History and Geography:
The Foundations of Culture
3-2
Learning Objectives
LO1
The importance of history and geography in understanding
international markets
LO2 The effects of history on a country’s culture
LO3 How culture interprets events through its own eyes
LO4 How long-past U.S. international policies still affect customer
attitudes abroad
LO5 The effect of geographic diversity on economic profiles of a country
LO6 Why marketers need to be responsive to the geography of a country
LO7 The economic effects of controlling population growth and aging
populations
History & Contemporary
Behavior
•
Historical events between nations influence
business and history.
•
Any nation’s business and political culture is
shaped by history.
–
The historical development of trade in China along
the silk road certainly had an impact on trade
between China and the rest of the world.
–
The cold war with the former U.S.S.R. still impacts
3-4
Case in Point: Japan
•
Why do the Japanese have such strong
loyalty toward their companies?
•
Why is a distribution system so difficult for
an outsider to develop?
•
Why are decisions made by consensus?
•
Why are they loyal to family, to company, to
Manifest Destiny
Manifest Destiny and Monroe Doctrine were the
basis of U.S. foreign policy in the 19
thand 20
thcenturies.
Manifest Destiny meant that Americans were a
Exhibit 3.1. Source: Oxford Atlas of the World, 18th ed., 2002 Preprinted with permission of Philip Maps
Geography and Global Markets
•
Climate & Topography
•
Geography, Nature & Economic Growth
•
Social Responsibility & Environmental
Management
Climate and Topography
Knowledge about geography, the
climate and physical terrain when
appraising a market
Influences marketing from product
adaptation to the development of
marketing systems
Climatic features affect uses and
functions of products and equipment
Climate and Topography
Products may require special cooling or
lubrication to function adequately in
tropical zones
Climate differences in Europe caused
Bosch-Siemens to alter its washing
machines
Geographic terrain such as mountain
ranges in a country can influence
Geography, Nature & Economic
Growth
Linkage exists between geographic
location and economic growth
Association between landlocked
countries (countries having sea)
and level of economic
development
Countries with hostile/hard
climates associated with economic
stagnation
Countries that suffer the most
from major calamities are among
the poorest in the world, which
influences ability to market
products
Social Responsibility &
Environmental Management
Environmental protection is not an optional extra; it is an essential part of the complex process of doing business.
Of special concern to governments and businesses are ways to stem/ stop the tide/wave of pollution and to clean up decades of neglect.
Many governments are drafting new regulations and enforcing existing ones.
Resources
Importance of natural resources especially to
manufacturing of products; Supply of natural
resources not endless
Human labor provides the preponderance/
advantage of energy in many countries
Importance of oil and gas in world energy
consumption
Global Population Trends
Important to know about current population trends
because people constitute markets for various
categories of goods
Necessary to know about:
•
rural/urban population shifts
•
rates of growth
•
age levels
•
population control
•
population decline and aging
•
worker shortage and immigration
3-19
Population Control Issues
•
Adequate Incomes
•
High literacy/education levels
•
Education for women
•
Health care
•
Family planning
•
Cultural attitudes
END
