Impact of culture on international marketing

17
IMPACT OF CULTURE IN INTERNATIONAL MARKETING Presented by: ANU DAMODARAN AUD0260

Transcript of Impact of culture on international marketing

Page 1: Impact of culture on international marketing

IMPACT OF CULTURE IN INTERNATIONAL MARKETING

Presented by:ANU DAMODARAN

AUD0260

Page 2: Impact of culture on international marketing

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

Page 3: Impact of culture on international marketing

04/11/2023 3

Page 4: Impact of culture on international marketing

04/11/2023 4

Page 5: Impact of culture on international marketing

04/11/2023 5

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

Page 6: Impact of culture on international marketing

04/11/2023 6

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)

Page 7: Impact of culture on international marketing

04/11/2023 7

Buying behavior - Japanese consumers expect to see what the food looks like

before ordering

Page 8: Impact of culture on international marketing

04/11/2023 8

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).

Page 9: Impact of culture on international marketing

04/11/2023 9

Overlooking cultural

differences can result in

embarrassing mistakes. Nike found that this stylized “Air”

logo resembled “Allah” in

Arabic script

Page 10: Impact of culture on international marketing

04/11/2023 10

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)

Page 11: Impact of culture on international marketing

04/11/2023 11

Standardized Marketing Mix

Same basic product,

advertising, distribution, and

other elements of the marketing

mix are used in all international

markets.

Page 12: Impact of culture on international marketing

04/11/2023 12

Adapted Marketing Mix

The marketing mix elements are adjusted

for each international target market.

Page 13: Impact of culture on international marketing

04/11/2023 13

Global Distribution Channels Seller’s

headquarters organization

Channels between nations

Channels within nations

Numbers & types of intermediaries

Page 14: Impact of culture on international marketing

04/11/2023 14

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

Page 15: Impact of culture on international marketing

04/11/2023 15

Page 16: Impact of culture on international marketing

04/11/2023 16

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

Page 17: Impact of culture on international marketing

04/11/2023 17