International Marketing and Culture
Globalization has increased opportunities for international marketing and business for many companies that could not afford to do so in the past. Many researchers consider international marketing to be synonymous with exporting. However, they are not the same and international marketing is much more complex than simple exporting. When a company exports its goods, they already have a buyer. Many timesm this buyer is the local distributor for the goods and has to market to local clientele. The end distributor is immersed in the culture and already has an established business in the area. They already understand their market and the exporter is simply someone on the their supply chain. International marketing involves taking the place of the end distributor. This is a much more complex issue than simply being a step in someone else's supply chain. This research will support the thesis that establishing brand image in the United States will involve a different strategy than establishing brand image of in China and India for Canadian companies.
International Marketing Basics
International marketing involves more than simply placing goods in packages and preparing them for transportation. International marketing involves understanding the target culture and developing a marketing plan that will reach the target market. A lack of understanding of the local culture can mean disaster. Marketing techniques that work in one culture often do not work in a different culture. The international marketer must understand the language, the religion, values, attitudes, educational resources, social organizations, technology, laws, politics, and sense of aesthetics of the culture in which they wish to establish a market.
Language is often the greatest barrier that international marketers must overcome. Learning a new language goes beyond simply understanding the words. Every language has cultural elements that require an understanding of the contextual elements. High context languages do not always carry the extent of what is said in the words that are spoken. Some examples of high context languages include Japanese and Arabic. Applying the contextual rules of one's home culture to that of someone from a different culture can lead to the wrong message being conveyed. This can mean disaster for the international marketer. Making certain that the message is understood goes beyond interpreting the languages word for word. The following will explore contextual considerations for a business in Canada that wishes to establish markets in the United States, China, and India.
US Market Entry Considerations
The U.S. is Canada's the next door neighbor and shares many cultural elements with U.S. citizens. NAFTA eliminated many of the technical barriers to exporting to the United States. However, if a Canadian company wishes to establish itself in the United States, they must understand what makes Canadian and United States cultures different. The following will explore some of the key differences between Canada and the United States as they relate to someone who wants to market products in the United States.
The first consideration in marketing in the United States is that the population of the U.S. is about 300 million, whereas the Canadian population is about 32 million (Socyberty, 2007). In both the U.S. And Canada, the population is concentrated in major urban centers. The U.S. has ten major urban centers, whereas Canada has only four. From a marketing perspective this means more potential customers, but only if the marketer can reach their target market. This can be difficult, as the U.S. is much more culturally diverse and has more minority groups than Canada. The U.S. is more involved in world trade than Canada and also more politically involved in foreign politics (Socyberty, 2007).
In terms of communication style, Americans tend to be more "in your face" than Canadians. Canadians are much more conscious about conserving fuel than Americans, who tend to buy more the big muscle cars (Socyberty, 2007). Americans tend to want what they get fast and the do not care about content as much as price and speed (Socyberty, 2007). Americans are considered to be fast moving and commercialized, where Canadians tend to be lower profile and tend to solve problems in old fashioned ways (Socyberty, 2007). Of course these ideals represent stereotypes and do not represent every of prospective client.
The marketer must be careful about using stereotypes. Solid market research is still the foundation of a successful marketing campaign, regardless of the cultural differences. The marketer must still do their due diligence in order to understand their target market and their wishes. For instance, if the...
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