Significance of Socio-Cultural Environment in Global Marketing - Coursework Example

Significance of socio-cultural environment in global marketing Your Your This paperexplores the significance of socio-cultural environment in global marketing perspective. Among varying perceptions of cultures, the paper emphasized Geert Hofstede(1988), Cherunilam(2007), and Hall’s (1977) understanding of culture. Other works explain and analyze importance of differences and stressed the need to understand cultural aspects involved in international marketing activities in order to achieve the objectives of business. Significance of socio-cultural environment in global marketing Culture is aptly defined by organizational anthropologist Geert Hofstede as “the collective programming of the mind that distinguishes the members of one category of people from those of another” (Hofstede & Bond, 1988, p.5). According to Hall (1977) in addition to learned nature of culture, anthropologists consider that all cultural aspects are interlinked and within a culture different groups share the same culture that distinguishes these groups as well. Therefore, change in one feature influences the other aspects of the culture in either direct or indirect way (p.16). Contrary to common belief, culture is more than art, music or literature when it comes to marketing on global level. It’s a major source of influence on activity in the marketplace. According to Keegan(2002) culture is defined as “ways of living” by anthropologists and sociologists. These particular ways are formed by group of individuals and pass from one generation to another. These ways of living are inaction in form of social, educational, business and religious institutions. Culture is not one time solution but a combination of conscious and unconscious set of ideas, beliefs, attitudes and symbols that form collective human behavior (pp.94-5). Culture is a complex and intriguing component of international business environment. Appropriate knowledge of cultural dimensions plays a crucial role in product development, promotion, human resource management, business negotiations and management of socio-political environment. One of the major problems is the implicit nature of cultural features. Cultural variables prove to be troublesome for multinationals with insufficient homework as their managers fail to realize the variance that leads to serious blunders (Cherunilam, 2007, p.75). Cherunilam(2007) further explains that in order to craft just the right strategies for potential customers in a certain culture, it is inevitable for marketers to understand their cultures. Some products and services are accepted in one culture while others reject them. It is crucial to modify the products and promotion strategies in order to fit the preferences and taste of a particular group of customers. Difference may be more diverse and complicated when it comes to populous and multicultural countries, for instance, India (p.75). A number of MNCs, including Kelloggs, Reebok, Lacoste, Philips, Procter & Gamble, Hindustan Lever, Nestle, Amway, and so on, have realized that it makes business sense to adapt to the Indian tastes and preferences and business conditions. They have launched new product forms or got into new categories relevant to the Indian Market. (Cherunilam, 2007, p.75) It is crucial to learn about obvious and latent expectations of potential stakeholders, i.e. existing or potential customers in this case. The process demands to understand the reality in which customers subjectively live. It reveals their objectives, decision making process, perception and behavior towards a certain thing. These subjective ideas of reality depend on their cognitive process that is shaped by their experiences during enculturation and acculturation. Enculturation refers to the process by which an individual become the member of a certain culture. They accept and adopt values, behaviors and social relations of that culture. Therefore, organization buyer and consumer behaviors are strongly influenced by their native cultures. Acculturation, on the other hand, refers to learning about new culture. For instance, when people acquire and adopt language, beliefs and customs by getting in touch with it in real or virtual world(Muhlbacher, Leihs & Dahringer,2006,p.180). Culture consists of material and non-material aspects. Material aspects are man-made while non-material features include knowledge, belief, ideals, preferences and language. According to Muhlbacher et al.(2006)values and norms are crucial indicator of culture as these are shared by society or group as a whole. Value refers to a continuing belief on a specific mode of behavior that is socially or individually preferred over alternatives. Values have strong impact of customers’ perceptions. Values bring about social norms, i.e. accepted set of laws and models of behavior. Norms not only direct buyers’ decision making process by influencing their search for information and alternatives but also determine consumption patterns and buyer behavior(p.199). Language, be it verbal or non-verbal, is the fundamental tool for the expression of culture. It reflects thought process, beliefs, lifestyles, preferences and expectations of a certain group. It defines parameters of a certain culture. National and regional languages in addition to variation in accent, dialects, pronunciation and jargon establish its distinct identity. It makes the language rich and complicated for marketers at the same time. For instance, difference in English speaking individuals in America, Britain and Australia won’t have similar expressions and may give rise to confusion(Bothma,n.d.).There are several examples of misinterpretation of English language idiomatic phrases or expressions that eventually made blunders, as Ricks (2006) states: …One European firm certainly missed the point when it translated the expression “out of sight, out of mind” as “invisible things are insane” in Thailand. There is also the story of the phrase “the spirit is willing, but the flesh is weak” being translated to “the liquor is holding out all rights, but the meat has spoiled”. And consider, finally, a translation of “Schweppes Tonic Water” to the Italian “ii water”. The copy speedily changed to “Schweppes Tonic” because “il water” idiomatically indicated a bathroom.(pp.97-8) Despite being predominant business language in western world, there are chances of misinterpretations. It is important for international marketers to either understand intricacies of language or hire and train native individuals to communicate and plan promotional campaign. Material cultures refer to more industrialized nations, their economic activity, production of goods and services, management of human resource and benefits gained by the activity. These cultures are more open to new products and are ready markets for luxury goods and services. On the other hand, in developing countries, the acceptance and demand will be low due to insufficient facilities and foreign exchange shortages. Material culture is critical for marketing on international level. Manufacturing on global level requires raw material supply and transportation on large scale and changing means of transportation can have long term affects. For instance, rail and highway transport are central mean within United States while in some parts of Europe it is replaced by canals and rivers(Bothma,n.d.). Aesthetic senses and perceptions can easily influences potential customers both in positive and negative way. It is expressed in fine arts, music, drama, dance, dress, appearances and overall appreciation of color and form. Inadequate understanding or insensitive approach to a certain culture’s aesthetics can lead to a negative brand image and misunderstood advertising. It also poses a bigger threat of offending certain group or society as a whole (Bothma,n.d.). Ricks (2006) states, “Green, a popular color in many Moslem countries, is often associated with disease in countries with dense jungles. It is associated with cosmetics by the French, Dutch and Swedes and increasingly with an environmentally world.”This scenario highlights the place of color, packaging and positioning of product or services that compliments potential market requirements According to Bothma (n.d.)social organization is another aspect that refers to social, political and educational set up the society. It is the way they gather, organize, activate and preach behaviors in order to govern themselves. International marketer need to focus on educational level, for instance, if majority of target audience is not literate, promotional messages, packaging labels and advertising media need to be adapted according to the market needs. Family structure, size and gender roles need to be considered as it helps in determining the actual buyer of product in a certain cultural set up. In addition to these obvious differences, there are some unspoken beliefs and perceptions that need to be decoded. For instance, time taken to answer a letter or e-mail. In some cultures, prompt reply is perceived to be good while in other quick answer may be regarded as the issue is taken as unimportant. Religion refers to spiritual aspects and belief system of society. Religion does not always influence business directly but it has strong impact on individual perception and value system that finally shape his decision making criterion and outlook towards foreign products and services. Besides religion, there are also sects or cast systems in Middle-East and Asian countries. International marketers need to focus of such religious beliefs and superstitions because ignoring them can lead to expensive blunder(Bothma,n.d.). Ricks (2006) states, “Companies have encountered problems in Asia when they incorporated a picture of a Buddha in their promotions…One company was nearly burned to the ground when it ignorantly tried such a strategy…a major international political conflict remembered for years”(p.69). Space is another important aspect to be considered in international business environment. Locality and size of executive’s office has different meaning in different societies. In most cultures,conversation distance and mannerism are the first and foremost qualifications for further communication with other social groups. For instance, an American executive may feel alarmed or uncomfortable with warmth and physical closeness showed by people in Middle-East or Latin America. Time is considered in present, past and future in western cultures, they live and strive for future. However, Greeks may not understand American insistence on deadlines and time limits of their business relationship. Gender role, age, sex, ability to adapt, openness to innovation, economic and political conditions are other factors that influence socio-cultural environment in other cultures. For international marketers, analyzing cultural environment is crucial success factor. They need to determine what aspects of culture are relevant to the product markets of company. What can influence their product and brand in what ways. Marketers also need to analyze existing stage of development in the potential market. Potential impact of such factors can be determined by tracking trends and practices. This evaluation of cultural environment will not only enable the business to respond to current market requirements but also in responding to expected and unexpected developments(Muhlbacher et al,2006,p.180). Understating differences in other cultures is a challenging task for international marketers. Variations in language, customs, religious perceptions, attitudes, beliefs, ideas, assumptions, preferences, taste and traditions accompanied by the existence of subcultures and communities within a certain culture make the communication with customer more complicated. It poses an inevitable threat of misinterpreted or wrongly perceived message that can have long term implications on business and brand image itself. Managers and marketers need to understand and adapt to the disparities and similarities across cultures. By doing so, companies operating in different cultures can not only tap their full potential but also save them from waste of time and finances. Work cited Bothma,C.(n.d.)The Sociocultural environment. In Considering Exporting(6).Retrieved from http://www.exporthelp.co.za/modules/1_considering_exporting/env_sociocultural.html Cherunilam, F. (2007).International Business: Text and Cases (4th ed.).New Delhi: Prentice Hall of India Private Ltd. Hofstede, G. & Bond, M.H. (1988). The Confucius Connection: From Cultural roots to Economic growth. Organizational Dynamics, 16(4), 4-21. Hall, E.T. (1977).Beyond Culture. Garden City, New York: Anchor Books. Keegan, W.J. (2002).Global Marketing Mnagament (7th ed.).India, Delhi: Dorling Kindersley Pvt.Ltd. Muhlbacher, H., Leihs, H. and Dahringer, L. (2006).International Marketing: A Global Perspective (3rd ed.).London: Thomson Learning. Ricks, D.A. (2006).Blunders in International Business (4th ed.).USA: Blackwell Publishing. Read More