Marketing Across Cultures

This study explores the cultural influences on the development of the University of Hertfordshire in the Chilean market. It provides an action plan for successful expansion and analyzes the issues of higher education in Chile. The study also includes a PEST analysis, Porter's Five Forces analysis, and SWOT analysis of the university.

Running head: MARKETING ACROSS CULTURES
University of Hertfordshire
Marketing Across Cultures
1/8/2019

MARKETING ACROSS CULTURES 1
Table of Contents
Introduction................................................................................................................................2
Overview of University of Hertfordshire...............................................................................2
Findings and Analysis............................................................................................................3
Issues of Higher education in Chile...................................................................................3
External Analysis...............................................................................................................4
SWOT Analysis.....................................................................................................................7
The strength of University of Hertfordshire.......................................................................7
Weaknesses of University of Hertfordshire.......................................................................8
Opportunities for University of Hertfordshire...................................................................8
Threats for University of Hertfordshire.............................................................................8
Action Plan.............................................................................................................................8
Marketing mix of University of Hertfordshire...................................................................8
Market Entry Strategy......................................................................................................11
Greenfield Investments....................................................................................................11
Conclusion................................................................................................................................12
References................................................................................................................................13
Appendix..................................................................................................................................16
Appendix 1 PEST Analysis..................................................................................................16
Appendix 2 Porter 5 Force Framework................................................................................16
Appendix 3 SWOT Analysis................................................................................................17

MARKETING ACROSS CULTURES 2
Introduction
Organizations that are developing always search for the growth opportunities in the existing
as well as potential markets. Growth and product diversification may ask a new product
introduction on an international level. In order to create a successful strategy of marketing, a
business should consider the cultural influences on the community where the product will be
introduced (Kaynak and Herbig, 2014). The aim of this study is to recognize the different
cultural influence present in Chile that can affect the development of the University of
Hertfordshire in the market. Besides this, it will provide a complete action plan with brief
information regarding the steps that will be taken to make successful expansion of the
university in the market of Chile.
Overview of University of Hertfordshire
The University of Hertfordshire is based in the UK and is a public university. Its precursor
organization, i.e. Hatfield Technical College, was established in 1948 and was recognized as
the part of 25 Technology Colleges in 1959 in the UK (University of Hertfordshire, 2018e).
The University status was provided to Hatfield Polytechnic in 1992, by the British
administration as afterward retitled as University of Hertfordshire. The university is included
in the list of leading 50 United Kingdom universities selected by the key employers for
graduates. Hertfordshire has also received an award regarding European Commission HR
Excellence in Research badge. Besides this, it is also ranked in the east of England as the
leading university in regards to employability (University of Hertfordshire, 2018f).

MARKETING ACROSS CULTURES 3
Findings and Analysis
Issues of Higher education in Chile
Quality
There are around three major issues in relation to the quality of the education: information,
supervision, and accreditation. Considering the case of Chile, which has always been in the
crisis related to the education for some time, numerous things need to be improved.
The national accreditation system should be enhanced, powers convened to accreditation
agencies must be explained, better panels for resolving conflicts in the nation bust be
strengthened (Sanchez, 2013).
Considering the topic supervision, the system must introduce new rules that specify and
establish better supplies and offer establishments with the amenities they require to confirm
legal conditions are observed. In order to have productive supervision there should be an
official structure and the essential resources to assist their type of supervision.
An essential tool is required to confirm whether every student is being provided with the
superior information required to make good decisions. Quality assurance must comprise the
obligatory information publication discussing questions like an assessment by students and
the quality of teaching, student experience surveys and next destination statistics (Sanchez,
2013).
Access
Access is equally important as quality and in the education system of Chile, where access is
exceptionally partial. It is very important for the society to move and work towards a more
equitable environment. Adding the Admission Test of the University or PSU with different
elements like high school ranking of the students will surely support in this direction.

MARKETING ACROSS CULTURES 4
Funding
Funding is one of the essential elements of higher education and is linked to the access and to
the consolidation of institutions. The direct support from State government to the Universities
of Chile must be adjusted. This support provided to the universities that add an essential
contribution to the nation is significant for research required by Chile. Subsidy for the
institutions has declined majorly because of the absence of the budgetary modification
(Sanchez, 2013).
Institutional Framework
Institutional framework must be strengthened by the higher education system. The formation
of superintendence and sub-secretary of Education must stop institutes from exploiting and
must offer unbiased information to candidates.
Student Participation
The participation of the student is also very essential. Though every institution has the
freedom to select the governance system that best represents it, the contribution of
employees, students, and faulty in voting on subjects like the formation of academic
programs, investments, infrastructure, budget, and employment of faculty, etc. is not the
correct way to go (Sanchez, 2013).
External Analysis
PEST Analysis
PEST Analysis is a tool used to measure and access the market for a specific service at a
given time. The full form of PEST is Political, Economic, Social and Technological forces
(Perera, 2017). Once these forces are evaluated, the business can take improved decisions
(Refer to Appendix 1).
Political Factor

MARKETING ACROSS CULTURES 5
Considering the new educational reform in Chile introduced in 2018, according to which the
tuition fees will be set by the panel of experts along with consultation from students for each
degree, (World Politics Review, 2017) will be an advantage for University of Hertfordshire to
contribute towards social development because it will allow free education for poor students.
Economic Factor
With the decreasing foreign investment in Chile, due to high labor cost and degradation of
Copper ore, the opportunities for businesses like the University of Hertfordshire in the
education industry is increasing to cover the market (Fern Fort University, 2018). For
example, the increasing rate of unemployment in the country due to degradation of copper
can be overcome by the University of Hertfordshire by offering employment opportunities to
the local residents.
Social Factor
In Chile, the official language is Spanish which is spoken by around 99.5% of the population
and on the other side; English is spoken by only 10.2% (Graphic Maps, 2018). This reflects
that the company will have to deal with some language barriers. However, on a positive note,
the company can hire tutors from the country, which will increase the employment rate.
Besides this, the university can be established as an English Speaking University in Chile to
cover the market.
Technological Factors
Amongst the Latin Countries, Chile is the only country with more computers purchased per
capita (Statista, 2018). According to the analysis, around 82% of the residents use the
Internet, this shows higher opportunities for University of Hertfordshire to introduce its
distance learning courses with the translated versions in the Spanish language.

MARKETING ACROSS CULTURES 6
Porter Five Force Framework
Porter five-force framework classifies and identifies five forces that nurture all the industries,
and support in defining the strength and weaknesses of the industry. This framework is
generally used to signify the structure of industry to define the corporate strategy. The five
competitive forces that help in recognizing the position of an industry of firm are the entry of
new entrant, supplier bargaining power, customer bargaining power, competitive rivalry
among existing players, and threat of substitute products (Magretta, 2012) (Refer to
Appendix 2).
Threat of New Entrants
In the Chile country, being a new entrant University of Hertfordshire will deal with two types
of challenges that is an unwillingness to deal with switching cost and failure to accept new
style. Besides this, the market experience income instability due to which company needs to
plan different courses accordingly.
Bargaining Power of Customers
In the education industry of Chile country, the Bargaining power of customer i.e. student and
their parents is high. The residents of Chile ask for a better quality of education, which is one
of the opportunities for the University of Hertfordshire (The Wire, 2018). Besides this, due to
income instability in Chile, the university needs to plan the fee for every course accordingly.
Threat of substitute
The threat of substitute products in the Chile market is high. The key competitors for the
University of Hertfordshire will be training programs, medical colleges, and vocational
education (School of Medicine, 2018).
Bargaining power of suppliers

MARKETING ACROSS CULTURES 7
The suppliers bargaining power is considerably low as compared to the customers bargaining
power.
Competition from Existing Rivals
The competition among existing players in the market of Chile is high. Around 12
universities offer postgraduates and undergraduate studies in Chile and are considered the
major competitors for the company.
SWOT Analysis
The strength of University of Hertfordshire
Location
The University of Hertfordshire always plans its location at the center of the city such that
students can get easy access towards education and knowledge. Besides this, the university
select prime locations, which support it in increasing the overall sales of the business.
In the Chile market, university will locate its premises at the prime locations such that it can
target maximum of its segment. (Refer to Appendix 3)
Experienced Management Team
The management team at University of Hertfordshire is experienced and skilled that offer
excellent services to the students as well as to the university that support in enhancing the
reputation (The Student Room, 2018).
From the analysis, it has been known that English language in Chile has not been provided
much importance, therefore, in order to serve in the market company will hire English
language experts.

MARKETING ACROSS CULTURES 8
Weaknesses of University of Hertfordshire
Lack of Research Staff
One of the major weaknesses of University of Hertfordshire is that it lacks in research staff
due to which it has to deal with numerous challenges regarding the analysis of the demand in
the market, and strength of the competitors (The Student Room, 2018). To cover the market
of Chile, university needs to develop a research team that can support it in identifying the
cultural differences within the country and plan marketing strategies accordingly.
Opportunities for University of Hertfordshire
Introduction to cultural differences and values
There are numerous opportunities for University of Hertfordshire to expand in the
international markets. In the Chile market, university can expand its business operations
while understanding the cultural differences. This will support it in respecting all the cultural
values and framing the policies accordingly.
Threats for University of Hertfordshire
Low priority to English Language
In Chile, only 10.2% of people speak English, which reflects the major priority is provided to
Spanish Language, due to which company will deal with numerous challenges related to clear
communication (Graphic Maps, 2018).
Action Plan
Marketing mix of University of Hertfordshire
Product Strategy
The University of Hertfordshire will offer different types of postgraduate and undergraduate
courses to the students in Chile. Some of the courses are elaborated above:

MARKETING ACROSS CULTURES 9
Post Graduate Courses – MSc Marketing programme with 2 intakes
Undergraduate Courses – BA Hons in Marketing with Fashion, BA Hons in Marketing, BA
Hons in Marketing with Digital Communications, and BA Hons in Marketing and
Advertising (University of Hertfordshire, 2018c)
Price Strategy
The University of Hertfordshire will set its fees structure according to the income structure of
the students because Chile is presently dealing with income instability. Besides this, the
tuition fees of the university will change yearly and few of the courses will have additional
charges for the activities like special equipment and trips. The students need to purchase
specialist equipment based on their type of courses like laboratory tools, and art supplies
(University of Hertfordshire, 2018b).
Place Strategy
The University of Hertfordshire always places its institution at the prime locations of the city
in order to attract a maximum number of students. Therefore, in order to cover the Chile
market university will place its institution at the center locations.
Promotion Strategy
The University of Hertfordshire shares an assurance to celebrating and promoting excellence
through achievements, enterprise, and initiatives that carry community forward in an
academic manner and the freedom for an opinion (University of Hertfordshire, 2018d).
Besides this, in order to promote the courses, the University of Hertfordshire will make use of
mass media marketing such as hoardings, billboards, television, and radio.

MARKETING ACROSS CULTURES 10
People Strategy
The University of Hertfordshire has experienced management team that is responsible to
handle and controls the procedure of the business. The teaching staffs in the university are
skilled and talented that is inclined towards offering quality education to the student
(University of Hertfordshire, 2018g). The university will also hire local employees in the
Chile market in order to understand properly the cultural differences and values to meet the
demand of the customers.
Processes Strategy
The University of Hertfordshire has adopted a simple and convenient procedure that offer
comfort to the students while applying for any of the courses. The general procedure
followed by the students to apply for the course is:
 Application Form
 Qualification
 References
 Copy of passport size photo
 Immigration History
 Personal statement
 Academic transcripts (University of Hertfordshire, 2018a)
Physical Evidence
The physical evidence of University of Hertfordshire is its prospectus, application form, and
appointment letters for tutors, employees, etc.

MARKETING ACROSS CULTURES 11
Market Entry Strategy
Market entry strategy is said to be a deliberate method of distribution for services and goods
to the new market. In the export and import of products, it refers to the formation, creation,
and organization of contracts in an international nation.
Greenfield Investments
A Greenfield investment is a type of market entry strategy in which a business purchases
land, build the facility, and run the business on an ongoing base in an international market. It
is majorly the most costly and risky strategy for any business as some markets may require a
business to deal with risk because of government regulations (Morschett, Klein and Zentes,
2015). The University of Hertfordshire will adopt Greenfield Investment strategy in order to
establish its operations in the Chile market. The university will establish its own brand in the
market by high capital investment.
Milestone
Client Subject Objective Action
Development of
University in Chile
Annual Fund Increase donations
Participations
Online
Advertisement
Digital Strategy
Print advertisement
Branded Campaign
Admission Recruitment Employing
experienced leads
Generate newly
expanded market
Online hiring
Email workflows
Blog Campaign
Website designing
Seminars and
summer programs
Planning Introducing summer Website development

MARKETING ACROSS CULTURES 12
programs
Hiring qualified staff
Conclusion
The above report has provided a detailed analysis of the marketing plan that will be adopted
by the University of Hertfordshire while entering the Chile market. The university is known
in the market for offering quality education to the students; however, it will deal with some of
the challenges in the market related to income instability and intense competition. In order to
avoid such challenges, the report is provided with different strategies such as marketing mix,
and market entry strategy i.e. Greenfield Investment.

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References
Fern Fort University (2018) Banco de Chile PESTEL & Environment Analysis [online].
Available from http://fernfortuniversity.com/term-papers/pestel/nyse4/977-banco-de-
chile.php [accessed 8 December 2019]
Graphic Maps (2018) Chile Languages [online]. Available from
https://www.graphicmaps.com/chile/languages [accessed 8 December 2019]
Kaynak, E., and Herbig, P. (2014) Handbook of Cross-Cultural Marketing 2nd ed. U.S:
Routledge.
Magretta, J. (2012) Understanding Michael Porter: The Essential Guide to Competition and
Strategy 2nd ed. Boston: Harvard Business Press.
Morschett, D., Klein, H.S., and Zentes, J. (2015) Strategic International Management: Text
and Cases 3rd ed. Germany: Springer.
Perera, R. (2017) The PESTLE Analysis 1st ed. U.S: Nerdynaut.
Sanchez, I. (2013) The challenges of higher education in Chile [online]. Available from
https://www.universityworldnews.com/post.php?story=20130812143615836 [accessed 8
December 2019]
School of Medicine (2018) International Students Program [online]. Available from
http://www.medicina.uchile.cl/school-of-medicine/114024/international-students-program
[accessed 8 December 2019]

MARKETING ACROSS CULTURES 14
Statista (2018) Internet usage in Latin America - Statistics & Facts [online]. Available from
https://www.statista.com/topics/2432/internet-usage-in-latin-america/ [accessed 8 December
2019]
The Student Room (2018) PESTLE and SWOT analysis [online]. Available from
https://www.thestudentroom.co.uk/showthread.php?t=3315829 [accessed 8 December 2019]
The Wire (2018) Chile's Students Take to Streets to Demand Education Overhaul [online].
Available from https://thewire.in/society/chiles-students-return-streets-demand-education-
overhaul [accessed 8 December 2019]
University of Hertfordshire (2018a) How to apply to the University of Hertfordshire as an
international student [online]. Available from https://www.herts.ac.uk/international/new-
international-students/applying-to-the-university-of-hertfordshire [accessed 8 December
2019]
University of Hertfordshire (2018b) Fees and Funding [online]. Available from
https://www.herts.ac.uk/study/fees-and-funding [accessed 8 December 2019]
University of Hertfordshire (2018c) Marketing [online]. Available from
https://www.herts.ac.uk/study/schools-of-study/business/subject-areas/marketing [accessed 8
December 2019]
University of Hertfordshire (2018d) About the Course [online]. Available from
https://www.herts.ac.uk/courses/marketing-and-advertising [accessed 8 December 2019]
University of Hertfordshire (2018e) Our vision and values [online]. Available from
https://www.herts.ac.uk/about-us/governance/vision [accessed 8 December 2019]

MARKETING ACROSS CULTURES 15
University of Hertfordshire (2018f) About us [online]. Available from
https://www.herts.ac.uk/about-us [accessed 8 December 2019]
University of Hertfordshire (2018g) Staff Directory [online]. Available from
https://www.herts.ac.uk/contact-us/phonebook [accessed 8 December 2019]
World Politics Review (2017) Why Chile's Controversial Education Reforms Are Likely to
Last [online]. Available from https://www.worldpoliticsreview.com/trend-lines/21855/why-
chiles-controversial-education-reforms-are-likely-to-last [accessed 8 December 2019]

MARKETING ACROSS CULTURES 16
Appendix
Appendix 1 PEST Analysis
Political Factors
New Educational Reform such as free
education to poor students
Economic Factors
Chile has income instability that can offer the
opportunity to the university to offer low fee
courses
Social Factors
High Language barriers in Chile market due
to low priority to English language
Environmental Factors
High internet usage offer a greater advantage
to the university to provide distance learning
courses
Appendix 2 Porter 5 Force Framework
Porter 5 Force Discussion Range (high/low)
Threat of New Entrant There are two types of
challenges that university
will face in the Chile market
are an unwillingness to deal
with switching cost and
failure to accept the new
style
High
Bargaining Power of
Customer
Customers in the market are
focused on gaining high-
quality education
High

MARKETING ACROSS CULTURES 17
Threat of Substitute
Product
Key competitors for
University will be training
programs, medical colleges,
and vocational education.
High
Bargaining Power of
Supplier
The power of supplier is low
as compared to customer
power
Low
Competition among
existing players
The Chile market comprises
12 universities that will give
competition to the University
of Hertfordshire
High
Appendix 3 SWOT Analysis
Strength
Prime Locations
Experienced management team
Weaknesses
Lack of Research Staff
Opportunities
Introduction to cultural differences and
values
Threat
Low priority to English Language

MARKETING ACROSS CULTURES 18