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Part Two: Culture and Organizations

Part Two: Culture and Organizations. CHAPTER 11 CULTURE AND MARKETING Concept 11.1: Marketing in a cross-cultural environment Concept 11.2: Advertising across cultures. Traditional marketing activities. 1. Market analysis: environment analysis buyer behaviour market research

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Part Two: Culture and Organizations

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  1. Part Two: Culture and Organizations CHAPTER 11 CULTURE AND MARKETING • Concept 11.1: Marketing in a cross-cultural environment • Concept 11.2: Advertising across cultures

  2. Traditional marketing activities 1. Market analysis: • environment analysis • buyer behaviour • market research 2. Marketing strategy: • market segmentation • marketing mix This classification of marketing activities has its critics

  3. Modern concept of marketing • Market-driven management should be: - Anticipating and responding to customer needs - Defining and delivering customer value • Integrated marketing functions • Development of relationship marketing: • Personal and organization • Creation of networks • Connecting with customers

  4. Cross-border market research Problems for marketers: • Language barriers: Translation even interculturally (Mandarin to Tamil to Malay Languages. • Sensitivity of questioning • Research techniques: Explicit/Individualistic/US based. Sentiments/ability to express varies culturally. • Cultural differences: contextual differences • Suspicion-how data will be used? Who? • Statistical comparisons • Fragmentation – decentralised structure, autonomy

  5. International marketing • Definition: • Marketing activities that cross national borders • In line with the focus of a company’s operations • Companies have two different orientations: • Sales orientation - sales of same products in many countries of similar consumer charac: CocaCola • Societal orientation- know why buy it &how it can be modified. • A change of orientation may be necessary because of: - Legal, cultural, economic reasons

  6. Intercultural marketing approach • Adapting products and marketing strategies to the consumer preferences • Cultural identification with a product (Usunier & Lee, 2005): - Notion of identity (desire to reproduce the national culture, as it is-to feel at home) - Notion of exoticism (desire to experience other values, different ways of living) • Consumers share cultural characteristics: - Geographical cultural affinity zones (resemble national cultural groups - Cultural affinity classes (teenage from Japan, Europe & Japan tend to share common values, behaviour & interests)

  7. Cross-cultural consumer behaviour • Increasing uniformity in consumer taste and behaviour • However, - behavioural intentions of consumers need to be established • Take into consideration: - Characteristics of the consumers’culture - And their underlying models

  8. Branding • What is a brand? - The brand identifies a (range of) products/services • A brand is registered and becomes a trademark • Multinationals need to use an uniform brand • Language may be a problem: • Pronunciation • Different alphabet

  9. Brand and national images • Important is the relationship between: - the nationality of a product and the image it evokes • Consumer’s perception of product nationality • Role of stereotypes • Country of origin • Country of brand

  10. Communication: advertising In international marketing: • Language and behavioural differences • Meanings of the consumers give to: - products, brands, messages and behaviours • Advertising adapted to the local market: - products/services are presented in a symbolic way to create adhesion • In the mind of the consumer: - Image of the product associated with product concept

  11. Notion of perception • Perception is a complex act: - Individuals are reconstructing their environment • Theories of perception applied to advertising: - Product must always involve the receiver If not, - Information will not retain the consumer’s attention • Differences in cultural systems determine: - What is seen/how it is perceived

  12. Managing the meaning of brands • Companies operating internationally: - Building the strength of their brand - Extending the number of market • They have to adapt to: - cultural differences in communication and products • Companies are intent on making sure that: - intended meaning of the brand coincides with - perceived meaning of the message

  13. Intended meaning of the brand Perceived meaning of the message effective communication Effective communication

  14. The managing meaning matrix Figure 11.1 The managing meaning matrix Source: Hoecklin (1995): 101

  15. Conclusion chapter 11 In international marketing: • Focus more on the consumer than on marketing methods • Because the consumer presents the most important cultural differences • Communication: channels of advertising, • Balance between product, message and perception about the product

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