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International Brand ManagementCultures consequences for the global marketing of education

IDP Conference 2005 Matthew ReedePrincipalFlinders Intercultural

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It’s a Global Village!

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Convergence or Divergence?

The Rational Consumer or Generation California

Versus

Post Disparity Societies or Generation Patriot

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Are we rational consumers!

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We are not rational consumers!

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Assigning Meaning Do we interpret basic messages the same way?

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Assigning Meaning – Feet Up

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Assigning Meaning - Numbers

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Assigning Meaning - Tea

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Assigning Meaning - Gestures

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Assigning Meaning - Symbols

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Late for a Meeting

A person arrives at a meeting half an hour late. This person does not call to advise you that they will be late.

When they arrive they offer no explanation or apology but start talking about sport and the weather.”

Assigning Meaning - Behaviour

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From Global to Multi Local

“Within an arms reach of desire”…

Coca Cola is available in 200 countries and derives 70% of its income from outside the US.

In 2000 Coke dropped its global slogan, “Always everywhere Coca-Cola” in an advertising decision to get closer to local markets.

Coca Cola in China!

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From Global to Multi Local

McDonalds has 31,000 restaurants employing 1.5million people on 6 continents

Consistent service but advertising and product offering are designed for local market

Kiwi Burger (NZ), Maharaja Mac (India), Prosperity Burger (Malaysia), Teriyaki Burger (Japan), McKroket(Holland), Croque McDo (France)

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Values in MarketingLOV Values

- Sense of Belonging- Excitement- Fun and Enjoyment in Life- Warm relationship with others- Self fulfillment- Being respected- A sense of accomplishment- Security- Self Respect

One cannot assume that different cultural groups will respond in the same way to the same stimuli

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Interpretation of Messages

Where the writer is concerned with what he puts into his writing, the communicator is concerned with what the reader gets out of it.

Bill Berbach

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Values Dimensions

Individualism

Equality

Masculine

Uncertainty Tolerant

Long Term Oriented

Collectivism

Hierarchy

Feminine

Avoidant

Short Term

The Hofstede Framework

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Motivational Domains

Schwartz Model

Conservatism - (security, conformity)

Intellectual Autonomy - (curiosity, creativity)

Affective Autonomy - (excitement, adventure)

Hierarchy - (social power, authority)

Mastery - (self direction and assertion)

Egalitarian Commitment - (equality, social justice)

Harmony - (peace, help)

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AAustralian Core Values

Informality

Forthrightness

Independence

Egalitarianism

Practicality

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Brand PersonalityIn individualistic cultures brands have to be unique, distinct and contain consistent characteristics.

In collectivist cultures the brand personality should be viewed as part of brand world.

The brand personality metaphor is not well understood in Asia. Linguistic equivalents for “personality” do not even exist in some cases.

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Use of CelebritiesThe function of celebrities is to give the brand a “face” within its brand world instead of adding abstract personal characteristics to the product.

Japan is a masculine domain that rewards achievement and success – the use of celebrities is used to reinforce positive images of success without direct product comparison.

Ever thought of using successful alumni?

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Self Concept

False uniqueness bias vs modesty bias

Japanese for example have a culture of self criticism hansei serves a functional purpose.

Self improvement serves to aid Japanese in fulfilling their role obligations.

Do you establish your key selling points in a modest way?

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Group Processes

Formal (associations), informal (family, friends),reference (aspirational groups).

In high power distance cultures children depend more on their parents when making decisions.

Eg: Chinese advertisements are more likely to have an adult voice over than Australian ads. Older people are more often used to promote.

Does your advertising appeal to parents and their children? How?

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Group Processes cont.

Independence and Interdependence

Appeals focusing on in-group benefits, family and harmony are more effective in interdependent societies

Appeals focusing on preferences, personal success are more effective in independent societies.

How is “togertherness” delivered in your marketing materials?

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Display RulesEast Asian collectivists try to display only positive emotions that facilitate group co-operation, harmony and cohesion.

Individualists display a wider variety of emotional behaviours.

Eg: A sultry facial expression vs happy broad smiles and school girl looks.

Does your brochure contain a mix of smiling faces, a single determined person in their power suit?

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In Groups & Out Groups

People in collectivist cultures interact more frequently, more widely, more deeply and more positively with members of their in-group.

In groups vary from family, extended family, family friends, school friends to the larger community such as the Indian jati or Spanish barrio.

Do you take a diversified or concentrated market approach in your recruitment?

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Social Status

“In India the Caste system is not as relevant today as the class system”

In India your position in society is defined by everything; the clothes you wear, your shoes, your posture, where you live, your school, your university!

Does your institution deliver status? How?

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Reference Groups

Influence of professionals and associations is strongest in individualistic and high uncertainty avoidance cultures.

Professionals carry respect and help to remove doubt.

Do you use professionals, opnion leaders or alumni to reduce doubt?

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Language, Perception, Memory

Structural differences such as scripts in Indo-European and Asian languages seem to affect mental representations

Eg: Chinese speakers rely more on visual representations, whereas English speakers rely primarily on phonological representations (verbal sounds).

Canon: If anyone can, Canon can

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Execution Styles

Context - the use of simple imagery can be viewed negatively by consumers that have learned to process more complex images.

Comparitive advertising or use of superlatives in collective cultures disturbs harmony.

Budweiser King of Beers!

Indian IT Outsourcing Presentations

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Visual AestheticsPage layout left to right, right to left or top to bottom?

Centering is a fundamental principle in visual art in many Asian cultures.

Many Asian cultures value complexity and decoration: respond to the display of multiple forms, shapes and colours.

Have you conducted qualitative research to test responses?

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Written Language

How is your brand presented?

Western alphabet vs Calligraphy with local script?

Eg: In Chinese do you use simple or complex characters?

Eg: In Japan do you use kanji (oldest writing system, katakana (modern script) or hirigana (witten in 11th century by a courtesan)?

How is your brand presented?

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Translations

“Translating advertising copy is like painting the tip of the iceberg and hoping the whole thing will turn red.

What makes copy work is the subtle combinations of these words within the mind of the reader.

Advertising is not made of words but made of culture”

Simon AnholtInternational advertising consultant

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A Final Word

Adjusting your message so that your target market responds to stimuli in the desired way is no easy task across cultures.

Understanding and strategy will improve your message!

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Thank You

Thank you for the opportunity to address you tonight.

Matthew ReedePrincipalFlinders InterculturalTel: + 61 2 8354 0760Email: matt@matthewflinders.com

Questions please?

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Convergence or Divergence?

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Individualism/Collectivism

In individualist cultures product ownership can express uniqueness and independence.

In collectivist cultures product ownership may have the function of life stage or group identity. That is ownership may not enhance a unique personality but confirm social status.

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Universalism

The world’s a global village…

Universalist vs Particularist

The universalist approach is to focus more on similiarities

Particularist cultures focus more on differences

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National Cultures

Research like the Hofstede dimensions really come into their own for the purposes of mass marketing…we are looking for reliable generalisations about what most people in a country are like!

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Value ParadoxesDesired vs Desirable

Desired – What we want for ourselves

Desirable – What is right for society

Eg: In Australia rugged individualism can seem paradoxical in view to the need for “belonging”

In Chinese advertising the combination of modernity and tradition.

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Social Processes

Fishbein’s Theory of Reasoned Action

Personal & Social Component

Social pressure has relatively little influence on consumers in individualist markets but exerts strong pressure in collective markets