Marketing Across Cultures Such as a China, Japan, and India - Term Paper Example

Marketing across Cultures What are the problems you are likely to encounter with the distribution of your products in: China, Japan, and India? Which country poses the biggest problem? Explain your answer. There are a number of problems that one is likely to encounter when distributing products in the above mentioned countries, though it should be noted that some of these problems will be more pronounced in one country that in another as they do not all possess structures that are exactly similar to one another. One main problem that is likely to be encountered in all three countries is the language barrier. None of these countries have English as the most common language and people communicate in their local dialect most of the times meaning it will be difficult for an individual who is not familiar with them to transact any sort of business without a translator. Legislation may also prove to be a potential problem as the laws are set up to encourage exportation of products and limit the number of imports that are coming in so as to promote the growth of their economy(Balasubramanian, Kahrr & Patwardhan 196). The lack of established distribution chains is another problem that one may encounter during this endeavor as these countries do not have a large number of franchise outlets that one is able to draw up distribution agreements with. The country that may pose the biggest problem with distribution is most likely to be China due to its communist stance within the government that is not inclined to accept western products more readily as compared to India and Japan. 2. Many products fulfill both a functional need as well as a social need. When deciding how much to adapt an existing product for a new foreign market, which type of need should a marketer focus on? Explain your answer. When dealing with foreign markets, the first thing that should be observed before entry is the existing norms that are already present within that market. This is to say that a product should be compared to other existing goods and services that may hold a similarity with that product in order to determine its potential success once it is introduced to the public (Balasubramanian, Kahrr & Patwardhan 212). Therefore, a marketer should mainly focus on the social need of the product as compared to the functional necessity. This is because unless a product’s design is to be drastically changed, it will maintain the same use as in other markets, thus, the best way to create an in-road into the market is by finding a way of marketing the product as essential in terms of societal use. This will attract potential consumers to the product as well as create an opportunity for the product to compete with other alternative products that may already be present within the market. Concentrating on the social need will ensure that the target audience feels like it is a product that they require in their lives whilst concentrating on the functional need opens doors for potential consumers to dismiss as an unnecessary expense. 3. Comparing a supermarket in Tokyo, Japan with one in Dallas, Texas, which of the two is likely to have higher sales of snacks and sweets (Items usually found near the cash register at the checkout)? Explain your answer using the most relevant cultural dimension. In comparing the spending culture of the two countries, it is most likely that the sales of snacks and sweets at the counter will be higher in Dallas, Texas, than in Tokyo, Japan. This is because despite both locations having a reasonable amount of individuals who are able to afford this, the western culture is characterized with the nature of impulse buying on a higher level as compared to their oriental counterparts (Kotler & Keller 45). The main reason why these products are placed at the counter of a shop is due to the factor of impulse buying, thus, this is what will need to be considered when tackling this query. That is, the products are placed at the counter to tempt buyers who had not initially planned on purchasing these items but on seeing them change their mind and pick one or two in addition to their planned shopping. This is more likely to happen in Dallas than in Tokyo where individuals can be said to be more disciplined in the spending of their money as compared to the west. 4. A multinational corporation has the choice of following either a financial integration philosophy or a financial independence philosophy. In the long term, which choice should result in a firm having more subsidiaries around the world? Explain your answer. Though financial integration is a dependable practice and can even be said to help companies in managing their accrued funds more accurately, the financial independence philosophy is the choice that will most likely lead to a company having more subsidiaries around the world. This is due to the basics that are involved in both philosophies having to do with the freedom of the funds that are available to the corporation branches in each country. Whereas in a financial integration philosophy the funds of the corporation are mainly controlled by the main headquarters thus making the process of getting extra funds by one of the branches a somewhat complicated procedure, a financial independence philosophy allows for the control of the funds acquired by a particular branch in a way that the branch determines will be more beneficial to the corporation and their profit margin (Altstiel & Grow 145). Thus, it would be easier for a branch that practices a financial independence philosophy within the corporation to acquire the funds needed for the set up of new subsidiaries should they decide that they want to spread their presence into new areas within their location. 5. For the following industries/products, discuss to what extent: (a) A world consumer exists; (b) The product or service offered are themselves global (similar worldwide): and (c) The industry itself can be considered as global: a. -Airlines Transport has always had a world consumer since the invention of means for long distance travel that allows individuals to travel to different parts of the world. This means that individuals all around the world use airlines for their travel needs and, thus, a world consumer does exist. The service itself is also worldwide as it remains the same no matter what part of the world one is in, that is to say, airlines will still use airplanes to transport their customers. The industry can be considered to be global as the airlines and airports are present all over the world. b. -Tobacco A world consumer also exists for tobacco as it is used by various people all around the world. This is proven by the fact that tobacco is a product that can be acquired in every country that one may find themselves in. It should be noted that not every individual uses tobacco and some do without thus the world consumer is not as widespread as those for airline services. The product itself can also be considered to be global as they are available in the same forms all around the world (that is, cigarettes, chewing tobacco and hashish among others). The industry can be considered to be global as its reach/consumer base is spread out all around the world as mentioned earlier. c. -Meat-based foods Though there is a world consumer for meat based foods, it is also not a product that is used by every individual as they are a number of people who do not eat certain types of meat due to religion while others stay away from the product all together due to their beliefs (for example, vegans). The product cannot exactly be considered to be global as it comes in different forms depending on which part of the world that an individual is in and is prepared/cooked in different ways as well. The industry, however, can be considered to be global as it is available in its different forms all around the world. d. -Sheets and pillows Sheets and pillows do not have a worldwide consumer per say as not every individual is inclined to use these commodities in different parts of the world. They, however, hold a worldwide presence as one will undoubtedly find a number of individuals utilizing these products in the different regions of the world. The product itself can be considered to be global as they are same wherever one may go with the only difference being in trivial matters such as the material used and their design. The industry can also be considered to be global as there are companies that deal with this product in the various parts of the world. e. –Pharmaceuticals Pharmaceuticals cannot be said to have a world consumer as there are parts of the world that either do not believe in the use of these products or are too poor to afford their purchase. However, there are still a large number of people who utilize them when available. The product can be said to be similar worldwide as though may be different in make, they have the same use and that is medical purposes. The industry can also said to be global as there are a number of companies that deal with the distribution of these pharmaceuticals all around the globe. 6. How do you suppose Hollywood’s influence on the globalization of consumer culture affect a firm’s decision to use product placement as part of their marketing strategy? Hollywood’s influence on consumer culture can be said to have a worldwide appeal as their products are seen all around the globe, be it movies or other various TV programs. This has played a big role in influencing many firms in their decision to use product placement as part of their marketing strategy as they also play a large role in influencing their audience’s choices when it comes to consumerism and the popularity of products within a market (Rakesh 98). A good example is the decision by Heineken to use product placement within the new James Bond movies as part of their marketing strategies. This decision came due to the popularity of the character (James Bond) and his ability to influence what individuals drink. (He is the reason that Vodka martinis became so popular in the past). 7. What is the main reason why globalization is often mistaken as a worldwide extension of the American Way? Explain your answer. Though globalization refers to the increase in communication and interaction of the different parts of the world including the mixing of various cultures, it is mistaken as worldwide extension of the American Way due to the rise in popularity of the American culture in various parts of the world as a result of the media products that have crossed borders and embedded themselves in the minds of the younger generation who have accepted it as their own (Chekitan & Schultz 241). As a result, though globalization is supposed to refer to the interaction of different cultures, many youth abandon their own culture for the western one and, thus, bringing out the idea that globalization is just a means of popularizing the American Way among the youth of the world today and nothing more. This can be said to be as a result of America’s advancement in areas such as the media which means that most of the products that are available today are from the U.S. 8. In response to criticism from the press, McDonald’s placed an advertisement in a French magazine, which advised families not to eat at McDonalds more than once per week. What do you suppose will be the result of this? (it may help you to think back to the video of French school lunches) The advertisement was placed in an effort to bring out the caring side of McDonalds and show the public that they are not just concerned about their profit but their consumers as well. The fact that McDonald was willing to admit that too much of it is bad for an individual’s health will go a long way in bringing out the above message (That is, that they care about their customers) and as a result the franchise will more likely come out in a positive light in front of their target audience. This is because by placing such an advert on air, the company has shown that they are willing to forego the profit that they could make from families eating their products on a daily basis thus bringing out the message that money is not the most important thing to them. As a result, more people will be attracted to McDonalds because of their virtues leading to a potential attraction of new customers as well as retaining the old/regular ones as well. 9. Smokeless and Taste-less cigarettes have failed miserably in the west but have succeeded in the East. What is your best explanation for this phenomenon? -Can you come up with a product (real or hypothetical) that might also succeed in an Asian country but fail in a more “westernized” culture (or vice versa)? The most likely explanation for this phenomenon would be based on the difference in taste between the western and eastern societies. Western consumers most likely prefer the original cigarette due to the things that this new cigarette has sought to remove from its characteristics (that is, the smoke and the taste) while the Eastern market may also be willing to try new things as compared to the west which can be another reason for its success in that part of the world. A product that may succeed in Asian countries and not in the west could be long/lengthy dresses (that is, dresses that reach up to an individual’s ankles). This could be due to the variance in fashion sense between the Asian and the western cultures (Kotler & Keller 63). Whereas in the west individuals, especially the younger generation, are more prone to wearing tight/fitting and short items of clothing, the culture in Asian countries promotes the covering of women’s bodies and the avoidance of overexposure, thus, these type of dresses may be more popular in this region than in the west. 10. In Japan, the most common type of social propaganda is aimed at reminding its citizens to uphold moral values. How do you suppose this type of ‘advertising’ would come across in the United States? What about in Bahrain? This type of advertising would come across as judgmental and old fashioned in the U.S. This is because the United States has a culture where morals are considered to be what an individual considers to be appropriate and have implemented a mindset where, as long as a person is not causing grief or harm to others, they are free to do as they please (Clow & Baack 114). This has led to a looser standard when dealing with morals as issues, such as sex before marriage among others, are not frowned upon as they would be in regions such as Japan. On the other hand, these advertisements would come across in a more popular light in Bahrain as they tend to hold the same stringent believes and cultures as in Japan where they believe that the old teachings are still the best to adhere by and should not be changed, thus, these adverts will be more accepted in this region. Works Cited Altstiel, Tom and Jean Grow. Advertising Strategy: Creative Tactics from the Outside/In. CA: Sage Publication Inc, 2006. Print. Balasubramanian, Siva K., James Karrh and Hemant Patwardhan. Audience Response to Product Placements: An Integrative Framework and Future Research Agenda. Journal of Advertising. 35 (3), 2006. Print. Clow, Kenneth and Donald Baack, Integrated Advertising, Promotion, and Marketing Communications 3rd edition. Pearson Education, 2007. Print. Dev, Chekitan S. and Don E. Schultz. "In the Mix: A Customer-Focused Approach Can Bring the Current Marketing Mix into the 21st Century". Marketing Management 14 (1), 2005. Print. Joshi, Rakesh Mohan. International Marketing. New York. Oxford University Press, 2005. Print. Kotler, Philip and Kevin Keller. Marketing Management 14e. Boston: Pearson Education Limited, 2012. Print. Read More