GLOBAL

ENVIRONMENTAL
SCAN
CHAPTER
By Brandon Miller
Pages 183-190
Joke Time:
The Real Reason Behind the
Andersen/Enron Fiasco
Global Environmental Scan
Uncontrollable factors that affect global
marketing:
Cultural factors
Economic factors
Political-Regulatory factors
Overview
Cultural Diversity (cultural factors)
Cross-cultural analysis
Values
Customs
Foreign Corrupt Practices Act
Cultural Symbols
Semiotics
Language
Back translation
Cultural ethnocentricity
Consumer ethnocentrism


Overview Continued
Economic Factors
Stage of Economic Development
Economic Infrastructure
Consumer Income and Purchasing Power
Currency Exchange Rates
Cultural Environmental Factors
A cross-cultural analysis involves the
study of similarities and differences
among consumers in two or more
nations or societies
The cross-cultural analysis creates an
understanding about values, customs,
symbols, & languages of other societies.

Cultural Environmental
Factors: Values
A societys values represent personally
or socially preferable modes of conduct
or states of existence that are enduring.
Values influence the behavior of the
consumers.
McDonalds example in India
Visa example in Germany

Cultural Environmental
Factors: Customs
Customs are the norms and
expectations about the way people
do things in a specific country.
Cosmetics example in France
Japanese Valentines Day example
Cultural Environmental
Factors: Customs
The Foreign Corrupt Practices Act
makes it a crime for U.S. corporations to
bride an official of a foreign government
or political party to obtain or retain
business in a foreign country.
Bribes are a tax deductible expense in
France & Greece
Cultural Environmental
Factors: Symbols
Cultural symbols are things that
represent ideas and concepts. Semiotics
is the study of these symbols. Improper
use of symbols can be disastrous for
global marketers.
Tiffany & Company example in Japan
Coke example with the Parthenon
Cultural Environmental Factors:
Language & Back Translation
The best language to communicate
with consumers in is their own.
Over 3,000 languages spoken world-
wide
Vicks example in Germany
Cultural Environmental Factors:
Language & Back Translation
In back translation, a translated
word or phrase is retranslated into the
original language by a different
interpreter. (error checking control)
Nike flames example
Cultural Environmental Factors:
Consumer Ethnocentrism
Consumer ethnocentrism is the
tendency to believe that is
inappropriate or immoral to
purchase foreign-made products.
Observed in segments of the U.S.,
France, Japan, Korea, & Germany
Economic Environmental
Considerations
Economic Factors:
Stage of Economic Development
Economic Infrastructure
Consumer Income and Purchasing Power
Currency Exchange Rates
Economic Environmental Factors:
Stage of Economic Development
Developed Countries: Mixed
economies (Ex: U.S., Japan, Canada, &
Western Europe)
Developing Countries: Usually moving
towards an industrialized economy (Ex:
Hungary, South Africa, & Pakistan)
Economic Environmental Factors:
Economic Infrastructure
Economic infrastructure is a countrys
communication, transportation,
financial, & distribution systems.
Critical for determining how, where, &
to whom to market.
Coke example in India
Economic Environmental Factors:
Consumer Income & Purchasing Power

Marketers must consider the average
household incomes of the consumers.
FIGURE 7-5
How
purchasing
power
differs
around
the world
Economic Environmental Factors:
Currency Exchange Rates

A currency exchange rate is the price
of one countrys currency expressed in
terms of another countrys currency.
Failure to consider exchange rates can
have severe consequences
Mattel Barbie example
Review
Global marketing is affected by uncontrollable
factors that include:
Cultural factors
Values
Customs
Cultural Symbols
Language
Cultural ethnocentricity
Economic factors
Stage of Economic Development
Economic Infrastructure
Consumer Income and Purchasing Power
Currency Exchange Rates
Any Questions or Comments?
Thanks for listening
By Brandon Miller