Understanding Culture : The critical element in International Marketing

The challenge facing many companies who wants to take their product/ services to global markets is related to developing strategic plans that are competitive in the intensifying global markets. Today, we are noticing a high propensity within the boardrooms of many companies that they want to go International! In many cases, it may be a fair comment to state that going international is no longer a luxury but a necessity for their own survival.

Executives who are in the business of international marketing would have witnessed that many successful domestic companies, fail and sometimes miserably so, when they go to International markets. Then, the debate rages on… company has a great product, the right value proposition, competitive pricing, inherent demand, all the four Ps in the conventional marketing mix: the product; the price; the place; and promotion have been taken care of.

Now, what went wrong ?

In International Marketing, the environment in which the marketing plans must be implemented is different… we should consider the 5th P … People! Which essentially means the CULTURAL aspects of the People in those markets.

The BIG difference between success and failure many times can be attributed to the understanding or the lack of the understanding of the Cultural Environment of the foreign country. From my own personal experience in bilateral trade and investment, I have seen many organisations focusing on the “business fit” and completely ignoring the “ cultural fit” aspects when entering a foreign country either directly or through partnerships. In a domestic market, the reaction to much of the cultural aspects are automatic; the various cultural influences that fulfill our lives are simply a part of our socialization, and we react in a manner acceptable to the society without even thinking about it. A marketer’s unconscious reference to one’s own cultural values, experiences, and knowledge as a basis of decisions for their overseas operations could prove disastrous. Many a times, it is the notion that one’s own company, culture or country knows best on how to do things.

For example, time conscious Americans/Australians/Japanese who are not prepared to understand the culturally nuanced meaning of time to Indians which can lead to marketing failures.

Another common example is refusing food or drink when offered in a meeting, dealing with businesses in Asian and Middle East countries where the host gets offended when you refuse hospitality as this is part of the social culture. When companies and their International Marketing team take the time to look beyond their own self reference criteria, the results are more positive. A classic example could be McDonald’s success in India! According to the company, the entire ideation and development process took nearly nine months before the Chicken Maharaja Mac was launched. Chicken Maharaja Mac, a burger which looks like Big Mac – double patties with three buns –but has no beef, and has every bit of an Indian feel to it. When McDonald’s was working on its first menu for India, more than half of the menu items were changed to suit the tastes of Indian consumers.

In conclusion, the marketing principles and concepts are universally applicable. However, to be successful, the company must be able to interpret the cultural environment of the foreign market and align themselves accordingly, as the marketing plan for each foreign market can change dramatically from country to country or region to region.

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