Assignment # 3International Marketing Mistakes related to culture

Course: International MarketingProfessor: Dr. Amr Kheir El DinPrepared by: Iman Mahmoud FahmyDate: June 17th, 2010

Contents•What is Culture?

•Key Cultural Concepts

•Dimensions of Culture

•Cultural Differences & International Marketing

•Issues & Pitfalls

•Do’s and Taboos

•Personal Selling Tips

•Examples of International Marketing Mistakes

What Is Culture? •A system of shared values and norms

•Values are shared assumptions about how things should be

•Norms are social rules and guidelines that prescribe appropriate behavior

•Serious cultural mistakes can negatively affect a relationship

FORUM FOR INTERNATIONAL TRADE TRAINING

Definition of Culture

Values Beliefs

Behavior

Assumptions

Invisible

Visible

Key Cultural Concepts• High-context Cultures

– the context in which a conversation occurs is as important as the words spoken

– greater value placed on interpersonal relations in business affairs

• Low-context Cultures– speaker’s words explicitly convey message to listener– rely less on relationship building and non-verbal cues

Relationship Building in an International Context

How much of a relationship is required?

German Swiss Scandinavian Canada/U.S.

British Italian Spanish Greek Arab Japanese Chinese

Low Context High Context

Dimensions of Culture

Dimensionsof

Culture

Valuesand

Attitudes

Language Religion

SocialStructure

Communication

FiltersAffect on Business

Age

Behavioral

Body

Caste Systems Conceptual

Education

Expressions

Influence on Government

Language

Religion

Social Status

Speed

Volume

Wealth

Cultural Differences & International Marketing

• Cross-cultural marketing involves learning how to adapt marketing strategies and communications to cultural differences

• Knowing cultural differences is fundamental for market research, strategy development, planning and implementation

• Local guidance essential to avoid costly marketing blunders

Cultural Differences & International Marketing (contd.)

Issues:– The desired meaning of a product name does not always survive

translation

– Solutions include “nonsense names” and multiple names for multiple markets

– Marketing materials will differ from market to market, depending on education, gender and so on

– Packaging and marketing materials will differ to satisfy different aesthetic tastes

– Education profiles will determine level and quality of professional / support services in target market

Cultural Differences & International Marketing (contd.)

Issues:

– Design: product modifications may be required to meet regional needs

– Color: colors used in packaging / marketing materials must be appropriate to target market

– Music: maintain cultural sensitivity when using music to deliver marketing messages

Issues & Pitfalls: Body Language

• It is an important part of the communication process, particularly where language barriers exist

• It is important to understand the mannerisms common to your foreign market

Issues & Pitfalls: Gender

• The culturally appropriate manner in which men and women relate with each other differs around the world

• An issue for foreign businesspeople, particularly women seeking to compete in certain environments

Issues & Pitfalls: Gift Giving• Challenge is to know the gift-giving customs of your

target market

• Giving the wrong gift at the wrong time can have serious consequences

• Different protocols for presenting and receiving gifts

Issues & Pitfalls: Humor & Time

Humor • As a general rule, humor does not transfer well between

cultures• To appreciate humor, listeners need an understanding of

the culture from which a joke originates

Time• Time and its use are seen differently around the world• Canadians view time as inflexible - meetings must start

on time or they get frustrated• Other cultures treat time more flexibly

Issues & Pitfalls: History & Business Card Etiquette

History• History often influences a culture’s perceptions• Even within culturally similar regions, cultural events

will be viewed differently by different people• Research the target market’s history, but avoid

discussing sensitive issues

Business Card Etiquette• Business card handling is a ritual in some countries• Japanese view business cards as representative of

the owner - shoddy treatment of the card is disrespectful

Do’s and Taboos Not a universal practice!

• Punctuality is expected in Switzerland, the Netherlands, Japan, China and Belgium but you better be at least 15 minutes late in Latin America

• Waving is a serious insult in Greece and in Nigeria.

• A wave goodbye can mean “no” in Europe, but “come here” in Peru.

• Crossing your fingers (good luck) is offensive in Paraguay

Personal Selling TipsBELGUIM : be able to identify decision makers. Flanders (Dutch) group decisions common; Wallonia (French) high level exec’s have final say.

CHINA :expect to continue negotiations after deal is signed. Signing contract is just beginning of business relationship. Both sides expected to continue working together afterwards.

COLOMBIA :business counterparts want personal relationship, strong friendship. Be sure to keep same sales rep’s throughout negotiation or risk losing deal.

GERMANY :be prepared with data to support sales proposition. German businessmen unimpressed with flashy presentation, so keep materials serious & detailed, no exaggeration.

INDIA :maintain flexible schedule to accommodate casual punctuality. Rigid hierarchy dictates decisions made only by highest level boss.

More Personal Selling TipsMEXICO :when planning meetings, breakfast / lunch preferred. Take time to cultivate relationships with business contacts - relationships more important than professional experience.

PERU :relate to individuals not corporate entities. Establish personal rapport. Maintain same sales rep’s throughout negotiations.

RUSSIA :1st meeting is formality. Russian counterparts use this time to judge credibility. Be warm & friendly.

SCOTLAND :people soft-spoken & private. Takes time to build relationships.

SOUTH KOREA : :status important. Make sure business card indicates title. Don’t send rep to meet Korean exec of higher status – could be viewed as disrespectful.

THAILAND :emphasizes non-conflict. Don’t make assertive demands in sales pitch.

SWISS CHEESE Rule

S — shortW — wordsI — inS — shortS — sentences

Examples of International Marketing Mistakes :Jan 9th, 2009 by Scott Hebert

• North American companies have a long history of marketing blunders in the international marketplace. The most famous example is GM’s attempt to sell the Chevy Nova in Mexico despite the fact that “no va” is Spanish for “no go.” That story is old news and has been retold to the point of becoming cliché. Instead, it’s a lesson for other marketers to heed as they move into new international markets. Unfortunately, that lesson is often ignored.

• Baby food manufacturer Gerber has had numerous problems in the international market. First and foremost, “gerber” can be translated from French as “to vomit.” Obviously, this is not an advantageous name for a company marketing in any French speaking country. To make matters worse, jars of Gerber baby food depict a picture of a healthy baby on the label. When Gerber tried this same marketing in Africa, horrified Africans assumed Gerber was selling babies as food, instead of food for babies (Creative Translation, n.d.).

Examples of International Marketing Mistakes: (contd.)

• In 1987, Braniff Airlines installed leather seats in its coach class in order to bolster lagging sales. Allegedly, the airline used the slogan “Fly in Leather” in their English advertising. When the slogan was translated into Spanish, “vuela en ceuro”, Braniff failed to realize that “en cueros” is slang for being naked. In other words, the now defunct airline was encouraging patrons in Spanish speaking countries to “fly naked” (Wilton & Brunetti, 2004).

• The case of Orange, a French telecommunications company operating in the UK, is one where the blunder is less about translation and more about culture. In 1994, the brand new telecommunications company rolled out its new marketing slogan across the UK: “The future’s bright… the future’s Orange.” Unfortunately, in Northern Ireland, the term Orange is associated with the Orange Order, a Protestant organization with alleged anti-Catholic sentiments. Therefore, the message in Northern Ireland implied that the future was “Protestant Loyalist.” Obviously, this did not sit well with the country’s Catholic population (“Branding Strategy Insider,” 2008).

Examples of International Marketing Mistakes: (contd.)

• PepsiIn Taiwan, the translation of the Pepsi slogan "Come alive with the Pepsi Generation" came out as "Pepsi will bring your ancestors back from the dead."

• Volkswagen Jetta Volkswagen named the sedan version of Golf the Jetta. However, the letter "J" doesn't exist in the Italian alphabet, so Jetta is pronounced "Ietta", which means Misfortune...

• In Italy, a campaign for Schweppes Tonic Water translated the name into "Schweppes Toilet Water."

Examples of International Marketing Mistakes: (contd.)

• Pepsodent tried to sell its toothpaste in Southeast Asia by emphasizing that it "whitens your teeth." They found out that the local natives chew betel nuts to blacken their teeth which they find attractive.

• A company advertised eyeglasses in Thailand by featuring a variety of cute animals wearing glasses. The ad was a poor choice since animals are considered to be a form of low life and no self respecting Thai would wear any-thing worn by animals.

• Kellogg had to rename its Bran Buds cereal in Sweden when it discovered that the name roughly translated to "burned farmer."

Examples of International Marketing Mistakes: (contd.)

• A soft drink was introduced into Arab countries with an attractive

label that had stars on it--six-pointed stars. The Arabs interpreted this as pro-Israeli and refused to buy it. Another label was printed in ten languages, one of which was Hebrew--again the Arabs did not buy it.

• U.S. and British negotiators found themselves at a standstill when the American company proposed that they "table" particular key points. In the U.S. "Tabling a motion" means to not discuss it, while the same phrase in Great Britain means to "bring it to the table for discussion."

Examples of International Marketing Mistakes: (contd.)

•In some cultures there are lucky colors, such as red in China and unlucky colors, such as black in Japan. Some colors have certain significance; green is considered a special color in Islam and some colors have tribal associations in parts of Africa.

•Many hotels in the USA or UK do not have a room 13 or a 13th floor. Similarly, Nippon Airways in Japan do not have the seat numbers 4 or 9. If there are numbers with negative connotations abroad, presenting or packaging products in those numbers when advertising should be avoided.

•Images are also culturally sensitive. Whereas it is common to see pictures of women in bikinis on advertising posters on the streets of London, such images would cause outrage in the Middle East.

Examples of International Marketing Mistakes: (contd.)

• A well-known pharmaceutical company, had launched a medicine to settle a bad stomach in Japan. So in Japan their advert ran along the following lines… showing someone feeling ill, taking medicine and feeling better

Any idea why it bombed? Why no one wanted to purchase it?

Examples of International Marketing Mistakes: (contd.)

THE ANSWER

The Japanese don’t read from left to right and they always read a book from the back to the front. so, they read the advert the reverse way from the way westerners would. Their interpretation of the advert, therefore, was the following:

Now you wouldn’t want to take medicine to make you feel bad, would you?

Quote for the Day

Integrate with the local culture – don’t fight it.

Ulla Buchner-Howard

References:• http://www.kwintessential.co.uk/cultural-services/articles/crosscultural-

marketing.html

• http://www.deborahswallow.com/2009/08/20/cross-cultural-marketing-blunders/

• Branding Strategy Insider. (2008). Naming Pranks and Blunders. Retrieved January 9, 2008.

• Creative Translation. (n.d.). Branding blunders hall of shame. Retrieved January 9, 2008.

• Wilton, D. & Brunetti, I. (2004). Word myths: Debunking linguistic urban legends. New York: Oxford University Press.

Thank you