The Impact of the National Culture to the Global Marketing

In: Business and Management

Submitted By pradeepsampath
Words 939
Pages 4
Culture is a defining feature of a person's identity, contributing to how they see themselves and the groups with which they identify. Culture may be broadly defined as the sum total of ways of living built up by a group of human beings, which is transmitted from one generation to another. Every community, cultural group or ethnic group has its own values, beliefs and ways of living.
Culture forms an important element of social life of a man. It is the culture that makes human animal to man. It regulates his conduct and prepares him for group life. It teaches him what type of food he should take and what manners, how he should cover himself and behave with the fellows, how he should speak and influence the people, how he should co-operative and compete with other. Man has acquired these qualities required to live and social behavior even for complicated situations.
In here we are trying to discuss how culture can affect to the marketing process when it comes to the international marketing because culture is different in every country and also even in the same country there are different sub cultures too. In order to be successes in international marketing, marketers have to understand and these differences of cultures around the world.

Culture Definition
We define culture as the sum total of learned beliefs, values, and customs that serve to direct the consumer behavior of members of a particular society (Consumer Behavior, Shiffman and Kanuk)

Components of culture
• Attitude
• Beliefs
• Values
• Norms
• Religions
• Aesthetics

Why it is important for marketers to understand the cultural impact on Consumer Behavior
Culture has major impact on consumer buying behavior, because most of the buying patterns are determined by the culture. As an example in Hindu culture, they are not eating beef so whatever the foods they buy are free…...

Similar Documents

Are National Cultures Still Important Today or Are They Being Overshadowed by a Global Marketing Culture?

...tendency to culture merger. People from all strata of life from different countries all over the world enjoy the same movies, television shows, food and fashion. The global village ushered in by Marshal McLuhan has not only become a contemporary reality but seems to have demolished all frontiers, not only between countries but also between cultures and so national cultures which give form to national identity have been absorbed in one global culture resulting in the loss of individual national identity. Various debates on whether globalisation improves cultural diversity or else makes this diversity uniform are very much on the agenda. Culture distinguishes one country from another. It links people to places in a number of ways. These links include religion, dress, food, or the media. The latter serves also as a means for advertising different cultures around the world. One may easily claim that, due to the increasing interpenetration happening in our world, national cultures are becoming diluted and homogenised into one huge global culture. The term ‘interpenetration’ refers to the “distant cultures... come[ing] face to face with each other at a local level...” (Cochrane & Pain, 2004, p.16). The globalisation of culture is just one way in which globalisation manifests itself. Globalisation can be summarised as the force that covers all areas of our lives: economically, politically and culturally. “It is the organisation and exercise of power on a global scale”......

Words: 1753 - Pages: 8

Global Marketing

...PART 1 Introduction CHAPTER 1 Introduction to Global Marketing Case 1-1 The Global Marketplace Is Also Local onsider the following proposition: We live in a global marketplace. McDonald’s restaurants, Sony digital TVs, LEGO toys, Swatch watches, Burberry trench coats, and Caterpillar earthmoving equipment are found practically everywhere on the planet. Global companies are fierce rivals in key markets. For example, American auto industry giants General Motors and Ford are locked in a competitive struggle with Toyota,Hyundai,and other global Asian rivals as well as European companies such as Volkswagen. U.S.based Intel, the world’s largest chip maker, competes with South Korea’s Samsung. In the global cell phone market, Nokia (Finland), Ericsson (Sweden), Motorola (United C States), and Samsung are key players. Appliances from Whirlpool and Electrolux compete for precious retail space with products manufactured and marketed by China’s Haier Group and LG of South Korea. Now consider a second proposition: We live in a world in which markets are local. In China, for example, Yum Brands’ new East Dawning fast-food chain competes with local restaurants such as New Asia Snack.1 France’s domestic film industry generates about 40 percent of local motion picture box office receipts; U.S.-made movies account for about 50 percent. In Turkey, local artists such as Sertab account for more than 80 percent of recorded Exhibit 1-1: England’s Burberry Group celebrated......

Words: 23905 - Pages: 96

Global Marketing Culture

...Culture Essay Culture is pervasive in all marketing activities”, (Albaum et al, 2005) Hall distinguishes culture according to the degree of context in their communication systems (De Mooij, 2010). High context cultures (Japanese, Chinese) contrast greatly with low context cultures (USA), who require a more explicit conveyance of messages. As Hall (1984) says, “Many Americans don’t seem able to evaluate anything unless they can attach a number to it”. Introduction One of the early scholars of culture, Linton (1945), defines it as: ‘‘The configuration of learned behavior and results of learned behavior whose component elements are shared and transmitted by the members of a particular society.’’ Other early scholars like Kluckhorn (1954) conceptualized that the cultural influences transcend in terms of the beliefs, norms, traditions, and values of society and this view still prevails among the scholars of culture. Why is culture important? Global Marketing in the simplest description attempts to understand customers in terms of what they buy, when they buy, why they buy, how much they buy, where they buy it, and with what they buy. Internationally, this means understanding culture. How marketing efforts interact with culture determines the success or failure of a product. "There are many examples of cultural differences that have affected marketing success or failure." (Buzzell) The relationship with culture comes into play with the realization that each of the......

Words: 3846 - Pages: 16

Leadership and National Culture

...Introduction One of the topics that exist since ancient times are leadership, national culture and organizational culture because every nation and country have their culture and need their leaders. Some of the leaders are better than others and because of this reason they manage to govern their countries better and to win advantage for them. Like every country the companies all over the world have their organizational cultures and their leaders. Every company is trying to shape its organizational culture striving to reach its personal goals and because some are better than others they have better products and bigger market shares. The first purpose of this paper is to present the old organizational culture, the old values and leadership style of Ford and how they affected the performance of the company. The second goal of the paper is to show why the need for change came in Ford and how they managed to implement this change into practice. Organisational culture, Leadership and Leadership Style – Definitions One of the possible definitions for organisational culture that exists is as follow: Organisational culture is “the set of shared values, beliefs and norms that influences the way employees think, feel and behave toward each other and toward people outside the organization” (George and Jones, 2012). One of the aspects which are considered in this paper and which is aspect of organisational culture is organizational structure. It can be described as “the pattern of......

Words: 3208 - Pages: 13

The Role of National Culture on Leadership

... Executive Summary The aim for this thesis is to answer the problem statement: How do national cultures influence leadership styles? To give an answer to this question, this thesis is divided into three parts: leadership, national culture and the connection between them. The conclusion of this thesis is based on analytical and exploratory research. The first part, on leadership, focuses on mainly two types of leadership: transactional and transformational leadership. Transactional leadership is mainly based on the transaction between leaders and their followers. Bass described four components of transactional leadership: Contingent reward, Active management by exception, Passive management by exception and Laissez-Faire leadership (1997). Transformational leadership focuses mainly on inspiring and stimulating the followers. Transformational leadership contains also four components: Idealized influence (Charisma), Inspirational motivation, Intellectual stimulation and Individualized consideration. The second part focuses on different studies on national culture: Hofstede (1983), Schwartz (1990) and Inglehart (1997). Each study has different values and dimensions, both all three studies show some similarities. The first similar dimension contains: Hofstede’s Power distance, Schwartz’ Hierarchy versus Egalitarianism and Inglehart’s Survival and measures the degree to which the people in a national culture accept and expect the unequal distribution of power. The second similar......

Words: 8555 - Pages: 35

Global Marketing

...1. In this course we have discussed the factors that have lead to the growth of the global economy and therefore the rise in global marketing. Discuss drivers and how they have assisted the development of the global wine market. How do the macro environments (political, legal/regulatory, cultural, and economic) influence the ability of the wine industry to grow within a given country? . There have been many factors that have led to the growth in the global economy. Some drivers that have been discussed in this course so far are: peace following WWII, the global support of GATT & the WTO, along with major improvements in information technologies and communications. But as the world revolutionized so did world trade and the global wine industry. Innovations where born, and communication between countries became easier which streamlined the distribution process a global market for the wine industry began. The demand for wine also increased worldwide as World War II came to a close. We learned in Chapter 1 that global commerce thrives during times of peace. An increase in the demand for wine during the postwar era coupled with new innovations that enabled wine to travel further distance without going bad, allowed “New World” producers to step up and compete with “Old World” traditional wine makers. This in turn caused new regulations and “standards” (of which we learned about in chapter 2) in order to protect their own domestic wine industry. ...

Words: 2835 - Pages: 12

Impact of Genetic Modification of Food on Global Food Marketing

...Impact of Genetic Modification of Food on global food marketing Since genetically modified (GM) food has entered the global food market in early mid 1990s and corn, rice, canola oil and soybeans become among the first FDA-approved Genetically Modified Organisms (GMOs), large companies such as Monsanto, Nestle and PepsiCo experienced cost benefits with these new ingredients and the trend has quickly spread to other sects of the food industry. Genetically modified food can be defined as organisms in which genetic material has been altered by recombinant DNA technology. It sparks controversy among agricultural sectors. Some may advocate that such biotechnology generates a set of potential benefits to producers or consumers with cheaper production costs and food attribute enhancements while others may dispute the possible costs of unintended allergic responses, long-term health and environmental effects, ethical or moral issues. Consumers’ perceptions of these potential benefits and costs shape market responses to the new technologies and eventually determine how widely the technology is adopted. This essay will discuss the issues around genetic modification of food and the impact of them on how food is marketed globally. Table 1 below shows the PESTLE analysis to examine the external environment for GM food. Politically, GMOs regulations differ in countries, with marked differences between US and EU. Many GM plants including varieties of soya bean, cotton, maize and rice......

Words: 2234 - Pages: 9

Global Marketing

...internationalization focus on large companies, whereas SMEs are only rarely investigated or only as sub-groups thereof, such as ‘‘born globals’’ or high-tech/growth enterprises, although companies in different development phases are also characterized by different management requirements (e.g. Dimitratos and Jones, 2005). The critical role of self-commitment for SMEs that participate in cooperative internationalization has until now hardly been researched. This is surprising, particularly when considering the attractiveness of internationalization for these enterprises, as well as the favorable conditions in SMEs that allow trust to evolve. To investigate the operation and the expected performance contribution of these kinds of cooperations in the internationalization of SMEs, we will compare national with international cooperations M. Fink et al. among 146 enterprises from Austria and Central and Eastern Europe. In this context, the following research questions will be investigated: (1) What is the effect of the cooperating partiesÕ selfcommitment on the communication and structure of maxim-based cooperations in SMEs? (2) What impact do self-commitment, maxim-based communication, and maxim-based cooperation structures have on performance in these kinds of cooperations? (3) What differences are found when comparing international with national cooperations? This study contributes to the theoretical and empirical development of IE and trust research, as well as to an......

Words: 9885 - Pages: 40

National Cultures

...Management: MBA_ 607 Lecture No.5 Organisational Culture Dr Kwasi Dartey-Baah 1 Overview  What is organisational culture? How does culture develop Impact of culture Work Applications    2 1 10/17/2014 What is Organisational Culture”  Organisational Culture: What is it?  Organisational culture is a system of shared values, assumptions, believes and norms that unite the members of the organisation.  Organisational culture is also referred to as Corporate Culture (Internal Environment). Culture is ‘how things are done around here’. It is what is typical of the organisation, the habits, the prevailing attitudes, the grownup pattern of accepted and expected behaviour (Drennan,1992).  3 Type of cultures /how culture develops   Types of organisational culture Charles Handy describes four types of cultures basing his work on the earlier ideas of Harrison. (i) Power culture: This is very political, revolving around a central power source found in small entrepreneurial organisations. Few rules or procedures. Emphasis on results rather than means. Advantages: ‘proud and strong organisations’ and has ability to react well to threats or danger. Disadvantages: Only as good as their leader/s. Have problems with increased organisational size and complexity and with management succession. 4 2 10/17/2014 Type of cultures /how culture develops (ii) Role culture: Bureaucratic with an emphasis on rules and......

Words: 1779 - Pages: 8

Global Culture

...WALMART SUCCESS IN MEXICO, CANADA AND CHINA: GLOBAL EXPANSION, STRATEGIES, ENTRY MODES, THREATS AND OPPORTUNITIES Lee Yee Mun B1000922 Help College Of Arts and Technology Bachelor of Science in Collaboration with Southern New Hampshire University, USA lemon_0611@hotmail.com Rashad Yazdanifard Faculty of Management, Multimedia University, Cyberjaya, Malaysia. rashadyazdanifard@yahoo.com 1 ABSTRACT Global expansion has been gaining a lot of attention. There are many important factors to be considered in the decision-making process such as business strategies, entry modes, and threats and opportunities in the markets. Appropriate strategies will minimize the risk of failure in international markets. The right business strategies and entry modes employed will increase the firm’s chances of success and influence the future of the retailer. Key words: global expansion, business strategies, entry modes, threats, opportunities, Walmart 1. Introduction The internalization of the retail industry has been researched widely, and majority of these studies have described the motivations and scales for international expansion by retailers (Akehurst & Alexander, 1995; Williams, 1992). Many models of internalization explains the sequence of foreign expansion, showing that companies who go international will do better in foreign markets that are similar to their domestic markets. This was why Walmart chose to enter the markets of Canada and Mexico......

Words: 4898 - Pages: 20

Global Culture

...Global Culture Globalization has become the it-word of this generation, growing up in the dawn and the domination of the internet in our lives has seen idea and information shared across the globe. Thirty years ago the world as know it didn’t exist, the globe seem much bigger as it does now. Globalization has help cultural group better define themselves by seeing similarities and differences. Foer and Appiah both used examples on how globalization though soccer and cultural identities. Globalization is define as “Process by which the experience of everyday life, marked by the diffusion of commodities and ideas, is becoming standardized around the world. Factors that have contributed to globalization include increasingly sophisticated communications and transportation technologies and services, mass migration and the movement of peoples, a level of economic activity that has outgrown national markets through industrial combinations and commercial groupings that cross national frontiers, and international agreements that reduce the cost of doing business in foreign countries.” (Merriam-Webster). The age of the internet has created an environment where people and businesses can provide services and products around the world. When I first started taking college classes the biggest shock that came was the price of textbooks. A book that provide no real value outside the current class I was in, hundred dollar book will disappear into a storage closet because of the refusal to......

Words: 1096 - Pages: 5

Impact of Culture on Marketing Mix

...work is to compare and contrast two national cultures in terms of marketing practices. Particularly this work investigates Chinese and American national cultures as well as their impact on marketing mix. Along with general cultural information, this work provides current trends in national culture of these countries. Finally based upon findings the research gives some recommendations. Five cultural dimensions As companies around the globe started to expand their business beyond their domestic borders, the phenomenon as national culture became the stumbling block for them. They started to realize the importance of recognition of culture. Culture itself is defined as values, beliefs and assumptions learned through early childhood that distinguishes one group of people from another (Newman and Nollen 1996). Prominent writer in this field Geert Hofstede (1994) in his work referred culture as ‘the collective programming of the mind which distinguishes the members of one category of people from another’ and also adds that ‘category of people can be a nation, region, or ethnic group, women versus men, old versus young, a social class, a profession or occupation, a type of business, a work organization or part of it, or even a family. In his research of national culture, he observed subsidiaries of a multinational corporation (IBM) in 64 countries and two groups of students in 10 and 23 countries, and identified five dimensions of national culture differences. They are: power......

Words: 2270 - Pages: 10

Global Marketing

...Global Marketing, 8e (Keegan/Green) Chapter 1 Introduction to Global Marketing 1) The market development strategy involves seeking new customers by introducing existing products or services to a new market segment. Answer: TRUE Difficulty: Easy Chapter LO: 1 AACSB: Reflective thinking Course LO: Discuss the fundamental concepts of marketing 2) Starbucks is building on its loyalty card and rewards program in the United States with a smartphone app that enables customers to pay for purchases electronically. This is an example of Market Penetration. Answer: TRUE Difficulty: Moderate Chapter LO: 1 AACSB: Reflective thinking Course LO: Discuss the fundamental concepts of marketing 3) The perceived value equation can be represented as Value = Price/Benefits. Answer: FALSE Difficulty: Easy Chapter LO: 2 AACSB: Analytical thinking Course LO: Discuss the fundamental concepts of marketing 4) Companies can increase prices if costs are low because of process efficiencies in manufacturing. Answer: FALSE Difficulty: Easy Chapter LO: 2 AACSB: Reflective thinking Course LO: Identify and describe the processes and tools of strategic marketing 5) If Nestlé decides not to market biscuits (cookies) in the United States due to competitive reasons, it is considered as a lack of strategic focus and missed opportunity. Answer: FALSE Difficulty: Moderate Chapter LO: 2 AACSB: Reflective thinking Course LO: Identify and describe the......

Words: 6857 - Pages: 28

Global Marketing

...Introduction As globalization rises many organizations are developing competencies that will help create successful global leaders, this process will combine job exposure, international assignments, creating global project teams and various cross-culture sensitivity workshops. The purpose of this assignment is to create a formal annotated bibliography using the annotated bibliography entries from the six works related the inquiry topic I have created in Units 1, 2, and 3, the research article are as follows; The Elements of Leadership in a Global Environment, Global marketing managers, Developing leaders’ strategic thinking through global work experience: The moderating role of cultural distance, Responsible Leadership in Global Business: A New Approach to Leadership and Its Multi-Level Outcomes, Global Leadership: A New Framework for a Changing World, and Competitive Action in the Diffusion of Internet Technology Products in Emerging Markets: Implications for Global Marketing Managers. This six articles will analyzes each article research overview, purpose of study, methodology, key findings and limitations and opportunities of global leaders in various business sector. Article 1 Bishop, W. H. (2013). The Elements of Leadership in a Global Environment. Global Business & Organizational Excellence, 32(5), 78-85. doi:10.1002/joe.21505 Overview The articles states that American marketplace and globalization have led to recognition of diversity initiatives as not......

Words: 2576 - Pages: 11

Globalisation and Its Impact on Culture

...GLOBALISATION AND ITS IMPACT ON CULTURE Globalization can be defined as the removing of borders and barriers to facilitate easy exchange of ideas, resources and knowledge between countries. Communication is the essence of Globalization. Without communication, globalization is not possible. Globalization was introduced to India in 1991,when Manmohan Singh signed the New Economic Policy , when the Indian government introduced a set of reforms for the ailing Indian economy to prevent it from going to further crisis. These reforms were the Liberalization, Privatization and Globalization reforms. Since 1991, we have seen major changes in India. Globalization has opened India to the world and has brought in the much needed exposure. Globalization has had impacts in the economic, social, cultural and political ways of India. The most significant remains the impact of globalization on the economic sector. India has seen tremendous growth since 1991. India is one of the fastest growing countries in the world and that is all due to the reforms undertaken in 1991. The role of Multi -National Corporations (MNC’s) is very significant in the Indian scenario. The MNC’s were brought in by Globalization. Indian shores were attacked by the Chinese ships , and their products dominated the markets at first. But now , after Globalization , it’s a flat world , where in raw material , labour is picked up where it is cheap and all functions like marketing ,......

Words: 931 - Pages: 4