The three main approaches to dealing with cross-cultural factors in international marketing that could be applied to the marketing of a product/service combination such as the Body Shop are the following:

Hofstede's Dimensions. Geert Hofstede, a Dutch researcher, conducted an interview on a large number of IBM executives in various countries, and the results revealed that cultural differences tended to center around four key dimensions:

• Individualism vs. collectivism: This aspect answers the question: to what extent do people believe in individual responsibility and reward rather than having these measures aimed at the larger group? Contrary to the usual thinking, Japan actually is not as collective as it may as it ranks in the middle of this dimension, while Indonesia and West Africa rank toward the collectivistic side. The U.S., Britain, and the Netherlands rate toward individualism.
• Power distance: To determine power distance, one should ask: To what extent is there a strong separation of individuals based on rank? Power distance seems particularly higher in Arab countries and some Latin American ones, while it is more modest in Northern Europe and the U.S.
• Masculinity vs. femininity involves a somewhat more vague concept. "Masculine" values involve competition and "conquering" nature by means such as large construction projects, while "feminine" values involve harmony and environmental protection. Japan is one of the more masculine countries, while the Netherlands rank relatively low. The U.S. is close to the middle, slightly toward the masculine side.
• Uncertainty avoidance involves the extent to which a "structured" situation with clear rules is preferred to a more ambiguous one; in general, countries with lower uncertainty avoidance tend to be more tolerant of risk. Japan ranks very high. Few countries are very low in any absolute sense, but relatively speaking, Britain and Hong Kong are lower, and the U.S. is in the lower range of the distribution.

One problem with Hofstede's original work was it did not address the fifth dimension of long term vs. short term orientation whichhas been proposed. A concrete example of long-term vs. short-term is in the U.S., managers like to see quick results, while Japanese managers are known for take a long term view, often accepting long periods before profitability is obtained.

Edward T. Hall's High vs. low context cultures: In some cultures, "what you see is what you get"-the speaker is expected to make his or her points clear and limit ambiguity. This is the case in the U.S.-if you have something on your mind, you are expected to say it directly, subject to some reasonable standards of diplomacy. In Japan, in contrast, facial expressions and what is not said may be an important clue to understanding a speaker's meaning. Thus, it may be very difficult for Japanese speakers to understand another's written communication. The nature of languages may exacerbate this phenomenon-while the German language is very precise, Chinese lacks many grammatical features, and the meaning of words may be somewhat less precise. English ranks somewhere in the middle of this continuum.

Ethnocentrism and the self-reference criterion. The self-reference criterion refers to the tendency of individuals, often unconsciously, to use the standards of one's own culture to evaluate others. For example, Americans may perceive more traditional societies to be "backward" and "unmotivated" because they fail to adopt new technologies or social customs, seeking instead to preserve traditional values. In the 1960s, a supposedly well read American psychology professor referred to India's culture of "sick" because, despite severe food shortages, the Hindu religion did not allow the eating of cows. The psychologist expressed disgust that the cows were allowed to roam free in villages, although it turns out that they provided valuable functions by offering milk and fertilizing fields. Ethnocentrism is the tendency to view one's culture to be superior to others. The important thing here is to consider how these biases may come in the way in dealing with members of other cultures.

The strategy I prefer most is the Hofstede's Dimensions because it coves and addresses a wider scope of cross-cultural realities faced by a company involved in international marketing. The strategy I like least is the Edward T. Hall's High vs. low context cultures because it being able to express oneself is sometimes difficult. It is hard to get our message across especially in a cross-cultural environment.

The store environment is heating up as more and more companies put their promotional dollars into point-of-purchase efforts. We are increasingly exposed to ads in non-shopping environments. At what point might shoppers rebel and demand some peace and quiet while shopping? Is there any market potential in the future for stores that “counter-market” by offering a “hands-off” shopping environment?

Shopping has indeed become the target of incessant promotions these days as attested to the presence of point-of -purchase promotional efforts. This advertising method displays ads alongside the merchandise it is promoting or at the checkout area. Constantly bombarding consumers with advertisements could lead to shoppers reaching a certain point of saturation. It would in turn cause them to rebel and demand peace and quiet while shopping.

The shoppers may have had enough of advertisements and its false promises. They may end up rebelling against the rise of consumerism, perceived deception in advertisements, offensive stereotypes, and advertising clutter. The overall level of advertising in America is very high. In studies conducted, it was found out that Americans are exposed to over 500 commercial messages a day (Bovee and Arens, 1995). Network prime time shows 24 percent promotional material, consumer magazines allocate 50 percent advertising, and many newspapers carry 64 percent advertising (Television Commercial Monitoring Report, 1995; 1994/1995 Magazine Handbook, 1995).

The resulting effect is what we termed as “commercial clutter”. Consumer Reports cites "commercial clutter" as one of important issues that "should take center stage on the national agenda" (Consumer Reports, 1996). Advertising clutter could possibly lessen the effectiveness of individual ads and advertising in a particular media. Research shows that ad clutter can have a dangerous effect on ad recall or recognition (Webb and Ray, 1979; Mord and Gilson, 1985).

It is easy to see that at some point, consumers may re-think their shopping patterns and begin to consider alternative. If this happens, stores that offer "counter market" or those that offers hands off shopping environment could be seen as a viable alternative in the future.

Consumers tired of the constant advertisements could be looking elsewhere for people or firms that could do shopping for them. Also, the need to maximize the use of time could also contribute to the need for hands off shopping. This is not a new concept actually since most of us have availed of delivery services in purchasing products or food such as pizza, fast food, milk, newspapers even groceries.

As the shopping needs of people evolve and the stress on time management has become more pronounced, stores that offer hands off shopping environment could actually be a welcome alternative to conventional shopping.

Is it still practical to consider people 55 and older as one consumer market? Why? Why not? Suggest some approaches to further segmenting this age sub-culture. Also give recommendations for the types of products that could benefit from each of the approaches you have suggested.

No, it is not practical to consider people 55 and older as one consumer market. This is so because people even in same age bracket have different needs and capabilities. What works for one does not necessarily work for the other. Demography is not the only way to segment markets. Even more important to marketing objectives are the factors such as the differences in buyer attitudes, motivations, values, patterns of usage, aesthetic preferences, and degree of susceptibility.

It is not good to rely primarily on demographic breakdowns alone. Segmentation analysis should be done in order to choose the strategically most important segmentations and then to design brands, products, packages, communications, and marketing strategies around them.

The demographic idea revolves around the premise that differences in reasons for buying, in brand choice influences, in frequency of use, or in susceptibility are caused by the differences in age, sex, income, and geographical location. But this is usually not true. As pointed out earlier, markets should be scrutinized for important differences in buyer attitudes, motivations, values, usage patterns, aesthetic preferences, or degree of susceptibility. These may have no demographic correlatives. Above all, it must never be assumed beforehand that we know the best approach to a given market. This is the fundamental rule of segmentation analysis. All ways of segmenting markets must be given due consideration. Only then can selection of the best methods that have the most important implications for action can be done. This process of choosing the strategically most useful mode of segmentation is the essence of the marketing approach.

Consider, for example, companies like Procter & Gamble, General Motors, or American Tobacco, whose multiple brands sell against one another and must, every day, win new elections in the marketplace:

These companies sell to the whole market, not by offering one brand that appeals to all people, but by covering the different segments with multiple brands. How can they prevent these brands from cannibalizing each other? How can they avoid surrendering opportunities to competitors by failing to provide brands that appeal to all important segments? In neither automobiles, soaps, nor cigarettes do demographic analyses reveal to the manufacturer what products to make or what products to sell to what segments of the market. Obviously, some modes of segmentation other than demographic are needed to explain why brands which differ so little nevertheless find their own niches in the market, each one appealing to a different segment.

The point at issue is not that demographic segmentation should be disregarded, but rather that it should be regarded as only one among many possible ways of analyzing markets. In fact, the key requirement of segmentation analysis is to never assume in advance that any one method of segmentation is the best. All probable segmentation must be considered and then choose the most meaningful ones to work with.

Why have baby boomers had such an impact on consumer culture? Suggest some ways in which your generation may be able to reduce the total impact of the boomers on society over the next twenty years.

When World War II (1939-45) ended, Americans had endured fifteen years of economic depression and war. After the war and economic prosperity restored, they no longer had to wait. By 1946, the "baby boom" was on, more and more babies were born than ever before. Because of their sheer number, baby boomers, those people born between 1946 and 1964 (when the birth rate leveled off), are a generation that has had a great impact on American life and culture. It also created the “consumer culture” phenomenon.

Between 1946 and 1964, seventy-eight million babies were born in the United States alone. As these children grew up, their numbers created unique problems. A few of these problems include lack of hospital facilities to cater to their growing population. In the late 1940s and early 1950s, nurses, doctors, and hospitals had to deal with overcrowding since a number of women gave birth simultaneously.

In the 1950s, as these kids were about to go to school, another problem arose. This time it was the lack of school facilities. There were not only insufficient school classrooms but also lack of teachers was apparent to meet the demand. In the 1960s and early 1970s, these children caused similar problems for college and universities.

After college, as the students went out to search for jobs, there was a growing pressure on the job market. And finally when baby boomers begin to retire in the year 2010, facilities for the elderly could be insufficient, also services for the elderly such as health care and Social Security. At every stage of their lives, the baby-boom generation has produced unique problems because of its sheer size.

Of course with the problems came the accompanying opportunities. When the baby boomers were young, their numbers create several business possibilities. All these new kids needed things such diapers and toys at first, then school buildings and clothes, records and cars later, and all kinds of products that came with a booming economy. For twenty-five years after World War II, the United States saw great economic prosperity. With the economy on the rise, most of the baby boomers grew up in material comfort, much more so than their parents had experienced having gone through the Depression and World War II.

The baby boom created huge demand for housing, which helped create the many new suburban communities that sprung up after 1945. The baby boomers spurred the growth of what is called "consumer culture" and especially "youth culture." Because many baby boomers were economically comfortable as they grew up, they had money to be able to acquire luxuries.

To reduce the impact of baby boomers on society over the next twenty years it is important for our generation to anticipate their needs such as healthcare services, facilities that are elderly-friendly, environment conducive to their health and others. As the baby boomers approach the age of retirement, steps should be taken that these needs will be addressed sufficiently before it could create problems to the economy. At whatever stage of their lives, the baby-boom generation has proved to be a powerful force in American political, social, and cultural life.

What factors do you think influence consumers to respond to a societal marketing campaign to reduce smoking? Explain your answer using concrete examples. Do you think it would be the same for getting people to become more physically fit? Why? Why not?

Through the years we have seen the rise of various smokefree organizations. These organizations are formed in a concerted bid to eliminate smoking and prevent the harmful effects of secondhand smoke for non-smokers.

The organizations are established for varying reasons. Some came about from personal crusades against smoking as what happened to Patrick Reynolds. He founded Foundation for a Smokefree Americain his personal struggle to combat smoking due to the loss of his loved ones.

In the process, one can gleaned that smokefree organizations are established based on a valid cause. Smoking in the long run kills. Its harmful effects extend to even non-smokers who inhaled its dangerous smoke. Smoking causes diseases such as lung cancer and heart disease which leads to preventable widespread death. This also contributes to economic and emotional hardships to the smoker and the people surrounding him especially his family. Smoking does not contribute anything positive to the person in particular and to the society, in general.

Organizations efforts geared towards promoting smokefree environment have contributed in preventing would-be smokers especially young people from developing the habit. The awareness campaigns they have started to inform the public on the harmful effects of smoking have to some extent made a number of people think twice before indulging in the habit. This leads to a lower rise in the number of smokers. But the organizations' efforts need to be continuous for it to be effective.

Some organizations do not only focus on prevention of smoking but also helping those who smoke to quit. Smoking Stinks has a counseling program that dish out advice for people who ones to help their loved ones quit.

American Legacy Foundation which is group of attorneys general in 46 states against smoking is probably the biggest in terms of funding and the most influential. This group not only lobbies for legislations against smoking like Americans for Nonsmokers' Rights but also provides grants worth millions of dollars to fund campaigns against smoking.

American Legacy Foundation also provides information campaign to steer young people away from the dangerous smoking habit. Like Smoking Stinks they also provide adults

with ways to help them kick off the habit.

American Lung Association is also another very influential group that exhaust the harmful effects of smoking to promote healthier lungs. American Lung Association is the oldest voluntary health organization in the U.S. A number of its programs is geared towards promoting smoke-free environment. It targets young people For adults who smokes, it has programs to help them quit smoking. American Lung Associations' long-running efforts resulted in far-reaching effect to promote lung health.

Most of these groups desire to have smoking completely ban in public places due to its harmful effects on non-smokers. They do not espouse the view on ventilation as a healthy alternative because ventilation is not as effective as total ban.

These groups provide programs, research, grants, seminars, free leaflets, videos even concert tours, lobby legislations and other ways to promote their cause effectively. Their approach may vary but it all boils down on how to combat smoking at its earliest stages and even those who already smoke. The most effective method in stopping smoking though is prevention. And the different organizations' efforts to curb tobacco smoke are geared mainly to prevent the habit.

These methods are also applicable in getting people to stay fit because I believe educational campaigns would always be effective method. Being able to provide facts and approach the problem objectively is always convincing.

Identify the age subcultures among members of your family. How do these cultural differences affect the consumption behaviors of these people for food, personal care products and clothing?

The age subcultures among the members of my family are comprised of the following:

• Dad - early sixties
• Mom - early fifties
• Brother - late twenties
• Sister - early twenties

Consumer attitudes are a composite of a consumer's (1) beliefs about, (2) feelings about, (3) and behavioral intentions toward some object--within the context of marketing, usually a brand or retail store. These components are viewed together since they are highly interdependent and together represent forces that influence how the consumer will react to the object.

Sister's demographics comprise a category that combines age with activity (or, in more technical terms, demographic segmentation with life-style). Sister has both spending power and potentials for brand loyalties which could remain with her through adulthood such as brands in personal care products and clothing. Her tastes for clothes focus on what's trendy and stylish. They prefer to buy and wear the latest fad in order to be considered "cool" or "hot".

Sister who is in early twenties comprise the "yuppies" stage which is slang for young urban professionals. Sister is able to find a secure and high-paying job that would provide affluent lifestyles. Sister tends to eat unhealthy foods such as burgers and fries due to a busy lifestyle.

Brother belongs to Generation X or those born between 1965 and 1977 (40 million people). They are not so trusting on marketing. At this point in time, brother looks for a balance between work and leisure. Gen X-ers are close to their parents and they tend to live at home. They are not drawn to traditional forms of advertising such as hyping up products. Gen X-ers express their need to stay in control by purchasing communications equipment such as beepers, fax machines, e-mail, and mobile phones. He prefers to buy products based on their practicality including personal care products. He is not so into latest trends or fads in clothing. Brother prefers foods that are healthy at the same time quick to prepare.

Mom and Dad belong to the baby boomers or those born those born between 1946 and 1964 (78 million). This demographic is quite stable with total income over $1 trillion, increasing at a rate of 10% per year (versus 5% for the rest of the population). They have a high level of education. They have more discretionary income than other groups and they buy more and save less. Boomers are health conscious particularly in their food choices. They prefer vegetables to burgers. They are becoming less materialistic in outlook and their product and service selections reflect their concern for the environment and quality of life. They use credit cards and buy expensive exercise equipment. Boomers keep up with fashions by looking at the trendy clothes of the young. The marketing of nostalgia works well with them especially older baby boomers.

Consider any product for which you are a very brand loyal user. What brand strategies would you recommend to the marketer of a competing product to convince you to try his brand? Explain why you believe such a strategy would be successful.

I'm a very loyal user of Nike products. Nike's distinctive brand strategies are found in the area of marketing, specifically in consumer brand awareness and brand power. To be able to know how to compete with Nike effectively, it is important to delve into the different strategies Nike imposed that make them unique. For one, catch phrases like, "Just Do It," and symbols like the Nike "Swoosh," are reminders of the Nike empire.

This brand strategy is effective because it could not be easily replicated and it offers value or benefit to consumers. Nike is becoming a part of American and world culture, the brand power becomes more difficult to replicate. The trademark and a slogan serves as the company's fingerprints. Nike is able to capitalize the unique identity because of its financial strength. Nike reaches millions of consumers through large-scale marketing campaigns. The public benefits from the strength of Nike's image when they make a purchase. Consumers often associate Nike image with quality products. By associating

star athletes and motivational slogans like, "Just Do It," consumers identify their purchases with the prospect of achieving greatness. This image they create forms a tactic

that competing companies can not easily duplicate by simply improving their products.

PRODUCT

Is the current product line appropriate? What changes should be made in how products are being handled?

Competitors should do what Nike does like sell a huge variety of products, including shoes for running, basketball, cross training, women and children. All of which are currently its top-selling product categories. They should also sell shoes for outdoor activities such as tennis, golf, soccer, baseball, football, bicycling, volleyball, wrestling, cheer leading, aquatic activities, auto racing and other athletic and recreational uses.

Competitors should also look into selling active sports apparel as well as athletic bags and accessory items. The competitor like Nike should sell a line of performance equipment under their brand name, such as sport balls, timepieces, eyewear, skates, bats and other equipment. They should also sell a line of dress and casual footwear and accessories for men, women and children just like Nike under the brand name Cole Haan. The company markets headwear under the brand name Sports Specialties, through Nike Team Sports, Inc. They also sell small amounts of various plastic products to other manufacturers through Nike IHM, Inc. They could also venture to manufacturing and distributing ice skates, skate blades, in-roller skates, protective gear, hockey sticks and hockey jerseys and accessories like Bauer Nike Hockey Inc. brand names.

Pricing strategies

Competitors should use vertical integration in pricing just like Nike wherein they own participants at differing channel levels or engage in more than one channel level operations. This is also an attempt to control costs and influence pricing practices.

PLACE

Distribution channels and policy. Should additional channels be added, why?

Nike sells its product to about 20,000 retail accounts in the U.S. and in approximately 110 countries around the world. Nike sells its products in international markets through independent distributors, licensees and subsidiaries. Independent distributors has little or no pressure for local adaptation because the 4Ps of marketing are managed by distributors.

PROMOTION

Are both advertising and promotion strategies in place? Succeeded?

Nike has been one of the top retail industries for quite along time. This is because they sell quality products, customer loyalty, but most of all, its great marketing techniques.

Nike has a number of famous athletes to create a great deal of attention to their products. Competitors should sign up the top athletes in many different sports like what Nike did with the Brazilian Soccer Team (especially Ronaldino, Renaldo, and Roberto Carlos), Lebron James and Jermane O'Neal for basketball, Lance Armstrong for cycling, and Tiger Woods for Golf.

Sponsoring of events is another great promotional strategy that should be adopted by Nike's competitors. It brings attention to their products. Web sites are a great promotional tool as they cover these events. Such events include Hoop It Up and The Golden West Invitational. Competitors should also personalize websites by making the websites exclusively for a sport such as what Nike did in nikebasketball.com , nikefootball.com , and nikegolf.com.