Marketing Across Cultures - The Distribution of Products in China, Japan, and India - Essay Example

?What are the problems you are likely to encounter with the distribution of your products in: China, Japan, and India? Which country poses the biggest problem? Explain your answer. In distributing products in China, Japan in India, marketers can expect to experience difficulties in communicating with consumers as a result of language and other cultural differences. For example, although Mandarin is the national language of China, there at least more than one hundred other languages as a result of the large number of ethnic groups in China. Non-verbal communications are also important and can present difficulties in high-context cultures such as China, Japan and India. Thus what is seen is just as important as what is written or what is spoken. Therefore visual or non-verbal communications about brands and products must be adapted to culture to connect with people in high context cultures. In particular, people from high context cultures are more socially oriented and prefer to have face-to-face, or interpersonal dealings in communications (Usunier & Lee, 2009). The idea is to establish some sort of a connection to consumers in high context cultures. For example, when distributing goods in places like China, Japan and India, connections can be made by appealing to local cultural symbols. Japan’s high uncertainty avoidance culture makes it the most difficult market for foreigners to penetrate. High uncertainty avoidance cultures are usually not amenable to anything new or uncertain. Thus the state and social norms typically implement rules and norms to restrict the introduction of uncertainty in terms of the introduction of anything or any phenomenon that is foreign or different. China and India are cultures that are more amenable to uncertainty than Japan is (Usunier & Lee, 2009). Many products fulfill both a functional need as well as a social need. When deciding how much to adapt an existing product for a new foreign market, which type of need should a marketer focus on? Explain your answer. When adapting an existing product for a new foreign market the marketer should focus on social needs. For example in masculine cultures where men make a majority of the purchasing decisions, the product should be adapted to appeal to men. Likewise, in “highly feminine individualist cultures” the social and financial burdens are shared by men and women (Usunier & Lee, 2009, p. 71). Thus when adapting an existing product to this culture, the product does not have to be gender-specific. However other cultural norms may require adaptation. For example, explicit images displaying some degree of nudity in packaging may be offensive to some cultures. A food product such as a soup brand may want to replace a soup made of forbidden meat products with a more appropriate meat in countries where the meat is not an acceptable food source. This will be particularly important in high uncertainty avoidance cultures. High feminine collectivist cultures are similar to high feminine individualist cultures in that men and women share responsibilities for economic and social decisions. However, these individuals typically lack individual authority. Thus products must be adapted so that they appeal to this group dynamic. It therefore follows that products should be more family oriented as high feminine collectivist cultures emphasize the importance of the family as a whole. As Usunier and Lee (2009), in high feminine collectivist cultures, the entire family has a significant influence on “consumption behaviour” (Usunier & Lee, 2009, p. 71). Comparing a supermarket in Tokyo, Japan with one in Dallas, Texas, which of the two is likely to have higher sales of snacks and sweets (Items usually found near the cash register at the checkout)? Explain your answer using the most relevant cultural dimension. Items are typically placed near the cash register in supermarkets and other stores generally to appeal to impulsive or unplanned consumer purchasing behaviour. Asian cultures are typically linked to the collectivist dimension of culture and Western cultures are usually linked to the individualistic dimension of culture. Thus in determining whether the supermarket in Tokyo, Japan will sell more or less snacks and sweets at the cash register than a supermarket in Dallas, Texas, we compare the collectivist (Japan) culture with the individualistic (Texas) consumer behaviour. Collectivist consumers are distinguished from individualistic consumers in ways that predict that individualists are more predisposed to impulsive spending and would therefore by more amenable to purchasing snacks and sweets at a supermarket check-out counter than collectivist consumers. Collectivist consumers are more concerned about how their behaviour reflects on and is accepted by group norms. Individualist consumers are only concerned with satisfying their own goals and desires. As Usunier and Lee (2009) explain, collectivist consumers learn to control individual impulses better than individualist consumers. It therefore follows that a supermarket in Dallas, Texas will likely sell more snacks and sweets than a supermarket in Tokyo, Japan. A multinational corporation has the choice of following either a financial integration philosophy or a financial independence philosophy. In the long term, which choice should result in a firm having more subsidiaries around the world? Explain your answer. A multinational corporation adopting a financial integration philosophy can expect to have more subsidiaries around the world in the long term than a multinational adopting a financial independence philosophy. This is because a financial integration strategy is aimed at integrating national and domestic production and consumption elements into the global economic sphere. By taking this approach, the local economy and the local market does not operate as the main method of creating wealth because national borders are opened for carrying out commercial activities. An integrated financial philosophy is usually manifested by an integrated marketing approach in which promotions, advertising, marketing, communications and direct marketing are all placed together as opposed to a financial independence philosophy in which these elements work independent of one another. An integrated financial philosophy is therefore based on the perception that product, market and consumer are all understood as a unified force. For the following industries/products, discuss to what extent: (a) A world consumer exists; (b) The product or service offered are themselves global (similar worldwide): and (c) The industry itself can be considered as global: A global “perspective” is guided by marketing theories that views products and consumers as “universal” in nature and does not depend on specific market conditions to promote the product or to obtain consumer appeal (Usunier & Lee, 2009, p. 80). In this regard, the world consumer is emerging in that products and industries are finding global acceptance and therefore penetrate national and cultural boundaries (Usunier & Lee, 2009). Global products meet the needs and preferences of consumers, but penetrate national borders (Usunier & Lee, 2009). Even so, it will be necessary to understand cultural differences in attempting to introduce global products and goods (Usunier & Lee, 2009). Thus global products are flexible in that while they meet the needs and preferences of consumers generally, they can be designed to conform to local market conditions. Airlines: Airlines are global products and industries because consumers are becoming increasingly mobile and traveling across borders. Airlines are also converging in terms of products and services offered to the public as they are conforming to international standards and requirements for safety. Fuel prices also impact and limit how and what airlines can offer and thus products and services are essentially uniform across borders. Tobacco: Although tobacco is among the products that marketers have used in global advertising and communications strategies to obtain global reach, tobacco as a global product or industry has its limitations. Certainly, tobacco appeals to and reaches the world consumer. However, cultural and legal norms can limit the extent to which marketers can penetrate some markets. For example in Europe, advertising tobacco is prohibited (Usunier & Lee, 2009). Meat-based foods: Although some meat-based foods such as hamburgers and hotdogs are ethnic in nature and have found appeal abroad as a result of traveling and mobility of people and goods, there are some factors that limit the ability of meat-based foods to become global products and industries. For example in some religious states meat is banned. In other states, cultural norms are particularly intolerant and suspicious of foreign meat-based products. Sheets and pillows: Sheets and pillows can be described as global in nature since industries can find consumers all over the globe amenable to the purchase of sheets and pillows. However, brands and recognition are particularly important for expanding the global reach of sheets and pillows as consumers are more mobile and have access to telecommunications which enhances product awareness. Pharmaceuticals: Pharmaceuticals are similar to tobacco in terms of global reach. While pharmaceuticals have a wide reach and are needed and used globally, there are cultural and legal norms that distinguish between acceptable pharmaceuticals as well as prescription and non-prescription/over-the-counter pharmaceuticals. Thus the extent to which global producers can penetrate global markets is limited to cultural factors. How do you suppose Hollywood’s influence on the globalization of consumer culture affect a firm’s decision to use product placement as part of their marketing strategy? Hollywood enjoys a 90% share of the global film industries and thus has a powerful global reach (Usunier & Lee, 2009, p. 104). This is particularly important for firms who cannot directly advertise goods in some targeted markets. For example a ban against the advertising of tobacco in Europe can be overcome by a product placement technique in which the tobacco is used in a film that will be aired in Europe. Product placement is a method by which a marketer positions a product so that it can be observed in use or is simply clearly visible in a film or on television during a programme. The product can also be placed at an internationally or nationally aired sports event. The marketer will pay the film maker or the television producers a fee in exchange for the product placement. Hollywood not only has an extremely large reach, but it has staying power. In other words, Hollywood films are not only viewed for a period once released and in several places, but they are also converted to DVDs and cable television and are viewed over and over again for decades. Television programming and sports venues are do not have the same degree of staying power and repetitious viewing. It therefore follows that Hollywood films would be the preferred method of product placement for firms. What is the main reason why globalization is often mistaken as a worldwide extension of the American Way? Explain your answer. The claim that modernization is merely an extension of the “American Way” is based on the perception that American lifestyles are appealing on a universal level. This claim is based on the belief that there are two ways of looking at globalization, the American Way which is forward thinking and national cultures which are backward thinking. In this regard there is the belief that there are “opposing concepts”: “past/future”, “traditional/modern”, “true/false”, and “rational/emotional” (Usunier & Lee, 2009, p. 105). Obviously, those who persist in the American Way are those who align the American Way with terms such as future and modern, and those who oppose it looks at the American Way as false and emotional. However, Usunier and Lee (2009) contend that it is erroneous to conceive of globalization as a worldwide extension of the American Way because, in order for globalization to materialize Americans have to consume foreign goods and services. In other words, globalization is the reciprocal exchange of goods and services. Just as the French may import American goods, the Americans import French goods. In fact, Americans are more amenable to foreign goods as they are a more socially open culture and are amenable to change more so than Asian cultures. Explain what the textbook author means when he writes: “Globalization favors the consumer not the worker.” Be thorough with your explanation. Globalization is said to favour the consumer as opposed to the worker because although globalization involves the movement of goods and services across borders, this often words against the interest of workers. Consumers have significant choices in the range of goods in terms of the quality, quantity and prices. Workers however, are having significant competition in the job markets as the movement of people across borders means that jobs and workers can be replaced. In some cases technology can perform functions that workers can. In this regard, workers are increasingly finding their jobs are vulnerable to either competition in a growing labour market or in advances in modern technologies. For example, a filing clerk may find that his or her is redundant now that computers can store and sort files far more efficiently than a human being can. Moreover, with advances on modern technology, employers no longer have to hire workers locally and can have workers performing duties from a remote location. Thus services can be outsourced for lower wages. In other words while workers are competing globally for jobs, firms are competing globally for a share of the global market. As a result, consumers are the beneficiaries of competition in the global market place while workers are harmed by the very same competition. As T.R. Reid argued, even though Japan has prospered as a result of following a Confucian doctrine, there is much corruption in business and government, which goes completely against the teaching of Confucius. What is the best explanation for this contradictory state of affairs. Confucian takes the position that government acts in the position of parents of the governed. In this regard, the government’s responsibility is to treat the governed in humane ways, always looking out for citizens’ welfare. While government and business corruption may be inconsistent with the welfare of citizens, if citizens are prospering regardless of corruption, there may be collective view that the government is doing its job despite corruption. It is perhaps the Confucian ideology that reverses the ill-economic effects of corruption in Japan. Collusion between government elites and businesses has been beneficial to economic growth in Japan and in East Asia in general. In fact, contrary to popular perceptions that corruption stunts economic growth, corruption has actually improved economic growth in Japan (Reid, 2000). It can be assumed that government elites who accept bribes from business for the allocation of state contracts and businesses have an incentive to remain in power. Obviously, the kick-backs from bribes provide a monetary incentive. The best way to ensure that the corrupt official remains in power is to look after the welfare of the population who participate in the election process. Thus corrupt elites arguably work harder to ensure economic growth and prosperity for the population and this explains why despite Confucian ideology, there is state and business corruption in Japan and yet Japan is prosperous. Explain what T.R. Reid means when he states: “Social training takes place alongside academic training.” What evidence does he give to support his argument? Reid’s (2000) contention that social training takes place together with academic training is based on his argument that socialization begins at home and simply continues “in the classroom” (p. 151). For example, in Japan, Confucian dictates that everyone gets along with all others. Thus the child learns this at home and when he or she enters school teachers will usually emphasize the significance of getting along and “fitting in with other” (Reid, 2000, p. 151). Reid (2000) provides another example of how social learning takes place alongside academic training. In Japan for example, effort is an important social attribute among Japanese. As a result the word “doryoku” which translates to mean “effort” is prominently displayed among Japanese classrooms (Reid, 2000, p. 136). In this regard, the schools will provide the academic learning material, but the student is required to put in the effort. Moreover, where Japanese students obtain good grades, the good grade is usually linked to the student’s efforts. In other words, social learning and academic training are two parts of the cultural experience. A child’s social training is perpetual in that the child is always being exposed to social norms either at home or in school. The suggestion is therefore that social learning is institutionalized and just as it is embedded in the family, it is also embedded in the academic environment. It is therefore impossible to segregate social learning from academic training as they both reinforce social and cultural norms. Smokeless and Taste-less cigarettes have failed miserably in the west but have succeeded in the East. What is your best explanation for this phenomenon? The East is typically characterized as having a collectivist cultural dimension. More particularly, Confucian is said to be associated with achieving group harmony. In the West where individualism is more prominent, Westerners are more predisposed to look out for their own interests as opposed to the interest of others. Thus in Eastern cultures, an alternative to real cigarettes would be more successful because real cigarettes emit fumes and smoke that might be offensive to others. A tasteless cigarette would be preferred to avoid offending others with whom the smoker has intimate relations. For example, when kissing loved-ones, the smoker using tasteless cigarettes will not offend the recipient of those kisses. Westerners are not as concerned as Easterners about how others feel about their activities and interactions. -Can you come up with a product (real or hypothetical) that might also succeed in an Asian country but fail in a more “westernized” culture (or visa versa)? I would expect that a product such as Amazon.com would not be successful in an Asian country because of its high context culture in which trust is a significant issue. Asian cultures prefer face-to-fact or personal confrontation prior to purchasing a product. Asians would also like to examine goods before they purchase the product. Amazon.com represents sellers that are situation all over the world with whom purchasers do not have direct contact with. Asians would not be amenable to these kind of purchasing and selling trends as they will be required to put their trust in strangers. What are some of the cultural factors that make bargaining more or less acceptable in any given culture? There are a number of cultural factors that influence what is acceptable in any given culture. For example a culture that emphasizes competitiveness may permit bargaining that is drawn out and intensively competitive in nature. This kind of bargaining may also be consistent with cultures that have a world view that emphasizes need and the belief that resources are scarce or limited. In masculine cultures it will also be acceptable for men to bargain more competitively than females and to negotiate longer than females. In Eastern cultures in particular it is acceptable to negotiate the price of a consumer good on display in a store. In Western cultures it is typically accepted that the goods are sold at the price marked and it is awkward or even unacceptable to negotiate for a different price. This is because Western cultures are more open and conditioned to place merchandise for sale with a final offer of price. In Eastern cultures it is accepted that purchasers and vendors are destined to meet, socialize and confer over product quality and price before an offer is made final. Thus high context and collectivist cultures would find bargaining more acceptable than low context, individualistic cultures. Moreover, in collectivist cultures where there are greater concerns for social groups as opposed to the pursuit of self-interest, bargaining would be more acceptable in these cultures than they would be in individualistic cultures. Bibliography Reid, T. R. Confucius Lives Next Door: What Living in the East Teaches Us About Living in the West. New York, NY: First Vintage Books Edition, 2000. Usunier, J-C. and Lee, J. Marketing Across Cultures, 5th Edition. Essex, England: Pearson Education Limited, 2009. Read More