Understanding of culture and cultural differences as fundamental for international marketing - Essay Example

?Running head: International Marketing International Marketing Insert Insert Insert 26 March International Marketing Introduction Cross-cultural analysis involves the study and bridging of cultural differences that exists in a diverse market. Marketers seek to analyze cross-cultural aspects of their customers to enable them deal with need variations from one customer’s culture to another. Understanding of culture and cultural differences is fundamental for international marketing. Cross-cultural analysis enables companies to understand the culture of their target markets in order to make the necessary adjustments in their international marketing strategies. Nevertheless, international marketing has largely grown to become competitive, thus calling for increased knowledge on cross-cultural aspects in the global arena. Cross Cultural Analysis Culture and cultural differences has not only impacted on the effectiveness of firms with respect to international competitiveness, but has also progressively generated negative effects regarding efficient usage of international marketing resources. Success of international firms is basically dependent on their international marketing strategies that incorporate cross-cultural intelligence aspects. Moreover, international marketing professionals continuously seek to understand global cultures and cultural differences that exist in the international specific markets ventured. Understanding cultural variations that exists among customers and target markets is important for developing an international marketing strategy that is universal and covers all customer needs. Application and outcome of professional marketing largely depends on the extent to which cultural differences are evident among customers (Zhen, 2011, p.582). Firm’s competitiveness in the international market recognizes cross-cultural factors as determining factors with which comprehensive information is gathered from the various markets to enable formulation of best marketing strategies. Generally, cross-cultural analysis in the international market is similar to domestic market analysis, although international analysis places much emphasis on cultural aspects due to cross border cultural variations. However, domestic markets have also continued to diversify their cultures although as much as the international markets. Political, cultural, and social barriers and variation in the international markets have remained significant challenges to multinational companies that fail to recognize variations, and thus need for different business strategies. Nevertheless, international marketing strategies are more complex and sophisticated with respect to cross border variations as compared to domestic marketing strategies (Rugimbana & Nwankwo, 2003, p.331). International marketing recognizes a variety of cultural aspects that define one country’s culture from the other. Culture is defined and differentiated by technologies with regards to timing, moving, storing, analyzing, and producing information, as well as motives, accuracy, types, timeliness of data collection, language barriers, ethical standards, and attitudes of individuals collecting information. Different clients from different cultures seek to satisfy similar needs in different ways, which constitute cultures and common practice. Marketing professionals need to devise marketing strategies and products that are not biased to a particular culture, and are able to cover all cultural needs in question. Through research and information analysis, marketing professionals are able to understand the different needs of their customers with regards to their cultural variations. Cross-cultural analysis is carried out by relevant marketing professionals on the target markets of the firms they work for. International marketers seek to analyze particular cultures and the differences pertaining to their marketing strategies using relevant models of study and analysis. Here, cross-cultural research models used by international marketers to analyze and understand their customers include hofstede and behavioral studies. Moreover, cross-cultural behavior analysis has been widely used by international marketers to analyze different cultures on the basis of innovation and change (Czinkota &Ronkainen, 2007, p.72). Hofstede model recognizes that ethnocentrism is a common aspect used in collecting and analyzing data alongside its application in instrumentation and research. Hofstede bases marketing aspects on overcoming cultural bias with respect to cross-cultural research, where bilingual readers who are familiar with relevant information are used to gain an insight to cultural differences. Hofstede model uses quantitative analysis approach as a factor to analyze cultures and cultural differences that exist, while overlooking differences on the basis of sex, social status, and age. Internal marketers seek to carry out a cross-cultural analysis that would enable them gather accurate, quality, and relevant information regarding target market cultural aspects for relevant judgment. In case cultural analysts fail to put into consideration accuracy, relevance, and quality variables, they are bound to make serious errors that pertain to their judgment of culture and cultural differences in marketing. Generally, international marketing requires accuracy, relevance, and quality of variable in cross-cultural analysis to enable them avoid of marketing strategies that are culturally biased. Comprehensive cross-cultural analysis consequently translates to a comprehensive marketing strategy that perceives culture and cultural differences as determining factors to effective strategies. Effective strategy decision-making consequently determines how competitive an organization is in the international market with a broad range of cultures and cultural differences. Information and communication with clients from specific cultures seeks to bring about understanding of the different needs of clients from different cultures. International marketing strategies focus on their customers who seem to maintain loyalty to themselves and the society in which they exist. Cross-cultural analysis therefore enables marketing professionals to understand individuals and societies in which clients derive their cultures. More to the cultural behavioral analysis model, international markets have placed much emphasis on the application of Hofstede’s approach that seeks to understand culture in five dimensions. Hofstede analyzed cultural statistics from a large database and came up with clear patterns of five dimensions of culture that are critical for international marketing. Hofstede’s research was based on studies on IBM employees from whom he derived attributes, patterns, and aspects that constitute cultural differences with respect to different countries. Therefore, Hofstede’s cultural dimensions have largely contributed to elimination of cultural difference and cultures as barriers to successful business practices (Luger, 2002, p.12). Hofstede’s Five Cultural Dimensions Hofstede’s five cultural dimensions include power distance, individualism, masculinity, uncertainty avoidance index, and long-term orientation. Power distance basically refers to the degree and the extent with which inequality is accepted and is in existence among people that have, and those that do not have, power. A society where people understand their place and have accepted unequal distribution of power among them constitutes a society with a high power distance score. On the other hand, a society where people view themselves as equals and power is well dispersed and shared among all members of the society constitutes a society with a low power distance. According to Hofstede's cross-cultural analysis model, marketing in a society with a high power distance depends on communication with powerful leaders and a company’s top management, unlike a low power distance society where all members of the society play a key role (Tian, 2004, p.19). Individualism dimensions refer to the strengths with respect to the ties that people have with other members of the community where they exist. A society in which individuals have a loose connection with other members of the society indicates a low individualism score, while a society where individuals lack interpersonal connection constitutes a low individualism score. Lack of interpersonal connection generally involves a situation where responsibility is limitedly shared between family members and close friends only. Countries with low individualism score have strong community cohesion where there is high respect and loyalty for each other among the members of the community. Here, individuals take more responsibility for the wellbeing of other members of the community. According to Hofstede's analysis model, an international marketing strategy that places emphasis on the benefits of a community as a whole as opposed to individuals would be perceive positively (Paul, 2008, p.156). Masculinity dimensions refer to the degree with which a society values and embraces traditional female and male roles. Countries and societies where men are expected to be the providers, to be tough, and assertive, constitutes high masculinity scores, while countries where women also work outside the home and roles are not distinctively defined among the two genders constitute low masculinity scores. Women and men in low masculinity scores are equally capable and are allowed to compete for similar professions although it does not imply reversed roles. According to Hofstede’s analysis model, international marketing strategies in high masculinity score societies need to use the male gender to spearhead and run the marketing campaigns if positive results are to be achieved. Appointing men to spearhead the campaigns generally constitutes considerations of cross-cultural preferences. On the other hand, societies with low masculinity score require that marketing strategies put in place should use both women and men equally to represent equal considerations of both genders, thus favorable to those particular cultures (Hofstede, 1994). Uncertainty avoidance index refers to degree of anxiety among members of a society when the prevailing situations are uncertain. Societies with high uncertainty avoidance index tend to avoid situations or aspects that are ambiguous as much as possible, since they may be governed by law and order that places emphasis on collective truth. On the other hand, societies with low uncertainty avoidance index tend to enjoy differences in values and novel events, since they are not entirely governed by rules and therefore they seek to discover their own truths. According to Hofstede’s analysis dimensions, international marketing in cultures with high uncertainty avoidance index should avail detailed information concerning risks and contingency plans for their products to customers. Success of international marketing strategies depends on risk perceptions among clients with regards to their cultural aspects and tendencies. Dimension of long-term orientation refers to the level with which a given society values long-term aspects as opposed to short-term perspectives in their values and traditions. Societies with high long-term orientation score tend to focus on maintaining their social obligations and name, rather than material perspectives that are short-term in nature. Image and social obligation of a society is a long-standing aspect that lasts into the future. According to Hofstede’s model of analysis, countries with low long-term orientation score require marketing strategies that stimulate creativity and novel ideas among people, rather than maintaining a positive image and social obligations at the expense of progress. Such countries value creativity and novel ideas more that they value traditions, and thus, international marketing strategies must place much emphasis on involving people with their ideas and creativity (Heymer, 2008, p.68). A comprehensive understanding of the above-mentioned cultural dimensions among international marketers enables them to put in place, marketing strategies that are relevant to a particular culture. Wal-Mart Stores largely depends on its marketing strategies to boost its sales and retain customers, particularly new target markets all over the world. Marketing strategies that are put in place rely on information and decision-making based on understanding of culture and cultural differences that define their target market. Marketing officials simply follow the five cultural dimensions in understanding cultural preferences with respect to marketing strategies. Individualism dimensions help Wal-Mart marketers to understand different cultures all over the world with regards to expectations of the target markets in terms of collective community interests or individual interest. Cultures that are more inclined to individualistic points of view require that marketers put in place marketing strategies that highlight individual interests. On the other hand, cultures that have less individualistic points of view require that marketers put in place marketing strategies that highlight benefits to the community as whole and not individual members of the society as isolated beneficiaries to the Wal-Mart products. Power distance dimensions assist Wal-Mart marketers to understand specifically the kind of people and approaches they would target while marketing their products and business as a whole. Countries with high power distance require that marketers should put in place marketing strategies that focus on isolated individuals that are perceived to be powerful in the society. Product adoption by a target market depends on adoption of influential individuals who would consequently influence the rest of the society to adopt a product. However, in societies where all members are perceived as equal members of the society, marketers should place much emphasis on marketing strategies that focus on all members of the society as potential customers, and not only isolated individuals as influential product leaders. Through masculinity dimensions, Wal-Mart marketers are able to understand gender role in marketing and the effective marketing strategies for particular societies. International marketing strategies in cultures with high masculinity scores require that marketers should be of the male gender to spearhead and run the marketing campaigns, if positive results are to be achieved. Appointing men to spearhead the campaigns generally constitutes considerations of cross-cultural preferences. On the other hand, societies with low masculinity score require that marketing strategies put in place should use both women and men equally to represent equal considerations of both genders, thus favorable to those particular cultures Through uncertainty avoidance index, Wal-Mart marketers are able gain an in-depth understanding of the expectations of particular cultures regarding products risks. Cultures with high uncertainty avoidance index require that marketing strategies put in place be those that avail detailed information concerning risks and contingency plans of new products and services. Long-term orientation dimensions, likewise, help Wal-Mart marketing professionals to understand customer’s preferences with respect to span of benefits. Cultures that place more emphasis on long-term benefits are less captured by marketing strategies that are more inclined towards creativity and new ideas. Such cultures require that marketers should put in place strategies that highlight social obligation and positive image in the society. Advantages and Disadvantages of Hofstede Model Hofstede model has played a big role in enabling businesses to carry out an analysis on culture and cultural differences that exist in their target markets. The model has played a significant role in cross-cultural analysis among businesses and more specifically in international marketing, where organizations seek to establish positive relationships with customers from different cultural backgrounds. The model has been significantly advantageous for businesses that have undertaken to understand culture and cultural differences as barrier to successful business practices and marketing in the internal scene. The model is basically a simple approach to cross cultural analysis with clear-cut dimensions in which marketing professionals can easily identify desirable marketing strategies for a particular culture. The model is also based on quantitative data that evidently, has scientific rigor with the application of a series of dimensions that are generally desirable for intellectual approach in marketing. Hofstede’s model is also advantageous in that, it also compares applicability in a wide range of countries, and thus generally gives a global insight to business with respect to internal marketing (Thorpe & Holt, 2008, p.69). The five cultural dimensions put in place by Hofstede have played a big role in international marketing strategies, although a few disadvantages have been put across. More so, cross-cultural analysis as a whole lacks the ability to transcend country and state concept of culture, with respect to their autonomy and inhabitation of a people with similar cultural, language, and historical perspectives. It fails to recognize that cultural aspects are not strictly placed on the basis of physical boundaries of such nations and states as autonomous considerations to analysis. Cultural considerations are expressed as core beliefs that assume combinations and permutations other than physical boundaries as a differentiating factor for analysis. Despite widespread criticism, the model is relatively accurate, since it defines culture and cultural differences on reasonable grounds that are evident in the day-to-day life of human beings. Hofstede’s model is relatively accurate regarding logical thinking with respect to cultural dimensions such as individualism, power distance, long-standing orientation, uncertainty avoidance index, and masculinity, which are evident on our day-to-day lives. However, Hofstede’s approach to cross cultural analysis fails to recognize advancement and variations in communication technologies and managerial aspects that affect international businesses, more specifically, international marketing. Moreover, international marketing is not only affected by cultural aspects, but also broad categories of influencing factors. Approaches to international analysis should acknowledge the growing complexities in the international market and offer theoretical concepts that recognize multiple aspects in the context of global business. Hofstede's model to cultural analysis has been likened to cataloguing as in the chemistry periodic tables, which is generally numb intellectually and does not represent the present day cultural perspectives. The model has been argued as having become outdated in the present day society, where changes, advancement, and innovations have been evident to all that entails human life. Work values have radically changed to emphasize on knowledge sharing, co-operation, localization, and empowerment of people, unlike Hofstede’s model dimensions such as masculinity and long-standing orientation, which have generally been considered as perspectives overtaken by time. More to the disadvantages, Hofstede's model fundamentally relies on flawed assumptions of the state as a determining criterion of cultural differentiation. Generalization of national culture to all sub-locations and geographically dispersed cultures in a particular nation relies on unproven data regarding particular groups of individuals. Hofstede’s model relies on mere assertion of local data from IBM’s section of employees as national uniformity representations. The point of view from IBM has been generalized to global perspectives irrespective of the fact that such claims were derived from questionnaires. Cultural perspectives generally constitute measures that cannot merely be measured using questionnaires, and thus render the five dimensions as rather unproved basis of study. Different researchers have consequently carried out cultural studies using questionnaires and have come up with totally different descriptions and cultural dimensions, which beats the logic regarding what is more special to Hofstede’s dimensions that were also derived using data gathered using questionnaires (Blanchard & Allard, 2011, p.77). Other disadvantages include the model being a rather excessively simplistic approach to information system regarding culture and cultural differences. The approach to cultural information system focuses on geographical cultural differences and overlooks a more complex and dynamic cultural point of view. More so, the model seems a rather biased cross-cultural analysis approach that was formulated on a westernized point of view. The model seeks to improve understanding of culture and cultural differences across the globe, and thus renders it undesirable for international perspectives, since it is inclined to the westernized cultures. Hofstede’s model is also limited in terms of dimensions with which a comprehensive cross-cultural analysis can be carried out. Culture constitutes a wide range of core beliefs of a group of people, which cannot only be understood on the basis of five dimensions as referred to by Hofstede. Hofstede’s model has also relied on survey, which is basically an inappropriate instrument for measuring and determining cultural differences, considering that culture is a more complex aspect that cannot be measured and recorded using questionnaires (Piepenburg, 2011, p.33). Conclusion International business operations have continually faced a number of challenges with regards to differences that exist between the host country and the international environment. Among the cross border challenges, cultural barriers have been evidently depicted as among the main factors that should be emphasized upon by multinational corporations. To transcend cultural barriers to successful business operations, researchers have seen the need to conduct cross-cultural analysis to give business professionals a clear understanding of cultural barriers. Through cross-cultural analysis, businesses have been able to put in place relevant strategies that meet global needs irrespective of cultural differences that exist. This has been evident among international marketers who seek to understand different cultures in which their customers belong. Reference List Blanchard, E.G., & Allard, D., 2011. Handbook of Research on Culturally aware information Technology, Perspectives and Models. PA: IGI Global. Czinkota, M.R., & Ronkainen, I.A., 2007. International Marketing. OH: Thomson Learning Inc. Heymer, F., 2008. Successful Promotion of Consumer Goods in Vietnam: An Exploratory Investigation of Vietnamese Consumers and Culture. Berlin: GRIN Verlag. Hofstede, G., 1994. The Business of International Business is Culture. International Business Review, Vol. 3, Issue 1, Pp. 1–14. Luger, E., 2002. Hofstede’s Cultural Dimensions. Berlin: GRIN Verlag. Paul, J., 2008. International Business. New Delhi: PHI Learning Private Limited. Tian, Q., 2004. 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