Chapter 3

History and Geography

The Foundations of
Culture

Impact of history and Geography on The

International Marketer

International marketers must know how the

unique geographic characteristics will affect
the marketing of their product.
The marketer needs to ask himself/herself
how geography will affect price, promotion,
place, product, people, and politics, i.e, the 6
Ps.
3-2

History and Contemporary Behavior

1. Historical events between nations

influence business and history
2. Why do the Japanese have such strong
loyalty toward their companies?
3. Why is a distribution system so
difficult for an outsider to develop?
4. Why are decisions made by
consensus?
3-3

Global Perspective
Birth of a Nation Panama in 67 Hours
To fully understand a societys actions and its points of view,
you must have an appreciation for the influence of historical
events and the geographical uniqueness to which a culture
has had to adapt.
To interpret a cultures behavior and attitudes, a marketer
must have some idea of a countrys history and geography.

Culture is defined as a societys accepted basis for

responding to external and internal events.
3-4

History and Contemporary Behavior

Japanese History:
-

Seven centuries under the shogun feudal system

The isolation before the coming of Admiral Perry in 1853
Threat of domination by colonial powers
Rise of new social classes
Western influences
Humiliation of World War II
Involvement in the international community

Historically, loyalty and service, a sense of responsibility, and respect for

discipline, training, and artistry were stressed to maintain stability and
order.
A historical perspective gives the foreigner in Japan a basis on which to
begin developing cultural sensitivity and a better understanding of
contemporary Japanese behavior.
3-5

History is Subjective
Historical events always are viewed from ones own
biases and SRC.
A crucial element in understanding any nations business
and political culture is the subjective perception of its
history.
- Relationship between U.S. and Mexico
Monroe Doctrine

3-6

Manifest Destiny and the Monroe Doctrine

Both accepted as the basis for U.S. foreign policy during much of
the 19th and 20th centuries.
The idea of Manifest Destiny was used to justify U.S. annexation
of Texas, Oregon, New Mexico, and California and later, U.S.
involvement in Cuba, Alaska, Hawaii, and the Philippines.
Three basic dicta of the Monroe Doctrine:
- No further European colonization in the New World
- Abstention of the U.S. from European political affairs
- Nonintervention of European governments in the governments of the
Western Hemisphere

Change in the Monroe Doctrine:

- 1881, Roosevelt Corollary
3-7

Geography

The study of earths surface, climate,

continents, countries, peoples,
industries and resources

3-8

TOPOGRAPHY

Topography is the study of earths

surface, shape and features or those of
planets

3-9

Climate and Topography

Climatic conditions, such as altitude, humidity,
and temperature, can have an effect on products.
Within even a single national market, climate can
be sufficiently diverse to require major
adjustments.
Topographical issues and geographic hurdles can
have a deep effect on the distribution channels of
the product and a countrys economy.
3 - 10

Channel Tunnel: Between UK and France

3 - 11

Oresund Link

Sweden/Denmark built bridge and tunnel across the Baltic Strait to Continental Europe
3 - 12

Geography, Nature and Economic Growth

Less-privileged (developing) countries suffer disproportionately
from natural disasters over more economically stable countries
In more prosperous countries, the ability to prepare, plan and
overcome natural disasters is much greater.
Environmental issues:

- Disruption of ecosystems
- Relocation of people
- Inadequate hazardous waste management
- Industrial pollution
3 - 13

Geography, Nature and Economic Growth

Less-privileged (developing) countries suffer disproportionately
from natural disasters over more economically stable countries
In more prosperous countries, the ability to prepare, plan and
overcome natural disasters is much greater.
Environmental issues:

- Disruption of ecosystems
- Relocation of people
- Inadequate hazardous waste management
- Industrial pollution
3 - 14

Social Responsibility and Environmental

Management
The marketer must consider what are the
environmental consequences of their
product.
- This is especially true if the company is
producing the product in the country that the
product is being marketed.

3 - 15

Social Responsibility and Environmental

Management

Pollution is on the verge of getting

completely out of control
China has 16 of the worlds 20 most
polluted cities
Critical issue: the disposal of hazardous
waste
3 - 16

Social Responsibility and Environmental Management

- Organizations that have formed to address this
problem include:

The Organization for Cooperation & Development

The United Nations
The European Union
Other international activist groups

- Many organizations and governmental agencies are

governed by a concept called sustainable
development
A joint approach among governmental agencies, organizations and
environmentalists who seek economic growth with wise resource
management, equitable distribution of benefits and reduction of
negative effects on people and environment from the process of
economic growth

3 - 17

Resources
The availability of minerals and the ability to generate energy are the
foundations of modern technology.
The principal supplements to human energy are:

Animals
Wood
Fossil fuel
Nuclear power
Ocean tides
Geothermal power
The sun
3 - 18

Resources
The availability of natural resources has an impact on
economic growth
Most countries are not self-sufficient, this becomes one
of the most important imports and has a major impact on
a countrys trade deficit or surplus.
Global interdependence of energy resources is
increasingly important and has incredible political power

3 - 19

World Energy Consumption

Insert Exhibit 3.3

3 - 20

Global Population Trends

3 - 21

Global Population Trends

Important
Important to
to know
know about
about current
current population
population trends
trends
because
because people
people constitute
constitute markets
markets for
for various
various
categories
categories of
of goods
goods
Necessary to know about:
(1) rural/urban population shifts
(2) rates of growth
(3) age levels, and
(4) population control
(5) rural-urban migration of world population
(6) population decline and aging
(7) worker shortage and immigration
3 - 22

Controlling Population Growth

Global population trends determine todays
demand for goods
- Rural/urban population shifts
- Rates of growth
- Age levels
- Population control

Changes in population will profoundly affect

future demand
The most important deterrent to population
control is cultural attitudes about the importance
of large families
3 - 23

World Population by Region 2005-2050

Life Expectancy at Birth 2005-2010 (millions)

3 - 24

Rural and Urban Population, 2005-2030

(millions)

3 - 25

Rural/Urban Migration

Result of a desire for greater access

to:
- Sources of education
- Health care
- Improved job opportunities
3 - 26

Worker Shortage and Immigration

The free flow of immigration will help to
ameliorate the dual problems of explosive
population expansion in less-developed countries
and worker shortage in industrialized regions
Europe will need 1.4 billion immigrants over the
next 50 years
Japan and the U.S. will need 600 million
immigrants between now and 2050
3 - 27

World Trade Routes and

Communication Links

Progression of trade routes

-

Overland
Sea routes
Air routes
The Internet

Distance
Natural barriers
Lack of resources
Fundamental differences between and economies

Trade routes bind world together, minimizing:

Trade routes represent attempts to overcome

influence of geography
- Causing economic and social imbalances

3 - 28

The Triad: Trade Between the United States and Canada,

the European Community, and Japan ($ billions)

EUROPEAN
COMMUNITY

66.3

195.4
151.6

89.0

JAPAN

UNITED STATES &

CANADA

91.5

141.7

3 - 29

Communication Links

3 - 30

Communication Links
Telegraph
Telephone
Television
Satellites
Computer
Internet

3 - 31