which areas of culture need to be specifically addressed by marketers when developing a global marketing plan for their company’s products or services?
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Cultural Factors Shaping the Global Marketing Environment
Cultural Factors Shaping the Global Marketing Environment
LEARNING OBJECTIVES
Describe how different cultural environments can affect the global marketplace and the marketing mix
The Immense Impact of Culture in Global Marketing
Culture refers to the influence of religious, family, educational, and social systems on people, how they live their lives, and the choices they make. Marketing always exists in an environment shaped by culture. Organizations that intend to market products in different countries must be sensitive to the cultural factors at work in their target markets. Even cultural differences between different countries–or between different regions in the same country–seem small, marketers who ignore them risk failure in implementing their programs.
Culture is complex, and fully appreciating its influence takes significant time, effort, and expertise. Various features of a culture can create an illusion of similarity, but marketers need to dig deeper to make sure they truly understand the people and environments in which they work. Even a common language does not guarantee similarity of interpretation. For example, in the U.S. we purchase “cans” of various grocery products, but the British purchase “tins.” In India, where English is one of a number of officially recognized languages, “matrimonial” is used as a noun in casual conversation, referring to personal ads in newspapers seeking marriage partners.
Several dimensions of culture that require particular attention from global marketers are listed below.
Language
As suggested above, the importance of language differences cannot be overemphasized, and there are nearly three thousand languages in the world. Language differences can be a challenge for marketers designing IMC campaigns, product labels, brand and product names, tag lines, and so on. Finding a single brand name that works universally in terms of pronunciation, meaning, and “ownability” is a monumental challenge. Of course, correct and grammatical use of language in marketing communication is essential for a product, brand, or company to be viewed as credible, trustworthy, and of high-quality.
Language gains complexity when a country has more than one officially recognized language. To illustrate, in Canada, national law requires that labels include both English and French. In India and China, more than two hundred different dialects are spoken. India has more than twenty officially recognized languages. Mainland China’s official spoken language is Standard Chinese, and several autonomous regions have designated other additional official languages. Meanwhile in Hong Kong and Macau, Cantonese Chinese, English, and Portuguese are the official languages. Clearly language can become a very complicated issue for marketers very quickly!
Finally, marketers should be attuned to what they communicate when they choose which languages to use–or not use. In Eastern Europe, for example, the long history of Soviet occupation during the Cold War has left many inhabitants with a negative perception of the Russian language. Products that carry Russian labeling may suffer accordingly.
Customs and Taboos
All cultures have their own unique sets of customs and taboos. It is important for marketers to learn about these customs and taboos so that they will know what is acceptable and unacceptable for their marketing programs. For example, in Japan, the number four is considered unlucky, and products packages containing four items are avoided by many consumers. In Middle Eastern countries where Islamic law is strictly observed, images displaying the uncovered arms or legs of the female body are considered offensive. Meanwhile in Egypt, where many women wear the headscarf or hijab in public, an increasing number of younger women are in work and educational settings where gender segregation does not exist. Marketers struggle with whether to portray women with or without the hijab, knowing that they risk offending some of their target audience with either choice. Marketers should seek guidance from native experts familiar with local culture and customers. Marketing research can also help marketers understand and navigate these complex issues.
Values
The role of values in society is to dictate what is acceptable or unacceptable. Values are part of the societal fabric of a culture, and they can also be expressed individually, arising from the influence of family, education, moral, and religious beliefs. Values are also learned through experiences. Not surprisingly, values can influence consumer perceptions and purchasing behavior. For example, consumers in some countries, such as the United States, tend to be individualistic and make many purchasing decisions based on their own personal preferences. In other countries, such as Japan, the well-being of the group is more highly valued, and buying decisions are more influenced by the well-being of the group, such as the family. Based on these differences in values, it is not surprising that ads featuring individuals tend to do better in countries where individualism is an important value, and ads featuring groups do better in countries where the group’s well-being is a higher value.
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If a country has extensive poverty, low literacy rates, limited technological infrastructure, and low per capita income, then this country's economic growth classifies it as which type of a country?
industrialized nation
developing nation
less-developed nation
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less-developed nation
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Which of the following are some of the areas affected in a marketing campaign with language differences?
product labels, tag lines, brand and product names, product instructions
internal company communication, country of origin labeling and packaging
social class, religious affiliations, education
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1/10 Created by mcgin2803 Quiz 3
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If a country has extensive poverty, low literacy rates, limited technological infrastructure, and low per capita income, then this country's economic growth classifies it as which type of a country?
industrialized nation
developing nation
less-developed nation
less-developed nation
Which of the following are some of the areas affected in a marketing campaign with language differences?
product labels, tag lines, brand and product names, product instructions
internal company communication, country of origin labeling and packaging
social class, religious affiliations, education
...
Which of the following statements is true?
Domestic marketing mix principles can be used with the different global marketing mix principles.
Different marketing mix principles can be used domestically rather than globally.
The same marketing mix principles can be used domestically and globally.
The same marketing mix principles can be used domestically and globally.
What should marketers be cautious about when using demographics to profile global markets?
understanding that demographics are accumulated information about a population and many individuals within that population will not conform to the profile
understanding that the demographic generalizations can only offer limited insight
using the mindset of their "home" country to interpret demographics of other countries
using the mindset of their "home" country to interpret demographics of other countries
A product that is constantly environmentally friendly over its entire life cycle is known as:
a consumer product
a sustainable product
a tangible product
a sustainable product
In what areas do marketing professionals most often address ethical issues?
accounting, legal, corporate strategy
human resources, inventory control
product, price, bribery, fairness
product, price, bribery, fairness
Which areas of culture need to be specifically addressed by marketers when developing a global marketing plan for their company's products or services?
geography, income bracket, gender, age
internal company communication, country of origin labeling and packaging
time and punctuality, customs and taboos, religious beliefs and celebrations, values
...
Social media has raised new areas for ethical challenges in marketing. What should a company ask itself before posting a piece on social media?
is what is being posted transparent, honest and ethical?
will this marketing achieve its goal?
does this marketing piece fit the company's brand?
is what is being posted transparent, honest and ethical?
What must a global marketer consider when developing a global advertising plan that addresses potentially competitive business objectives?
how to develop economies of scale in the creative process
how to minimize the local effectiveness of the advertising campaign in various markets
how to decrease the speed of a company's marketing plan implementation
how to develop economies of scale in the creative process
One of the main tools a company uses to identify appropriate behaviors and make this understanding accessible throughout the company is a:
policy called the Corporate Environment Diagram
policy called the Social Conduct Book
policy called the Standards for Business Conduct
policy called the Standards for Business Conduct
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Pacific Packaging’s ROE last year was only 5%; but its management has developed a new operating plan that calls for a debt-to-capital ratio of 40%, which will result in annual interest charges of $561,000. The firm has no plans to use preferred stock and total assets equal total invested capital. Management projects an EBIT of$1,258,000 on sales of $17,000,000, and it expects to have a total assets turnover ratio of 2.1. Under these conditions, the tax rate will be 35%. If the changes are made, what will be the company’s return on equity?
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Gamma Industries has net income of $3,800,000, and it has 1,490,000 shares of common stock outstanding. The company’s stock currently trades at$67 a share. Gamma is considering a plan in which it will use available cash to repurchase 10% of its shares in the open market at the current $67 stock price. The repurchase is expected to have no effect on net income or the company’s P/E ratio. What will be its stock price following the stock repurchase?
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