International Marketing

MKT303 International Marketing

Culture and communications Workshop 8

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What will we be learning? Week Topic

1 Introduction to International Marketing

2 Political and economic factors impacting international marketing

3 Social and technological factors impacting international marketing

4 Legal and environmental factors impacting international marketing

5 Assignment presentations

6 Study week (Attendance is compulsory).

7 Trade relations

8 Culture and communications

9 Market entry – an international marketing approach

10 Getting a product to the customer – international context

11 Product management and surviving in an international market

12 Future of international marketing and ethics

Learning Outcomes

1. Understand the concept of culture. 2. Explore the components of culture and

how this shapes values and beliefs. 3. Apply a cultural understanding of

communication. 4. Analyse cultural dimensions to appreciate

differences between cultures. 5. Explore how to create culturally relevant

communications.

Why am I learning this?

Marketers need to be aware of cultures to share marketing communications and

messages

A lack of cultural understanding can lead to failed outcomes

Workshop Activity

Revision

What did we discuss last week? Identify the three main points that you’ve learned during

last week’s class.

Share your thoughts with the rest of the class.

This Topic’s Big Idea

“Every human is like all other humans, some other humans, and no other human”

Clyde Kluckhon

Culture • A set of:

– Values, – Ideas, – Artifacts, – and other meaningful

symbols • Helps individuals

communicate, interpret, and evaluate as member of society.

• Culture is the personality of a society

Organisation

Political

Economic

Social

Technological

Legal

Environmental

Workshop Activity

Brainstorming Session

In groups of three to four discuss your own culture, how did it shape your values and

ideas?

What artefacts or symbols hold meaning to you?

The Marketing Mix

• The toolkit available to marketers

• Ensure consistency across each element of the marketing mix

• Need to ensure it is relevant to international markets

Source: https://www.leadagency.com.au/marketing-mix-best-practice-effective-examples-of-the-seven-ps/

The Components of Culture Culture represents our: • Ideas

– Beliefs – Values – Institutions

• Behaviours – Customs – Habits – Dress – Foods – Leisure

• Objects – Literature – Art – Music – Artefacts

Ideas

BehavioursObjects

Beliefs • Ideas/concepts that are

held by a culture • Examples include

religion, traditions • A culture can have

many beliefs • Influences:

– Our moral views: what is and wrong

– Life aspirations • Shapes other elements

of culture Source: http://www.medialocate.com/2015/09/3-reasons-why-your-website-may-sink-your-international-profits/

Values

• Beliefs set culturally appropriate behaviours

• Often difficult to change • Not tied to specific

objects and situations • Widely accepted by

members of society • Shapes our views on

gender, age, social status

Spiritual Values

Use Values

Lifestyle Values

Place Values

Ethical Values

Adapted from: https://www.macfound.org/media/files/CSD_Culture_White_Paper.pdf

Customs • Models of behaviour

that are acceptable by society in specific situations

• Conduct between family, friends and strangers

• Mannerisms and behaviours

• Examples: Tipping in the US, bowing your head entering a courtroom in Australia Source: https://www.eidi-results.org/what-is-eid/

Subculture • Group within a culture

who differ on some influential dimensions from the broader culture

• In Melbourne, Australia hipsters became a subculture that spanned the inner city suburbs.

• Subcultures can also be formed around music, sport, fashion and other interests Source: https://www.smithstreetbooks.com/books/how-to-spot-a-hipster/

Workshop Activity

Brainstorming Session

Do subcultures occur outside of one country? Are there differences between how

one country interprets a subculture compared to another?

Share your thoughts with the rest of the class.

Communication and Culture

• Marketers use the integrated marketing communications mix to provide consistent messages to consumers

• These messages need to be aware of cultures within an international market

Workshop Activity

Brainstorming Session

In groups of three to four discuss:

Why is it important for brands to be aware of cultures when exploring international markets?

Do you have examples of where this went right or wrong for brands?

Christmas in Japan • In Japan KFC is

commonly eaten at Christmas

• Started in the 1970s as an American Christmas food and replacement for turkey

• Only 1% of the population in Japan identifies as Christian

• Ad for KFC Japan: bit.ly/kt303kfcjapan

Source: https://edition.cnn.com/travel/article/kfc-christmas-tradition-japan/index.html

Hofstede's Cultural Dimensions

• Theory that analysed cultures based on 1. Power Distance 2. Masculinity vs

Femininity 3. Collectivism vs

Individualism 4. Uncertainty avoidance 5. Long-term orientation 6. Indulgence vs Restraint

Broad criteria that explores the values of a culture

Hofstede's Cultural Dimensions Video: Explained With Examples of Each Dimension:

Watch: bit.ly/mkt303hofstede

Power Distance

Cultural considerations in International Marketing

American Korean How would an Australian react to this?

Masculinity vs Femininity • In Japan and Korea,

females may dominate the household but in public, males are typically the key decision maker

• In America & the UK women often take part in key family decisions and are strong leaders within the family and society

Collectivism vs Individualism Mexicans are very collectivist

and often live in extended family situations

Australians are individualistic so tend to live mainly in

nuclear families

Uncertainty Avoidance Uncertainty avoidance • Japanese workers like to

ensure they are never late for work

• The Tokyo Rush Hour where trains pack workers in, even though trains arrive every few seconds - workers unwilling to take the risk to be late for work

• Americans will take a risk on an idea – stimulating entrepreneurship

Japanese Rush Hour

Long-term Orientation

• Long Term Orientation – Focus on the future – Thrift and effort is

largely encouraged – Values perseverance

in achieving results – Ability to adapt

traditions and change

• Short Term Normative – Traditions and norms

are more important – Suspicious of societal

change – Focus on achieving

quick results

Indulgence vs Restraint

• Indulgence – Focus on enjoying life

and having fun – Priorities are leisure

and spending money as they wish

– Higher levels of optimism

• Restraint – Limit desires and

gratification – Unnecessary

indulgence is discouraged

– Higher levels of cynicism and pessimism

Workshop Activity Visit the website below:

www.hofstede-insights.com/product/compare- countries/

Then in groups of 3 or 4 apply Hofstede’s theories to compare any culture with the

Australian culture.

Do you agree with the results?

Tanning or Whitening?

Skin whitening in India: bit.ly/mkt303skin

Source: Loreal

Workshop Activity

Brainstorming Session

Is it ethical for global brands to market skin whitening and tanning products?

Share your thoughts with the rest of the class.

Racism in Global Marketing • Gucci’s made a $800+

balaclava that depicted blackface.

• Received global criticism given sensitivity of the African American population for these types of depictions

• Made a public apology blamed Italian culture for lack of understanding

Source: Gucci

Workshop Activity

Brainstorming Session

How should a marketer respond if marketing material they have released is deemed by

the public to be racist?

Share your thoughts with the rest of the class.

Lost in Translation • When Mercedes Benz

first entered the Chinese market it called itself Bensi which in Chinese translated to rush to die

• When KFC first entered China in the 1980s their slogan ‘finger licking good’ was translated to ‘bite your fingers off’

Source: KFC

Lack of Context • Pampers created

confusion in Japan when the advertisement they put out contained a stalk.

• In Western culture stalks are associated with delivering babies however this folklore is not the case in Japan.

• This mistake was only discovered when market research was undertaken.

Source: https://thunderbird.asu.edu/knowledge-network/its-peach-not-stork-how-pg-turned-around-its-pampers-fail-japan

Workshop Activity

Brainstorming Session

In groups of three to four find an example of an international campaign that went wrong.

What was the cause? How could it have been avoided?

What was the result?

Next Week

Market entry