Global Mgmt Cross Cultural

7/29/2019 Global Mgmt Cross Cultural

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GLOBAL MANAGEMENTCROSS- CULTURALCONSUMER ANALYSIS ON

INTERNATIONALPERSPECTIVE


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CROSS- CULTURALCONSUMER ANALYSIS

A World-wide demand is creating aclimate in which cross-cultural consumer

analysis becomes critically important. Ithas been defined as the effort todetermine to what extent the consumersof two or more nations are similar ordifferent. It can provide marketers with an

understanding of the psychological, socialand cultural characteristics of the foreignconsumers they wish to target. By thisthey can design effective marketing

strategies for each of the specific nationalmarkets involved.


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OBJECTIVES

To understand the importance offormulating an appropriate multinationalor global marketing strategy.

To understand how to study the

differences among cultures whiledeveloping marketing strategies.

To understand how consumer- relatedfactors impact a firms decision to select a

global, local, or mixed marketing strategy.To understand how lifestyle andpsychographic segmentation can be usedin developing global or local marketingstrategies.


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SCOPEThe greater the similarity between

nations, the more feasible it is to employrelatively similar strategies in each nation.On the other hand, if the cultural beliefs,

values and customs of specific targetcountries are found to differ widely, then ahighly individualized marketing strategy isindicated for each country. A major scopeis to determine how consumers in two ormore societies are similar and how theyare different. Success in marketing aproduct or service in a number of foreigncountries may be influenced by similarities

of the beliefs, values, and customs


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CROSS- CULTURAL CONSUMERANALYSIS-A DUAL PROCESS

In order to overcome a narrow andculturally blur view, marketers mustbecome acculturated. They must learneverything that is relevant to the usage of

their product and product category in theforeign countries in which they plan tooperate.

For marketers cross cultural

acculturation is a dual process:

Reorientation: They must thoroughlyorient themselves to the values, beliefs

and customs of the new society in order toa ro riatel osition and market their


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CROSS- CULTURAL CONSUMERANALYSIS-A DUAL PROCESS

Dual acculturation process: In order togain acceptance for a culturally new productin a foreign society, they must often

persuade the members of that society tobreak with their own traditions.

a) In depth picture: The marketer must obtainan in depth picture of the society's presentattitudes and customs with regard topreventive medicine and related concepts.

b) Promotional Strategies: The marketer mustdevise promotional strategies which willpersuade the target market to buy the

product even if doing so requires a change


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CROSS CULTURAL CONSUMERRESEARCH

To do a business without undertakingcross-cultural consumer research, is difficultfor a company to do business in foreign

countries. A great deal of market consumerinformation is available to any firm wishing todo business in the home country. However,the situation is vastly different in many othercountries. E.g. Indian firms willing to do

business in Russia could find only a limitedamount of information regarding consumerand market statistics. Marketing researchinformation on China is generally inadequatebecause surveys that ask personal questionsarouse suspicion among the Chinese people.


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The basic research techniques used tostudy the American consumer are useful instudying consumer in foreign lands, but

additional burden exists in cross-culturalanalysis. Language and word usage oftendiffer from nation to nation. The scales ofmeasurement also differ in internationalmarketing. A five or seven point scale maybe adequate in USA while in other countrieswe may need 10 or even 20 point scale. LikeGermans are least likely to overstate theirintentions, while Spanish and Italian

customers are likely to overstate them on a


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In order to avoid such researchmeasurement problems, consumerresearchers must familiarize themselves

with the availability of research services inthe countries they are evaluating aspotential markets. They must learn how todesign marketing research studies that willyield useful data. They must remember thatcultural differences that may makestandard research methodologiesinappropriate.


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BASIC RESEARCH ISSUES

Differences in following issues in variouscountries present the basic research issues incross cultural analysis:

a) Language and meaning: For example,TheChevrolet Nova did not sell well in LatinAmerica because in Spanish the wordNova means It doesnt run. PepsisCome alive with Pepsi campaign, in

German literally means Come alive out ofthe grave.

b) Market segmentation opportunities: Forexample, the income, social class, age and

gender of target customers differdramatically in two different countries.


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c) Consumption patterns: For example, anytwo countries may differ substantially inthe level of consumption or use of

products or services such as cigarettes.d) Perceived benefits of products and

services: For example, two nations mayuse or consume the same product suchas yogurt in very different ways.

e) Criteria for evaluating products andservices: For example, the benefitssought from a service like bank cardsmay differ from country to country.


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f) Economic and social conditions andfamily structure: the style of familydecision making may vary significantly

from country to country.g) Market structure and conditions: For

example, the types and quality of retailoutlets may vary greatly amongcountries.

h) Market research possibilities: Forexample, the availability of professionalconsumer researchers may varyconsiderably from country to country.


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Global Mgmt Cross Cultural