organisations imbibe a strategy that adapts their advertising messages to the specific values of particular cultures. A very good example here would be that of McDonald‘s, which tries to localize its advertising to consumers in each of the cross-cultural markets in which it operates. Tangible Benefits of Global Brand Building
Global brand building drastically reduces marketing investments. A strong brand needs lower and lower levels of incremental investment to sustain itself over time. A new and unknown player will have to spend two to four times more than the market leader to achieve the same share of mind. Given the huge difference in business volumes, the pressure of the bottom-line is much higher for an un- established player.
Strong global brands always account for more stable businesses. Global brand building commands a premium. As long as there is a distinct value attached to your offering, the consumer will always be willing to pay more for it. That is the only reason why an unknown brand called Titan could command a substantial premium over HMT. That is the same reason why a brand such as BPL at a higher cost beat the stuffing out of companies such as Akai, Sony and Philips in the CTV wars.
Global brand building builds entry barriers. Human beings as a species love status quo. Therefore, a brand which is entrenched in the consumer‘s mind is very difficult to dislodge.
Global brand building increases cash flow efficiency: Global brand building also increases value of the business due to the international presence. Phillip Morris bought Kraft from General Foods in 1991 for $13 billion, more than three times its book value. Coca-Cola paid $60 million to acquire Thumbs-Up from Parle. Neither buyer had any lacunae in manufacturing, finance or human resources. They merely bought business with very powerful brand equities and therefore paid more than the net worth of the businesses.
Strategic Implications
There is an assumption that the world is becoming homogenised; yet national and sub-regional cultures do exist. This makes global branding a tough challenge and one that is handled differently from organisation to organisation. Some companies pursue strategies based upon the identification of common elements among countries, whilst others find it more profitable to adapt and adjust according to specific conditions in various markets. There are five basic propositions that a global brand manager has to take note of while developing strategy at the global level.
Many marketers operate in global markets with a strategy still rooted in the domestic market. The strategy needs to embrace the opportunities and the costs of working in multiple countries. The marketer has to look for his competitive advantage outside the country of origin. What will allow one to compete and win in a strange country? Are the product and the brand in particular needed in another culture? Only careful consideration of these questions will create the right platform for a global branding strategy.
CULTURAL VARIATIONS & NON-VERBAL COMMUNICATION In a culture we have many variations in non-verbal communications. Each culture assigns a meaning to non-verbal signs utilised by it. There are some variables in non-verbal communication. These are:
(a) Use of time (b) Use of space (c) Friendship (d) Agreements (e) Things (f) Symbols (g) Etiquette
Time
Time is a resource which is distributed equally amongst everybody. Every person has the same amount of time at his disposal. What view individuals and societies take of time makes them different. Some can be classified under monochromic culture and others in polychromic culture. Some of the important
differences between monochromic a polychromic culture are give in the table below.
Monochronic culture Polychronic culture Do one thing at a time. Do many things at once.
Concentrate on the job. Highly distractible and subject to interruption.
Take deadlines and schedules seriously.
Consider deadlines and schedules secondary.
Committed to job. Committed to people and relationships.
Adhere religiously to plans. Change plan often and easily. Emphasise promptness. Base promptness on relationship. Accustomed to short term
relationships.
Prefer long term relationships
Table 1.4. Differences between Monochronic and Polychronic Culture The meaning of time may be different in different cultures. Some people take time in making decisions according to the importance of decisions. Some insist on coming to the point directly in business transactions and are well prepared. Some keep appointments by the minute, others make people wait for a long time.
Space
Space may be related to prestige rather than the need. The higher the office, the bigger the office space and so on. Americans have the offices of executives on the top floor and tend to separate the office of subordinates. Japanese have their discount stores on the upper floor. Some cultures and individuals maintain a fair distance while transacting, others co-mingle easily. Americans maintain a fair distance while interacting with associates. Arabs stand very close to each other. Friendship
Friendship plays an important role in business transactions. Good personal relationship and feelings matter most in a long term agreement. Social contacts developed by parties gain priority over technical specifications. Americans make friends easily, and drop them easily as well, because of both social and
geographical mobility. Some cultures like Indian or Latin Americans have lasting relationships that endure for a long time and so does the business. Personal ties, personal trust leads to cooperation and a lot of transaction can take place between parties. Some want to transact business only with those whom they get along and, making money is secondary.
Agreements
All business when transacted is done under some agreements. These agreements may be written or just on an understanding between the two parties. Most people enter into an agreement, but friendship and kinship are also given a lot of importance. Verbal commitments are also binding in some cultures, where signing a contract is just a mere formality.
Things
Different cultures attach different meaning to things. Things include products as well as gifts given in certain business and social situations. An appropriate product in the form of a gift is to be carefully chosen. The gifts can be big or small. They can be given openly or presented privately. This depends on the practices followed in that particular country. Some want to make a show of the gift, by giving it in front of others. Others are secretive about it.
Symbols and Colours
Different countries attach different meanings to symbols, numbers and colours. Symbols can be flowers, triangles, pictures and animals, etc. Some numbers are considered lucky, and others not so lucky, or even unlucky, like 13, 4, etc. Colours have different interpretations. Pink is associated with a female, and blue with the male in the US, whereas it is just the opposite in Holland.
A list of colours and their interpretations is given below:
White: Symbol of mourning or death in the Far East, happiness, purity and peace in the United States.
Blue: Symbolises feminity in Holland and masculinity in the United States, Sweden, India, etc.
Red: Colour for brides and children in India. Sign of masculinity in the UK and France, negative in Nigeria, Germany and positive in Denmark, Rumania and Argentina.
Yellow: Sign of death in Mexico, infidelity in France, celebrations in many countries including India.
White lilies: Suggestion of death in England.
Symbol of Numbers
7: Lucky in India, USA, Morocco, Nicaragua and Czechoslovakia. 13: Unlucky in many countries including India.
4: Symbol of death in Japan. Packing in 4s is avoided.
Triangle: Negative in Hong Kong and Taiwan, positive in Columbia. Owl: Wisdom in the United States, bad luck in India.
Deer: Speed, grace in the United States; Homosexuality in Brazil. Etiquette
These are accepted norms of behaviour. Some behaviour may be rude or abusive in one culture and quite acceptable in other cultures, e.g. sitting with legs crossed or sitting in a manner that shows the sole of a shoe. In Japan it is considered impolite to say no directly to a business offer. They put it differently, by saying it is very difficult, which means no. The exchange of business cards in Japan is essential, and indicates the level of your status in your business.
Similarly, there are many different habits and ways of doing things socially that affect the making of advertisement. Eating with the fork in the right hand and the left hand kept under the table is quite common in America, whereas, in European culture, the fork should be in the left hand and the right hand holding the knife or spoon. These non-verbal communications in different countries or different languages have a direct bearing on the marketing activity and must be
taken care of. As people recognise verbal languages, they act accordingly. In a similar manner, non-verbal communication must also be recognised and understood so that there is less misinterpretation. The advertisement of the communication we want to give should be appropriate and match with the culture of the country.
Key Terms - Culture - Materialism - Individualism Vs. Collectivism - Power Distance - Uncertainty Avoidance - Masculinity/Feminity - Abstract/Associative thinking - Subcultures - Regional Influences - Ethnic Influences - Religious Influences - Psychographics - Lifestyles - Cross-Cultural Consumer Behaviour
- Cross cultural marketing - Global Strategy
- Mixed Strategy - Local strategy
Self-practice Questions
1) Define culture and explain its characteristics.
2) Explain the functions of culture and its components. 3) What are the dimensions of culture and its influences?
4) What are the variations in the cultural values? Explain with illustrations. 5) How Environmental influences affect consumer behaviour?
6) What do you mean by a sub-culture? What are the components of it? 7) How do religious and ethnic groups influence consumer behaviour
decisions?
8) What cultural factors would you consider to name a product that would be acceptable to consumers throughout the world?
9) Explain cross cultural marketing. Describe the strategies to adopt global branding.
11) Give an account of the variables of non-verbal communication that influences cultural variations?
12) How should marketers promote products and services to working women? What appeals should they use? Explain.
13) How do symbols and colours affect the cultural values of consumers? ---
SECTION - II
GROUPS, SOCIAL CLASS & REFERENCE GROUPS Introduction
With the exception of those very few people who can be classified as hermits, people tend to be involved with others on a rather constant basis. Like almost all behavior, an individual's social relationships are of- ten motivated by the expectation that they will help in the satisfaction of specific needs. For example, a person might become a volunteer ambulance driver to satisfy a need for community recognition. Another person might join a computer club in an effort to find compatible friends to satisfy social needs. A third person might join a health food cooperative to obtain the benefits of group buying power. These are just a few of the almost infinite number of reasons why people involve themselves with others.
Objectives
After studying this section, you should be able to
- Discuss the basic concepts of social involvement and group dynamics. - Define Social Class and its impact on consumer decisions.
- Emphasise the role of reference groups in influencing consumer behavior. - Identify other social and societal groupings that influence consumer