Understanding Culture and International Marketing Strategies

Posted on Apr 29, 2024 in Economy

Understanding Culture

Culture Types

1) Social Groups

Ideas and attitudes shared by a society or group, including social practices, rituals, festivals, expressive forms, and material culture (technology, cooking).

2) Symbolic Culture

Symbols used to distinguish groups, such as labels, language, and clothing.

3) Individual Culture

Attributes of a person, including education, social status, manners, knowledge, and social class.

4) Organization Culture

Values and attitudes within organizations.

Layers of Culture

  1. Global Culture of Consumerism and Material Culture
  2. National Culture (overall framework of cultural concepts and business activities)
  3. Business/Industry Culture (competitive framework, specific industry)
  4. Company Culture (values, beliefs, behaviors)
  5. Individual Behavior (background, personal interactions)

Elements of Culture

  • Language
  • Nonverbal Language
  • Religion
  • Values/Attitudes
  • Manners/Customs
  • Technology
  • Education
  • Social Institutions

Heritage

Traits of culture, story, and identity, including tangible elements (buildings, monuments, climate) and intangible elements (traditions, expressions, knowledge).

Domains of Culture

  1. Oral Traditions and Expressions (language, tales, songs, poems)
  2. Performing Arts (music)
  3. Social Practices, Rituals, and Festive Events (birth, weddings)
  4. Knowledge and Practices Concerning Nature and the Universe (feeling towards place, view of world)
  5. Traditional Crafts (clothing, jewelry)

International Marketing Strategies

Domestic vs. International vs. Global Marketing

  • Domestic Marketing: Focuses on a single country or specific geographic region, tailored to local culture, language, and preferences.
  • International Marketing: Expands beyond national borders, adapting strategies to different countries, competitive situations, cultures, languages, and legal requirements.
  • Global Marketing: Treats the entire world as a single market, assuming customer preferences are similar worldwide and using a single strategy.

Drivers of Internationalization

External Drivers

  1. Lower Trade Restrictions
  2. Saturation of Domestic Markets
  3. Emerging Markets
  4. Global Competition
  5. Global Cooperation & Collaboration
  6. Communications & Internet Revolutions
  7. Transportation Revolution
  8. Emergence of International Institutions

Internal Drivers

  • Increased Market Potential
  • Diversification of Revenue Streams
  • Economies of Scale
  • Competitive Advantages
  • Access to New Resources and Talent
  • Brand Recognition and Reputation
  • Profit Potential
  • Innovation and Learning
  • Political and Economic Stability
  • Utilization of Surplus Production Capacity
  • Strategic Alliances and Partnerships
  • Technological Advancements

Economies of Scale and Scope

  • Economies of Scale: Cost advantages achieved by increasing production volume on a global scale.
  • Economies of Scope: Cost advantages achieved by producing a variety of goods within the same organization.

Strategic Process of International Marketing

  1. Decision to Internationalize
  2. Definition of Goals and Objectives
  3. Global Marketing Research & Analysis
  4. International Market Selection
  5. Entry Mode Decision
  6. Strategy Design
  7. Program Design
  8. Program Implementation
  9. Budgeting and Control

Internal Factors for Internationalization Readiness

  1. Ownership and Managerial Readiness
  2. Strategic Readiness
  3. Marketing Readiness and Competitive Advantages
  4. Operational/Production Readiness
  5. Financial Readiness
  6. Functional and Organizational Readiness