Significance of Culture in Reference to International Marketing

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Significance of Understanding Culture in International Marketing Cultural Impact on International Marketing Process and In Particular Consumer Decision Making Deval Khandal

CONTENT

* International Marketing – An Introduction
* Marketing Environment
* Culture
* Values
* Heroes
* Rituals
* Symbols
* Formation of Individual’s Cultural Value System
* Consumer Ethnocentrism
* Elements Contributing Culture
* Political Element
* Economic Element
* Socio-cultural Element
* Benefits of Understanding Culture
* Some examples of Cultural Mistakes
* References

International Marketing – An Introduction

A group of activities that satisfies the costumer across the national boundaries, through exchange process, is called international marketing. In domestic market marketing starts with identifying the needs of costumer and then meeting the needs of individuals. But in case of international marketing it is different from domestic marketing, customer needs are different in different cultures. Moreover, marketing activities need to be changed according to the economic, social, cultural or political environment. “At its simplest level, international marketing involves the firm in making one or more marketing decisions across national boundaries. At its most complex level, it involves the firm in establishing manufacturing facilities overseas and coordinating marketing strategies across the globe.” (Doole and Lowe, 2001) Larry D. Makus states that engaging in international marketing gives several embryonic rewards. Exporting market bestow elongation chances, which are not certain in domestic market. Exporting may show a tremendous increase in revenues from international market without increasing the present product line. International marketing is full of competition and challenges, overcoming these situations give constructive ramifications to the business. International marketing constitutes of following strategies:- 1) Exporting

2) Foreign Investment
3) Mergers and Acquisitions
4) Joint Ventures
5) Strategic Alliance
6) Licensing and Franchising

Marketing Environment
“It includes all the external factors – competitive, economic, political, legal/regulatory, technological, and sociocultural – that can exert considerable direct and indirect pressures on both domestic and international marketing activities” (Ferrell et al, 2005) Kotler (1997) explained marketing environment as the external factors of a firm affecting the ability of marketing management to enhance and sustain fruitful business with its customers.

Culture

Hofstede (1980, p. 19) explained culture as “…The interactive aggregate of common characteristics that influence a group’s response to its environment.” Culture is common aptness for continuous selection of responses to the external affairs. It is the way of doing things around here. It is not a inherit quality by birth but a learned process. So, it includes all which is learned related to beliefs and religions, norms and values, symbols and rituals, customs and traditions. It is important for a firm’s external operations to understand the effect of cultural differences on international marketing decisions. This helps in predicting deliberate attempt retaliation of challengers and therefore to plan convincing competition oriented approach. This is also crucial to international sales transaction. (Pye, 1983)

Hall’s (1960) introduced culture as the silent language of international business. Lee (1966) and Hall (1970) stated environmental analysis as the crucial element for overseas business in acquaintance to international market. Considerable study for cultures in the international marketing begin seriously after publishing the work of Hofstede (1980, 1983) in stratifying cultures. His work obtained ratification as substructure to pertain in exploring and studying cultures.

A culture is a main...
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