MARKETING ACROSS CULTURES.

Running head: MARKETING ACROSS CULTURES
Marketing Across Culture
January 8
2019

MARKETING ACROSS CULTURES 1
Table of Contents
Introduction................................................................................................................................3
Findings and Analysis................................................................................................................3
Institutionalized Inequality.....................................................................................................3
Language Differences............................................................................................................3
Costly Education if Chile.......................................................................................................4
Demand for Public Education................................................................................................4
Analysis of External Environment.............................................................................................4
PEST Analysis.......................................................................................................................4
Political Forces...................................................................................................................5
Economic Forces................................................................................................................5
Social Forces......................................................................................................................5
Technological Forces.........................................................................................................5
Porter 5 Force Framework.....................................................................................................6
Bargaining Power of Customer..........................................................................................6
Bargaining Power of Supplier............................................................................................6
Threat of Substitute Products.............................................................................................6
Threat of New Entrants......................................................................................................7
Competition among existing players..................................................................................7
SWOT Analysis.....................................................................................................................7
Strength of Hertfordshire...................................................................................................7
Weaknesses of Hertfordshire.............................................................................................8
Opportunities for Hertfordshire..........................................................................................8
Threats for Hertfordshire....................................................................................................9
Action Plan.............................................................................................................................9
Marketing Mix of University of Hertfordshire..................................................................9
New Market Development Strategy.................................................................................11
New Market Entry Strategy.............................................................................................12
Conclusion................................................................................................................................12
References................................................................................................................................14
Appendix..................................................................................................................................17
Appendix 1 PESTLE Analysis.............................................................................................17

MARKETING ACROSS CULTURES 2
Appendix 2 Porter 5 Force Framework................................................................................17
Appendix 3 SWOT Analysis................................................................................................17

MARKETING ACROSS CULTURES 3
Introduction
The viable action of the organizations at the worldwide ground must be headed through
careful strategies of marketing because it carries numerous types of challenges such as
competition, government regulations, economic stability or instability, etc. (Mainela,
Puhakka and Servais, 2014). The “science” behind these activities and their inferences are
called as worldwide marketing, which is a procedure that is focused towards enhancing
resources and directs the objectives of an organization by the global market opportunities
(Ferrell and Hartline, 2013). The aim of this report is to create an understanding regarding
adopting marketing strategies in order to take entry in the new market to expand the business
operations. It will be comprised of a brief analysis of the external environment of the selected
country that is Chile, which will assist the University of Hertfordshire to adopt different
strategies such that challenges can be avoided at the highest level.
Findings and Analysis
Institutionalized Inequality
The education system of Chile offer integrally unequal opportunities to the students who
belongs to the low-income families, who reliably acknowledge sub-standard educational
attainments as an outcome of an ongoing prejudice in favor of privatization actions (Council
of Hemispheric Affairs, 2008). This is one of the key challenges for University of
Hertfordshire to establish its operations in Chile, as it has to deal with different political
pressures.

MARKETING ACROSS CULTURES 4
Language Differences
In Chile, Spanish is the official language, which is spoken by nearly 99.5% of the residents
whereas only 10.2% of the residents speak in English (Cultural Atlas, 2019). This appears to
be the greater challenge and issue for the University of Hertfordshire to establish its
operations in the Chile market. In order to cover the market, the university needs to establish
itself as an English university or have to hire different professionals with expertise in Spanish
language to teach different courses of the university.
Costly Education of Chile
In Chile, tertiary education is very expensive. The average of around $5,900 as a tuition fees
has to be paid at the best private universities of Chile (Figueroa, 2016). Consequently, many
of the students require loans from the bank. On the other side, cheaper education is provided
by the Public universities but in the Chile market, they do not offer quality education. Being a
public university, Hertfordshire can convert this issue into an opportunity by offering quality
education to the students of Chile as affordable fees.
Demand for Public Education
The education ministry of Chile claims that they are working towards offering free of cost
quality education, providing access to all the residents, and endorsing social inclusion and
equality. However, the real side it that it is not meeting its promises. The reality is that the
inferior quality public schools are being subsidized with tax money, while only wealthy
people are able to have enough money to let their children get an education from higher-
quality private schools (Figueroa, 2016).

MARKETING ACROSS CULTURES 5
Analysis of External Environment
PEST Analysis
The full form of PEST is Political, Economic, Social, and Technological forces that have a
major influence on the operations of an organization (Doherty, Steel and Parrish, 2012). Both
new business and veterans must involve PEST framework in their marketing plan. It can
assist in recognizing the important alterations in the social, technological, economic, and
political landscape (Davenport, Bensoussan and Fleisher, 2012). Some of the forces that can
influence the performance of University of Hertfordshire in the Chile market are as follows:
(Refer to Appendix 1)
Political Forces
Chile is placed in South America with the republican, democratic, and representative political
scenario. The political stability reflects that the University of Hertfordshire can introduce its
business operations in the Chile education industry (Thisis Chile, 2009). Considering its
democratic stability Chile is capable enough to become the regional leader by active
cooperation with its neighbours like Argentina, Peru, Bolivia, and different states of South
America.
Economic Forces
The GDP per capita of Chile by 2006 was highest among all the states of South America.
Besides this, it has been estimated that Chile attained a $300 billion GDP in 2018, which
reflects the country has strong economic stability (The World Bank, 2018). Considering the
economic stability, the University of Hertfordshire can expand its operations in Chile,
because it will allow it to contribute towards the growth and GDP of the country.

MARKETING ACROSS CULTURES 6
Social Forces
According to the research of the World Bank, Chile is categorized as upper middle economy,
with economic stability, and low level of corruption (World Bank, 2019). The enhancing
living standard of the residents of the country is allowing them to avail quality education.
However, the inequality in the education system and increasing fees of the institutions are
forcing students to protest against the education system of the nation.
Technological Forces
The economic development and globalization are allowing technological progress in Chile.
For example, the transportation system has been strengthening in recent times. The
automation trend in the country is resulting in the development of every industry. The
developing segments reflect that the University of Hertfordshire can establish its distance
learning courses and offer online practice papers to support students to grab quality
education.
Porter 5 Force Framework
(Refer to Appendix 2)
Bargaining Power of Customer
The bargaining power of student and their parents in the education industry of Chile is high.
As students are the one who avails the services of the university in the industry and their
parents, only decide which university will be best suit for their children. According to the
analysis, it has been identified that the key factor that affects the decision of children's parents
is the distance between the school and university from their residence (Fern Fort University,
2018). Therefore, it could be said that the University of Hertfordshire should place its
institution near to the city area.

MARKETING ACROSS CULTURES 7
Bargaining Power of Supplier
The bargaining power of the suppliers in the education industry of Chile is low due to
presence of a number of educational institutions in the market.
Threat of Substitute Products
The threat of substitute products in the industry is high. As public schools and university deal
with high competition from the private schools and university, because students perceive they
get good knowledge and quality of education from the private schools (Fern Fort University,
2018). In order to compete with the private high schools, the University of Hertfordshire
needs to employ experienced staff members that can offer quality education to the students at
affordable fees.
Threat of New Entrants
As University of Hertfordshire is itself a new entrant in the Chile market, it needs to establish
itself as a quality educational public institute such that people can avail education at
affordable rates.
Competition among existing players
The competition among existing companies in the Chile education industry is high. Tuition
based school do not normally give competition as compared to state-funded schools.
However, non-public school is likely to offer some kind of challenges to the universities in
the Chile market (Fern Fort University, 2018). The University of Hertfordshire has to deal
with intense competition in the market from the private schools therefore in order to survive
in the market, company needs to properly analyze the market demand and accordingly offer
its courses.
SWOT Analysis
(Refer to Appendix 3)

MARKETING ACROSS CULTURES 8
Strength of Hertfordshire
Quality Education
The University of Hertfordshire is one of the famous universities of the United Kingdom,
which offer the quality of education to its students. The Agency of Quality Assurance for
Higher Education has established the standards and quality of provision in the University of
Hertfordshire. This agency is a self-governing body, which is focused on monitoring and
advising regarding quality and standards in higher education (University of Hertfordshire,
2018b).
Skilled Management Team
The University of Hertfordshire has a skilled and talented management team, which is
responsible to manage all the operations of the university in different countries and states
(University of Hertfordshire, 2018e). Considering the cultural difference in Chile that is
language barriers and values of residents, the management team will hire different language
and cultural experts while planning marketing strategies to enter Chile market.
Weaknesses of Hertfordshire
Lack of Capital
The University of Hertfordshire is a public university due to which it has a lack of capital that
can be used to expand the business operations in different countries.
Opportunities for Hertfordshire
Market expansion
The expansion of business is very important for every business after achieving a certain level
of success in order to attain market growth and increased customer base. The University of
Hertfordshire can expand its operations in different nations in order to promote its mission of
spreading education around the world (University of Hertfordshire, 2018a).

MARKETING ACROSS CULTURES 9
Adopting new values and culture
Expanding business operations in foreign market offer opportunity to the business to expose
itself towards host country’s values and cultures. It is known that there are cultural
differences in the Chile market; this will offer opportunity to University of Hertfordshire to
get familiar and respect different culture’s values and belief (Andes Property, 2015).
Threats for Hertfordshire
Competition
The University of Hertfordshire has to deal with intense competition in the education industry
of Chile.
Cultural difference
Cultural difference is one of the greater threats for University of Hertfordshire in the Chile
market. For example, in Chile, personal relationships are given major priority. People of
Chile take a genuine interest in others and spend their most of time socializing with each
other (Communicaid, 2018).
Action Plan
Marketing Mix of University of Hertfordshire
Product
The University of Hertfordshire offers wide choices of postgraduate, online distance learning,
undergraduate, short courses, and continuing professional development courses. Besides this,
it also offers preparatory courses, foundation degrees, and research degrees (University of
Hertfordshire, 2018c). Considering the language barriers in Chile Market, the University of
Hertfordshire will introduce different English learning courses that will support students to
learn English language such that they feel comfortable while communication with foreign
students.

MARKETING ACROSS CULTURES 10
Place
The University of Hertfordshire is presently offering its services in England, Hertfordshire,
and United Kingdom. The university is planning to expand its operations in the Chile market
by placing its institute at prime locations of the country such that it can target maximum of its
segment.
Promotion
The University of Hertfordshire makes use of mass marketing strategies in order to attract its
target market. It plans different promotional campaigns to announce its mission of spreading
quality education across the world. Similarly, the company will cover the Chile market with
the help of television advertisement, radio, billboard, hoardings, etc.
Price
The government of Chile has introduced a reform in 2018, according to which poor students
will be provided with free education (Vegas, 2018). Besides this, this reform also encourages
equality in the country. The University of Hertfordshire will follow this reform and continue
to offer free and low fee education to the students of Chile.
Physical Evidence
The physical evidence provided by the University to its customers is brochures, application
forms, confirmation letters, etc.
People
The University of Hertfordshire offers different opportunities to its employees such as
training, skills development, and growth opportunities. The university possesses numerous
numbers of skilled and competent workforces that is focused on offering quality services to
its customers.

MARKETING ACROSS CULTURES 11
Process
Application Guide in University of Hertfordshire
There are numerous ways to apply for different courses at the university:
Undergraduate Courses
Source [(University of Hertfordshire, 2018d)]
Students can apply for admission at the university by UCAS extra. It provides an opportunity
for the student to apply for any of the course between 25 February and Early July (University
of Hertfordshire, 2018d).
Postgraduate Courses
Source [(University of Hertfordshire, 2018d)]
New Market Development Strategy
Market development is said to be a growth strategy that recognizes and create new market
segments for existing offerings (Solberg, 2017). A strategy of market development is aimed

MARKETING ACROSS CULTURES 12
at non-buying consumers in presently targeted segments. Besides this, it also targets new
consumers in the new segment (Olsen, 2011). This strategy involves expanding the possible
market by new uses or new users. New users could be determined as new demographic
segments, new psychographic segments, and new geographic segments. Another method is to
increase sales by new uses for the product.
The University of Hertfordshire will adopt new market development strategy in order to
expand its business operations in the education industry of Chile. This strategy will help the
company in expanding its market share as well as customer base.
New Market Entry Strategy
Joint Venture
Joint Venture is said to be a business entity that is formed by two or more businesses,
normally considered by shared returns, risk, governance, and ownership. This strategy is
generally adopted by the business to enter a new market (Swartz, 2010). The University of
Hertfordshire will adopt a joint venture strategy to cover the market of Chile. Under this
strategy, the university will collaborate with another local public university in order to offer
quality services in the market. The local university can support Hertfordshire to understand
the values and cultural differences of the country and frame strategies accordingly.
Activities Time frame Responsible Department
Raising Funds 2-3 Months Finance Department
Marketing strategies 1-2 Months Marketing Department
Recruitment of workforce 1 Month Human Resource Department
Market Entry and Joint
Venture
1 year Marketing Department

MARKETING ACROSS CULTURES 13
Conclusion
The above study is comprised of a detailed analysis of the Chile market in order to assist the
University of Hertfordshire to plan marketing strategies to cover the market. The report has
identified different external environmental forces that can influence the performance of the
university in Chile. The report has suggested a strategy to enter in the market is Joint
Venture.

MARKETING ACROSS CULTURES 14
References
Andes Property (2015) 10 Things Different About Chilean Culture [online]. Available from
https://www.andesproperty.com/blog/2015/04/20/10-things-different-about-chilean-culture/
[accessed 8 December 2019]
Communicaid (2018) Chile [online]. Available from
https://www.communicaid.com/country/chile/ [accessed 8 December 2019]
Council of Hemispheric Affairs (2008) The Failings of Chile’s Education System:
Institutionalized Inequality and a Preference for the Affluent [online]. Available from
http://www.coha.org/the-failings-of-chile%E2%80%99s-education-system-institutionalized-
inequality-and-a-preference-for-the-affluent/ [accessed 8 December 2019]
Cultural Atlas (2019) Chilean Culture [online]. Available from
https://culturalatlas.sbs.com.au/chilean-culture/core-concepts-8c9f50e2-9f38-45cb-9af8-
301779203f82 [accessed 8 December 2019]
Davenport, T.H., Bensoussan, B.E., and Fleisher, C.S. (2012) The Complete Guide to
Business Analytics (Collection) 1st ed. U.S: FT Press.
Doherty, I., Steel, C., and Parrish, D. (2012) The challenges and opportunities for
professional societies in higher education in Australasia: A PEST analysis. Australasian
Journal of Educational Technology, 28(1), 105-121.
Fern Fort University (2018) Banco de Chile Porter Five Forces Analysis [online]. Available
from http://fernfortuniversity.com/term-papers/porter5/analysis/977-banco-de-chile.php
[accessed 8 December 2019]

MARKETING ACROSS CULTURES 15
Ferrell, O.C., and Hartline, M. (2013) Marketing Strategy, Text and Cases 6th ed. U.S:
Cengage Learning.
Figueroa, J.C. (2016) Education must not be for sale [online]. Available from
https://www.dandc.eu/en/article/chiles-poor-youth-suffer-privatised-education-system
[accessed 8 December 2019]
Mainela, T., Puhakka, V., and Servais, P. (2014) The Concept of International Opportunity in
International Entrepreneurship: A Review and a Research Agenda. International journal of
management Review, 16(2014), 105-129.
Olsen, E. (2011) Strategic Planning Kit For Dummies 1st ed. U.K: John Wiley & Sons.
Solberg, C.A. (2017) International Marketing: Strategy development and implementation 1st
ed. U.S: Routledge.
Swartz, S. (2010) Joint Ventures in the International Arena 2nd ed. U.S: American Bar
Association.
The World Bank (2018) GDP per capita [online]. Available from
https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=ZJ-CL [accessed 8
December 2019]
Thisis Chile (2009) Economic and political stability [online]. Available from
https://www.thisischile.cl/economic-and-political-stability/?lang=en [accessed 8 December
2019]
University of Hertfordshire (2018a) Vision and Values [online]. Available from
https://www.herts.ac.uk/about-us/governance/vision [accessed 8 December 2019]

MARKETING ACROSS CULTURES 16
University of Hertfordshire (2018b) Quality Assurance Agency Higher Education Review
[online]. Available from https://www.herts.ac.uk/about-us/learning-and-teaching/qaa-review
[accessed 8 December 2019]
University of Hertfordshire (2018c) Courses [online]. Available from
https://www.herts.ac.uk/courses [accessed 8 December 2019]
University of Hertfordshire (2018d) Application guide [online]. Available from
https://www.herts.ac.uk/study/how-to-apply [accessed 8 December 2019]
University of Hertfordshire (2018e) Meet the executive team [online]. Available from
https://www.herts.ac.uk/life/meet-the-executive-team [accessed 8 December 2019]
Vegas, E. (2018) 5 lessons from recent educational reforms in Chile [online]. Available from
https://www.brookings.edu/research/5-lessons-from-recent-educational-reforms-in-chile/
[accessed 8 December 2019]
World Bank (2019) The World Bank In China [online]. Available from
https://www.worldbank.org/en/country/china/overview [accessed 8 December 2019]

MARKETING ACROSS CULTURES 17
Appendix
Appendix 1 PESTLE Analysis
Political Forces
Political stability in Chile market
Domestic stability offer chance to Chile to
become a regional leader
Economic Forces
Highest GDP by 2006 among all the South
American states
Strong economic stability
Social Forces
The living standard in Chile is improving
which is allowing people to avail quality
education
Technological Forces
The increasing automation in all the
industries allowing development of the
country
Appendix 2 Porter 5 Force Framework
Porter 5 Forces Rate
Customer power High
Supplier Power Low
Threat of Substitute High
Threat of New Entrants Moderate
Level of competition High
Appendix 3 SWOT Analysis
Strength Weaknesses

MARKETING ACROSS CULTURES 18
Quality Education
Skilled management team
Lack of Capital
Opportunities
Market Expansion
Adopting new values and culture
Threat
Competition
Cultural Difference