MARKETING COMMUNICATION IN DIFFERENT CULTURES (ANALYZING PRACTICAL EXAMPLES)

Marketing International Communication BACHELOR THESIS MARKETING COMMUNICATION IN DIFFERENT CULTURES (ANALYZING PRACTICAL EXAMPLES) By Jana Ščerbová Advisor: doc PhDr Ivan Žáry, PhD A Thesis to Be Submitted to City University of Seattle / Vysoká škola manažmentu In Partial Fulfillment of the Requirements for the Degree of Bachelor in 3.3.16 Economics and Business Administration Submitted by Date Candidate Signature Approved by Date Bachelor thesisk/Project Advisor Approved by Date Rector (or his representative) Marketing International Communication CHAPTER INTORDUCTION AND PROBLEM STATEMENT…………………………… REVIEW OF LITERATURE……….………………………………………………3 2.2 Communication Strategies and Objectives……….……………………… 2.2.1 Marketing Communication Strategy………………….………… 2.2.2 The SOSTAC Marketing Communication Plan … …………… 2.2.3 Marketing Communication Objectives……………………………6 2.3 Marketing Communication Process…………………………………………8 2.3.1 What is Marketing Communication Process 2.3.2 International Marketing Communication Process…………… …10 2.3.3 Factors Influencing International Marketing Communication Process……………………………………………………………11 2.4 Marketing Communication Mix………………………………………… 15 2.4.1 Marketing Communication Mix Tools………………………… 15 2.4.2 Advertisement marketing communication in different cultures….17 2.4.3 International Personal Selling………………………………… 18 2.4.4 International Sales Promotion……………………….………… 19 2.4.5 International Public Relations 20 METHODOLOGIES………………………………………………………… ……20 RESULTS………………………………………………………………… ……….20 4.1 Analyzing Low – Context and High – Context Cultures………………… 21 4.2 Analyzing International Marketing Communication Factors…………… 22 4.3 Analyzing Practical Examples in Different Countries…………………….29 4.3.1 Analyzing Marketing Communication of Coca-Cola in UK…….29 4.3.2 Analyzing Marketing Communication of Coca – Cola in India…31 4.4 Analyzing Marketing Communication mix…………………………… 33 DISCUSSIONS, RECCOMMENDATIONS, CONCLUSIONS………………… 35 LIBRARY RELEASE FORM 39 LIST OF FIGURES & PICTURES 40 LIST OF TABLES 47 BIBLIOGRAPHY 49 ABSTRACT………………………………………………………………………… 52 Marketing International Communication CHAPTER INTORDUCTION AND PROBLEM STATEMENT The purpose of this study is to analyze marketing communications for proper understanding of cultural differences and similarities Different cultures have different way of thinking which influences the process of information Moreover, every culture has different concept of values, such as time, money, gender roles or relationship It is very essential to realize these difficulties while trying to attempt communication with different culture, marketing professionals have to recognize that similarities (Lang, 2005) Many people would definitely agree that communications within different cultures are a lot easier while looking for similarities than differences because those similarities definitely exist The major problem is that still many business people not know how every culture differs from their own one For these people should be obvious to manage basic differences in order to avoid any misunderstandings and awkward situations Therefore, I decided to deeply analyze different aspects of marketing communication in many nationalities worldwide CHAPTER REVIEW OF LITERATURE Once, Woody Allen said: "Eighty percent of success is showing up." Most of business people would definitely bear up with this statement Another twenty percent of success is being prepared (Lang, 2005) According to Yves Lang (2005), who is a chief sales officer & vice president, sales and marketing at ENLASO Corporation in Denver Area, said that this could be presented as one of the most important key for successful business that are not only high quality products or services but also great marketing communication that will introduce all necessary information about products and services What is marketing communication? It is an active process which task is to move products and services forward in order to sell them Usually, buyers are very both sophisticated and careful about buying new products and services Moreover, marketing communication is a relationship between sellers (senders) and buyers (receivers) Both parties concerned are equal partners while dealing Marketing International Communication Nowadays, market is dealing with too many competitors and constant flow of information about offering products and services that make big difficulties for customers to choose from All can be called like never ending circle; therefore, marketing communication is one of the essential key for a successful business For example, if the company wants to sell its products, customers must be informed about products and services in the best and easiest marketing communication way How Marketing Communication Works One of the explanations could be explained based on stimulus response theory According to this theory which more deeply Money (2000 p.14 - 16) describes in his book, the marketing communication gives an impulse to give an answer directly Depending on the answer from the response, then the receiver might learn That learning will lead to assume the response on the further events Thereby, the message that is sent to receivers should encourage customers to buy new products Then, if the satisfaction will be equivalent or even better that customers expected from a new products There is a great chance of positive respond As a matter of fact, if the satisfaction is reversible, customers might buy the product again While developing applicable marketing international marketing communication, marketers are facing two major problems: Every potential customer differs in many essential respects demographically and psychosocially There is a variation which must be considered in the level of awareness and knowledge of the purposeful audience at some stage As an effect is that every response to marketing communication is different which will have different influence on both the channels and the context of original message 2.2 Communication Strategies and Objectives 2.2.1 Marketing Communication Strategy Communication strategy is the plan that is created and used by marketing communication marketers in order to give essential marketing communication background for making and communicating exchanges possible It must be pointed out those marketing communication concepts and objectives as outsiders of the social system to which these concepts and objectives are directed This explains the definition Marketing International Communication of the problem and the communication solution (Figure 1.) Varey (2002 p.287 - 288) in his book took a closer look at to define the social system of management of exchanging Communications about providers’ acknowledge and offer Provider Customer Communication about consumers and customers needs Figure 1: The role of marketing communication Advantages of Marketing Communication Strategy It is hard work to settle marketing communication strategies, but once they are settled, they might bring benefits to our work Marketing communication strategy: Provides notable activity which allows building up strengths of marketing communication through consistency Helps to determine even better and sharper message which is sent to potential customers at different stages during the process of buying When clear strategic communication direction is settled, then careful planning of every single communication is much quicker and easier Helps marketing communication to save both money and time Helps driving external marketing communication, also provides effective communication strategy at the stage of internal communication (Smith, Berry, Pulford, 1999 p.80 - 81) 2.2.2 The SOSTAC Marketing Communication Plan Communication presents too many different way of approaching to build up effective international marketing communication Also, there is not a single form how to approach successful communication but there is SOSTAC Plan that helps managers to sustain marketing communication plan as shown in Figure Before thinking of Marketing International Communication effective marketing communication strategy, every communication planning differs; therefore there is a need to determine objectives in order to fit strategy SOSTAC is easy to apply into communication plan and it means (Smith, Berry, Pulford, 1999 p.80 81): Stage 1: Where are we now? Situation Analysis Stage 6: Keeping track How we perform of progress Control Our marketing Do advantages measurements Focus on the best extent relate to with right customer objectives? Focus on the most Responsibility efficient channels for Frequency communication Resources What incurable events Review might disturb my Actions business Situation Analysis Control Objective s Action Strategy Tactics Stage 5: Action Plan Who When What How Stage 4: How we accomplish the strategy? Tactics Choose communication tool Decision of using communication tool What to communicate Stage 2: Where we want to go? Objectives Business Mission Business Objectives Marketing Objectives Marketing Communication Objectives Do our objectives fit practical criteria? Objectives must be SMART: S – Specific M – Measurable A – Actionable R – Realistic T – Time Specific Stage 3: How we get there? Strategy Segmentation - how we want market to divide Target - who is our target on the market Position - how we want to achieve every segment that is our target Figure 2: The SOSTAC Communication Plan Marketing International Communication 2.2.4 Marketing Communication Objectives What’s more, marketing communication is a systematic study which helps us to make decision and guide our judgments Logically, all begins with the needs of consumers and customers in order to guide their marketing exchange (Figure 3) Marketing communication must be established, and then communication objectives can be created (Varey, 2002 p ) Business Needs Marketing Needs Communication Needs Communication Objectives Theories to explain, guide judgment and decision making Figure 3: Communication objectives Once the marketing communication plan is well defined, there is a crucial moment to settle major communication objectives Communication objectives always have to fit with marketing objectives Formulating marketing communication objectives is really important to make marketing communication as effective as possible There are three categories of marketing communication objectives: Reach goals – the main aim is to reach in the most effective and appropriate way targeted group Therefore, efficient distribution and audience definition is very essential Process goals – the process goals should be established before any communication will take place in order to make the communication effective The communication should focus on target audience, be appreciated and processed Effectiveness goals – they are the most important goals As long as reach goals make sure of expositing; process goals make sure of processing the message which makes the effectiveness goals real (Pelsmacker, Geuens, Bergh, 2007 p 147) Marketing International Communication 2.3 Marketing Communication Process 2.3.1 What is marketing communication process? It was already mentioned above that marketing communication is an active process between sellers and buyers Nowadays, market is fulfilled with many offers Interpretation and communication is very important in order to get customers’ attention Marketing communication is also a complex process that needs to be recognized by every seller and customer It means that every person concerned should use some kind of filter command to pick up all necessary information that are needed for another smoothing communication process Marketing communication process has changed and marketers have to understand communication process A few years ago, model of marketing communication process would definitely answer: Who Says what In what channel To whom With what effect Since marketing communication has become more complex because international boundaries were opened, we also need complex model of marketing communication process that gives us reliable information In Figure 4, we can see the model of communication process which has been using recently Two major elements of the model are sender and receiver, which are crucial part of communication Then, other two elements message and media represent major elements of the communication process (Hughes, Fill, 2006 p - 5) The Figure shows the simplest model of communication process which describes three basic elements of communication process Source (sender) – sender sends the message Unfortunately, these three elements are too Message itself simple There is a chance that they might Receiver – recipient receives the message not be understood correctly Marketing International Communication Message Source Receiver Figure 4: Simple model of communication process In order to avoid any misunderstanding while sending and receiving the message, also there is more detailed communication process Marketing communication process gives a clear picture how to communicate Figure shows the communication process which is more complicated but there is smaller probability that any misunderstandings will occur while sending and receiving the message Source (sender) – the sender as a source sends the message which needs to be encoded in order to clearly understand the main point of the message Usually it is a company presenting its products and services Encoder – represents the meaning of the message Encoder helps to transmit and understand the message for the audience Decoder – means that the message was encoded correctly and customer understands it Receiver – audience that the message was sent Feedback – receiver has a space for responses which are very important for every communication in order to make sure that the main point of the message is understood correctly (Hughes, Fill, 2006 p 3-5) Source Encoding Message Decoding Receiver Media Noise Feedback Response Figure 5: Complex model of marketing communication process Marketing International Communication These figures show how the message is sent and received It is generally used by every company whether it is international or not Communication process can be also defined as one of the most effective communication tool between companies and customers all around the world For example, advertisement of any products in newspapers or magazines that are printed all around the world might be a good example of marketing communication process While reading newspapers or magazines, people are able to see many ads which are disturbed by other ads Therefore, the message must be as clear and easy as possible to both understand and remember it for a receiver 2.3.2 International Marketing Communication Process International marketing communication process is progressing in cultures with different demographic, geographic, technological, political and legislative conditions Cultural and legislative differences might cause big troubles to companies that try to deal with international market When dealing on international marketing, there is really necessary to consider influences of cultural features on international communication campaign, influence of legislation on advertisement, support of both sales and favorite media (Bradley, 2005 p.79) How marketing communication process differs worldwide However, marketing communication process is very essential; the message does not have to be as effective as is suppose to be in all cultures For some people, words might be gloomy so they rather prefer pictures that are able to clearly state the main point of the message Dr Edward Hall, who is a respected anthropologist that established various intercultural behavioral schools-of-thought, divides culture into two groups:  High – context - which depends on nonverbal communication Asian and Hispanic cultures use high – context This communication is much complex and deeper than written or spoken message  Low – context - use communication by words Into this group we can stage the United States (Lang, 2005) "People raised in high-context systems expect more of others than the participants in low-context systems When talking about something that they have on their minds, a high-context individual will expect his interlocutor to know what’s bothering him, so that he doesn’t have to be 10 Marketing International Communication LIST OF FIGURES Communications about providers’ acknowledge and offer Provider Customer Communication about consumers and customers needs Figure 1: The role of marketing communication Source: Varey, J (2002) Marketing communication: principles and practice (2nd ed.) London, England: Routledge ISBN 041523039X, 9780415230391 Business Needs Marketing Needs Communication Needs Communication Objectives Theories to explain, guide judgment and decision making Figure 3: Communication objectives Source: Varey, J (2002) Marketing communication: principles and practice (2nd ed.) London, England: Routledge ISBN 041523039X, 9780415230391 40 Marketing International Communication Stage 1: Where are we now? Situation Analysis Stage 6: Keeping track How we perform of progress Control Our marketing Do advantages measurements Focus on the best extent relate to with right customer objectives? Focus on the most Responsibility efficient channels for Frequency communication Resources What incurable events Review might disturb my Actions business Situation Analysis Control Objective s Action Strategy Tactics Stage 5: Action Plan Who When What How Stage 4: How we accomplish the strategy? Tactics Choose communication tool Decision of using communication tool What to communicate Stage 2: Where we want to go? Objectives Business Mission Business Objectives Marketing Objectives Marketing Communication Objectives Do our objectives fit practical criteria? Objectives must be SMART: S – Specific M – Measurable A – Actionable R – Realistic T – Time Specific Stage 3: How we get there? Strategy Segmentation - how we want market to divide Target - who is our target on the market Position - how we want to achieve every segment that is our target Figure 2: The SOSTAC Communication Plan Source: Smith, P., & Berry, Ch., & Pulford, A (1999) Strategic marketing communications: new ways to build and integrate communications London, England: Kogan Page Publishers ISBN 0749429186, 9780749429188 41 Marketing International Communication Message Source Receiver Figure 4: Simple model of communication process Source: Hughes, G., & Fill, Ch (2006) Marketing Communication 2006 – 2007 (1st ed.) Oxford, England: Butterworth – Heinemann Source Encoding Message Decoding Receiver Media Noise Feedback Response Figure 5: Complex model of marketing communication process Source: Hughes, G., & Fill, Ch (2006) Marketing Communication 2006 – 2007 (1st ed.) Oxford, England: Butterworth – Heinemann 42 Marketing International Communication Figure 6: Simple communication mode Source: Verbal Communication Model (n.d) Retrieved March 23, 2009 from http://www.vtaide.com/lifeskills/verbalC.htm Figure 7: Personal Space Source: The legacy of Personal Space (2009) Retrieved: October 18, 2009 http://criticalterrain.wordpress.com/2009/06/29/the-legacy-of-personal-space/ 43 Marketing International Communication Figure 8: Three different nations using gestures Figure 9: Average use of hand and head gestures compared with three Source: Yammiyavar, P., & Clemmensen, T., & Kumar, J (2008, November 2) Influence of Cultural Background on Non-verbal Communication in a Usability Testing Situation International Journal of Design Vo.2 Retrieved November 20, 2009 from International Journal of Design Web site http://www.ijdesign.org/ojs /index.php/IJDesign/article/view/313/164 44 Marketing International Communication Geert Hofstede™ Cultural Dimensions 140 120 Scores 100 80 60 40 20 PDI IND MAS China UAI LTO Switzerland Figure 10 Source: Hofstede, G (2009) Geert Hofstede™ Cultural Dimensions Official web site of Professor Geert Hofstede Retrieved: November 28, 2009 from http://www.geert-hofstede.com/ Scores Geert Hofstede™ Cultural Dimensions 100 90 80 70 60 50 40 30 20 10 PDI USA Germany IND Japan MAS France UAI West Africa LTO Russia Figure 11 Source: Adekola, A., Sergi, B., S (2007) Global business management: a crosscultural perspective Aldershot, England: Ashgate Publishing, Ltd ISBN 0754671127, 9780754671121 45 Marketing International Communication Serious Japan French German USA Denmark More information French - Canadians Spain Irish Less information British Entertainment Figure 12: Comparing differences in advertisement worldwide 46 Marketing International Communication LIST OF TABLES The communication mix Selling Advertising Sales promotion Direct marketing Public relation Sponsorship Exhibition Packaging Point-of-sales and merchandising 10 World of mouth 11 e-Marketing 12 Corporate identity The marketing mix Product Price Place Promotion People Physical evidence Process Table 1: Shows how the communication mix interprets the marketing mix Source: Smith, P., R., & Taylor, J.(2004) Marketing communications: an integrated approach (4th ed.) Lomdon, England: Kogan Page Publishers ISBN 0749442654, 9780749442651 Table 2: Low Context – High Context Cultures Source: Pistillo, G., (n.d) The Interpreter as Cultural Mediator Retrieved November 20, 2009 from http://www.immi.se/intercultural/nr6/pistillo.htm 47 Marketing International Communication Region/County individualism- Power / Collectivism Distance Individualism Low Uncertainty/ MasculinityAvoidance Femininity Medium Masculine Japan Collectivism and Individualism High and Low High Europe: Anglo Individualism Low/medium Low/medium Masculine North America (USA) Masculine/feminine Germanic: Medium West Individualism Slavic, West Urgic Low Medium/high Medium/high Masculine Near Eastern: Balkanic Collectivism High High Nordic Medium/high individualism Low Low/Medium Feminine Latin Europe Medium/high individualism High High Medium masculine East Slavic Collectivism Low Medium Masculine China Collectivism Low Low Masculine feminine Africa Collectivism High High Feminine Latin America Collectivism High High Table 3: Hofstede's Dimensions Medium masculine Masculine Source: Adekola, A., Sergi, B., S (2007) Global business management: a crosscultural perspective Aldershot, England: Ashgate Publishing, Ltd ISBN 0754671127, 9780754671121 48 Marketing International Communication BIBLIOGRAPHY Adekola, A., Sergi, B., S (2007) Global business management: a cross-cultural perspective Aldershot, England: Ashgate Publishing, Ltd ISBN 0754671127, 9780754671121 Altaman, I., & Chemers, M., M (1984) Culture and environment (Reprint ed.) 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Oxford, England: Butterworth – Heinemann ISBN0750680105, 9780750680103 Kimmel, A.,J (2005) Marketing communication: new approaches, technologies, and styles (1st ed.).New York, USA: Oxford University Press ISBN 0199276951, 9780199276950 Koekemoer, L., & Bird, S.: (2004) Marketing Communications South Africa: Juta and Company Limited ISBN 0702165093, 9780702165092 Kotler, P., Armstrong, G., Wong, V., Saunders, J.: Principles of marketing (5th ed.) Essex, England: Pearson Education, 2008, ISBN 0273711563, 9780273711568 Lang, Y (2005) Marketing Communications, Culture, and Localization Retrieved March 15, 2009 from ENLASO Web site: http://www.translate.com/Language_ Tech_Center/Articles/Marketing_Communications_Culture_and_Localization.a spx McDonald, M.(2007) Marketing plans: how to prepare them, how to use them (6th ed) Oxford, England: Butterworth Heinemann ISBN0750683864, 9780750683869 Money, S., O (2000) The handbook of international marketing communications (1st ed.) 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London, England: Routledge ISBN 041523039X, 9780415230391 Usunier, J.,C., & Lee, J., A (2005) Marketing Across Cultures (4th ed.) Essex, England: Pearson Education Limited ISBN0273685295, 9780273685296 Yammiyavar, P., & Clemmensen, T., & Kumar, J (2008, November 2) Influence of Cultural Background on Non-verbal Communication in a Usability Testing Situation International Journal of Design Vo.2 Retrieved November 20, 2009 from International Journal of Design Web site http://www.ijdesign.org/ojs /index.php/IJDesign/article/view/313/164 51 Marketing International Communication ABSTRACT Topic: Marketing Communication in Different Cultures (Analyzing Practical Examples) Key words: Analyzing International Marketing Communication Student: Jana Ščerbová Advisor: doc PhDr Ivan Žáry, PhD The main purpose of this paper is to deeply analyze marketing communication in different cultures The introduction of this paper is to give general information about marketing communication and presents the main problem of international marketing communication Another chapter of this paper presents the theoretical explanation of marketing communication strategy The part of this chapter also covers and explains the SOSTAC Plan, which helps to improve marketing communication plan and its strategy Another part of this paper is explanation of marketing communication process One of the most important parts of this chapter is focusing on cultural differences, language differences, etc These differences complicate international marketing communication because every nation is special and unique Moreover, marketing communication mix is more detail explained, such as advertisement which has big influence on people’s behavior According to information from scientists and specialists in this field, I could create the analyzing part Furthermore, the bigger part of this chapter, I focus on cultural and language differences in different cultures For example, the international company Coca – Cola can make a mistake in marketing communication Also, already mentioned the SOSTAC Plan I use it for analyzing Coca – Cola UK marketing communication strategy where the company’s achievement was to increase both sales and market share in UK Advertisement is also very important part of international marketing communication which has great influence on people; therefore, every international business has to make sure to adopt all mentioned differences After deep analyzing of marketing communication, I can conclude that much international communication has to be improved in order to provide even more effective marketing communication Year: Signature of student 52 Marketing International Communication ABSTRAKT Téma: Marketingová komunikácia v rozličných kultúrach (rozbor príkladov z praxe) Kľúčové slová: Podrobne skúmanie marketingovej komunikácie Študent: Jana Scerbova Vedúci BP: doc PhDr Ivan Žáry, PhD Hlavným zámerom tejto zaver cnej bakalárske prace je zistiť ako sa marketingová komunikácia líši v rozličných krajinách V úvode tejto prace sa zaoberám CO je to marketingová komunikácia vo všeobecnosti a uvádzam hlavný problém, ktorý sa vyskytuje najčastejšie pri medzinárodnej komunikácii, ktorým je slabá informovanosť manažérov a businessmenov o rôznych kultúrnych rozdieloch na základe čoho sa každý národ rozlišuje Literárna časť tejto prace obsahuje teoretičke vysvetlenie marketingovo – komunikačných stratégii a ciele Menšiu časť tejto prace som venovala aj SOSTAC planú, ktorý efektívne pomáha usporiadať marketingovo – komunikačný plaň, na základe stanovených cieľov a stratégii Ďalším predmetom tejto prace je proces marketingovej komunikácie Významnú časť tejto prace som venovala podrobnému štúdiu rôznych rozdielov ako sú kultúrne rozdiely, jazykové rozdiely, a pod Tieto rozdiely komplikujú marketingovú komunikáciu, pretože každý národ je unikátny a muší mu byt prispơsobená aj marketingová komunikácia V literárnej časti som sa venovala aj marketingovo – komunikačný mix, ktorý tvorí aj reklama, ktorá ma veľký vplyv na ľudí Na základe zbierania informácii od autorov a znalcov v tejto oblasti som mohla vytvoriť analýzu na konkrétnych národoch a ako sa každá kultúra líši Najviac som sa zaoberala kultúrnymi a jazykovými rozdielmi a ako vplývajú na marketingovú komunikáciu v jednotlivých krajinách Napríklad aj taký podnik ako je Coca – Cola sa môže dopustiť veľkého jazykového prešľapu, a preto analýza cudzej kultúry je veľmi potrebná na uskutočnenie úspešného marketingovej komunikácie Už spomínaný SOSTAC plaň som využila na analýzu podniku Cica – Cela v Anglicku, ktorý chcel zvýšiť svoj predaj a takisto aj podiel na trhu Reklama je ďalšia významná marketingová komunikácia, a preto som venoval čas aj tejto problematike Reklama ako taká ma veľký vplyv na ľudí, a preto každá medzinárodná spoločnosť v cudzej krajine muší dbať na dodržanie rơznych kultúrnych čí jazykových rozdielov, ktoré panujú medzi jednotlivými národmi Po tejto analýze, môžem skonštatovať, že mnohé medzinárodné podniky ešte musia zdokonaliť ich pristum k tejto problematike, pretože inak marketingová komunikácia v hocakej forme nebude úspešná a renomé firmy môže byt ohrozene Dátum: Podpis študenta 53 Marketing International Communication 54 ... Countries…………………….29 4.3.1 Analyzing Marketing Communication of Coca-Cola in UK…….29 4.3.2 Analyzing Marketing Communication of Coca – Cola in India…31 4.4 Analyzing Marketing Communication mix……………………………... p.154) 14 Marketing International Communication 2.4 Marketing Communication Mix 2.4.1 Marketing Communication Mix Tools Marketing communication mix is changing as 21st century is developing new... Process…………………………………………8 2.3.1 What is Marketing Communication Process 2.3.2 International Marketing Communication Process…………… …10 2.3.3 Factors Influencing International Marketing Communication Process……………………………………………………………11