International or External Marketing Environment - Case Study Example

How Do Cultural Differences Affect International Marketing? This is a fact that the business world of present times is changing at a cut throat pace and it provides us all the more reason to believe that the future would indeed be very different to what it is at the present. International or external marketing environment comprises of the factors and elements which are outside the boundaries of the firm and over which it has little or no control when it comes to handling the same. (Benton, 1994) International marketing environment can work to the advantage of the firm as well as become a real nuisance, more so when the economy is not that encouraging boosting trade ties between stakeholders, different organizations and so on and so forth. The corporate strategy plays a significant role at building a bridge between the company’s inner policies and the undertakings it has with the various stakeholders, who could be from the external marketing settings. (Korzeniowski, 2001) Marketing in a developing country like India is much different than it is in a developed nation, United States for example. The differences arise in the way works are done as well as the manner in which people are held accountable and answerable for their respective tasks and job natures. Conducting business within USA and India is also different because both have distinct cultures of their own. Their people speak different languages, adapt to a number of traditions and have family make-ups of a completely distinct proposition. (Enright, 2000) Marketing in different venues of the world is a difficult yet interesting proposition. What might be hailed as a suitable entity in one location could be judged as a sheer loser in another country or business marketplace for that matter. Marketing takes care of the social and cultural concepts of the place. Thus it is pertinent to note that different business markets of the world have differences in them nonetheless. A developing country has a developing market and the business which is widespread in its environs is something that has just started or remained within the realms of its exploration. On the other hand, a developed business environment sustains growth and the profitability from the business standpoint is a part and parcel thing. Misunderstandings are an understood notion in a society such as of USA where people adhered to an agreed and applied culture but did not actually know the facets of the followed traditions and the cultural history. It was thus the role of the scholars and intellectuals to make the people know more about their culture, no matter how opposed the social customs and traditions were in the American society. Ethical confusions also did seem to take place when people migrated to USA in search of a better living and lifestyle, bringing with them their own cultures and set traditions which they had been following in their own backyards. This created a cultural tilt for Americans who seemed to follow the new practices that were being imparted by these foreign immigrants. Marketing in USA is pretty different to how a marketer would proceed in India mainly due to the fact that the Indians are more culturally attached and they have more family oriented values when we compare the same to the USA society. (Bullis, 1998) The marketing tactics and activities which could be sound enough within USA might not just work to the advantage for the organizations within India since the latter has a lot of reservations with the different practices that are already in use under the business umbrella. But then again, creativity knows no boundaries and the marketing gurus know when to strike and what to strike with, at the exact target audiences. In a developing nation, the race is to become more considerate towards the basic needs and wants of the people rather than playing upon their already achieved goals and objectives. Hence the disposable income of the people is one such aspect that has to be studied in depth before arriving at any possible conclusion. In a developing nation, Maslow’s theory of needs is applicable in a much broader sense than a nation which has already developed and there is little room for advancement within its ranks. The developing nation can see that its population achieves the basic needs like shelter, food, clothing and so on and so forth much before they can actually think of satisfying their whims that might be seen more often in a developed nation for that matter. The medium of communication thus become an interesting proposition since the developed nation can cater to the needs and wishes of the people in a pretty easy and straightforward manner as compared to a developing country. These people can witness marketing campaigns targeting them on television, radio, the newer forms of media like transit advertising, balloon promotion, SMS coverage and other things but the same might just miss out in the developing country since the market there is more in the developing zone and not able to understand its own self clearly. The legal barriers that so arise could be in the form of law suits and legal procedures adopted by different segments of the society but the same might just be a bit mellowed down in a developed nation say for example USA. (Cahn, 1994) The tolerance levels of the developing nations like India might just not be ready for out of the box creativity that could hinder their traditional norms and values but the same would go down well in a developed and more established regime. The differences in the retail structures of the two countries can also accrue as a significant point in the whole distinction between the two nations. Since there is more freedom of speech in the developed nation therefore what might a billboard or poster would try to achieve in this realm could be a sign of personal invasion of space and freedom on the part of the average Indian (the developing regime). The price tags at the back side of brands in the retail quarters would not be a necessity in India but could become a major point of loss for the USA chain store since there are definitive issues of consumer laws and anyone can take the store’s authorities to the court for falling on this particular count. On the distribution front, the lack of having distinctive wholesalers, manufacturers and retailers could become a problem within a developed nation but the same can go on beyond scenes and that too in a corrupted way in a developing country. One must understand that in a developing country, the manufacturers would focus on the things which are not present in the region whereas the marketers would go a step ahead and experiment thereby bringing in more luxuries and conveniences to the lives of the people living in a developed nation. Same is true for both USA and India where people are meted with different developmental regimes since their countries are either on the developed list (USA) or still progressing along continuously on the developing front (India). One should believe that education levels are something that must be focused upon when one discusses these problems. Without basic education, a country can lag far behind its goals and objectives, in fact without it; it would not even know they exist in the first place. Therefore the literacy levels must form the backbone of the whole distinction that is there as concerns to the marketing and cultural divide between a developing and a developed nation. (Varey, 2001) American nation has the potential to become a multiracial society, one that can entail within its peoples from many different cultures and traditions but the people who are at the helm of it, do not really want the same to be achieved. Multiculturalism seems to be an improbable and unlikely thing as far as United States is concerned. There seems to be an unending rivalry between Asians, the native-American folks and the people from Africa. It has been going on for a number of generations and seems to find no way out of this culture. Speaking of India, one can see that the Hindu mentality plays a significant role in shaping up the different advertising and marketing values. They are more towards the oneness of the family than dating and open flirting which could be an easy prey for marketers if the same is implemented within the realms of the US society. The values and beliefs also stems from the fact that the Indian populace is inclined to follow its age old traditions like Holi, Basant and the like to the end limits but the same just seems to be missing or at times changed in an advanced fashion when we take a look at the US society, a civilization which indeed is a developed market. (Philip, 1994) Culture speaks people’s language. This has to be the simplest and most concise definition of culture when seen within the limits of a society and that of a particular region. However on the part of more precise and accurate description, we see that any set of social customs and rituals that are followed in a particular society come under the heading of a tradition prevalent in the same area. It may be possible that this culture is not liked or followed by any or all of the people within its fold while at times, it has been seen in old civilizations that people used to hold different kinds of rituals and events in the name of cultural activities that came in the way of their fulfillment of commitment towards an agreed and applied culture. (Swank, 2002) This culture was a manifestation of their promise and obligation they owed to the very same civilization and society and thus these events were marked as the tools to carry out the same. Cultural patterns are different in every area of the world and it would not be wrong to say that they are dissimilar in a single city as well. Considering the diverse nature of cultures within a distinct vicinity, it is also imperative to keep in mind that these cultures do have an interface mechanism with each other and thus the product which comes from this interaction and contact can either be a positive one, with communication of ideas and new modernizations taking place within the society or a totally opposite one, producing problems for the two culturally-adopted peoples. As far as the cultural differences of USA and India are concerned, we see that the family values are something that the marketer can play upon to flourish his product big time in the market. Then there is the aspect of tradition and beliefs which are pretty strong within India. Liberalization in the form of thought and creativity is pretty apparent in a US society and hence the marketer can benefit from the same and have some leverage within the related ranks. Cultural values and attachment thus have a very significant role to play when businesses decide to have offshore locations within the developing nations as this could seriously backfire in the wake of differences arising out of even the minutest of issues. It is imperative to understand the culture of a society or a region before entering into it for fiscal returns. This decision is indeed one of significance and long term prosperity of the organization. Culture has a lot of role in the contexts of the developing nations since they are more attached with it and also because they find the legal barriers are not that strong. The education levels fall way below the mark and thus there is little awareness as far as marketing regimes and their eventual practices are concerned. Firms have to predict what will actually happen with them in the future and this is not an easy process, in fact it is easier said than done. (Barr, 2000) They must be open to a number of challenges and potential problems that can come their way every now and then and for this not to happen, they must make sure that their research according to the market dynamics and cultural representations is up to date and current. (Kay, 1995) The cultural differences that arise due to the various issues including the misunderstandings of the language that is commonly spoken of is something that the organizations must take care of before they decide to venture into a new country or region. (Foss, 2005) Bibliography BARR, Pamela S. (2000). When Firms Change Direction. Oxford University Press BENTON, Ted. (1994). Social Theory and the Global Environment. Routledge BULLIS, Douglas. (1998). Doing Business in Today’s India. Quorum Books CAHN, Dudley D. (1994). Conflict in Personal Relationships. Lawrence Erlbaum Associates ENRIGHT, Michael J. (2000). Regional Clusters and Multinational Enterprises. International Studies of Management & Organization, Vol. 30 FOSS, Nicolai J. (2005). Strategy, Economic Organization, and the Knowledge Economy: The Coordination of Firms and Resources. Oxford University Press KORZENIOWSKI, Paul. (2001). The Challenges of Going Global. Business Communications Review, Vol. 31 PHILIP, Annamma. (1994). India: Management in an Ancient and Modern Civilization. International Studies of Management & Organization, Vol. 24 SWANK, Duane. (2002). Global Capital, Political Institutions, and Policy Change in Developed Welfare States. Cambridge University Press VAREY, Richard J. (2001). Marketing Communication: An Introduction to Contemporary Issues. Routledge Word Count: 2,081 Read More