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Part Two: Culture and Organizations CHAPTER 11 CULTURE AND MARKETING • Concept 11.1: Marketing in a cross-cultural environment • Concept 11.2: Advertising across cultures Slide 11.1 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009 Traditional marketing activities 1. Market analysis: - environment analysis - buyer behaviour - market research 2. Marketing strategy: - market segmentation - marketing mix This classification of marketing activities has its critics Slide 11.2 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009 Modern concept of marketing • Market-driven management should be: - Anticipating and responding to customer needs - Defining and delivering customer value • Integrated marketing functions • Development of relationship marketing: - Personal and organization - Creation of networks - Connecting with customers Slide 11.3 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009 Cross-border market research Problems for marketers: • Language barriers: Translation even interculturally (Mandarin to Tamil to Malay Languages. • Sensitivity of questioning • Research techniques: Explicit/Individualistic/US based. Sentiments/ability to express varies culturally. • Cultural differences: contextual differences • Suspicion-how data will be used? Who? • Statistical comparisons • Fragmentation – decentralised structure, autonomy Slide 11.4 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009 International marketing • • - Definition: Marketing activities that cross national borders In line with the focus of a company’s operations Companies have two different orientations: Sales orientation - sales of same products in many countries of similar consumer charac: CocaCola - Societal orientation- know why buy it &how it can be modified. • A change of orientation may be necessary because of: - Legal, cultural, economic reasons Slide 11.5 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009 Intercultural marketing approach Slide 11.6 • Adapting products and marketing strategies to the consumer preferences • Cultural identification with a product (Usunier & Lee, 2005): - Notion of identity (desire to reproduce the national culture, as it is-to feel at home) - Notion of exoticism (desire to experience other values, different ways of living) • Consumers share cultural characteristics: - Geographical cultural affinity zones (resemble national cultural groups - Cultural affinity classes (teenage from Japan, Europe & Japan tend to share common values, behaviour & interests) Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009 Cross-cultural consumer behaviour • Increasing uniformity in consumer taste and behaviour • However, - behavioural intentions of consumers need to be established • Take into consideration: - Characteristics of the consumers’culture - And their underlying models Slide 11.7 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009 Branding • What is a brand? - The brand identifies a (range of) products/services - A brand is registered and becomes a trademark • Multinationals need to use an uniform brand • Language may be a problem: - Pronunciation - Different alphabet Slide 11.8 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009 Brand and national images • Important is the relationship between: - the nationality of a product and the image it evokes • Consumer’s perception of product nationality • Role of stereotypes • Country of origin • Country of brand Slide 11.9 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009 Communication: advertising In international marketing: • Language and behavioural differences • Meanings of the consumers give to: - products, brands, messages and behaviours • Advertising adapted to the local market: - products/services are presented in a symbolic way to create adhesion • In the mind of the consumer: - Image of the product associated with product concept Slide 11.10 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009 Notion of perception • Perception is a complex act: - Individuals are reconstructing their environment • Theories of perception applied to advertising: - Product must always involve the receiver If not, - Information will not retain the consumer’s attention • Differences in cultural systems determine: - What is seen/how it is perceived Slide 11.11 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009 Managing the meaning of brands • Companies operating internationally: - Building the strength of their brand - Extending the number of market • They have to adapt to: - cultural differences in communication and products • Companies are intent on making sure that: - intended meaning of the brand coincides with - perceived meaning of the message Slide 11.12 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009 Effective communication Intended meaning of the brand effective communication Perceived meaning of the message Slide 11.13 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009 The managing meaning matrix Figure 11.1 The managing meaning matrix Source: Hoecklin (1995): 101 Slide 11.14 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009 Conclusion chapter 11 In international marketing: • Focus more on the consumer than on marketing methods • Because the consumer presents the most important cultural differences • Communication: channels of advertising, • Balance between product, message and perception about the product Slide 11.15 Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009