The impact of the nature of culture and its impact on the marketing mix

Essay , 2005 , 20 Pages , Grade: 1,3

Business economics - Offline Marketing and Online Marketing

Cultural distance has received a great deal of attention in the international business literature. It has been identified as a key factor in explaining foreign market attractiveness, expansion patterns, the degree of adaptation of marketing and retailing strategies, modes of entry and organisational performance.

Therefore it has become more and more important for international companies to take into consideration all factors which could have an influence on the marketing plans and finally on a company’s performance. Thus the impact of the nature of culture and its impact on the marketing mix will be examined by establishing a relationship between cultural components and the components of the marketing mix.

INDEX:

1 - Abstract:

2 - Culture:

3 - Marketing-Mix:

4 - Interaction of Culture on the International Marketing-Mix:

5 - Conclusion:

6 - References:

1 - Abstract:

Cultural distance has received a great deal of attention in the international business literature. It has been identified as a key factor in explaining foreign market attractiveness, expansion patterns, the degree of adaptation of marketing and retailing strategies, modes of entry and organisational performance. (www.onepine.info/Evans3.pdf, p.1). Therefore it has become more and more important for international companies to take into consideration all factors which could have an influence on the marketing plans and finally on a company’s performance. Thus the impact of the nature of culture and its impact on the marketing mix will be examined by establishing a relationship between cultural components and the components of the marketing mix.

2 - Culture:

2.1 Definition of Culture

Culture is the integrated pattern of human behaviour that includes the total way of life and thinking patterns that are passed from generation to generation. A people’s culture includes their beliefs, rules of behaviour, language, rituals, art, technology, styles of dress, ways of producing and cooking food, religion and political and economic systems (www.wowessays.com). Thus, culture is everything a person learns and shares with members of a society and it distinguishes one human group from others (Sheth, J.N., Mittal, B. & Newman, B.I., 1999, p.147).

Beyond, it is essential to remember that culture is not static but constantly changing and adapts itself to new situations and new sources of knowledge (www.wowessays.com). That means, the cultural messages from the groups we belong to change from time to time and give us therefore different information about what is meaningful or important, and who we are in the world and in relation to others -- our identities (www.beyondintractability.org).

2.2 Three models describing Culture

There are three key theories which show in different ways the existing differences in cultures.

2.2.1 International Management Cultures [Geert Hofstede]

- Power distance:

The extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally. e.g. India: it is not allowed to call a staff member by their first name Austria: they are used to decide on their own.

Philippines: they are used to being told what to do

- Uncertainty avoidance:

The extent to which the members of a culture feel threatened by uncertain or unknown situations.

e.g.-India: a decision making is always wanted, otherwise they feel uncomfortable.

- Individualism verses collectivism:

Ranges from “societies in which the ties between individuals are loose” to “societies in which people from birth onwards are integrated into strong, cohesive in-groups” e.g. -USA/UK: it is more important to succeed as an individual as to succeed in a team

-Asian countries: it is more important to work in a team and to feel as a part of a group 2

- Masculinity verses femininity:

Ranges from “societies in which social gender roles are clearly distinct” to “societies in which social gender roles overlap”.

e.g. Japan: clear separation within the role of gender

Sweden/Norway: concern for equality between the genders (Hofstede, G. 1991), (Evans, J, 2005)

Hofstede’s empirical framework of national culture is based on a survey of 117.000 IBM employees across 50 countries and 3 multi-country regions. The data was collected in time between 1968 and 1972. These dimensions of national culture measure cultural distance in terms of individuals’ perceptions of differences between the home country and a foreign country (Evans, J., 2005). Thus, the generalisability of the research findings can be questioned because the sample is drawn from one large multinational company alone. Furthermore can it be possible that the established country differences were influenced by a dominant corporate culture that traverses national boundaries. Nevertheless, this measure is consistent with higher abstraction of constructs found in marketing, such as market orientation and learning orientation (ibid).

2.2.2. Contextual continuum of differing Cultures [Usnier]

illustration not visible in this excerpt

Table 1 Lecture notes: Tony Curtis Some selected aspects of International HRM, slide.6

This figure distinguishes between different cultures in low and high context culture and low and high message culture. It can be gathered from the figure that the Japanese are a high-context and high message culture. Among other characteristics identified in high-context cultures, indirect instead of direct style is preferred in daily communication while the Swiss as a low-context world culture prefer a direct, explicit, personal and informal way of communication. Here the verbal content of the message is usually more important than how the message is delivered. In a high- context communication, most of a message in conveyed by the context surrounding it, rather than being named explicitly in words (LeBaron, M., 2005). These findings show us general tendencies within a culture which can help marketers to understand to some extent the customers’ behaviour. Nevertheless this model is limited applicable because it takes only into account different ways of communication within different countries. Several aspects of the macro-social environment which influence consumers to a great extent are disregarded.

2.2.3. Components of Culture [Carter/Terpstra]

illustration not visible in this excerpt

Table 2 Lecture notes: Tony Curtis Some selected aspects of International HRM, slide.5

This model adapted by Carter/Terpstra explains in comparison to the latter two models, best differences in culture as it takes into account several important components influencing culture and finally customer behaviour. These components will be briefly explained in the following.

2.2.3.1 Language

Language is an arbitrary system of both, verbal (spoken) and nonverbal (signed) elements. On the one hand it affects communication between members of a culture and on the other hand it distinguishes members of one culture to another by different expressions of group identity. e.g Welsh speaking in the UK, Austrian speaking in Germany.

(www.hokum.freehomepage.com) & (Curtis, T., 2004)

2.2.3.2 Religion

Religion exists in every culture in a variety of forms and governs many events and milestones. It has a key influence on peoples’ values and attitudes. It is in some countries deeply embedded in laws and systems but play in turn in other countries a less significant role.

e.g. The Turks are not allowed to drink alcohol.

(www.hokum.freehomepage.com) & (Curtis, T., 2004)

2.2.3.3 Values & attitudes

Different countries have different values & attitudes and therefore different concerns, complaints, different attitudes to time, achievement, work, wealth, change and risk etc. which influence the consumer behaviour.

(www.hokum.freehomepage.com) & (Curtis, T., 2004)

2.2.3.4 Education

Education is the level (e.g. degree of literacy, educational system etc.) and nature of education

(e.g. strength of family, authoritarian, religious education etc.) and affects products, advertising etc. (www.hokum.freehomepage.com) & (Curtis, T., 2004)

2.2.3.5 Social Organization

Different systems exist in different countries and include the following systems:

- kinship
- social institutions
- interest groups
- status etc.

The way people live can differ from country to country.

- The UK: much is prepared in the microwave (frozen meals for one),
- France: prefer freshly prepared meals.

(www.hokum.freehomepage.com) & (Curtis, T., 2004)

2.2.3.6 Technology & materials culture

Technology has a different status from country to country, as its focus in some countries is rather on functionality and in others on prestige.

Technology includes factors like:

- Attitudes to technology & gadgets
- Technological level
- Technological changes

Key technologies for communication have become:

- The Internet
- Broadband
- Telecommunication

Technology is used to make life easier (digital camera instead of camera). (www.hokum.freehomepage.com) & (Curtis, T., 2004)

2.2.3.7 Law & Politics

Politics is a general term for power and how people use power to influence both, their own and other cultures. It affects every human interaction from family to nations. The political environment includes:

- Laws
- Government agencies
- Insurance
- Distability in a country
- Attitudes to foreign investors
- Climate for “free trade” etc.

(www.hokum.freehomepage.com) & (Curtis, T., 2004)

2.2.3.8 Aesthetics:

Aesthetics pertain to what a culture defines as beautiful or pleasant. It includes such things as:

- Art
- Physical beauty
- Good taste
- Design
- Colour
- Fragrance
- Cosmetics

Brand names may not travel well!

(www.hokum.freehomepage.com) & (Curtis, T., 2004)

[...]

• College: University of Plymouth
• Course: Bachelor Abschlussjahr
• Grade: 1,3
• Author: Diplom Betriebswirtin (FH) Diana Ruthenberg (Author)
• Publication Year: 2005
• Pages: 20
• Catalog Number: V134639
• ISBN (eBook): 9783668329225
• ISBN (Book): 9783668329232
• Language: English