Question

1. Discuss the illusion of similarities facing international marketers.
2. Discuss the methods used by marketers to overcome cultural difference in an international marketing scenario.
3. Religion is an element of culture. How does the religion of the host country impact the role of the global marketing manager? Use a specific country (name the country/religion) & a specific U.S company.
4. What are four different ways one can develop knowledge of a foreign culture?
5. (a) Distinguish between High-Context and Low-Context cultures with an emphasis on implications for Global Marketers (always use examples of countries). See text/ppt or do outside research to learn more about this. (b) Non-verbal communication also differs from foreign cultures. Identify 3 such differences between the U.S culture and foreign cultures in general.

Cite any additional outside sources/research used to answer the questions in full length.

Answer 1

1. Illusion of similarities facing international marketers:

Illusion of similarity is a situation where policy makers or marketers possess inaccurate assumptions & prediction about what people think or how will they act. Marketers over-estimate public support as a result. An inexperienced marketers in some situations creates such mistake of comparing two different market cultures.

For example: English is spoken in USA as well as UK, but the cultures are vastly different. One product which may be accepted in one county can be a total failure in another. Kellogg’s Pop-Tarts which were famous in United States, failed in Britain as the product was too sweet for British taste.

The United States itself has many subcultures that even today, with mass communication and rapid travel, defy complete homogenization. The task of foreign marketers is to adjust marketing strategies and plans according to the needs of the culture in which they plan to launch themselves. Therefore, an international marketer must understand the preferences of a foreign customer & offer a competitively attractive and acceptable product or service.

2. Methods used by marketers to overcome cultural difference in an international marketing scenario:

Customers across the globe are heterogeneous and have the different needs and preferences. Standardization is therefore seen as an over simplification of the reality. As, market characteristics and the culture of a country are closely linked together. Some methods of overcoming cultural differences in international market scenario can be:

• The “Four P’s” of marketing — product, price, placement, and promotion —all have to be fine-tuned as a company moves through the different phases to become and maintain dominance in international market.

• It is the job of global marketers to create and place product advertisements in settings where local consumers will be most receptive to receiving and acting on those messages.

• Local languages, colors, and religious beliefs must be considered carefully while promoting products and services in different countries.

• Brands must ensure their promotional strategies make sure how consumer behavior is shaped by internal conditions and external influences. Some belief may be of great importance to one culture that are neutral in other.

• Religious beliefs – Customers’ religious beliefs affect shopping patterns and products purchased in addition to their cultural values. In the United States, Christmas & New Year’s Eve is a major sales period. But for other religions, religious holidays do not serve as popular times for buying products.

• Some examples: Nike has evolved his international presence by carefully selecting international sponsorships. Even though spending for sponsorships is quite unpredictable, demand costs usually rise sharply because of triggers such as tournaments and championships. This has captured the attention of the international arena.

McDonalds doesn’t serve beef in Indian markets due to their cultural values of restricting beef meat completely as cow is a sacred animal for them.

3. Religion is an element of culture. The religion of the host country highly impacts the role of the global marketing manager. Use a specific country (name the country/religion) & a specific U.S company.

Emile Durkheim defined religion as "a unified system of beliefs and practices relative to sacred things, that is to say things set apart and forbidden - beliefs and practices which unite into one single moral community called a church, all those who adhere to them."

Global business environment consists of numerous elements outside business that affect management strategies to deal with and meet demands of their target customers across the globe.

It is made up of Micro and Macro environment. Micro environment directly impacts the organizational ability to serve the customers like consumer preferences, suppliers etc. The macro environment includes external forces which are not in direct touch of the business example socio-cultural forces.

Socio cultural forces bring changes in attitudes, beliefs, norms, customs and lifestyles. Religion is the part of socio-cultural forces. Such values and attitudes shape the behavior and practices of institutions and members of cultures and are the most challenging for a marketer to adjust its product accordingly.

Example: McDonald’s decision of not serving beef in India –

McDonald’s corporation is an American fast food company. International burgers eating into India's spicy street food market have bulged over the past decade. But the global chains, reluctant to pick bones with local laws and beliefs in the world's second most populous nation, are staying off beef and pork as they clash for a larger slice of the country's succulent fast-food industry. As, Hindu culture in India strongly rejects beef as cow is a religious animal for them.

4. Four different ways to develop knowledge of a foreign culture:

When a company enters in an international environment, it is needful to make an initiative to understand the cultural backgrounds, beliefs and attitudes of the people around them. This term is also known as “cultural intelligence”. Ways to understand a foreign culture –

• Observation and sensitivity: Observing the target market is an obvious first step. Still, the most reliable tools could be your level of sensitivity and your powers of observation. When you’re in a foreign country, learn how those around you conduct themselves and their business. Listen more than you talk and chances are you’ll learn more, faster.

• Appreciate differences: A culture is built on more than just food, music, art and clothing. Its foundation includes stories, values and beliefs passed down through generations. Learn to value a culture’s contributions to the greater human story.

• Research: A thorough research of existing similar products may be of great help in understanding the local markets.

• Local text and journals: It’s a simple approach to understand one’s culture by reading stuff about them. It gives a broad insight of their lifestyle, beliefs and culture.

a. Differences between High-Context and Low-Context cultures with an emphasis on implications for Global Marketers –

High Context Culture: High context refers to societies or groups where people have close connections over a long period of time. Many aspects of cultural behavior are not made explicit because most members know what to do and what to think from years of interaction with each other. Family is an example of a high context environment. Most of the information is either in the physical context or initialized in the person. There is no concept of personal space, instead it is viewed as a communal entity, where people stand close to each other and share the same area.

Low Context Culture: Low context refers to societies where people tend to have many connections but of shorter duration or for some specific reason. In these societies, cultural behavior and beliefs may need to be spelled out explicitly so that those coming into the cultural environment know how to behave. Privacy is extremely important; hence, every individual has his own personal space which is rigidly defined. As a result, people are isolated from one another.

A global marketer must understand whether a culture is high context or low context before launching a strategy. For example – The US customers can be defined as the part of High Context market. They are welcoming and acceptance of a quality product is high in demand.

b. Non-verbal communication also differs from foreign cultures.

For example: A thumbs up means good or best of luck in USA, but in some other country, it may mean mocking someone

An ok sigh means approval in USA. In India, it also symbols a sign of zero

A hug is a symbol of acceptance and friendliness, while in an asian country, it may be considered as rude.

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