The report discusses the role of culture in international marketing, including its impact on pricing, distribution, product offering, and promotion. It also highlights the importance of understanding local culture before conducting marketing activities in a host nation.
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International marketing1 Executive summary The companies heading towards internationalization face a different background of customers with a wide spectrum of cultures. The globalization with the openness to cultures creates capitalist societies by making use of progressive technology forms. The marketing taking place in the environment is always shaped by culture. The report states culture from the perspective of international marketing. The elements of the culture have been discussed with positive implications. The example of Coca-Cola has been mentioned as the company conducts marketing well by familiarizing the local language and culture. Finally, it can be determined that culture has a great protagonist in international marketing matter with the increasing globalization.
International marketing2 Contents Executive summary....................................................................................................................1 Introduction................................................................................................................................3 Conclusion..................................................................................................................................5 References..................................................................................................................................6
International marketing3 The role of culture in modern society is surfacing as more economies are linking with each other. Culture is the awareness of a precise cluster of persons incorporating belief, language, cuisine, social customs, art, and music. The culture concerns a country, discrete section of the community along with the company. The globalization has resulted in the intense changes in the business activities and comprises the process of increasing cultural inter-connections. The culture is having a role in preserving and conveying knowledge. A person feels different sensations when a new culture is introduced. Culture is important due to moral values, knowledge, compassion, safeguard future generations, self-realization, and evolutionary enlightenment. The elements of culture identified are language, norms, symbols, beliefs, values and cognitive elements. The elements of culture matter in international marketing as they learn human behavior in the form of social, linguistic and family behaviors. The culture incorporates all the models, habits, traditions, religions, art and language. A company has to view native culture thoroughly before proposing products to the group. In order to have a modest advantage in international marketing, a company has to comprehend the differences in culture. The culture influences to the unrestricted trade policies, advertising, localization, and brand value and consumer behavior (Yun, Weng, and Zhu 2018, 76-87). The culture is a framework of shared and implicit implications that helps in perceiving, thinking and reacting to several environments. The framework organizes and defines culture with two dimensions like structure and focus. The structure dimension detends whether the company focuses on flexibility, discretion or constancy or control. On the other side, focus dimension seizures whether a company stresses inwards or outwards. For instance, culture is more anticipated to enhance the new product success of the companies which is settled in the collectivistic nations (Martin, Evanschitzky, and Gilliland 2016, 260-276). The culture has an excessive impact on global marketing. The increasing globalization has even enhanced the role of culture and the companies are required to study local culture before conducting activities in the host nation. Different countries have different cultures and people are influenced by several norms, values, beliefs, and regions. Different cultures clearly create a challenge for different nations (Marieke 2015, 646-662). So to understand culture on a global basis becomes a necessity for conducting marketing activities. There are some distinct cultural features that exist and this is the reason international companies need marketing strategies that can be acceptable by the anticipated customers (Cheryl and Sivakumar 2001,
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International marketing4 255-276). The culture has clearly effect on the pricing, distribution, product offering and promotion with the cultural elements like language, religious belief, and ethnic values. The way MNCs execute strategy for international standardization represents that cultural values are used in the adverts. The increased occurrence in international advertising for international consumer culture has increased. The multinational companies are required to review culture of specific groups concerning the differences in income, ethnicities, and customs. For instance, Cadbury conducted surveys on a regular basis in order to know the customer’s choice and requirements. The company delivers products in supermarkets but also in small shops worldwide. It has been observed that culture is a cooperative phenomenon to be shared among the members. The cultural practices are originated in the international market place. The basic values which define motives for purchasing things are not international. For instance, in some cultures, customers can drink Coca Cola to satiate their desire while in some other nations it should be done for the status reasons. Therefore the differences should be known by the companies to advance effective international marketing along with the advertising campaigns. For instance, Coca-Cola is one of the identified brands which made large investments in establishing robust brand identity. The company offers products through the largest beverage distribution system worldwide. On the other side, generally, people state to the practices and products which are found similar to their lifestyles. The globalization has influenced the culture at several levels. It states the level of practice (Jennifer Lynn, Benet- Martinez and Garolera 2001, 492). The culture is considered a wide topic in international marketing and includes elements like language, nonverbal communication, religion, cultural values, national character, cultural variability and more. Every language has a different meaning; therefore, Coca-Cola conducts marketing well by knowing the local language. Otherwise, the company could fail in communicating its product to the host country. Coca-Cola also even used a translator but it’s costly and less cost-effective. The company believed in identifying the native significance of body language which is used by the people of same community. The context of the message is known by the researcher along with the thing said precisely (Rasha and George 2016, 26- 34). The company considers the religion of the local communal before providing products considering their beliefs. The cultural norms in international marketing dictate what is right and what is wrong. The regional character as a part of culture states to the people who are habitual of doing their jobs as per different times. The business hours of the different
International marketing5 community varies as per the native culture. For instance, the business hours of MNCs in Indian subcontinent are 10 am to 5 pm whereas it is 8 am to 2 pm in maximum of the western nations (Md 2008). It has been experienced that the culture comprises whatever is learned in association with customs, values and norms, customs and rituals. The values and approaches vary between the countries and within the countries as well. In order to take products internationally, the researcher should have a virtuous hold on the locality before entering the market (Brentani, Ulrike and Kleinschmidt 2004, 309-333). It indicates to altering promotional content or branding messages. A company can face issues while tackling indigenous staff. For instance, in France, the employees are likely to take holidays for the complete month of August, whereas in the US, personnel is likely to take only a combine of weeks’ vacation in the complete year. Additional incidence like Australian tourism in 2006 launched an ad campaign called “So where the bloody hell are you?” in Britain. The British advertising standards authority of UK debarred the $130 million campaign. This campaign contained all the typical signs of Australia like deserts, beaches, and reefs along with the outdated signs such as Sydney Harbour Bridge and opera house (Desislava and Mullen 2016, 193-214). Finally, it can be concluded that culture has an abundant influence on international marketing. The occurrence of globalization has boosted the role of culture and the companies are required to review local culture before conducting activities in the host nation. The countries have different cultures and people are inclined by several norms, values, beliefs, and regions. Different cultures evidently create challenges for different nations. So to understand culture on a global basis becomes necessity for conducting marketing activities.
International marketing6 References Brentani, De, Ulrike, and Elko J. Kleinschmidt. 2004"Corporate culture and commitment: impact on performance of international new product development programs."Journal of product innovation management21, no. 5: 309-333. Cheryl, Nakata,and Kadirvelu Sivakumar. 2001 "Instituting the marketing concept in a multinational setting: the role of national culture."Journal of the Academy of Marketing Science29, no. 3 255-276. Desislava, Budeva, and Michael R. Mullen. 2016 "Does culture matter for international market selection?."International Journal of Export Marketing1, no. 2: 193-214. Jennifer Lynn, Aaker, Veronica Benet-Martinez, and Jordi Garolera. 2001 "Consumption symbols as carriers of culture: A study of Japanese and Spanish brand personality constucts."Journal of personality and social psychology81, no. 3: 492. Marieke. De Mooij, 2015 "Cross-cultural research in international marketing: clearing up some of the confusion."International Marketing Review32, no. 6: 646-662. Martin,Eisend, Heiner Evanschitzky, and David I. Gilliland. 2016 "The influence of organizational and national culture on new product performance."Journal of Product Innovation Management33, no. 3: 260-276. Md.Abdin, 2008 "Impact of Culture on International Marketing."Impact of Culture on International Marketing (September 14, 2008) Rasha Y., Tantawy, and Babu P. George. 2016 "Cultures Within National Cultures: International Marketing Within the Domestic Marketing Environment."Economic Review: Journal of Economics and Business14, no. 1: 26-34. Yun, Zhang, Qingxiong Weng, and Nan Zhu. 2018 "The relationships between electronic banking adoption and its antecedents: A meta-analytic study of the role of national culture."International Journal of Information Management40: 76-87.