Studying the influence of cross-cultural difference on international marketing

INTRODUCTION

The following report deals with the influence of cross-cultural differences in

international and foreign markets. International marketing is a generalized marketing

method, that deals with the trading of goods and services beyond the national market

boundaries of a country. The influence of cross-cultural difference is highly sensitive

as the products and services distributed beyond the national boundaries must appeal to

the consumers prevailing in foreign markets. International markets are widely

heterogeneous when it comes to the cultural perspectives and preferences of the

consumers. The report will be providing various literature reviews relevant to the

influence of cross-cultural differences and their importance while developing the

international marketing strategy. The report also consists of detailed information

regarding, the methods of data collection, data analysis conducted throughout the

research.

There has been phenomenal growth and prosperity in the global economy, today.

Organizations and business entities from different parts of the globe belonging to the

different market sector and from various industries have succeeded actively to pursue

international, national, as well as local marketing strategies. However, with the latest

development and changes in time, the marketing strategies in the current business

environment has been finely tuned, but it has also created unparalleled challenges to

the orthodox ways of doing business. At present time, the importance of global

marketing has developed to a greater extent. However, certain factors have become

the restraining forces for business organizations to engage in foreign trading.

anyhow but to market the products based on the unique cultural characteristics of

foreign markets and advertise them among the local people. The influence of cross-

cultural differences significantly acts as an unseen obstacle in the path of achieving

success by the business enterprises.

RESEARCH AIMS

The primary aim of this research study to understand the influence of cross-cultural

differences on international marketing in foreign markets.

RESEARCH OBJECTIVES

 To understand the influence of cross-cultural differences on international

marketing.

 To create a comparison between the different International cultures and

comprehend human preference is influenced by cultural values.

 To determine the methodological study on the different cultural backgrounds

affecting the business practices of various organizations.

 To identify and collect data and information regarding the cross-cultural

differences and its influence on marketing strategies.

RESEARCH QUESTIONS

1. What is the cross-cultural difference?

2. What are the factors of cross-cultural differences?

3. Will the adaptation of cross-cultural awareness by the organization lead to the

successful capturing of the foreign markets?

foreign trade?

LITERATURE REVIEW

Understanding the Cross-Culture Differences Through Proper Communication

Cross-culture can be referred to as the concept of recognizing the dissimilarities

between the people belonging from different nations, backgrounds, cultures, and

ethnicities. Cross-culture difference is a primary factor that influences business

ventures negatively. There are times when organizations interact with their consumers

beyond the natural regional boundaries. The cultural and ethnic differences in

perspective and preferences create the cross-cultural difference between the

organization and its consumers. With the advent of globalization of businesses, the

majority of the companies and business entities are working to diversify their products

and services into two different foreign markets. However, the differences in the cross-

culture pose a significant obstruction in the efficient and effective trading practice and

in developing market strategies. The cross-cultural differences can create a negative

impact on the core area of a business organization. Communication is the basic

element of an organization. Understanding the verbal and nonverbal communication

between cross Cultures is necessary to facilitate foreign trading. People from various

parts of the world speak, read, and write different languages and, might not

understand any other language except their common language. This can create a

cross-cultural miscommunication and is a sensitive area of expertise. Therefore, the

marketing strategy, products, and services should be in favor of the people belonging

from a different culture.

This cultural dimension theory was postulated by Geert Hofstede. It is a framework

that helps us to comprehend the dissimilarities in the culture beyond the local

boundaries.

Fig 1. Picture Representing the Six Dimension of Culture

The framework also helps the business entities to develop knowledge about the

different cultures. In simple words, the theory helps us differentiate between the

various cultures, the dimensions, and impacts on a business organization. There are

six dimensions in which culture can be categorized. The six dimensions are as

follows:

1. Power distance index

2. Collectivism vs. Individualism

3. Uncertainty avoidance index

4. Femininity vs. masculinity

5. Short term vs. long term orientation

The above-mentioned dimensions will help to distinguish the unique cultural

differences and independent preferences of individuals from the different regions

across the world. It helps in understanding the different cultural backgrounds,

individual behavior in purchasing goods, as well as avail the services. These cultural

dimensions will help in devising potential marketing strategies through successfully

capture the foreign markets and consumers from diverse cultural backgrounds.

Culture Theory

The theory of culture emphasizes the market expectations because they're not only

made up of distinct individuals, but also because they are driven by their individual

perceives, interests, traditions, and knowledge. The comprehensive paradigm of

culture theory encompasses the concerns that are common to all individuals. The

cultural theory itself, however, pays close attention to all these needs continuously.

The Theory makes it possible to concentrate on the whole contexts and components,

on the values and cultural value systems, to create a strategic relationship between the

nations for trading purposes The culture theory helps us to deal with the sophistication

and heterogeneity of the different cultures present in the different regions of the world

in a better manner. It also aims to guarantee that foreign markets are accurately

contextualized so that the marketing strategies can be created effectively.

Cultural Differences in International Trading

Due to globalization, more and more organizations are trying to diversify their

business beyond the regional boundaries. The growing trend of expansion and

diversification has ladies organizations two face various cultures and new foreign
markets. The success of the business organization in capturing a foreign market lies

strongly in understanding the unknown as well as the diverse cultural traditions from

all across the world. Culture and tradition create a strong impact on an individual

from a very early age. A person behaves, puts his individual opinions, ideas, beliefs,

and theories that are particularly based on the culture he follows. Cultures are usually

the norms and moral values that control human behavior, face personality, and so on.

These characteristics are passed on from one generation to another. It contains various

components like ceremonies, rituals, values, religious identities, and others that help

to distinguish one culture from another. These components create intercultural

differences that in turn becomes a huge bay area for international businesses to

expand and grow rationally. To become a successful and sustainable cross-cultural

business organization, the management should try to minimize the differences in

culture and develop products and services in relevance to the target consumer's values

and culture. Organizations should develop a sense of cultural awareness which would

help to gain knowledge about multicultural differences prevailing throughout the

world. Having proper cultural knowledge will help the organization to provide

efficient and effective customer service. It may also help in the survival of the

business in a multicultural economy. Knowing other cultures will also help the

organization to gain a competitive edge why doing business beyond the regional

boundaries. Along with this, a sense of cultural heterogeneity must be inculcated by

the organization to understand the difference between the cultural groups and their

ethnicity. it is very normal to have differences between the eastern and the Western

cultures. However, an organization should implement unique marketing strategies to

create cultural synergy among the cultures.

The 4Ps of marketing is crucial for the business organization to identify proper

marketing strategies and determine the pricing methods for their products and

services. However, cross-cultural differences become a crucial part of determining

these elements of marketing.

 Product – while developing the products which are to be marketed in a foreign

market, the organization should keep in mind and understand the cultural

differences to accomplish the international marketing objectives. While designing

the products when should keep in mind the cultural elements like values, beliefs,

language, traditions, and others.

 Promotion – promotion and advertisement is the most important element of

marketing. It helps in increasing the sales and earning revenue for the

organization. During International product promotion, the organization should

adopt a viable promotional strategy and the advertisement should be relevant to

the country's political laws, cultural attitude, language, and so on.

 Price – similarly while developing a pricing strategy for the products and

services, the organization should understand the socio-economic policies, interest

and inflation rates, competitive market, and more. Developing a strategic pricing

method will help the organization to increase its product demand in the

international market.

 Place – this element discusses the transportation and distribution of a product or

service to the customer. Therefore, before the transportation of goods, an

organization should build an efficient and effective channel of wholesalers,

retailers, and suppliers to have a smooth distribution chain within the foreign

market.
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