Impact of culture on international marketing
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Transcript of Impact of culture on international marketing
IMPACT OF CULTURE IN INTERNATIONAL MARKETING
Presented by:ANU DAMODARAN
AUD0260
04/11/2023 2
Culture – Ways of living, built up by a group of human beings, that are transmitted from one generation to another. “Culture is the collective programming of the mind that distinguishes the members of one category of people from those of another.”- Geert Hofstede Hofstede’s cultural
dimensions: Power Distance Individualism /
Collectivism Masculinity Uncertainty Avoidance Long-term Orientation
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Elements of culture:Material lifeLanguageSocial interactionAestheticsReligionEducationValue system
Attitudes - learned tendency to respond in a consistent way to a given object or entity
Belief - an organized pattern of knowledge that an individual holds to be true about the world
Value - enduring belief or feeling that a specific mode of conduct is personally or socially preferable to another mode of conduct
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Global marketers need to become sensitive to cultural biases that
influence their thinking, behavior, and decision
making. Culture is a key pillar of the
marketplace.
Having an understanding of the culture can
actually become a firm’s competitive
advantage.
Within a given culture, consumption processes can
include four stages: Access (economic and
physical), buying behavior (Price, Brand,
Country of origin, social norms),
consumption characteristics (product/service, rural/urban, influence of reference group), and disposal (recycle, social
responsibility)
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Buying behavior - Japanese consumers expect to see what the food looks like
before ordering
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Product Policy: Certain products are more culture-bound than other products. Food, beverages, and clothing products tend to be very culture-bound.Pricing Policy: Pricing policies are driven by four Cs: Customers Company (costs, objectives, strategy) Competition Collaborators (e.g., distributors)Distribution Policy: Cultural variables may also dictate distribution strategies. Ex: small shop, supermarket, internet)Promotion Policy: Promotion is the most visible marketing mix. Culture will typically have a major influence on a firm’s communication strategy. Local cultural taboos and norms also influence advertising styles (language, religion, law).
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Overlooking cultural
differences can result in
embarrassing mistakes. Nike found that this stylized “Air”
logo resembled “Allah” in
Arabic script
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Global Market Product Strategies
Straight product expansion (only labelling and packaging changes)
Marketing the product with no changes
Product adaptation Altering the product to meet
local conditions or the wants of the
foreign market (P &G introduces Tide in emerging markets), large size or small size packaging (shampoo,
toothpaste)
Product invention Creating new products or
services for foreign markets (alcohol free
beer, CP hand powered washing machine)
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Standardized Marketing Mix
Same basic product,
advertising, distribution, and
other elements of the marketing
mix are used in all international
markets.
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Adapted Marketing Mix
The marketing mix elements are adjusted
for each international target market.
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Global Distribution Channels Seller’s
headquarters organization
Channels between nations
Channels within nations
Numbers & types of intermediaries
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Global Promotion Strategies
Standardized global communication
Advertising themes are
standardized from country to
country with slight
modificationsCommunication
adaptation Advertising
messages are fully
adapted to local markets
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Because of technologies such as satellite TV, Internet, cell phones, and other communication
channels marketers have begun to see the emergence of the global consumer. The hallmark of
this culture is consumption. Persons who share meaningful sets of consumption-related symbols
Pop culture; coffee culture; fast-food culture
http://www.youtube.com/watch?v=U48nmKPJclAhttp://www.youtube.com/watch?v=v6coDUDCJ10http://www.youtube.com/watch?v=aoFwuQgyyCE
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