Having examined the notions of Consumer Ethnocentrism and Country-of-origin effects, we can assume that nowadays the job of a marketer has become quite difficult. International Marketing is very challenging since the key to success is hidden behind the ability of a marketer to adapt rapidly to the changes that a multicultural marketplace entails. Today’s managers of global firms must deal with many obstacles in order to ensure the interests of their businesses in other countries (Research Methodology, 2012).
Nevertheless, when a firm decides to move abroad there are several factors that should take into account before deciding to sell their product or service into foreign market. One of the most important factors that the company should take into consideration is the cultural differences. Every marketing firm should delve into, appreciate and evaluate the cultural differences that exist between different countries. According to Lancaster et al (2002), there are numerous components of a country’s overall culture including religion, education and aesthetic appreciation. During the last twenty years, the need for deeper cross cultural awareness is constantly growing and it has become a very significant element in enhancing and facilitating the marketing activities of a company in a foreign market (Research Methodology, 2012).
Moreover, another essential issue that marketers should always consider is the environmental differences from one market. It is quintessential for an
International marketing or business is uniquely different from the local market because the product price, place and promotion is vastly different from what is been offered to local customers (Johansson, 2000) With the emergence of the information technology, cross border marketing has never been a distant dream. However, it has never been easier even for giant multinational companies to face challenges that come in international business. The biggest challenge comes from the culture which varies from country to country.
Cultural differences between nations often require a company to have multiple marketing strategies. What may be acceptable in on country may not be acceptable in another country. The cultural differences require companies to develop marketing plans that are suitable for each individual culture. Not being aware of and understanding the cultural differences can create costly and embarrassing errors that may actually offend those in other countries. Cultural differences can affect the colors of products, the graphics used on packaging, and how the product is communicated to the foreign target market.
Today, firms have to deal with a global marketplace; marketers have no other choice. Participation in global marketing has begun to shift from a mere “option” to an imperative. The world is becoming more homogeneous. Distinctions between national markets
Every country differs in culture which has been there for centuries. The international market is growing rapidly, with more and more multinational organisations entering new markets each day. In this assignment I will evaluate how the difference in cultures affects the performance of international businesses.
companies need to have a plan to create demand for their products. Consumer ethnocentrism can be moderated by aggressive marketing tactics. Western companies are trying to get into emerging markets and Russia, a former communist country, is a target for these companies. Consumer ethnocentrism in Russia has been a predominant barrier to success of foreign products in Russia and in Russia some distinguish between domestic products that are described as in-group products and foreign products that are described as out-group products (Puzakova, Kwak, & Andras, 2010). Research shows that the Russians view foreign products of superior quality, but remain ethnocentric in their consumer behavior (Puzakova, Kwak, & Andras, 2010). Using marketing communications the negative attitudes that are present with buying foreign products can be alleviated. The advertising efforts can be used to explore more moderate behavioral consequences of consumer ethnocentrism with initial contact being met with anxiety, but more subsequent positive contacts leading to comfort (Puzakova, Kwak, & Andras, 2010). The U.S. firm attempting to tap the large Russian consumer market needs to have a strategic marketing
Making business abroad can be risky, but it can also be profitable for a company as well; thus the necessity to study in deep the country where the company will bring the business to. International companies are faced with many cultural challenges, when doing business across and inside of different borders. Identifying the significant cultural issues involved when evaluating the attractiveness of a particular location as a place for doing business can be crucial for a business. Aspects to consider when studying culture in a new place
Competition in the business world is fierce and in order to survive companies must expand. “With the increasing globalization of markets, companies find they are unavoidably enmeshed with foreign customers, competitors, and suppliers, even within their own borders,” (Cateora-Graham, 2007). One way in which many companies have done this is by going global. International marketing, although more prominent than ever before, is still a difficult arena for marketers to master. Although religion and culture are not immediately brought to mind when business is brought up, marketing is one aspect of business that is highly sensitive to culture. Not only culture, but also politics, the economy and the law effect marketing strategies. This paper
Although, to help ensure success, it is important that companies take the time to not only understand the foreign market they are entering but to gain a highly knowledgeable understanding of the country’s culture from a social and business standpoint. By understanding a country’s culture, it can be of instrumental value in helping the company achieve their business objectives, while working to ensure operational efficiency. In the article How Cultural Differences Affect Your Global Marketing Message, Welsh said, “Marketing across cultures worldwide is a thriving business as the world moves closer to a global economy. Understanding cultural differences is important to achieve success in any market, let alone on the world business stage.”
Purpose – The purpose of this paper is to demonstrate why it is essential to understand cultural differences to achieve success in the 21st century. The paper focuses on the adaptations that different industries are incorporating into their business practices to meet the needs of the global consumer. In particular, the paper attempts to address the adaptations that industries are undergoing to cater to ethical and migration related requirements of the consumers.
establishes their rituals and justifies what are their norms and values. Businesses wanting to expand to different nations must take into account the countries’ culture and values in order to produce and manufacture products and services according to the norms of their society, and ensure their culture is respected and preserved in the way the products are marketed and manufactured. The products must be available and accessible without concerns of dissing religion and aspects of their culture and way of life.
Cultural Distance is presumably measured by “the extent to which different cultures are similar or different” (Shenkar, 2001). This construct is now widely used and applied to most business organisation disciplines, such as, management, finance, marketing, and accounting. However, to better explain the impact on global marketing operations, this essay will focus on the marketing segment of the discipline. The study of cultural distance has been used to innovate and transform organisations into foreign expansions and technology transfer (Gomez-Mejia & Palich, 1997). Besides, looking at culture by itself, it is a complicated term to understand. It is seen as a woolly concept , almost impossible to observe and ‘measure’ (Tayeb, 2000c); by
Now and again, these topics may convert into changing desires for business organizations and arrangements. Based on the changing desires and needs and wants, “people 's purchasing behaviour ultimately, are shaped by their environment and their values. Therefore, when you are creating new products or services in different countries or regions, it is important to conduct research beforehand about the target market. Consider characteristics like the role of gender in the culture, their decision-making process and what they value the most”(Innov8 Education Solutions, 2017). Based on that, it is clearly stated that the importance of understanding the different culture is just cannot be ignored, and should be implemented to enter the market also understanding the consumer’s behaviour in the market. Besides, the importance of understanding the cross cultural communication through the brand that the company wants has to be accepted in the cultural or even in the society.
The Effects of cultural differences in International Business; through the analysis manners and customs of a country: Chile.
The second integral element is the targeted culture, the knowledge of which is supposed to be used in order to persuade the found cross-border customers for a purchase. The entering business should be aware of the dominating cultural differences, preferences, tendencies and lifestyles, general beliefs and values. “When designing global marketing strategies, companies must understand how culture affects consumer relations in each of its international markets” (Khalifa, M., 2012). In order to be accepted by the consumers, the company has
Explain the stages that are typically taken by a firm moving from a domestic business to an international?