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An Introduction to CROSS-CULTURAL MARKETING AND ADVERTISING Cultural approach to international marketing I. A cross-cultural view, comparing national marketing systems. An intercultural view, centering on the interaction between people of different cultures. How culture influences consumer behaviour, marketing strategies, branding and one of the most visible aspect of marketing – advertising? Cultural approach to international marketing II. Marketing and advertising will only be successful if the values of consumers match the values of the product or brand, which means that strategies successful in one culture can be extended only to other cultures with similar relevant values. Marieke de Mooij: Global Marketing and Advertising. Understanding Cultural Paradoxes Definition of culture the sum of the ―values, rituals, symbols, beliefs, and thought processes that are learned, shared by a group of people, and transmitted from generation to generation‖. ―Software of the mind‖ culture is a guide for humans on how to think and behave; it is a problem-solving tool. (Hofstede) Culture refers to ―the human-made part of human environment—the sum total of knowledge, beliefs, art, morals, laws, customs, and any other capabilities and habits acquired by humans as members of society‖. Culture influences all marketing activities. A successful marketer must be a student of culture. Origins of culture I. Geography, which includes climate, topography, flora, fauna, and microbiology, influences our social institutions. The impact of specific events in history can be seen reflected in technology, social institutions, cultural values, and even consumer behavior. Origins of culture I. Influence of the political economy on social institutions and cultural values and ways of thinking (20th century: fascism, communism, and democracy). Technology that is changing our life. Social institutions including family, religion, school, the media, government, and corporations all affect culture. Elements of Culture Cultural values Rituals Symbols Beliefs and thought processes Cultural values Individualism/Collective Index (IDV), which focuses on self-orientation Power Distance Index (PDI), which focuses on authority orientation Uncertainty Avoidance Index (UAI), which focuses on risk orientation Masculinity/Femininity Index (MAS), which focuses on assertiveness and achievement Hofstede Rituals and symbols Rituals are patterns of behavior and interaction that are learned and repeated vary from country to country. Language as Symbols: the ―languages‖ of time, space, things, friendships, and agreements. Beliefs and thought processes Beliefs, which stem from religious training, vary from culture to culture. Style of thinking. Ethnocentrism Ethnocentrism refers to the notion that one’s own culture or company knows best how to do things. Both the Self-reference criterion and ethnocentrism impede the ability to assess a foreign market in its true light. Reactions to meanings, values, symbols, and behaviour relevant to our own culture are different from those of foreign. Relying on one’s SRC could produce an unsuccessful marketing program. Avoiding the Self Reference Criterion Define the business problem or goal in home-country cultural traits, habits, or norms Define the business problem or goal in foreign-country cultural traits, habits, or norms. Make no value judgments Isolate the SRC Influence in the problem and examine it carefully to see how it complicates the problem Redefine the problem without the SRC influence and solve for the optimum business goal situation. Marketing orientation Domestic marketing – ethnocentric. Multi-domestic marketing – polycentric. Global marketing – regio/geocentric. Impact of culture on marketing I. Market research – equivalence and methods in cross-national surveys. Consumer behaviour – consumers’ values, attitudes and decisionmaking. Marketing strategies – global versus customised strategies. Product policy – adaptation versus standardisation of product attributes. Impact of culture on marketing II. Branding – country-of-origin image. Price policy – bargaining rituals, price-quality evaluations. Distribution – channel style and services. Communication – language, media and communication styles. Advertising – context and content.