Understanding International Marketing Strategies And Cultural Differences
- December 21, 2023/ Uncategorized
National vs International Marketing
Marketing is a process or strategy which every company adopts; this is done nationally or internationally. Where national or domestic market states that commercialization of goods and services within the national boundaries and they act within the regulations governed by the administration of a specific country which caters smaller area. Whereas international marketing highlights that type of marketing which gives elasticity to companies to globally commercialize its products and services and as compared to national marketing it requires huge capital investment for acquiring resources.
Subsequently if a company is to export its products on international ground, certain strategies like cultural diversion, variations in political aspects, differences in financial system and regulatory bodies and business internal and external various rules and regulations majorly affects the national marketing strategy to suits up the local culture (Stephen, Joshua and Robert,2014). Therefore, for the emergence of international business, new culture, new trade policies, more wide choices which ultimately brings new openings and challenges for the organisation with this it also highlights the broader view of customers’ expectations and perceptions (Cui and Ting 2009).
Culture is defined through many conceptualizations which classify the embedded values, beliefs and the national’s behavioural patterns which form the appropriate framework for inspecting the cultural marketing perspectives. The dimensions which guide the alternative strategies are to be adopted and the model that highlights the changes to national marketing strategies and suits the local culture (Ferraro and Briody, 2013).
While exporting, it is really important for the companies to consider lifestyles and cultural aspects. Packaging styles, sizes and colours and product functioning all are considered according to the cultural requirements. Each international market has its various preferences for their products, brands, shapes, colours and iconic features through these companies determine about their suitable larger business success (Markgaf, 2018). Certain ethics and values also have influence on international business which is majorly dependent on status, region and religion. Consequently, if a company wants to have a suitable export then investigators needs to collect relevant information, inclination more towards opportunities and eradicate those where risk level is too high or low returns to explain the business expenses of exporting (Nathaniel, Yaw and Joseph, 2018).
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This criterion basically highlights the fact of inequality among the society; it defines the attitude of culture in which powerless associates of institutions admit the unequal distribution of power within a country. Hence china’s culture is categorized by large power distance rather than small power distance, this means the communication of employees with their superiors are polarized, and therefore they have to be respectful due to the intrinsic nature which they carry. The below given graph majorly emphases on high of power distance of china as compared to United States.
Impact of Culture on International Marketing
This dimension addresses the individuals and the group behaviour where individualism does not highlights egoism rather expectations of choices and decisions are performed, whereas collectivism denotes itself in context of socially acceptable rather closeness. Business culture of china is highly collectivist as they adopt strategy of not changing their suppliers and vendors very often and are also against trying out the new combinations. There major emphasis is on loyalty and links through networks (Janice’s world, 2013).
Masculinity defines the society which is focuses on success and achievements whereas femininity defines quality of life which is the sign of success. When we are addressing china it is masculine society – more success oriented. They sacrifices family and give more priority to their work. There major emphasis is on masculine aspect which generates the gender stereotype and biasness’ in china. For example, farmers migrated in different places in order to obtain better returns by leaving their families far behind in order to achieve success. Below given graph concentrates on masculinity of china, consequently United States to have high masculinity score in comparative to china its low (Hofstede, 2005).
Uncertain avoidance deals with the society’s tolerance for uncertainty and vagueness. China is deceiving because weak uncertainty avoidance tends to be those where people are relatively free. As china has strong cultural acceptance of conformity hence it states that people of china tends to obey the laws and regulations and needs strong guidance rather than taking decisions on spot.
In context of china it follows the long term orientation which highlights the infusion with the traditional sense which takes longer time to complete things, which doesn’t means china cannot accomplish task fast rather they are more influenced with the longer term perspective that allows them to surmounting obstacles and challenges over a certain period of time (Janice’s world, 2013).
Indulgent culture talks about freedom and relatively weak control whereas restrained culture is that feeling where life is tough, no freedom and having a strong control and if we talk about china it’s a restrained society which does not emphasis on leisure time and controlling the gratifications of desires. They are more action oriented.
US highlight the aspect of inequality, to an extent the organisation and the members of the institutions accept the power which is distributed unequally. Consequently power distance has fairly low score as compared to china.
The members and society of US has a high degree of interdependence along with high geographical mobility. The high spot of this factor is people look after themselves and their families and are not rely on higher authorities for their support and are more self- reliant and exhibits creativity. The below given graph depicts that United states focuses more on individualism as compared to china (Zhang and Tan 2011).
Cultural Dimensions of China and the US
In place of more competition, achievement and success highlights the high score of masculinity in the society which creates dynamism in the society. Typically, American’s having a mindset of “live to work” so to obtain a high monetary rewards and consequently attain higher status and more of possibility to do things in better way.
US having high score on this dimension, open to new ideas and acceptance and willingness to try something new, having more of tolerance power to allow freedom of expression, at the same time, they do need more of rules and are less emotional, they are less managerial risk takers, also they have more organised and structured activities which highlights this culture behaviour of united states (Hofstede, 2010).
American’s in this context are more pragmatic, they are prone of checking whether the information which is extracted is true or not. So on short term basis, through profit and loss statements performance is measured out, and strive of faster results for individuals within the workplace.
US mark itself as an indulgent society, which are more prone towards drugs and prude acts and this reflects the contradictory behaviour and attitudes in United States. This relatively highlights a weak control over the impulse (Janice’s world, 2013).
Differences which are created over centuries of history which not only trace china’s traditions and customs but also highlights few traditions of its own adopted by united states. Likewise, if we talk in terms of respect, it’s important and is expected that it should be more sensitive in terms of person’s needs and culture, but in American context unfortunately this characteristic fallen the other way side (Bryant, 2018).
Social culture is one of the formal and hierarchical aspects which every company adopts, in United States it is much loosen and informal way basically this kind of culture not only harms the business relations but also hampers the business reputation. Status is the most essential element which goes with every individual of china, but in context of American more emphasis is on end results rather giving a major thought in reputation concern. In humility concern American sign of achievements are lauded whereas in Chinese culture the achievement of one’s business is downplayed. Time sensitivity in context of America is a major concern in contrast to china. Recognition of ancestors in Chinese culture once in a year is important to pay their respect, honouring them is an essential aspect of Chinese culture. But if we talk about American culture they rarely know about their recognition of their ancestors. Subsequently china’s culture is much older in comparison to American aspect culture and having very less percentage of immigration (Scull, 2017).
Business Practices in China and the US
The way of communication also affects and highlights the culture of different countries likewise American is doting of using direct communication in contrast to china. Being polite showing courtesy and respect make a way for satisfactory agreements whereas American beliefs in style of directness. Different countries having different organisation structures, china’s culture beliefs in respecting hierarchies along with the concern of invisible rules of respect. Whereas, American’s never hesitate in challenging their superiors at workplace. In decisions making aspect American’s professionals beliefs in quick decisions making in contrast of Chinese professionals (Zirra, 2015).
Financial stability and high economic growth leads to the development of the world along with the improvement in standard of living. With the increasing pace of innovations and new product developments leads the improvement in technical aspects and this strengthens more businesses in developing countries. With the higher increments in competition companies having low labour cost and also focusing on effective innovation and deals with the high degree of automation. An environmental factor also affects the developments of international businesses by forming the environmentally friendly technologies and leads to more rapid growth of an overall economy (Werner, 2002).Usage of more advanced communication connections via video calls and webinars leads to booming of businesses. Development in communication technology, proper usage of internet, video confessing allows the companies to maximize their opportunities and cut down the differences among the different zones of the country and allows to build new relationships. Establishment of new products in different countries lead to increase competition like coco-cola, KFC, McDonalds are making them well-known worldwide. A development in the mode of transportation also leads to enhancement of international business despite of all these above developments it is mandatory to give more emphasis on international culture (Zirra, 2015).
Conclusion
The above given paragraphs conclude that if a company has to export its product internationally there will be major change in a cultural context likewise in language , skills , belief’s and the expectations and the perceptions of the customers along with the change in their lifestyle and standard of living.
Understanding market is the foremost key to success. The product which a particular country creates it is relevant for the ultimate consumer because of their own cultural environment. It is essential to have market specific strategy which clearly sets the brand which a company is aiming to achieve. It is very mandatory to differentiate your product from your competitor by establishing your own unique value preposition; therefore success lies in the hands of the owner by creating more unique products and having a meaningful consumers experience by the usage of segmentation and positioning techniques of marketing. Along with this, A proper usage of keywords for the market and also understanding the target customers’ needs. Cultural variances affect the implementations of international marketing strategy. If we talk about the four p’s local values are getting affected by the product and pricing strategy, whereas in context of place marketing strategy it is mainly affects the customers buying behaviour. Language, buying behaviour and customer’s values are the most significant considerations when a company is entering into a new foreign market and along with this also gaining the reputation and the more of market shares. Although the growth of internet, social media has increased over time and built the better connectivity but in world still people see through their own culture lenses and will take longer time to change, and this highlights that growing up in different culture, during different era’s or with the different social classes can make a great differences on how a person view the world and how they communicate.
References
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