International Marketing & Terrorism

In this video, Prof.Czinkota reminds the public that Terrorism is not  far from us, even more, it is a significant issue in international marketing.  Not only are emerging economies threatened by the rise of terrorism, but developed economies will be affected as well.Terrorism preparedness matters! 

A World without international marketing?

A World without international marketing?

-Michael R. Czinkota

 Sometimes we only know what we lost when it has left us. I put this thought to the test it in my class of Georgetown University students. In our course “Marketing Across Borders”, we worked on the question: “What would life look like without international marketing?”. The answers offered various perspectives reflecting their interest and training in international affairs. The range was broad, addressing the impact of international marketing in the context of diversity, choices, cultural exchange, and international quality standards.

            On a personal level, students saw substantial impact of international marketing on their lives. Some mentioned that international marketing and its activities creates thousands of jobs around the world.This was seen as highly relevant to themselves, but they included their parents as well since such a change clearly involved today and the future. Some students said that without International Marketing a life would be simpler but not necessarily in a good way. International Marketing was seen to bring to life a variety of products that enrich consumers and make them more productive.

Some respondents highlighted the exposure to new thoughts and ideas that International Marketing brings to people around the world. Such exposure motivates the competition between companies to supply better quality combined with better value. This competition leads to innovation in products across different markets around the world. Without International Marketing, the high quality standards we have today would diminish due to decreasing competition.

            Companies would also feel  the absence of International Marketing. Expansion across borders will be harder and would have to rely without marketing heavily on word of mouth communication. Exports and imports will be far less than today’s value since international activities will be less profitable. Selling products to other cultures in which they are not interested will be difficult. Companies will have fewer opportunities to learn and develop from others as well. Problems will be caused by a lack of willingness to adjust or a lack of motivation to develop and compete. In consequence, the world won’t be as efficient as today.

            There was the hypothesis that International Marketing is likely to reduce poverty and increase international cooperation. These benefits would disappear when foreign direct investment decreases. Sales in foreign markets would diminish without the lubricating effect of international marketing. Less cultural awareness of others would be the consequence of a decline in intercultural communication. Companies would be less socially responsible and transparent as they won’t be inspired by other international companies who serve international communities. This would newly insert more psychic distance between cultures and countries, and reduce the attention paid to common problems and actions taken for the public good.

            Finally, we explored what students would miss most, where does the pain threshold begin: We know about the wide variety of products that are moved and brought to market thanks to marketing. So how about the loss of video games, cars, music tourism or even commercials. These items were touched on, but the core of items one would miss the most were Food, Food, and Food again.  Students were quite varied in their thinking as long as the items whose loss was deplored dealt with sustenance or alimentation. Leading among products held dear were chocolate, snacks, noodles, candies and anything else which could be eaten by chopstick. Quite a broad base from students whose parents were only introduced to new eating utensils. Food and its variety tend to give staying power to globalization and also encourage cross fertilization. Let it give new opportunity to a life with spice.

Michael Czinkota teaches international business and trade at Georgetown University’s McDonough School of Business and the University of Kent. His key book (with Ilkka Ronkainen) is “International Marketing” (10th ed., CENGAGE).

TERRORISM, COMPETITIVENESS, AND INTERNATIONAL MARKETING – (3/6)

TERRORISM, COMPETITIVENESS AND INTERNATIONAL MARKETING

SEARCHING FOR CORPORATE EFFECTS

(Third in a series)

Valbona Zeneli, Marshall Center, Germany

Michael R. Czinkota , Georgetown University USA and University of Kent, UK

Gary Knight, Willamette University, USA

The scientific approach is largely driven by hypotheses  which are analyzed as to their likelihood of being acceptable, true and robust. We present thoughts on the odds and consequences of relationships between international marketing and terrorism. We suggest arms length and reliable insights which improve our contextual understanding and decision making. Here are several hypotheses which we postulate are associated with terrorism and corporate action.

First are increases in Marketing Costs, accompanied by disruptions of supply chains. Interruptions in global supply chains tend to cause shortages or delays of critical inputs, which affect corporate strategies and performance, shrink shareholder value, and reduce the  consumption of goods and services. Perhaps the entire “just in time” production processes of a firm and its supply chain may need to be reconfigured.  Increased security measures heighten the complexity of motion which increases costs. Contextual volatility raises the cost of coordination, as suppliers and distributors devote more resources to environmental scanning, information processing, and negotiating with their suppliers for synchronized responses to rapid changes within all affected organizations.

For marketing planning, design, and organization we believe that an increase in the threat or occurrence of terrorism, makes management select its risk as a salient factor in the firm’s international marketing planning, supply chain management and organization of global distribution channels. To develop business strategies which minimize the firm’s exposure, managers tend to avoid direct investment and to require higher returns on investment.  Exports can rise but with higher cost assessments for the development of new infrastructure in terrorism-prone areas.  Terrorism also appears to depress buyer psychology and consumption.

International Experience plays a major role in the firm’s marketing planning, and the design and organization of the firm’s global distribution channels. The acquisition, interpretation and distribution of knowledge are critical for optimizing performance of global supply chains, and achieving superior resilience  and market share. Reducing the firm’s risk due to unfamiliarity with a market, also called the “liability of foreignness”, pays off by decreasing market operational uncertainties, and shrinking  surprises. It pays off to be on site,  a motto which argues for  multi-dexterity in international strategy.  Substantial experience in numerous foreign markets is greater than the sum of its parts, and becomes a strategic asset when a firm must confront terrorism in its global operations.

Organizational Resources of the firm affect its competitive advantage. They can strengthen assets such as in-house knowledge, skilled personnel, superior strategies, and financial reserves. The ability of firms to succeed in light of international business adversity is largely a function of the resources available to explore alternatives.

Resource-restricted firms face greater challenges to create a solid business foundation by researching foreign markets and potential partners.  Conversely, well-resourced firms have a greater capacity to undertake international ventures that will perform well. Therefore, we expect that firms with comparatively abundant resources will be better positioned to undertake sophisticated international marketing preparations. They can incorporate the environmentatl contingencies of terrorism into their planning, their development of supply chains, and their distribution channels, all key components of international success.

Michael Czinkota teaches international business and trade at Georgetown University’s McDonough School of Business and the University of Kent. His key book (with Ilkka Ronkainen) is “International Marketing” (10th ed., CENGAGE).

Olympics VS Super Bowl. The Marketing Differences

Michael R. Czinkota  and Charles Skuba

The Super Bowl  reached viewers around the world, but Olympic advertisers will be communicating with a much broader audience from diverse cultures who will bring with them a different set of interests and emotions. To persuade such a multicultural audience, advertising will need to seek commonalities of the mind and heart.  Global advertising agencies have the expertise to create messages that work across borders and avoid the danger of leaving broad groups of viewers bewildered or, worse, offended.

We offer five winning techniques (not exclusive to each other)for creative messaging to global audiences during the Olympics in national and global media campaigns.  

 Universal human emotions come first. The best brands inspire and capture positive, if not joyful, emotion in their customers. Marketers know that emotion often trumps reason in purchase decisions. Dig deep into any customer psyche, whether of a business decision-maker or a teenage gamer, and you’ll find a bundle of emotions that are common to people across cultures.  Although there are cultural differences in what stirs emotion, some things are universal, like love stories and the pursuit of dreams.

For the 2012 London Olympic Games, P&G launched the global “Thank You Mom” campaign that celebrated the love of young Olympic athletes and their mothers. There may be no more powerful bond than the love between a mom and her child and that love is a universal emotion which is why P&G has renewed the theme for 2018.

Expansive imagery is also of major impact. The film industry has conditioned viewers across the world to crave dramatic, expansive imagery. The most successful global films create a powerful impact of sight and sound. The Olympics are a key opportunity for grand imagery. Marketers regularly use striking visuals to capture attention but the bar is being raised.

Inspiring sounds and music follow hand-in-hand with expansive imagery. Music enhances visuals for dramatic and emotional impact.  Marketers must be careful with music selection.  Coca Cola has long used “happiness” music to appeal to young people around the world. Naturally, if the music is great, people will want to share it.

Then there is symbolism. For simple communication of an idea, it’s hard to beat. Marketers often employ symbolism to enhance and distinguish their campaign and product messaging.

If you can show product advantage in advertising, your  marketing effort is working.  The trick is to get people’s attention to your message and also sell. Also, marketers would be smart to walk away from messaging that depends upon slang or references to national pop culture.  If you didn’t grow up watching American television, you might not understand a lot of pop culture references that U.S. audiences instantly absorb.

Super Bowl advertising is uniquely tuned to American audiences while that of the Olympics must be globally focused. Both will employ many of the techniques identified here.  Marketers are literally going for the global gold. For the audience, the Olympic marketing messages will be quite different from the ones of the Super Bowl but well worth waiting for.

 

Prof. Michael Czinkota researches international marketing and business issues at Georgetown University in Washington D.C. He served in trade policy positions in the George H.W. Bush and Ronald Reagan administrations. His International Marketing text is now in its 10th edition. czinkotm@georgetown.edu

 Charles Skuba teaches international business and marketing at Georgetown University. He served in the George W. Bush administration in trade policy positions in the U.S. Department of Commerce and previously was a senior executive in advertising. cjs29@georgetown.edu