Introduction
Cross cultural marketing refers to the strategic process in which marketing is conducted among people whose culture differs from that of the marketer. The differences in culture occur in various aspects like social norms, values and language. The differences also include such aspects as the living styles and education of the people. This paper addresses the need for company A which is US based to understand cross cultural marketing in China. The paper clearly defines the different areas which the company must consider when launching into China. This results from the fact that cross-cultural marketing requires sensitivity on the marketer. Failure to understand the tactics leads to the eventual failure of the marketing. Understanding the culture of the Chinese people and incorporating it into the marketing mix of Company A will result to the success of the company.
Major Cross-Cultural Issues That May Impact Company A’s Marketing Approach
There are various issues that make the country of china and US tremendously different in their cultures. One is the social structure which is extremely hierarchical and formal in China. This means that people should know their place in the hierarchy and fix themselves accordingly (Dsouza, 2012). One is not supposed to cross the boundaries into other areas. This differs from the way it is in America and where the structure is informal and loose. This is based on the democratic style of leadership that is depicted right from the
In addition, by understanding the culture and societal trends of China, it will be easier to create the most effective marketing strategy and IMC programs for this country. Also, understanding the elements of the business environment of China, such as ethical standards, management styles, formality, and other factors are essential before entering a foreign market.
Business leaders in the US may rely more on formal policies and processes, while Chinese business leaders may stress people orientated practices of loyalty and trustworthiness. These ethical concepts are not necessarily incompatible (many may actually overlap), but do highlight the importance of understanding perceptions from each culture.
International marketing or business is uniquely different from the local market because the product price, place and promotion is vastly different from what is been offered to local customers (Johansson, 2000) With the emergence of the information technology, cross border marketing has never been a distant dream. However, it has never been easier even for giant multinational companies to face challenges that come in international business. The biggest challenge comes from the culture which varies from country to country.
"The fact is that the large majority of Chinese youth are happy, or at least content. There is no burning desire or excruciating pain being experienced." (Lee) Although not as instantly apparent, many of the values of these cultures are quite similar. Academic achievement, friendship, and family are all important factors in both the United States and in China. Symbols of popularity and prosperity are seen in fashion, automobiles, and homes, even though the traditional styles of such still hold sway, and allow for almost immediate visual distinction between our nation and China.
Cultural differences between nations often require a company to have multiple marketing strategies. What may be acceptable in on country may not be acceptable in another country. The cultural differences require companies to develop marketing plans that are suitable for each individual culture. Not being aware of and understanding the cultural differences can create costly and embarrassing errors that may actually offend those in other countries. Cultural differences can affect the colors of products, the graphics used on packaging, and how the product is communicated to the foreign target market.
There are about 195 countries worldwide, yet if one were to be questioned about any one specific culture, they would not be able to answer. As already known, the United States is a country of immigrants. It could be described as “a ‘melting pot’ in which different cultures have contributed their own distinct ‘flavors’ to American culture” (Zimmermann, 2017). One of the most distinct cultures that have entered America would have to be the Chinese culture. China is a unique country in itself yet with so much to learn, it is safe to say that the average person would not know a small fraction of what makes up the Chinese culture. China, as every other country, is unique due to its tourism, customs, family life, and its government.
A. Cross-Cultural Differences Company X is considering expanding its business to China. However, prior to moving into a new and foreign market, Company X must understand the various cross cultural differences that are relevant to properly conducting business in China. By being more sensitive to and understanding the cross-cultural differences, Company X's transition into the new market should be less challenging and improve its chances of acceptance. Language, work ethic and material culture are three cultural differences that should, first, be understood prior to pursuing opportunities in China.
To start with, China, which scores 80 on IDX, ranks higher than Canada by 41 points. This highlights the fact that the society views inequalities among people as a normal thing and the subordinate-superior relationship tends to be polarized which leaves no space for defense against power abuse. Rigid hierarchy with formal authority influence individuals, and they believe in the capacity to lead and control of their own leaders. It is a society in which people are expected to stay at exactly where they are placed. In contrast, Canadian culture believe that everyone should receive equal rights and be treated equally. Similar to countries that score low on this aspect, Canadians build their hierarchy for convenience. Managers are approachable, and are expected to consult and exchange information with their staff members as they work as a team. Straightforward exchange of information is also preferred. In terms of individualism (IDV), Canadian culture is considered as an individualist one in which people look after themselves and their immediate families. For that reason, self-reliance and initiatives are vital in the workforce. Hiring and promotion decisions are primarily based on one’s merit and competence. On the other hand, scoring very low on this dimension, it can be said that China is a highly collectivist culture where people focus on group interest rather than self-interest. Hiring and promotion decisions can be based on how close an individual is to the superior
The impact of national cultures on marketing practices has been such that it brought about the creation of an academic field, with as a lead-researcher, Geert. Hofstede, on whose writings I have based my analysis.
Societies in general, whether it is in traditional china or modern america, all have an order. Other countries, such as america, do not have prominent “ways of life” or “rights and wrongs”. Instead, there is a vague hint at what beauty and other “good” things are. America is a melting pot; there are so many cultures and religions that dictate certain “ways of life.” We subconsciously mix them together to form personal values. But, nonetheless, there is still an order. In every single country, there is a certain type of person that society wants everyone to be. China has a culture (along with other attributes) that is prominent and followed throughout the country, while America’s isn’t as finite and nationally practiced. You cannot generalize
China and the United States have many differences. This includes the general population, government, behavior, and culture. There is also significant
For the course of International Management the following assignment has been giving with the objective to select a topic in the field of International Management. The topic for this paper is Cross-cultural Communication in Marketing/advertising.
Cultures are varying among different parts of the globe. People with different cultures have different characteristics and viewpoints on the subjects due to diverse understanding and method of learning. During the past few decades, the international trade grows in a very rapid rate due to the advantages that it provides; “increased sales, operational efficiencies, exposure to new technologies and broader consumer choices” (Heslin). Therefore, when considering the culture aspect to current business world, it is crucial for business to understand the culture aspect because of the tremendous growth of international business as well as utilize the international market to its maximum
In a world as overwhelming with differences, individuals are molded by many factors, and culture is one that follows up on each person. Diverse societies instruct different values, and what may be well mannered in the U.S. could exceptionally offend in China. As people from different cultural groups, individuals can misjudge each other; therefore, the U.S. and China can learn to collaborate across cultural lines as individuals and as a society. Becoming aware of cultural differences can enable both countries to deal with each other more
Whenever a company is entering a new market it has to take into consideration the cultural differences between countries. Based on the case study analysis, the difference between the two countries in terms of eating out habits and eating preferences seem not to be understood by the Denver headquarter. Denver headquarter believes that it can enforce the same business model applied in the U.S to its stores in China, regardless of local preference. In addition, Foster seems to lack knowledge about the Chinese culture because she was not familiar with the market in China, as she had no experience working internationally. There was a lack of cross-cultural communication between Chen and Foster; even though, Chen had experienced both cultures while studying abroad in the U.S.