Marketing is a long trail of process which ranges from drawing a raw strategy, setting the value of goods and services, creating consumer awareness to spreading out of different available concepts (DuBrin, 2010: 60). The hallmark of this process is to enhance the supply of goods and services in order to meet the demand of consumers as well as achieving both the specific and general goals of a business enterprise. In reality, virtually all organizations need to understand the cultural values in place in order to survive in the liberal market which is highly dynamic. Marketing is an old practice which has equally withstood the test of time. Its genesis can be traced back when there was dire need to specialize and divide labor. This paper will look at the cultural theory and the impacts of culture on global marketing and management.
Culture is the framework of values that guides the behavior of individuals. It can be defined in terms of individual perceptions, business or social interactions. Culture guides how people respond to different social situations. It is not an in born behavior but it is learned and shared among members of the society. Culture applies to a given group of people in a society, or country. We have countries which are multicultural such as China, US, and India. These countries have many sub-cultures with their own beliefs and values. Most of the countries in the world are monoculture for example Germany, France, and UK. They have only one culture which guides the way people live.
In international business, culture can be said to be silent language that define the relationship between space, energy, and time. In order to succeed in international markets, global managers have to master and learn cultural adaptation. It helps to avoid some of the mistakes made in self-referencing which often results into wrong decision. Self-referencing is a situation where the global managers judge other people’s actions and behaviors in relation to their own native culture. It is good to understand cultural adaptation in order to succeed in international business (Anon. “culture and Global Marketing” 2010).
There are specific resources and methodology that are needed to attain the broader objectives of a company within a given market domain. A systematic plan of these requirements is all under the umbrella of strategic market planning. Price competition as it is evident in this case requires a strategic market plan to see the company through. Price is determined by customers, competition, company’s cost, strategy and objectives and the distributors. The market survey exercise extends further to define a clear path to be taken by the food retailer company in the new international market (Lamb, Hair & McDaniel, 2009:120). For instance, competent distribution of available resources as the company adopts economies of scale is vital and any underlying intrigues need to be established in advance. There will be need to consider the overall market dynamics contrary to myopic orientation. A strategic market plan will deliver the right path as well as enlighten the company on the needs of the current market (Nash, 2000:30). It will also ascertain that the different departments within the company co-exist, coordinate, and work as a team in achieving the set goals.
In preparing the strategic plan, it is important to note that people buy products because of the relationship they carry with them. Culture either break or make the strategic plan, public relationship plans or the sales plans. As we have seen earlier, space, energy and time are the ingredients in all cultures and have to be included in the marketing plans. Products and services should be designed and created to solve the right problems and for the right people. All global companies have to realize that quality is the key to succeed in the international markets. However, the word quality carries different meaning in different countries, for example in US quality refers to something that works while in Japan, quality means perfection. In general terms, quality can be defined as something that is reliable or something that is made according to the standards (Kotabe & Helsen, 2004).
A key element in globalization is growth in the international trade sometimes referred to as world trade. This is facilitated by the elimination of barriers to trade such as tariffs. International trade is the exchange of goods, services or capital between different countries. It has been in existence many years ago although much of its significance has been recognized recently. It has developed economically, politically, and socially with many countries becoming traders. International trade plays a very important role in ensuring continuity of globalization. It has benefited nations with variety of options to choose from which they would not have accessed without it (Honeycutt, Ford & Simitiras 2003:38).
Barriers exist which put restriction to international trade. These trade barriers are governmental policies or regulations. The government may impose some restriction which burrs the importation or exportation of goods or services from certain countries. On the other hand, there are trade regulations defined in different nations which restrict trade with specific goods and services. Trade barriers take many forms including but not limited to import licenses, quotas, subsidies, tariffs and non tariffs barriers, and embargoes. Most of the trade barriers use the same principle; they impose some cost on trade so as to raise the prices of the goods in question (Jason, 2006: 50). Some barriers to trade are imposed on cultural beliefs held by nations. These are hidden barriers which can only be overcome through cultural sensitivity, quality, and hard work.
Cultural beliefs and values affect demand in both local and international market. It affects the nature of business negotiations to be under taken by a company. Before engaging in any form of business in the international market, it is good for the retailer company to do a study of the cultural beliefs and practices that are practiced in the target countries. However, the knowledge of native culture has more value when dealing with local markets than international markets.
The aim of every business is to make profit. However, the means employed to earn this profits differs across countries. This is determined by the cultural values held in these countries. Global managers and entrepreneurs should be prepared to handle culture shock which they may experience when dealing with international business. A global businessman may be dealing with similar business in different countries which may differ in terms of opportunities because of cultural influences. These influences affect management skills and decision making process. Learning of local cultures is of utmost importance for the success of business in the global market.
Culture and Business Management
Culture defines the way people are expected to behave which also forms the basis of doing business. The way of doing business can be learnt through Enculturalization process which is also referred to as socialization. Through this process, managers learn about consumers behaviors, what guides these behaviors, and how to manage human resources and business partners. The acceptable behaviors in the society are usually the acceptable behaviors in doing business. Most of the successful managers learn to adopt the acceptable behaviors and to avoid the unacceptable. The Enculturalization process involves learning of the past business success and failures to ensure continued success (Marketing teacher, 2010).
The diversity in culture inflicts problems to the global managers. According to Anon. “culture and Global Marketing” (2010) some of these dilemmas are:
- Universalism vs. Particularism: Doing the right thing or doing things right?
- Individualism vs. Collectivism in decision making
- Neutral vs. Emotional
- Specific vs. General: is it just business or the whole person, individual or the entire firm
- Attitudes towards Time
- Attitudes towards Environment
Culture is the framework of values that guides the way of doing business. It defers from country to country and from region to region. In every country, there are the acceptable and unacceptable behaviors. Global managers should learn to adapt the acceptable behaviors and avoid the unacceptable ones. The way of doing business can be learnt through Enculturalization process which is also referred to as socialization. Through this process, managers learn about consumers behaviors, what guides these behaviors, and how to manage human resources and business partners. Cultural adaptations assist global managers in their business operations and protect them from culture shock which they may experience in international business. Culture affects global business in many ways for example it affects the kind of business negotiations to be undertaken by different countries and defines the types of opportunities available in the global market.
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