Monday, April 30, 2007

Summary, Chapter 4

Chapter IV summary
The Cultural Environment
The external factors that affect a product’s success in a foreign country, such as economic or political conditions, can play a large part in determining consumers’ ability to purchase. However, they do not affect a customer’s desire for or understanding of the need for a product. In order to create that desire, and to position the product as a solution to particular wants or needs, it must be marketed in sync with purchasers’ personal and societal values and behavioral norms; it must be presented in tune with the buyer’s culture.

The term ‘culture’ is nebulous. A culture does not necessarily begin and end at a nation’s borders, and cultures can also have subcultures to which a savvy marketer can effectively sell an appropriate niche product. For the most part, however, it’s important for marketers to determine the common denominators within subcultures and market to those parameters. Of course, for a product sold in more than one country, there are several hurdles to overcome.

The most obvious of those hurdles is language. Not only must a product be advertised in a language the residents of a nation can understand, but the idioms of speech must be taken into account. The annals of advertising are filled with stories about products like Coca-Cola, the slogan of which, ‘Coke Adds Life,’ was read as ‘Coke Brings Your Ancestores Back from the Dead’ in Japan. Even between two nations that share the same language, idomatic speech can produce wildly different meanings for the same word. Suffice it to say, "Fanny Farmer" candies would not have sold well to the mainstream in the United Kingdom.

But successfully marketing to a different culture involves more than just translating one’s tagline into appropriate idiomatic speech. It starts with the understanding of the concept of culture itself, rather clumsily defined by E.B. Taylor as “a complex whole, which includes knowledge, beleifs, art, morals, law, custom, and any other capabilities and habits acquired by individuals as members of a society.” The marketing team must develop an understanding of how the people of a culture see themselves: How they speak, how they view masculine and feminine roles, the significance of religion in their lives and society, how they work with time, etc.

Also, nonverbal communication must be taken into account. According to the text, estimations of up to 70% of the communication between two persons of the same culture is nonverbal. This deeper layer of communication could be vital when planning a television commercial. Symbolism is also contextual within a culture. Certain colors, gestures, objects or societal norms can make the difference between a successful campaign or a disappointing one.

Obviously, then, culture is a huge factor of consumer behavior, affecting who, what, why and how much consumers buy.

A different approach would be made in countries, such as Japan where the primary buyers for families are female, than the USA, where purchase decisions are more equalized between genders. Also, the text cites "Generation Y," the burgeoning $200 billion-plus youth market in the USA. This demographic would be much smaller in a developing country.

The text highlights a print advertisement for beef, to which Americans and Canadians would say "mmmmm....beeeef." However, the point is made that, while Americans may eat 100 pounds of beef per capita each year, in most other nations consumption is minimal. In the same vein, pickup trucks are everywhere in the USA, but in the UK, there are almost none, certainly not the full-size behemoths we buy to tow our boats and trailers. Those that ply Britains narrow roads are mostly owned by companies and municipalities as work vehicles.

Maslow's famous heirarchy of needs is referenced as an example of why customers buy. Where a consumer is in the heirarchy determines his or her purchase priorities. A person in a developing or politically unstable nation might be concerned with physiological and safety needs, such as acquiring enough food, adequate shelter, and protection from banditry, instead of self-actualization needs like Pilates classes and a second Laptop. From a marketer's perspective, Even though there might be a segment of the population that transcends this model, the needs of a nation's markets are closely associated with the level of a country's development.



The shopping habits of a suburban American also differ from people overseas. Whereas for residents of the USA, a weekly trip to the supermarket and a carload of assorted groceries, all purchased at the same place, is the norm, it would be more typical for a French person to make daily trips to the bakery, the butcher shop, the cheese shop, the greengrocer, and the wine store. The French place a different priority on the freshness and quality of their meals than American consumers.

Also, space in European homes comes at a greater premium. There is usually less storage space, and more emphasis is placed on environmental concerns and the avoidance of excess waste. The Miele brand washing machine pictured below is typical for a German house. The dimensions are listed as 85 x 59.5 x 63.4 cm (33.5" x 23.4" x 25")



Compare that to a middle-of-the-road American Whirlpool washing machine, at 42" X 28" X 27."



The size of the American machine would likely preclude its successful sales in a European country, and indeed Whirlpool makes a smaller line of machines specifically for sale in those nations.

A quick case-study of marketing with cultural differences in mind

These three television commercials for Guinness beer illustrate the different approaches used to present a message in line with the culture of the respective nations. The first is from Ireland, where Guinness is iconic.



The second, from the USA, uses Irish stereotypes to gently poke fun at their culture.



And the third, from Uruguay, uses samba music and imagery to wordlessly convey the message and motivation.



Would these ads work if the cultures were switched around? How would Irish consumers feel about seeing themselves stereotyped, riverdance-style? Would an American consumer think to link dark, thick, heavy-tasting Guinness with a tropical party?

No comments: