International Marketing: a Cross-Cultural Perspective - Dissertation Example

 International Marketing: a Cross-Cultural Perspective International Marketing The businesses, which exist nowadays, are in constant flux. There was a time when people used to manufacture and sale goods from their houses and buyers were the people living across the streets or in a nearby community. Then there came a time, when these manufacturers started their operations as small industries and established factories to produce goods in bulk, in order to fulfill the increasing needs of the customers. However, now the time has completely changed from local firms to global firms. Firms, today, manufacture goods in some country and market goods in some other, depending on the needs and cost associated with the product. The reality has shifted from nationalized firms to international companies working beyond borders (Keegan, p. 560, 2002). World, today, has become fast. People require instant and immediate transactions that save their time and effort. With the increase in the travel and efficient and comfortable transport, consumers are not just limited within their own houses and can even get access to the information of the countries everywhere, sitting at their homes (Bidgoli, p.483, 2003). Companies and product marketing have become interdependent and cross functional, with the rise in the use of technology. This is because now people have access to the information of the wider world via internet and other media tools functioning at the lightening fast speed. With internet, distances and boundaries are no more the barrier between people living across boundaries. Ideas, products, information can be exchanged without incurring huge costs and without actually using intermediaries for the work to be done (Keegan, pp. 467-468, 2002). Online banking and shopping services has contributed even more in the integration of the world’s activities. Economic change and political fluctuations in one country affects the other. This is because companies operate now in a complex system of networks and subsidiaries that any change in one affects the other. People too, are more informed today then they were before and this has altered the way of life of the people. The world is becoming more homogenous in nature. Consumers’ demands and needs in one locality soon becomes the need of the other. Technology has altered our way of lives. Fashion statement in one country, with in days, changes the style and dressing in the other country. Communication and technological advancement are the causes of such homogeneity in the world. Therefore, companies are not opting for product sales in one particular locality but they soon have to prepare for fulfilling the needs of the wider audiences and consumers, living faraway from their actual site of production. From product formation to sales, marketing plays an important role in the over all economy of company. For quality product formation, identifying buying resources, selling the final product, locating the potential customer and sustaining the loyal ones, companies need good marketing tactics to handle the changing demands and profitability in the end. In this competitive environment, without efficient consideration over marketing and advertising strategy, company’s survival will be difficult (Joshi, p. 1, 2008). Marketing generally means to recognize the demands of the customer and to fulfill this demand by making the required product available to the customers at their doorstep. For any modern company, marketing may also means to generate demand in the consumers and/or modifying the customer’s habit to make actual sales (Joshi, p. 1, 2008). Advertisement that attracts the customer most, wins the race of competition and gains customer’s loyalty. The easier it is made to the consumer that the said product is completely fulfilling the criteria as to what the consumer is looking for, then the company not only gains the trust but also secure it’s position in their minds. (Joshi, p. 1, 2008) No doubt, that actual product and its quality do counts, but the perception in the consumer’s mind and the decision at the selling point is what matters. Moreover, here marketing strategy of one competitor should override the other (Joshi, p. 1, 2008). In addition to that, consumer standard of living has changed over time. This change in the standard of living has demanded something extra from the companies. This may include, catering to a wide range of taste and consumer preferences, reducing costs, providing value added services and making consumer feel like they are making the right choice by spending their money on to a particular product. Moreover, companies also require providing timely information about the product features and value added services to the consumers via appropriate communication channels to ensure the consumer reach and increased consumer base. (Joshi, p. 1. 2008) In this respect, Customer Relationship Management, direct marketing and e-commerce has been benefiting the companies and consumers. On one hand, consumers get the required products and services with ease and on the other hand, company safe cost and other operational expenses (Joshi, p. 1. 2008). Today, marketing is beyond country borders and specific target audiences. This is the era of global marketing where the whole world can be producer and consumer at the same time. (Joshi, p. 1. 2008) In the new economy, where the increase in purchasing power of the consumer adds advantage to the manufacturers, on the other hand, variety of choices in the market makes this competition a battleground. For this purpose, companies need to remain in contact with the consumers and keep themselves update about the current trends and demands in the market. (Joshi, p. 1, 2008) As highlighted before, this can be done using the internet and virtual network to reach to the consumers. With the rise of internet and on-line marketing, companies have increased their scope of consumer base by adapting to the new technology (Adekola, pp. 126-128, 2007). Companies, as the time demanded, immediately searched for new options to market their product across boundaries and concentrated their future efforts to make their product available to the customers within minutes, thereby saving time and money (Joshi, p. 1. 2008). Initially, companies used to produce goods, and place advertisement in the local media including, television, radio and newspaper for the consumer awareness. There was uncertainty that whether the target audience will understand the message or not. The changing time, thus, has ended this ambiguity. Companies, no longer depend on broadcasting big budget advertisement on television, radio and newspaper and wait for the customers to respond, but use faster and easier medium to make contact with the audience and get immediate feedback (Poirier, pp.148-149, 2000). Consumers, on the other hand, living anywhere in this world know that no matter where he/she is, the product needed will be delivered on time. Internet, no doubt, has widened the network of consumer base for the companies and has broadened the horizon of choices for the consumers (Keegan, p. 469, 2002). Internet has also helped companies to keep track of the consumer’s buying patterns, likes and dislikes, priorities and potential new customers, by using just fingertips. Through internet, companies can also attract new consumers and has been using the collected data to over-smart the competitors (Keegan, pp. 562-566, 2002). In fact, most of the media effectiveness is doubtful nowadays due to the rise of internet marketing. Here, companies can market, sell, and advertise their product directly to the consumers without costly intermediaries and huge network of retailers (Poirier, p. 150, 2000). Unlike traditional marketing, internet marketing has a different set of retailers. Now, specific application software, virtual money transfer systems and time saving technology has changed the consumer lifestyle from hectic shopping schedules and looking for choices from one shop to another to as easy as a click. When consumer needs any thing, he/she can use the desktop computers to get access to the completely new world of shopping within minutes and this shopping is not just limited to one’s own boundaries. One added advantage of internet marketing is the occurrence of cross border buying and selling. People can now order goods from across the world and companies too can order raw materials from other countries where that resource is abundant by using internet search engines and selecting the required supplier from the hundreds of options available (Poirier, pp. 150-152, 2000). Internet, also, offers cost advantages over other mediums and tools of communication. Companies can now become global sellers while remaining at the single place (Roopa, p. 1, 2006). Therefore, companies like e-bay, Amazon and others have their functioning depended on online marketing (Amazon, p.1, 2009). Moreover, many independent companies and Multinational organizations like, Nestle, Toyota, Nokia, HP, and many others are using internet to attract and interact with their customers online and they have modified their communication media to make their sites available for online placement of orders. In addition to that, many service organizations like hotels, restaurants, tour agents, hostels are marketing their services online to make easy reservations and online payments. This and many more conveniences have been opened for the customers across the world after the commercial use of internet and wireless technologies after World War II. Internet marketing also offers direct interaction and immediate feedback from the consumers and in this way, marketing tactics remains on the move. People today have more choices and this has shifted the control from the companies to the consumers. Companies are nowadays trying to market their products via internet to extend their boundaries from one place to another and benefiting from the new facility to increase their profitability. With the rise in the internet usage even on personal mobiles, more dimensions are opened for the consumers and marketers to safe time and energy. Whenever new technology arrives, people adapt to the changing world so quickly and their usage becomes part of lives of hundreds of consumers, making them accessible from anywhere in the world, like the mobile phones and internet (Keegan, p. 474, 2002). Moreover, with the advancement in the usage of mobiles more than the mere wireless talking device, worldwide mobile Internet use has risen to 24% and is still increasing with the increase in the supply of smart phones and i-phones. Increase in the use of mobile, and other wireless technologies has even further diminished the borders between the manufacturer and the consumer living across them. This new advancement in technology and consumer awareness, has increased the demand of customize as well as direct marketing strategies, so that consumers at their every step, get access to the required products or services (Joshi, p. 1. 2008). On the internet, companies can publish, alter, modify the content when and as required within minutes and the consumer can be in touch with the companies using his fingertips. Putting the customer need and convenience at the first place, companies can also use internet as a medium to offer wide variety of services from time to time. Companies use many tools for internet marketing, including websites, customer emails, blogs and host sites. These tools help the companies target the wide variety of audiences and this shift in the overall structure of the marketing industry has altered the overall distribution and selling criteria. Although internet marketing has lessened the occurrence of actual tryouts by the consumers; however, due to the changing consumer needs and lesser time to go on a physical shopping adventure, internet and direct marketing has led to the availability of products from across the world at their doorstep, making the shopping experience convenient for them. Amazon.com (2009), for example, offers shipping services to many countries other than USA. The products from all sorts of categories including, households, electronics, mobile and books are available for sale on the website. People can search from the variety of options available and make their purchase decisions by recognizing the product detailed characteristics and services available. People’s registration and order placement is easy and delivery of product is guaranteed (Amazon, 2009). Other than that, many companies are also marketing their products through international franchises and local distributors to make their products available to the countries everywhere. Companies also insure their shipment for proper, efficient and timely delivery of products to their customers. These and many other sorts of services and products made available nowadays have lessened the customer travel from one place to another and have reduced cost for the companies and expenses for the customers. Most of the companies today have also shifted their focus to the internet marketing because it offers advantages over traditional marketing tools. Internet offers the advantage of reaching the consumers beyond periods. Companies whose operations are scattered across the world would find difficult to remain in tact with the associate companies and consumers located in the place where the time intervals are different. Internet has diminished this concern by providing access to these sites beyond boundaries of time and space. The more the consumer is informed the more it would be better for the companies to make their point clear and gain top of the mind share. Therefore, Internet has also made easier for the companies to inform consumers about the detail outline of their work and how their product is better than the competitors are. As television and radio marketing tools are less direct and consumer reach cannot be measurable, that is why companies have shifted their focus to internet marketing. With the increase in the use of internet, companies can offer customize products and services and aid in just in time inventory to the consumers and thereby reducing the cost of bulk production and distribution. Decreasing trade barriers has also pushed beyond border sales to the great extent. The more the trade becomes freer the more competitive it becomes for the companies to maintain their market position and more technical sensitive marketing strategies are required. (Guile, p. 98, 1987) In the recent past, policies framed by the World Trade Organization, indicated that the availability of goods and services would be no longer reliant on local firms. Signatories would be able to import and export the products across countries to earn profitable trade and fulfill the nation’s demands (Keegan, p. 560, 2002). Where Companies alone cannot reach to the global markets, strategic partnerships, merger, acquisition, and outsourcing the services have helped the market to become more and virtual and fast paced (Adekola, p. 128, 2007). Recently, many companies merged with the companies across the borders to increase their domain of operations and making their impact felt in the consumer industry (Guile, p. 102, 1987). With the increase in uncertainty in the market and fluctuating economic and political situations, being virtual and functioning is more important than not operating physically in some parts of the world. Companies as buyers of raw materials and individual customers, also consider virtual transactions and purchase of orders online. In this way, heavy purchase can be secured and data can be stored for a longer period to avoid manual mistakes and hampering (Bidgoli, pp. 483-484, 2003). After recognizing the fact that with the use of internet, World Wide Web and other wireless services, shopping patterns have changed but on the other hand, there are many incidences, which indicate the status vice versa. The world though is becoming a global network of information suppliers. However, the extend to which the information content that can be shared and utilized from one’s own room has questioned the integrity and credibility of the content providers and the companies that use internet as the sole advertising medium. This has really influenced the marketing industry. On the internet, consumers may not take the promotion seriously because it is easy to make fake identities on internet and corrupt the personal data (Daniell, pp. 187-190, 2004). Therefore, people do not trust the sites marketing products and services on line, unless high credibility is ensured. That is why; it has become important for the companies to first built credibility in the market then to focus on increasing their global reach via internet (Roopa, p. 1, 2006). Furthermore, companies making products and services for the elderly cannot rely on the internet technology to market their products because some people are not internet savvy and thus will reduce the impact and would decrease sales (Roopa, p. 1, 2006). Even some younger generation prefer shopping hangouts and malls to shop and making purchase decisions with friends. Thus, the internet and virtual shopping has not been the only option for the purchase to take place (Daniell, pp. 187-190, 2004). Consumer once informed on the internet may also be willing to buy the product next time, but may also be spending some time to shop in person. This is because people need some entertainment and shopping at malls and busy streets may sometime give them this treat. Motivation and decision at the actual purchase site may also be done. At the point of purchase, consumers mostly change their purchase decision, because trial options and the physical product at hand may also foster the buying pattern rather than the mere picture pasted on the internet. There also exist some rumors and/or stereotypes regarding internet marketing and technology oriented marketing mediums, which makes the consumers hesitant to buying things online. As internet purchase involves use of credit card details, personal home and office addresses and contact details, this information may be misused. Therefore, people are less likely to give these details to the virtual sellers and buying the required goods in person (Yudkin, pp. 119-120, 2001). The glittering world of internet and technology influenced buying patterns have created a false impression that the world is becoming a globalized center for consumers and marketers. However, when we look deeper into the scenario we will come to know that, there still exist places where people are devoid of even basic facilities, let alone the availability of internationally marketed products. Villages in South Asia and Africa, still use locally made products and prefer shopping in person to spend their earned money where it is most worth. This is not the matter of being technical shrewdness but difference in culture. In these places, culture demands something from the people and therefore, one cannot completely say that the times have changed for them. The world seems to be interdependent now but actually, the world is still at the pace of becoming integrated. Countries across the world are in constant war for resources and power, and so are companies. The world is not beginning to be a global village, but a competitive arena, where cultures are mingling but individualism is prevailing. The competition for resources has created the world a complex structure of policies and regulations where not all people and companies are on the better location. World is not completely becoming an integrated one, because most of the governments and MNCs are in control over the all the economies and technological investment done in this world. Technology is more beneficial for the companies rather than for the end users, that is consumers. Individual governments have specific policies for the international companies and investors and allow limited investments from the same as they may find more profitable for their own benefit. In this respect, it may be noted that only those companies whose interests are in line with that of the host country can globalize their marketing strategy and promote their products and services across borders, not all of them (Guile, pp. 248 -251, 1987). One other concern here is that, technological advancement and borderless environment can be observed with respect to locating cost effective production sites, low salaried employment and distribution networks, but with respect to consumer marketing and shopping opportunities, there still are some gaps needed to be filled (Guile, p. 162, 1987). Companies today are making profitable businesses in terms of going global at the resource end, not at the consumer end. In every country, there exists manufacturers of supplementary and complementary goods, and people may be satisfied with their offers, but the point here is concerning the cost reduction. Companies reduces their cost by shifting production sites and manufacturing unites where the cost of labor and energy is lower rather then shifting to places where consumers are in greater number. Moreover, with the increase in the rate of cyber crimes and free access to certain products and services nowadays has decline the importance of cross border functioning. This is because the actual mindset behind the product or service, from which the consumer is benefitting from, is not rewarded. Instead, dummy host sites and illegal availability of downloaded materials on line, has decreased the reliability over internet sites as a marketing tool (Daniell, p.187-190, 2004). Now companies use internet as one of the medium to interact with the customers and inform about the product characteristic, not the sole medium for marketing and selling products. Various copyright laws and policies are in action nowadays to protect companies against unlawful access to their properties, but these crimes and illegal activities are still going on at the fast pace (Guile, p. 112, 1987). Yet another point in discussion would be the increase cost associated with shipment of customized goods for people living away from the production sites. It seems profitable for the companies to ship goods in bulk rather than individual delivery systems. Therefore, when one says that the pattern is shifting from physical to virtual shopping, one has to take into consideration the profitability and transportation of goods from one place to another. What companies actually do is to make their consumer aware of the products and services offered via internet and informing them the sites where the required products would be available and the customer has to search for the nearest shopping extravaganza to make the purchase (Yudkin, p. 116, 2001). These points highlight the fact that world in neither becoming interdependent nor its independent but there exist a mixture of both (Guile, p. 114, 1987). In this world, one may find companies earning profits based on internet sales, also those companies functioning on the physical sales. Overall market is the mixture of audiences demanding variety of offers and options for shopping and companies therefore should not rely on one medium. Marketers must bring in the consistency in the services offered, instead of focusing on sales and should adapt to the changing times to increase exposure. References Adekola, Abel, Sergi, Bruno S. (2007). Global business management: a cross-cultural perspective. Ashgate Publishing, Ltd. Amazon, (2009). Amazon.com official website. As retrieved on October 21, 2009; http://www.amazon.com/ Bidgoli, Hossein. (2003). the Internet Encyclopedia, Volume 3 of Handbook of Information Security. John Wiley and Sons.  Daniell, Mark Haynes. (2004). World of risk: a new approach to global strategy and leadership. World Scientific. Guile, Bruce R., Brooks, Harvey. (1987). Technology and Global Industry: Companies and Nations in the World Economy, National Academy of Engineering (NAE) Joshi, Vivek, Ahluwalia, Supreet. (2008). Defining Marketing for New Era. As retrieved on October 21, 2009: http://www.indianmba.com/Faculty_Column/FC750/fc750.html Keegan, Warren J. (2002). Global Marketing Management, Pearson Education India, Poirier, Charles C., Bauer, Michael J. (2000). E-supply chain: using the Internet to revolutionize your business: how market leaders focus their entire organization on driving value to customers. Berrett-Koehler Publishers Roopa, Makhija. (2006). Spend Analysis: Today's Tools for Tomorrow's Savings. Government Procurement. As retrieved on October 21, 2009: http://www.allbusiness.com/government/government-procurement/4081589-1.html Yudkin, Marcia. (2001). Internet Marketing for Less than $500/Year: How to Attract Customers and Clients Online Without Spending a Fortune. Maximum Press. Read More