1. Browaeys and Price, Understanding Cross-cultural Management, 1 st Edition, © Pearson Education Limited 2009 Slide 11.1 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

2. Browaeys and Price, Understanding Cross-cultural Management, 1 st Edition, © Pearson Education Limited 2009 Slide 11.2 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

3. Browaeys and Price, Understanding Cross-cultural Management, 1 st Edition, © Pearson Education Limited 2009 Slide 11.3 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

4. Browaeys and Price, Understanding Cross-cultural Management, 1 st Edition, © Pearson Education Limited 2009 Slide 11.4 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

5. Browaeys and Price, Understanding Cross-cultural Management, 1 st Edition, © Pearson Education Limited 2009 Slide 11.5 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

6. Browaeys and Price, Understanding Cross-cultural Management, 1 st Edition, © Pearson Education Limited 2009 Slide 11.6 Intercultural marketing approach 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)

7. Browaeys and Price, Understanding Cross-cultural Management, 1 st Edition, © Pearson Education Limited 2009 Slide 11.7 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

8. Browaeys and Price, Understanding Cross-cultural Management, 1 st Edition, © Pearson Education Limited 2009 Slide 11.8 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

9. Browaeys and Price, Understanding Cross-cultural Management, 1 st Edition, © Pearson Education Limited 2009 Slide 11.9 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

10. Browaeys and Price, Understanding Cross-cultural Management, 1 st Edition, © Pearson Education Limited 2009 Slide 11.10 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

11. Browaeys and Price, Understanding Cross-cultural Management, 1 st Edition, © Pearson Education Limited 2009 Slide 11.11 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

12. Browaeys and Price, Understanding Cross-cultural Management, 1 st Edition, © Pearson Education Limited 2009 Slide 11.12 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

13. Browaeys and Price, Understanding Cross-cultural Management, 1 st Edition, © Pearson Education Limited 2009 Slide 11.13 Effective communication Intended meaning of the brand Perceived meaning of the message effective communication

14. Browaeys and Price, Understanding Cross-cultural Management, 1 st Edition, © Pearson Education Limited 2009 Slide 11.14 Figure 11.1 The managing meaning matrix Source: Hoecklin (1995): 101 The managing meaning matrix

15. Browaeys and Price, Understanding Cross-cultural Management, 1 st Edition, © Pearson Education Limited 2009 Slide 11.15 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