Global Vision through Marketing Research

62 Part 2 The Cultural Environment of Global Markets

than could trading partners; he demonstrates that mercantilists were wrong: It is not gold or silver that will enhance the state, but the material that can be pur- chased with it 1783 Treaty of Paris officially ends the American Revolution following British surrender to American troops at Yorktown in 1781

1787 U.S. Constitution ap- proved; it becomes a model document for constitutions for at least the next two centuries; written constitutions will help stabilize many countries and en- courage foreign investment and trade with them 1789 French Revolution begins; it will alter the power structure in Europe and help lead to the introduction of laws

protecting the individual and to limited democracy in the region 1792 Gas lighting introduced; within three decades, most major European and U.S. cities will use gas lights 1804 Steam locomotive intro- duced; it will become the domi- nant form of transport of goods and people until the 20th cen- tury, when trucks and airplanes become commercially viable

1804 Napoleon crowns him- self emperor, overthrowing the French revolutionary govern- ment, and tries to conquer Eu- rope (after already occupying Egypt as a means of cutting off British trade with the East), the failure of which results in the redrawing of national boundar- ies in Europe and Latin America 1807 Robert Fulton’s steam- boat is the first to usher in a

our dignity and sovereignty.” Apparently Venezuelan President Hugo Chavez was listening, based on his more recent nationalization of foreign oil company assets in the Orinoco River Basin 9 and his recent renaming of the country the Bolivarian Republic of Venezuela.

Th ese leaders might be cheered for expropriation or confi scation of foreign invest- ments, even though the investments were making important contributions to their econ- omies. To understand a country’s attitudes, prejudices, and fears, it is necessary to look beyond the surface of current events to the inner subtleties of the country’s entire past for clues. Th ree comments by Mexicans best summarize this section:

History is taught one way in Mexico and another way in the United States—the United States robbed us but we are portrayed in U.S. textbooks as bandits who invaded Texas. We may not like gringos for historical reasons, but today the world is dividing into commercial blocks, and we are handcuffed to each other for better or worse. We always have been and we continue to be a colony of the United States.

10The importance of geography in understanding global challenges that exist today is discussed in Harm J. DeBlij, Why Geography Matters (New York: Oxford University Press, 2005). 11See Philip Parker’s extensive research on the relationship among geography, consumer behavior, and marketing. For example, Philip Parker, Physioeconomics (Cambridge, MA: MIT Press, 2000). 12Elizabeth Holmes, “Hot H&M Targets Cool Climes,” The Wall Street Journal, May 10, 2010, p. B7.

Geography and Global Markets Geography, the study of Earth’s surface, climate, continents, countries, peoples, industries, and resources, is an element of the uncontrollable environment that con- fronts every marketer but that receives scant attention. 10 Th e tendency is to study the aspects of geography as isolated entities rather than as important causal agents of the marketing en- vironment. Geography is much more than memorizing countries, capitals, and rivers. It also includes an understanding of how a society’s culture and economy are aff ected as a nation struggles to supply its people’s needs within the limits imposed by its physical makeup. Th us, the study of geography is important in the evaluation of markets and their environment.11

Th is section discusses the important geographic characteristics a marketer needs to con- sider when assessing the environmental aspects of marketing. Examining the world as a whole provides the reader with a broad view of world markets and an awareness of the eff ects of geographic diversity on the economic profi les of various nations. Climate and to- pography are examined as facets of the broader and more important elements of geography. A brief look at Earth’s resources and population—the building blocks of world markets— completes the presentation on geography and global markets.

Altitude, humidity, and temperature extremes are climatic features that aff ect the uses and functions of products and equipment.12 Products that perform well in temperate zones may deteriorate rapidly or require special cooling or lubrication to function adequately in tropical zones. Manufacturers have found that construction equipment used in the United States requires extensive modifi cations to cope with the intense heat and dust of the Sahara Desert. A Taiwanese company sent a shipment of drinking glasses to a buyer in the Middle

LO5 The effect of geographic diversity on economic profiles of a country

Climate and Topography

9“Venezuela: Spirit of the Monroe Doctrine,” Washington Times , June 10, 2007, p. B5; Girish Gupta, “ExxonMobile’s Loss in Venezuela Sobers Investors,” globalpost.com, January 18, 2012.

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