Cross-cultural issues in marketing communications. Dr. Monika Simon Lucerne University of Applied Sciences and Arts

Transcription

1 Cross-cultural issues in marketing communications Dr. Monika Simon Lucerne University of Applied Sciences and Arts

2 Overview 1. Adaption and Blunders: some examples 2. International Marketing Strategy 3. What is culture? 4. The International marketing strategy of McDonalds

3 1. Adaption and Blunders: some examples

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14 2. International marketing strategy Marketing is very expensive, therefore, it has to be successful. Since the 1960s the central debate related to international advertising focuses on the dichotomy of two strategies. Standardization: Multinational companies behavior should be uniform to minimize total costs an promote a global corporate image («one size fits all»). Adaptation: Multinational companies should adapt their behavior to the different markets and target groups and tailor their campaigns according to their culture or their needs.

15 Standardization

16 Adaptation

17 Total Media Ad Spending per Person Worldwide, by Country,

18 Adaption or standardization? The debate started when in response to the expansion of American agencies in the 1960s, European voiced concern over the impact of American-style marketing. Europeans felt that advertising should be localized and reflect national values (German ads German culture, French ads French culture). U.S. advertising practitioners saw no harm, arguing that even different people are basically the same, that there is a set of universal human characteristics like the desire to be in good health, to be beautiful, to be good parents, etc. (Arthur Fatt 1967). The debate heated up in 1983 when Theodore Levitt published his famous article The Globalization of Markets in the Harvard Business Review (coined the term globalization ). Arguments: Advanced technology, travel, and educational systems would create homogenized consumer tastes so that customer differences in various markets and countries would be minimal and insignificant.

19 Levitt s thesis provoked strong reactions The standardized approach conflicts with local cultures and regulations: Marketers must consider differences among countries, including customs, states of economic and industrial development, media availability, legal restrictions etc. Marketers have to understand that the use and need for a product or service is culture bound. The global market is a fiction, standardization can only happen at a superficial level.

20 Adaptation

21 Esther Honig: Beauty standards vary across cultures

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24 The world is going two ways. Technology and business are pushing globalization, but at the same time the world is falling apart into smaller communities. Richard Block (Advertising Agency J. Walter Thompson)

25 Issues of the standardization/adaptation debate Nowadays, international marketing and especially advertising remains a under-researched field, theoretical and managerial knowledge is missing. (descriptive rather than prescriptive research). Therefore, there is no scientific evidence for the practicioners whether the standardization or the adaptation strategy is better. Decisions whether to standardize or to adapt are made on a pragmatic day-to-day basis. About 70% of the global marketing campaigns are adapted, whereas 30% are standardized. No global marketing is purely standardized nor adapted.

26 Decision making along the continuum of the standardizationadaptation scala Standardization Adaptation Mixed approach or combination strategy (also called contigency approach as the strategy varies depending on the situation) Economical, geographical, social, factors considered

27 3. What is culture? Culture is an abstract phenomenon which can not easily be defined. Well over 200 definitions can be identified, no shortage of definitions of this concept exist. There are however some commonalities: Culture is not inherent or innate but learned Learning of culture typically takes place in institutions like family, school, church, corporation. Culture has to be shared by members of a group. We live unaware of the tremendous impact our culture has on us. Culture is like a code which tells us what to do or what not to do, which helps us making decisions.

28 Culture can not been grasped nor measured, but its manifestations can be described. For this purpose, the iceberg metaphor is of great help: Surface culture: Artifacts and behaviour Deep culture: Beliefs, values, assumptions

29 Surface culture: language Branding - using appropriate names: American Motor Corporation (AMC): Matador Ikea: Fartfull (work benches) Clairol: Miststick (iron hair curler)

30 Surface culture: language Branding in China Coca-Cola -> Kekoukele (tasty fun and happiness) Reebok -> Rui bu (quick steps) Colgate -> Gao lu jie (revealing superior cleaningness) Rolls-Royce -> Laosi-Laisi («labor» and «plants») Microsoft Bing -> Bing (disease, defect, virus)

31 Surface culture: language Meaning and translation of slogans: English ad slogans are not well understood: Douglas: Come in and find out English ad slogans are not well translated: Pepsi brings you back to life Chinese translation (mandarin): Pepsi brings your ancestors back from the grave

32 Visual representations/visuals should be adapted to the target culture/local context: Colors Symbols Meanings Surface culture: visuals

33 Surface culture: customs and habits Marketers should take into account the customs and habits of the target

34 Ohaguro in Japan and Southeast Asia

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36 Deep culture Deep culture: Beliefs, values, assumptions -> How to identify them? Implicit knowledge Intercultural research: cultural dimensions

37 Deep culture: Gert Hofstede (*1928) Power Distance Indulgence vs. Restraint Long Term vs. Short Term (Pragmatism)) Cultural Dimensions Uncertainty Avoidance Individualism vs. Collectivism Masculinity vs. Feminity

38 China: high power distance / high masculinity

39 Germany: high masculinity / high uncertainty avoidance / high individualism Singapore: high masculinity / low uncertainty avoidance / high collectivism

40 Switzerland: high individualism / high masculinity

41 Deep culture: E. T. Hall ( ) Time Space Cultural dimensions Communication High/low context

42 Germany: low context communication / France: high context communication

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44 4. The International marketing strategy of McDonalds

45 McDonald s worldwide expansion

46 McDonaldization 1991 George Ritzer wrote his famous book McDonaldization of Society (worldwide homogenization of cultures). «the principles of the fast food restaurant are coming to dominate more and more sectors of society» 1991 Jim Cantalupo, CEO of McDonald s launched an indigenizing strategy, in order to become as much part of the local culture as possible

47 Marketing-mix at McDonald s Products are adapted to the different markets

48 Rice hamburger in Taiwan

49 «Maharaja Mac» with lamb or chicken in India

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52 Mc Kebab in Israël

53 In France: Croque McDo

54 McSpaghetti in Singapur

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57 In Germany

58 The same products have different prices around the world

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61 The places where McDonald s food is sold vary around the world

62 «Ski-Through» in Sälen, Sweden

63 Germersheim in Germany

64 Mc Delivery in India and Singapore

65 McDonald's Train Dining Car (SBB Switzerland)

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67 Promotion strategies of McDonald s vary greatly around the world

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70 Come as you are José Bové, french anti globalization protestor and Mac basher

71 Malaysia: high collectivism (Hofstede)

72 Switzerland: high individualism (Hofstede)

73 Baby Europe Baby USA Baby Asia

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