KNOWLEDGE CLIPS
WEEK 1
KNOWLEDGE CLIP 1: GLOBALIZATION
Cultural globalization
- Comes with the concern that culture is becoming too global, homogenised,
Westernisation
- Whether cultural globalization incurs a loss of local values or enrich people’s minds
towards global perspectives and the interchange of knowledge and ideas remains a
question of balance
Financial globalization
- 24-hour availability of information and trading potential
- Pros: more efficient global allocation of resources, sustained trade balance and
prevention of national shocks
- Cons: increase exposure of real shocks and risks that sudden capital reversals mat
translate into large-scale economic disruptions
Technological globalization
- Pros: benefits poorer countries
- Cons: multinationals recruit world-class talent at a fraction of what they would have
had to pay in their own country
Educational and sociological globalization
- Caused fierce competition for firms and universities to have the most qualified
personnel and the best students
- Comes with downturn associated with increasing family dislocation that results from
permanent commuting, lack of identity and social boundaries due to multiple homes
and ‘global’ citizens
Economic globalization
- Reduction of poverty by economic growth
- Growing economy leads to increasing demand which leads to expanding businesses
Paradoxes in global marketing:
Economic globalization is accompanied by increased focus on local identity
Convergence and divergence of consumer behaviour
Global media versus local music preferences
Core dilemma in global marketing:
o Standardization versus adaptation
KNOWLEDGE CLIP 2: PORTER’S FORCES MODEL
Michael Porter came up with the model while researching the nature of competition. He
outlined five factors to analyse the profitability and attractiveness of an industry.
Competitive rivalry number of competitors and their strength in comparison to you.
Power of suppliers if suppliers have high bargaining power, they can influence pricing and
thereby influence profits (e.g., Bosch).
Power of customers customers can exert pressure and drive prices down (e.g., car
manufacturers).
Threat of substitutes alternatives that serve the same need. Higher number substitutes will
drive prices down and lower number of substitutes can result in a monopoly.
,Threat of new entrants every market has
established market leaders. New entrants can
eat into the market share. If barriers to entry are
low, the threat to existing players is high (e.g.,
Tesla)
Shortcomings: applicability to a specific industry
and not to a specific organisation as opposed to
a SWOT analysis + collusions among buyers
and suppliers + does not work for non-profit and
governmental entities.
KNOWLEDGE CLIP 3: SWOT ANALYSIS
Business tool that helps an organisation assess its competitive advantages in the
marketplace and understand its external environment.
SWOT Strengths, Weaknesses, Opportunities, Threats
Strengths and weaknesses are internal, opportunities and threats are external.
Shortcomings: it can go out of date rather quickly as external factors tend to change + lack of
focus + possibility of bias.
KNOWLEDGE CLIP 4: PESTLE ANALYSIS
PESTLE is a management framework used to analyse the external factors affecting projects /
brands / businesses. These factors cannot be controlled by the business but can influence
decision making.
PESTLE Political, Economic, Social, Technological, Legal, Environmental
WEEK 2
KNOWLEDGE CLIP 1: ELABORATION LIKELIHOOD MODEL
We elaborate when we are going to make a big purchase.
Central Route Processing: thinking about the details, think hard.
Peripheral Route Processing: paying attention to things that aren’t really important, be
influenced by others (peripheral things, like colour of product).
KNOWLEDGE CLIP 2: SCHWARTZ VALUES FRAMEWORK
, The cultural values framework by Schwartz was designed with the intent to overcome some
of the limitations of Hofstede’s approach. His framework is based on 4 dimensions:
1. Openness to change (autonomy VS conformity)
2. Self-transcendence (self-direction)
3. Conservation (tradition)
4. Self-enhancement (achievement, power)
KNOWLEDGE CLIP 3: HOFSTEDE NATIONAL CULTURES
-
-
Individualism VS collectivism
- Masculinity VS femininity
- Uncertainty avoidance
- Power distance
- Long-term VS short-term orientation
- Indulgence VS restraint
KNOWLEDGE CLIP 4: LOCAL, GLOBAL, FOREIGN PRODUCT POSITIONING
Cultural products = local particularities
Some build on fairly universal feelings and lifestyles (Coca-Cola, McDonalds)
Cultural identification:
- Identification with your home country
- Identification with a foreigner or exotic culture
- Consumers buy meaning: cultural identification, assimilation, desire
Global
Global Consumer Culture Positioning (GCCP)
WEEK 1
KNOWLEDGE CLIP 1: GLOBALIZATION
Cultural globalization
- Comes with the concern that culture is becoming too global, homogenised,
Westernisation
- Whether cultural globalization incurs a loss of local values or enrich people’s minds
towards global perspectives and the interchange of knowledge and ideas remains a
question of balance
Financial globalization
- 24-hour availability of information and trading potential
- Pros: more efficient global allocation of resources, sustained trade balance and
prevention of national shocks
- Cons: increase exposure of real shocks and risks that sudden capital reversals mat
translate into large-scale economic disruptions
Technological globalization
- Pros: benefits poorer countries
- Cons: multinationals recruit world-class talent at a fraction of what they would have
had to pay in their own country
Educational and sociological globalization
- Caused fierce competition for firms and universities to have the most qualified
personnel and the best students
- Comes with downturn associated with increasing family dislocation that results from
permanent commuting, lack of identity and social boundaries due to multiple homes
and ‘global’ citizens
Economic globalization
- Reduction of poverty by economic growth
- Growing economy leads to increasing demand which leads to expanding businesses
Paradoxes in global marketing:
Economic globalization is accompanied by increased focus on local identity
Convergence and divergence of consumer behaviour
Global media versus local music preferences
Core dilemma in global marketing:
o Standardization versus adaptation
KNOWLEDGE CLIP 2: PORTER’S FORCES MODEL
Michael Porter came up with the model while researching the nature of competition. He
outlined five factors to analyse the profitability and attractiveness of an industry.
Competitive rivalry number of competitors and their strength in comparison to you.
Power of suppliers if suppliers have high bargaining power, they can influence pricing and
thereby influence profits (e.g., Bosch).
Power of customers customers can exert pressure and drive prices down (e.g., car
manufacturers).
Threat of substitutes alternatives that serve the same need. Higher number substitutes will
drive prices down and lower number of substitutes can result in a monopoly.
,Threat of new entrants every market has
established market leaders. New entrants can
eat into the market share. If barriers to entry are
low, the threat to existing players is high (e.g.,
Tesla)
Shortcomings: applicability to a specific industry
and not to a specific organisation as opposed to
a SWOT analysis + collusions among buyers
and suppliers + does not work for non-profit and
governmental entities.
KNOWLEDGE CLIP 3: SWOT ANALYSIS
Business tool that helps an organisation assess its competitive advantages in the
marketplace and understand its external environment.
SWOT Strengths, Weaknesses, Opportunities, Threats
Strengths and weaknesses are internal, opportunities and threats are external.
Shortcomings: it can go out of date rather quickly as external factors tend to change + lack of
focus + possibility of bias.
KNOWLEDGE CLIP 4: PESTLE ANALYSIS
PESTLE is a management framework used to analyse the external factors affecting projects /
brands / businesses. These factors cannot be controlled by the business but can influence
decision making.
PESTLE Political, Economic, Social, Technological, Legal, Environmental
WEEK 2
KNOWLEDGE CLIP 1: ELABORATION LIKELIHOOD MODEL
We elaborate when we are going to make a big purchase.
Central Route Processing: thinking about the details, think hard.
Peripheral Route Processing: paying attention to things that aren’t really important, be
influenced by others (peripheral things, like colour of product).
KNOWLEDGE CLIP 2: SCHWARTZ VALUES FRAMEWORK
, The cultural values framework by Schwartz was designed with the intent to overcome some
of the limitations of Hofstede’s approach. His framework is based on 4 dimensions:
1. Openness to change (autonomy VS conformity)
2. Self-transcendence (self-direction)
3. Conservation (tradition)
4. Self-enhancement (achievement, power)
KNOWLEDGE CLIP 3: HOFSTEDE NATIONAL CULTURES
-
-
Individualism VS collectivism
- Masculinity VS femininity
- Uncertainty avoidance
- Power distance
- Long-term VS short-term orientation
- Indulgence VS restraint
KNOWLEDGE CLIP 4: LOCAL, GLOBAL, FOREIGN PRODUCT POSITIONING
Cultural products = local particularities
Some build on fairly universal feelings and lifestyles (Coca-Cola, McDonalds)
Cultural identification:
- Identification with your home country
- Identification with a foreigner or exotic culture
- Consumers buy meaning: cultural identification, assimilation, desire
Global
Global Consumer Culture Positioning (GCCP)
