, attitudes judgment
  
• An Attitude - organization of several beliefs
  focused on a specific object or situation
  
• A Value is an enduring standard
• An Attitude is NOT a standard, but is object or
  situation oriented

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Differences (ctd.)

• Values are MORE stable than attitudes.
• Values occupy a more central position in a
  persons cognitive system.
  
• Needs can be innate and learned.
• Values are ONLY learned.
• Animals can have needs, but they dont have
  values.

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Classification of Values

• List of Values (LoV) developed Kahle and Timmer,
  consists of 9 values.
  
• 1. Sense of Belonging
• 2. Excitement
• 3. Fun and Enjoyment in Life
• 4. Warm Relationship with Others
• 5. Self-fulfillment

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LoV continued

• 6. Being Well Respected
• 7. A Sense of Accomplishment
• 8. Security
• 9. Self-respect

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Value Terms

• Value Systems Implies that there is a
  rank-ordering of terminal or instrumental values
  along a single continuum
  
• Value Orientation Uses a multiple continuum
  which can be used to compare people along
  different dimensions
  
• Value Endurance Values are among the first
  things children learn, by 10 yrs. most have basic
  value system in place
  

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Kluckhohns Value Orientation Model

• 5 Dimensions
• 1 - human nature is good or evil
• 2 - subjugation to, harmony with, or mastery
  over nature
  
• 3 - past, present, or future time perspective
• 4 - being, being-in-becoming, or doing
• 5 - linearity, collaterally, or individualism

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Advertising Researchers look for changes.

• Changing lifestyles
• Changing trends
• Caution Do not confuse changes in the symbols
  and rituals of culture with changes in values!!
  
• VALUES change slowly, if at all
• E.g.Western clothes versus traditional dress?

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Unchanging core values (e.g. U.S.A.)

• Freedom of speech
• Equality before the law
• Equality of opportunity
• Fairness
• Achievement (hard work pays)
• Patriotism (loyalty to the US)
• Democracy (judgment of the majority to rule)
• Caring beyond the self
• Religion (reverence for transcendental)
• Luck (good fortune can happen to anyone)

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Can Values Shift ? Yes, but it takes a long time

• Wealth leads to individualism
• Poverty leads to collectivism
• Better education - PDI goes down
• Age and point in time of peoples lives can cause
  value differences.

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Value Shifts (ctd.)

• Hofstede mentions 4 causes for differences
• Maturation effects
• Generation effects
• Zeitgeist effects
• Seniority effects
• Question
• Does modernization turn collectivistic cultures
  into individualistic cultures?

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Cross-cultural Research on Values

• Cultures rank priorities differently.
• Terminal values in one culture maybe instrumental
  values in another.
  
• Certain relevant values may not exist in all
  cultures.

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Cross-cultural Research

• How do we know what are the relevant values in a
  culture?
  
• Values that appear to be untranslatable into
  other languages -
  
• Or only translatable into languages of similar
  cultures.

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Some Global Marketing Mistakes

• Wrong translations of brand name
• Use of research conducted in one country for
  another
  
• Same advertising execution for multiple
  countries
  
• Use of advertising elements strange or awkward in
  a culture

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Reasons for these Errors

• Belief that global marketing is making or selling
  products in multiple countries
  
• Identical marketing of global brands
• Transfer of nationally successful concepts
• Ethnocentric arrogance about local involvement in
  marketing process
  
• Centralism vs. Decentralism ?!

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New Insights from Successful Global Cos

• Learn to live with conflicting perspectives
• Global selling strategy is must for survival
• Use most advanced communication and technology
  disregard where developed
  
• Practice nonjudgmental interchange of ideas and
  knowledge
  
• Recognize market differences and diverse cultural
  wants and needs

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Global Consumers, Global Brands

• !! There is no global target or brand !!
• Consumers have uniquely personal sets of
  experiences, values and cultures
  
• People dont buy brand because they are global
• People dont care where brands are made
• Country-of-origin concept works for only a few
  categories (French wine, US jeans, Swiss cheese)
  
• People search for familiar brands
• Consumers value personal relationships with a
  brand

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The Brand Idea Concept

• Def. What the brand stands for in the minds of
  the consumers
  
• Coca-Cola, Nike, Kelloggs, Ford, Kodak
• Manufacturers dont own the brand idea, the
  consumers own it
  
• Must add value to consumer for competitive
  advantage/differences
  
• Functional, social, psychological, economic
• Brand is like old friend, value comes from
  positive experience

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Global Use of the Brand Idea

• Recall that brand preferences are subjective and
  personal
  
• Develop link between brand value and consumers
  value
  
• Consumer values differ between cultures
• There are global products, but brands are local
  because of the individual relationship
  
• Global communication forms this link, needs to
  pay attention to differences

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Global Advertising and Values

• Remember how advertising is supposed to work?
• Awareness Attitude Learning Action
• Most routine and repeat purchases are not
  active-thought processes
  
• Considering these general difficulties for just
  one country, how much more complicated must it be
  for more than one?

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Global Advertising and Values

• Some categories can be considered truly global,
  as behavior is likely identical.
  
• Culturally imposed products (spark plugs)
• Luxury goods for the wealthy (Rolex)
• Generally value perceived in brands differs
  between cultures.
  
• Cultures use communication vehicles (TV, radio,
  etc.) differently.
  
• Communication vehicles have to be in sync with
  consumer values
  
• Invest time, money, sensitivity to understand and
  relate to needs and values

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Paths to Success

• Successful execution requires local knowledge and
  input
  
• Goal is a global brand idea
• Brand stands for the same thing in every country
• Sensitivity to local consumer values provides
  insights which keeps brand vibrant
  
• Allow for local expression of worldwide brand idea

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Wanted Global Marketers

• Key to successful marketing is the development of
  people who are willing to learn how to do it.
  
• Understanding of different cultures and values
• Fascination with how symbols, words work
• Desire to learn about different working of brands
  in different cultures
  
• Traveling to a market isnt like living there
• Global marketing is about the link of people,
  values and ideas

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Implications of Global Vision PG

• Ability and willingness to realign management
  structure
  
• Globalizing the brand and its technologies
• Long-term , strategic approach to adapt to the
  global marketplace
  
• No change of the core values

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Think Global!

• Capitalize on opportunities of a shrinking world
• As world becomes smaller, demand for superior
  solutions increases
  
• Capitalism more acceptable, trade barrier down
• Communication technologies bring diverse people
  together
  
• Universal needs can be met with universal brands

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Create Global Brands

• Requires change of corporate management
• Focus of RD, administration and marketing around
  key brands
  
• Name lead countries for each key product
• Involve and commit local subsidiaries fully
• What about last sessions There are no global
  brands??

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Act Global

• Export your corporate culture around the globe
• Be first in underdeveloped markets
• Recruit and train nationals who show affinity for
  your culture
  
• Establish a multinational training model, i.e.
  include culture and language training
  
• Abide by the same principles and code of business
  conduct everywhere

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Simplify and Standardize

• Whenever possible apply existing packages,
  product formulas, or advertising campaigns to as
  many markets as possible.
  
• Vidal Sassoon (single fragrance variation in
  amount)
  
• Ariel detergent (same package different name/
  language)
  
• Pringles (same TV commercial format local
  actors)

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Think Local

• Search Reapply
• Look for successful ideas elsewhere to adopt for
  local market
  
• Understand the local consumer
• Basic needs seldom vary, BUT
• Unique perceptions or characteristics of local
  marketplace do
  
• Different marketing strategies are needed

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Act Local

• Adapt products to the local market
• Cheer in Japan (laundry with cold water)
• Whisper in Japan (target younger consumer)
• Rejoice in China (different shampoo formula)
• Detergents in Peru (different package size)
• Sampling in China (use of Communist Party)

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Act Local

• Adapt the message to the market
• Consumers hear messages differently, so tailor
  the advertising
  
• Localize spokesperson, puppet, etc.
• No disparaging of competitor in Asian markets
• Address local image problems locally
  (Pampers-chan talking diaper in Japan)
  
• Create culture-specific scenarios (Camay soap in
  France vs. Japan)

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Act Local

• Create a local image for the company
• Commit to the country whose marketplace your
  entering long-term
  
• Interviews with the local press
• Special corporate advertising, PR
• Meet with academic and political opinion leaders
• Work with suppliers and customers on their terms

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• http//uts.cc.utexas.edu/marye/