A

Presentation

On

Cross Culture Marketing

By

D.Pradeep kumarEXE-MBA, IIPM,HYD

What is Culture…?

A set of beliefs, values, attitudes, customs and acceptable behavior as practiced by a group of people in a region…!

What is Culture…?

Characteristics of Culture

Culture is learned

Culture is unconscious

Culture is Symbolic

Culture is a way of life

Culture is Dynamic

Culture is Relative

“Everything that people have, think, and do as members of a society” (Ferraro, 2005)

Values

Norms

Ideas/Beliefs

Attitudes

Symbols

Traditions

Artifacts

Dimensions of Culture

ARTIFACTSARTIFACTS

( Visible )( Visible )

VALUESVALUES

( Partly Visible )( Partly Visible )

BASIC ASSUMPTIONSBASIC ASSUMPTIONS

( Not Visible )( Not Visible )

What is Cross Culture….?

Cultural Environmental Factors

• A cross-cultural analysis involves the study of similarities and differences among consumers in two or more nations or societies

• The cross-cultural analysis creates an understanding about values, customs, symbols, & languages of other societies.

Cultural Environmental Factors: Values

• A society’s values represent personally or socially preferable modes of conduct or states of existence that are enduring. Values influence the behavior of the consumers.– McDonalds example in India

Cultural Environmental Factors: Language & Back Translation

• The best language to communicate with consumers is in their own.

• Over 3,000 languages spoken world-wide

– Vicks example in Germany

Great Britain

• Time

• Voice• Ice breakers • Use of titles

• Eye contact

• Humor• U.S. relations,

Royal Family

• Intimate questions

• Precedent

• Approach

• Intensely hierarchical

• Decision making style

• Don’t use pressure for decisions

• They won’t hesitate to say NO

Germans! What are They?

• Handshake

• Eye contact

• They stand very close

• Men should rise for women

• Who enters first

• Thinking Styles

• Feelings

• New ideas

• Humor?

• All relevant data required

• Presentations

• Punctuality

• Gifts

• First names

• 3rd party intros

Japan• First Names

• Titles

•Negotiations

• Don’t talk with hands

• Decisions

• Meaning of a Smile

• Silence is Cool

United State of America

• Responsibility• - with each

individual

• Level• - operational• Evaluation• - specific abilities• - task –

orientation

• Time• - limited resource

• First names• Discusses family• Humor• Have’e gott’deal• Informal• Dread silence• Quick decisions• Opportunistic• Persistent• Consistent

The material evidence of what a cultures does

What its people value

What attitudes prevail, how they conduct their lives

Usually embody the ideas and traditions of a society

Cultural Implications

Culture is the lens through which people view products as well as your company…!

Culture channels our values, attitudes, motives and goal directed behavior, as well as our personality….!

Culture influences the overall priorities consumers attach to different activities and products..!

Consumption choices cannot be understood without considering the cultural context in which they are made…!

Determines the success or failure of specific products or services…!

Determines the success or failure of marketing communications…!

Why is it important for businesses to understand Culture?

USA 89%

French Canada 81%

English Canada 77%

United Kingdom 71%

Italy 69%

France 59%

Australia 25%

Everyone should use a deodorant

Such findings signal that Canadian values, ideas, and attitudes should be relied upon when planning marketing forays into foreign consumer markets

Italy 86%

United Kingdom 59%

France 55%

Spain 53%

Germany 45%

Australia 33%

Canada 25%

Each product or service must be evaluated for its potential fit with the cultural norms and values of consumers in a particular country or region

A house should be dusted and polished three times a week….!

Marketers need to be aware of what is sacred – and perhaps taboo in advertising

“Sacred” can include

Things

Events

Places

People

Dr. Geert Hofstede’s

4 Dimensions

• U A IUncertainty Avoidance

IndexHigh

Germany, Spain, Portugal, Turkey, South Korea, Greece, Belgium, Japan,

France

Low

U.S., Malaysia, India, the U.K., Singapore, Denmark, Sweden, Hong

Kong

• I D VIndividualism Vs.

Collectivistic

High ( Individualistic )

U.S., Canada, U.K., Australia, France, Italy, Netherlands, Italy, Belgium

Low ( Collectivistic)Low ( Collectivistic)

Ecuador, Colombia, Hong Kong, Latin America, Taiwan, Pakistan, Indonesia,

South Korea, China

• M A SMasculinity Vs. Femininity

High ( Masculinistic )

Switzerland, U.S., U.K., Mexico, Germany, Japan, Slovakia, Hungary, Austria,

Venezuela, Italy

Low ( Feministic )

Denmark, Finland, Norway, Sweden, Netherlands, Chile, Thailand

Confusian Dynamism• L T O Vs. S T O

High ( Long Term Orientation )

China, Japan, South Korea, Brazil, India

Low ( Short Term Orientation )

West Africa, Philippines, Norway, U.K., U.S.

COUNTRYPDI IDV MAS UAI LTO

 

Germany 35 67 66 65 31

India 77 48 56 40 61

U S of America 40 91 62 46 29United Kingdom 35 89 66 35 25 Canada 39 80 52 48 23

China 80 15 55 40 115

Japan 54 45 95 92 80

Dr. Hofstede’s Country Scores

Case Study of Mc Donald’s Marketing(Cross Culture)

United States…! Thailand…!

McDonald’s became very popular across different countries because they were able to adapt to local markets and local communities. They not only produce advertising campaigns suitable for each unique culture but also able to understand their consumers and therefore know what they want.

This can be seen through McDonald’s strong menu across the world :-

1. Indonesia: chicken, rice, vegetable soup and drink as a set meal2. India: big mac without beef (because Hindu people don’t eat beef), instead uses lamb and chicken3. Germany: meal includes beer4. Chilli: avocado sauce in the burger5. Norway: grilled salmon wrap6. Hong Kong: rice burger7. Japan: prawn with sesame burger and8. Japan: tamago (egg) burger9. Canada/England: lobster burger10. Hawaii: spam, sausage, egg and rice breakfast meal

Lack of local sensitivity can result to the decline in company’s profit as well as to weaken brand image.

Interesting fact people tend to forget is that when a country is developing, they always focus more on international (western) value but once the country is developed they will shift their focus back to their own historical values and preferences.

Therefore advertisers must understand the situation of certain country and understand their culture before launching any kind of global advertising campaigns.

There are indeed many globally popular brands such as Coca-Cola however, it would be a mistake to assume that everyone purchase/consume Coca-Cola for the same reason. Coca-Cola itself made the mistake of assuming that there is such thing as universal motivation. However, with the decline in their sales in the year 2000, they started to realize the importance of local markets which then led to the success of Coca-Cola’s advertising campaign across different countries.

“We kept standardizing our practices, while local sensitivity had become absolutely essential to success” – Douglas Daft, Coca-Cola’s CEO from Financial Times.

Why is KFC so much more successful in China than McDonald’s, at least for now?

Marketing campaigns may have convinced people that KFC is more healthy in China than America - Their message is that KFC in China is the “new fast food” - healthier than other fast food options abroad and in China.

More Chinese people like fried chicken more than hamburgers - Although McDonald’s rolled out a new marketing plan aiming at young adult Chinese consumers last year.

KFC has more China-specific choices than McDonald’s - by far. They have a much more China specific menu.

KFC has better coupon deals than McDonald’s - which is very important to most Chinese consumers. About half of customers of either restaurant use coupons - but the best tasting stuff at McDonald’s, the beef, rarely has good coupon deals.

Reasons for Sensation of Mc Donald’s Abroad…?

In countries where customers prefer something else, McDonald'sincorporates it in the menu.

It resects their cultures, their beliefs and likings.

The company has is being nationally responsive, which is a key factor in any plan for global expansion.

Many firms bring their own management to the foreign that is not very familiar with the culture, customs or traditions in the country's. It can be said that many business ventures are doomed from exception because of this fact.

It caters to people's needs in a wholesome manner

Other key elements in business practices in the United States versus China are modifications in the menu and the approach in which McDonald’s management overseeing the operations in China advertises.

Modifications done by Mc Donald’s in other Countries…!

McDonald's INDIA offers Aloo Tikki and Paneer. And it doesn't serve beef or pork at all.

The Big Mac becomes Maharaja Mac in India (20). For vegetarians (a majority in India), there's an assurance of separate kitchen, utensils and cooks.

In Ahmadabad (a predominantly vegetarian city), McDonald's is actually toying with the idea of opening an all-vegetarian outlets.

Have a pommefrite sauce in Belgium and Holland, and a special Mayonnaise based sauce in Iceland.

McDonald's in all Islamic countries doesn't serve pork, in deference to Muslim tenets of belief.

Cont….!

Saudi Arabia: McDonald’s McDonald's Saudi Arabia closes five times a day for Muslim prayers.

There are two restaurants that are located in the Holy City of Makkah that are quite unique. These restaurants are the only two (2) restaurants in the world that serves exclusively to Moslem customers.

These restaurants are also the only two that are fully staffed with Moslem employees, from the Service Crew to the Restaurant Manager level.

In China McDonald’s has met the demands of consumers by adding the teriyakiburger (a sausage patty on a bun with teriyaki sauce) to its menu. McDonald’s has became so accustomed to the Chinese culture many of it’s customers do not realize it is an American-Based Corporation.

Another factor that worked well in McDonald’s favor in Europe was the management’s ability to allow Asian consumers to gradually twist the McDonald’s company culture for their own purposes.

Any Questions or Comments?

Thanks for listening

By D.PRADEEP KUMARExe-MBA ,IIPM ,HYD\Reach me : pradeep3673@gmail.com