The role of national culture in international marketing Let me introduce the topic of my English seminar work which is the role of national culture in international marketing. Nowadays, success in general is determined by the amount of knowledge and information that a certain company or individual possesses. Knowing the culture of a country or a region in which a company wants to launch its business is as essential as believing in strength of a company’s product. In my seminar work I will demonstrate the importance of this acquirement, starting with the explanation of the meaning of the word culture, followed by some straight-up examples of flops and accomplishments achieved by a number of world known companies. At first, we should pay attention to the word culture, as it plays a huge part in the whole concept of my research. This word has many different meanings. English Anthropologist Edward B. Tylor said that culture is "that complex whole which includes knowledge, belief, art, law, morals, custom, and any other capabilities and habits acquired by man as a member of society." However, for most of us, ordinary people, it refers to an appreciation of good literature, music, art, and food, etc. It is constantly changing and easily lost because it exists only in our minds. Our written languages, governments, buildings, and other man-made things are the products of culture. There are very likely three levels of culture that are part of our learned behavior patterns and perceptions. When people speak of french, Slovak, or Chinese culture, they are referring to the shared language, traditions, and beliefs that set each of these peoples apart from others. In most cases, those who share your culture do so because they gained it as they were raised by parents and other family members who have it. The second layer of culture that may be part of your identity is a subculture. In general, various societies often keep a lot of their original cultural traditions. As a result, they are lpart of a subculture in their new society. Examples of subcultures in the United States include ethnic groups such as Vietnamese Americans, African Americans, and Mexican Americans. Members of each of these subcultures share a common identity, food tradition, dialect or language, and other cultural traits that come from their common background and experience. The third layer of culture consists of cultural universals. These are learned behavior patterns that are shared by all of humanity collectively. Examples of such "human cultural" traits for example include: 1. communicating with a verbal language 2. using age and gender to classify people 3. classifying people based on marriage and relationships 4. raising children in some sort of family setting 5. having a concept of privacy 6. having rules to regulate sexual behavior 7. distinguishing between good and bad behavior 8. making jokes and playing games 9. having art 10. having some sort of leadership roles Now that we know how complex the meaning of the word culture is and how many different layers it consists of, we can see how important it is for marketing workers to know the culture of the people in a certain country in which they want their product to be promoted. Not knowing the culture of such country, the company’s attempt to launch a business there may lead to an enormous failure. As an example, we can use the cultural diversity in Nigeria. Every form of culture is identified in term of language. Language is a vehicle of culture. In short every language serves as a vehicle of the culture of the people who speak that language. In Nigeria there are 374 ethnic languages and groups. Some languages are found in more than one state. For example Yoruba is in six states, Igbos in four states, and Annang, Efik and Ibibio in two states. Hausa cuts across all the states in the North. These languages affect consumer behavior. To make consumer accept a product, language is used to promote the product. Advertising, personal selling, sales promotion and publicity cannot be effectively used without understanding the language. You could hardly sell a book written in Slovak somewhere in a Chinese town. A company needs to understand this in going into any nations for any type of business. Another element of culture is religion. In many countries, religion still plays a huge role in decision making of many people. There are three main religions in Africa: Traditional religion, Christianity and Islam. The development of man cannot be completed without one type of religion or another. In Nigeria, Christianity dominates the South, while Islam dominates the North and both are traditionally practiced in these areas. Religions affect consumption behaviors and the purchase habit of the individual. For instance, Islam in the North does not allow production and distribution of alcohol, whereas in the South alcoholic beverages are sold everywhere. Because of religion some married women cannot move publicly as they like, or cannot talk to strange men under any circumstances. A company could not open a restaurant where they would serve pork and male waiters would interfere with female guests. All these affect an organization’s marketing performance. They must adapt their product and promotion to suit their area of operation. Cultural influence in Nigeria is only one example of many other countries where international companies’ products or ways of marketing were not welcome. Let’s take a look at famous and world known brands who have met various types of challenges in attempt to broaden their business horizons and some countries where these challenges have been experienced. As we will see, some of them have failed, while others have learned from previous mistakes and walked out as winners. 1. Muslim world As most of us know, Islam is a very strict religion. It controls all the aspects of every Muslim’s life. The law of Sharia regulates all human activities, which include eating, shopping, banking, living and many other patterns. One of the Muslim countries that are the strictest is without any doubt Saudi Arabia. This is the list of just a few items and things forbidden there: Women Drivers Saudi Arabia is the only country in the world that bans all women, Saudi and foreign, from driving. The prohibition forces families to hire personal drivers, and women who cannot afford around 400 dollars a month for a driver must rely on male relatives to drive them to work, school, shopping or the doctor. They cannot get an education, mingle with men in public unless family, travel or check into a hotel without a male guardian’s permission. Dolls Saudi Arabia has banned imports of female dolls and teddy bears, and shopkeepers have been given three months to dispose of any stock. The ban also applies to non-Islamic religious symbols, such as crosses and statues of the Buddha. Anything Red / Valentine’s Day Saudi Arabia has asked florists and gift shops to remove all red items until after Valentine’s Day, calling the celebration of such a holiday a sin. Every year, conservative Muslim kingdom’s moral police clamp down on shops a few days before February 14, making them remove red roses, red wrapping paper, gift boxes and teddy bears. Books & Movies Censorship is common practice in the country of Saudi Arabia, where authorities in the conservative kingdom frequently tear out pages from newspapers and magazines before they are allowed to hit the newsstands. The ban extends from popular Hollywood films to fashion magazines and anything remotely pornographic. These are just some examples of items forbidden in the kingdom of Saudi Arabia. All these laws have to be considered by an international organization when entering this country’s market. Automobile companies have to respect the fact that potential customers are formed by only approx. half of the country’s population. American leading producer of toys Mattel cannot offer their most successful toy of all times, the Barbie doll to the Saudi Arabian markets. Saudi laws give hard times even to the furniture company IKEA. Images of women are always airbrushed from copies of the Swedish-based retailer's seasonal catalog shipped to the religiously conservative Islamic kingdom, arguing that a woman body should not be exposed to the public under any circumstances and in any form. Florists, gift card companies and many gift shops would definitely not succeed with the introductions of their Valentine Day’s collection to this limited market and movie producers would surely not concentrate the promotion of their new films in this Middle East country. However, the bigger the corporation, the more financial resources can be set apart on the research of a potential market. Many transnational firms hire professionals whose major missions are to investigate unfamiliar environments, possible consumers, their mentality, languages, moral standards and the whole culture of the country of their origin. Barbie vs. Fulla Most of the time, these companies end up being successful and find their way of filling a gap in a market that could not be filled by a local firm. However, there are some examples of strong international companies who have failed trying to take over a new market. For many years, American manufacturer of the famous Barbie doll, Mattel, was trying to win hearts of young Muslim girls all over the Middle East. Although they have been making satisfactory profits, they were soon surprised by a fast and genial reaction of a company knowledgeable of Muslim people’s conservative minds. NewBoy Design Studio, based in Syria, introduced Fulla, in November 2003, and she has quickly become a best seller all over the region. Fulla is a dark-eyed doll with, as her creator puts it, "Muslim values." The very popular Fulla doll is sold in the Middle East wearing either a black abaya or a white head scarf and long coat. Under these modest clothes, the dolls wear fashionable dresses. She is named after a type of jasmine that grows in the Levant, and although she has an extensive and beautiful wardrobe, Fulla is usually displayed wearing her modest outdoor clothes. Young girls all over the Middle East are obsessed with Fulla, and conservative parents who would not dream of buying Barbies for their daughters seem happy to pay for a modest doll who has her own tiny prayer rug. Children who like the pink aspect of the Barbie doll can buy a matching prayer rug and cotton scarf set, all in pink. In Saudi Arabia, animated commercials display Fulla's life, such as showing the doll reciting morning prayer, baking a cake to surprise her friend, or reading a book at bedtime. While Fulla doll was conquering Middle East’s toy markets, Mattel could not hide their amazement over NewBoy Design Studio’s contrivance. The American company missed all the signs of a free market gap that was waiting to be filled. Many people say that it was a result of the company‘s ignorance of the region’s culture and traditions. If Mattel could be less oriented on trying to enforce American values into Muslim culture and be more open minded, they could have won the leading market position in another corner of the world. Coca-cola vs. Mecca-Cola Another example of taking a chance and transforming it into a prosperous business is Mecca Cola World Company ( named after the holiest city in the religion of Islam), a company that started its journey account on boycotts and protests against United States over its support for Israel. US exports of Coca-Cola to Saudi Arabia declined by more than 40% in the first three months of 2002, as a result of these boycotts, which assisted Mecca-Cola with an interesting slogan „ Think Muslim, drink Muslim“ in the increase of sell. It is widely known that Islam is a religion that strongly rejects any form of capitalism, and even though Coca- Cola as a company has nothing to do with capitalism itself, in many Muslims’eyes, Coke walks hand in hand with evil forces of this economic and political system. One of the main attractions for buyers is the fact that 10% of the profits go to charities operating in Palestinian territories and 10% to European NGOs. While Coca-Cola's revenues in the Middle East represent less than 2% of its global business, it has always lagged behind Pepsi in the region and now, even a stronger competitor has found its way how to block out the world’s leading producer of this fizzy drink. For most of the Muslims, Coke is a synonym of America. Red color, retro font and the main Coke’s character, Santa Claus are more than unattractive for customers whose culture represents everything but American way of life. Maybe if Coca-cola tried to ease its American influence in the Islamic region, it would be the leading seller of this popular dark drink even there. In only they chose a different character for their commercials or tried another substitute to their original ways of marketing. Unfortunately, some companies simply lack understanding and awareness of different mentalities. 2. Hindu world All of us know that India is one of the most populous countries in the world. And some of us even know that 80% out of 1,2 billion people practice Hinduism as their religion. How does it influence international corporations trying to launch their businesses here? Let’s take a look at how the king of all world’s fastfoods conformed its enterprise plan to special needs of Hindu people’s culture. McDonald’s When you walk into a McDonald's in India, it doesn't feel that much different from one in Slovakia or the U.S. That is, until you try to order. When McDonald's first came to India 15 years ago, it tested the Big Macs and Quarter Pounders to see how they would fit in in a country where cows are sacred and most people are vegetarian. The fastfood restaurant tried re-creating its American classics with lamb, but it was a big failure. Nowadays, It is the only country in the world for sure that does not offer beef at all. Maybe other countries may do pork burgers, but in India, they definitely have no pork or beef at all. Instead of ground beef, Indian burgers are 100 percent vegetarian - burger look-a-likes of potatoes, peas, and carrots, with a little Indian spice thrown in. You can find some chicken and fish sandwiches in Indian location of the American chain, however, more than a half of their menu includes only vegetarian alternatives such as McAloo Tikki potato burger. Now, McDonald’s has gone even further. It had opened its first 100 percent vegetarian McDonald's in India. This Asian country has been a huge experiment for McDonald's. The issue in India is, a vegetarian is a strict vegetarian. There are some situations where a person who's vegetarian would not even sit with a person who's eating non-vegetarian food. It is that level of seriousness. McDonald’s, being the world’s biggest fast food chain has always known that if they ever wanted to succeed in a country whose culture is strictly influenced by the religion of Hinduism, they had to take all of the religion’s aspects in consideration. Having the financial capital for a new environment research, good marketing strategies and being willing to give up on original company’s image in order to launch an effective business on new markets, McDonald’s is on a good way to getting a Hindu customer on its side. Moreover, McDonald’s uses special strategies all over the world according to gastronomy factors of diverse demands of the corporation‘s customers ( McSyr in Slovakia, Wiener Breakfast in Austria etc.). These are only some examples of companies and fundamental elements affecting a company’s success in an environment of an unfamiliar culture. Finally, all firms have to adopt some useful remedies to overcome cultural influences affecting their operations. These include: product adaptation, promotional adaptation and new product innovation with the above in use. Having all these factors figured out, a company is on a good way to reaching triumph. Použitá literature Internetové stránky http://repository.kulib.kyoto-u.ac.jp/dspace/bitstream/2433/68203/1/ASM_22_93.pdf http://anthro.palomar.edu/culture/culture_1.htm http://retardzone.com/2008/09/05/complete-guide-to-things-banned-in-saudi-arabia/ http://www.nytimes.com/2005/09/22/international/middleeast/22doll.html?_r=0 http://news.bbc.co.uk/2/hi/middle_east/2640259.stm http://www.cbsnews.com/2100-500522_162-2640540.html EKONOMICKÁ UNIVERZITA V BRATISLAVE THE ROLE OF NATIONAL CULTURE IN INTERNATIONAL MARKETING Školský rok: 2012/2013 Fakulta: OF Študent: Martina Kubičková Krúžok: POCR 5