Cross-cultural issues play a big roll in international marketing. Understanding how cultural differences can affect a marketing strategy, both negatively and positively, is essential in obtaining success in expanding a business to another country. A country’s economy, laws, culture, language, and business practices are factors for consideration when wanting to expand a product in another country. Having a complete understanding a country’s lifestyle and expectations can only benefit a US business looking to expand its business to that country’s market.
After researching the different countries located within Eastern Asia, China has the most opportunity for expansion of our product. China is considered the largest automotive market in the world with the recorded number of registered vehicles at the end of 2010 reaching 199 million and the expected amount by 2020 to be over 200 million (http://www.chinaautoweb.com/2011). A country’s economy includes factors such as its ability to adapt to advancements in technology, GDP, inflation rates and currency exchange rates. China is known for its ability to stay way ahead of the US in technology. At the airport in Beijing, for example, a person can purchase a sim card for a cell phone before going through customs (http://infoworldcom). China’s economy in 2011 is expected to rise 9.28% and keep a strong hold on inflation (http://news.xinhuanet.com). A country’s political system and trade laws are definitely important factors that can influence opportunity for success when looking to do business in China. China is run on the communist legal system that can be a difficult system to gain access to as far as understanding what is necessary. It is important to have a Chinese counterpart to help aid in the transition of business development in China. There are many things to consider when doing business in China.
China’s business laws are constantly changing and at a rapid speed. Although a law is stated one way, the way it is implemented may be completely different. Understanding China’s view on pollution, consumer protection and employee labor laws are important. Breaking any business law can create extreme problems and may even make it impossible to continue doing business in China.
Another important issue that will impact expanding in China is language not just verbal, but also physical body language. How we communicate with individuals, groups and other companies play an important role in our success. Some sort of language training should be provided or hire specific individuals fluent in the Chinese language and customs. Even though English is the most common language spoken, countries prefer to discuss business in their own language. If we have fluent speaking employees who can communicate with the Chinese companies, that will give us a competitive edge. Also, knowing the language and customs shows that we have respect for the Chinese culture and people.
Communication differences can impact marketing strategy. The product itself, as well as how the product is promoted, the price of the product, and the location where the product is sold are all forms of communication differences that can make or break a company marketing a product overseas.
The total product, which “includes the physical product, brand name, accessories, aftersales service, warranty, instructions for use, company image and package” is what the customer purchases (Ball, McCulloch, Geringer, Minor, & McNett, 2008). Product differentiation is required in today’s market in order to stand out from all the other competition. A company wants to be able to adapt to the changing needs of consumers and one way to keep up with consumer’s needs is to
change the size of the product without changing how the product is made. This will allow the company to create a new product for a distinct market.
Promotion includes advertising, pubic relations, personal selling and sales promotion. Chinese...
References: Ball, D.A., & McCulloch, W.H., & Geringer, J.M., & Minor, M.S., & McNett, J.M., (
C.R., & Bruce, S.L. (2008). International Business: the challenge of global
competition (Rev ed.) McGraw-Hill Irwin
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