The Importance of Cross Cultural Communication in International Business

International Trade and Cross-Cultural Matters

International trade has been on the rise in the recent years. Various companies have started to push their business to different regions. The fight for global market share is on the rise. Cross-cultural matters is an area of critical thinking and analysis for one to penetrate the global market. An article on “Maximizing Business Effectiveness in a Multicultural World by ’Marieke de Mooij’ best explains the course of international trade. Globalization is taking place and the world is becoming more homogeneous. The barriers that existed in cross border trade are fading away. However, the differences between regions, nations and ethnic set ups influence consumer perception towards certain products (Vadhanavisala, 2014). In order for companies to get competitive advantage in international business, they must understand cultural differences between different regions.

The Significance of Cultural Inclusivity in Marketing

To appeal to more than one group of people can pose a challenge. The marketing strategy used must all inclusive of all cultures in demographic environment. Car making company Chevrolet had a major failure in Latin market because of choice of name. The name Chevrolet used had a contradicting meaning in Spanish (Balraj et al., 2016). Governments play a major a role in in international trade through policy and culture protection. Communication skills and strategy affect the profitability of a firm. Nations are imposing protection of culture policies. The policies introduced by different countries and regions affect consumer behavior around the world.

Coca Cola’s Success in Cross-Cultural Marketing

Coca Cola Beverages Company has been a leader in cross-cultural marketing. It uses the inclusivity strategy to run their cross marketing company. A good example is when they aired a peace advertisement across the United States in seven different languages. The message passed across was appealing to many cultures because it was seen as a unifying factor. Their advertising techniques and tools use appeal to a variety of demographics both old and young. They air their advertisements in different language but the message remains the same. The given inclusive marketing attract a large market because it gives people the feeling of belonging. Coca Cola’s success can be attributed to making diverse groups of people feel that they are part of the portrayed advertising message (Kaynak et al., 2014). The other reason for their success is allowing people of foreign cultures to aid them in carrying out social marketing. In South Korea, Coca Cola did not understand the culture around and decided to use local bloggers to help them in their marketing. They acquired information about local people through interaction and inclusivity.

The Importance of Cross-Cultural Communication in Global Marketing

The focus on global marketing strategy should be based on cross-cultural communication. Cross-cultural communication between different companies, partners, and customers is very vital in enhancing international business. If the advertising content appeals to the cultural values of a region, success becomes inevitable. When the message portrayed in the advertising message contradicts a society’s norms, change in consumer behavior occurs. It is difficult to penetrate a market that perceives you as eroding their traditional beliefs. Change in cultural values can be detected by change in cultural content. There exists exchange in cultural values across different demographics groups. Internet and media have enabled the transfer of information between different regions and cultures. Standardization of advertising context is less appealing across cultures. The millennial aged between eighteen and thirty-three are perceived to be homogeneous. The given group of individuals are believed to be racially diverse although they tend to keep strong ties with their culture. Standardization method of marketing is applicable where the individuals have strong ties to their background. People are becoming more individualistic in terms of perception, therefore requiring a dynamic approach to marketing. The change in consumer behavior around the globe is attributed to knowledge transfer.

The Influence of Cultural Values on Buying Behavior

Individual taste and preference is determined by their cultural values. People will make purchases that improve or are at per with their self-image. The society’s expectations and values influence buyers’ motive. Brands appear to be global, but people in different regions do not share the same purpose of using products. Coca Cola in the USA is used by individuals to quench thirst, but in some regions, it acts as a status symbol. The marketing strategy should conform to the various societal needs and expectations. Standardization will not yield positive results in all regions. Preferential marketing techniques should be put in place for different regions market segments. Strategy used in marketing and branding should respect individuals’ independence. Establishing and understanding what gives potential clients the feeling of autonomy in the products is a key factor in global marketing.

Cultural Differences within Nations and Ethnics Groups

Difference in cultural values is not limited to nations alone. Ethnic groups within a nation are a factor of cultural differences. There can be many cultures in one nation. Hierarchy status in some cultures affects the decision of marketing strategy to be used. In some societies, everyone is believed to have their place in their community. A class system occurs where products are specific to certain groups of people. The rich and powerful pretend deny their status thus making the purchasing to be same level as the poor. In self-centered society, individuals only show concern for themselves and their families. In other cultures, everyone belongs to the society. The buying behavior is similar hence standardized form of marketing is applicable. In the individualistic society, the taste of people is unique. The collective culture of buying products is determined by the class in which different individuals belong. Market research plays a vital role in understanding the best strategy to penetrate markets (Petersen et al., 2015). Gender plays a major a role in the decision making to ascertain target groups. It is important to target specific gender of people for some products. Products may be regarded as having masculine or feminine orientation in certain cultures. In different places, the products might be considered to be unisex. The status role of the products is very key in the advertising message.

The Influence of Culture on Advertising Communication

Culture is important for developing a communication structure for advertising. It determines the decision making of consumers whether to buy certain goods or services. In advertising, different cultures can be recognized in films, poetry, songs, and dance. The appropriate style is determined by different demographic groups. An idea that is appealing to one culture will not be appealing to another culture. What captivates people in different cultures will become appealing for them to buy. The backgrounds of people inhibit individuals from choosing products that come from a different cultural perspective. Utilizing an advertising framework adapted for another culture is not ideal for another culture. A message may be appealing to a certain group but bears a different meaning in another region. What captivates in one region may be considered as a threat in a different place.

Cultural Segmentation and Advertising Method

Motives of buying vary between different cultural groups. Group segmentation of different cultures plays a key role in the marketing method to be used. The society configuration, whether it is centered more on individuals or collective, determines the type of advertising to be used. Direct advertising comprises mainly of referrals, testimonials, and demonstration. Indirect advertising comprises mainly of indirect media. Avoiding uncertainties in a product is a message that should be displayed clearly in the marketing message. Some societies are keen to avoid risks that are associated with a product. Their preference is hygiene and expert opinions. When advertising to such demographics, it is important to provide information that is ascertained by experts. Whereas in other societies, people are not keen on risks but conform to general ideals.

Cultural Considerations in Purchasing Behavior

The level of happiness and appreciation of leisure goods and activities is a consideration that should be factored in when analyzing a market segment. In some regions, people only purchase goods and services that are essential to them. They do not consider non-essential goods or luxury goods. They may not be willing to pay more for better quality or get the latest versions of the products in their possession. The level of study and knowledge of people in different regions is a major factor to consider in marketing. The local sensitivity to products and norms surpasses the marketing strategy to be employed for the organization to achieve their marketing goals. The goal of different advertising styles is to achieve effectiveness. Some societies will require emotions research to be carried out. This does not apply to all regions.

The Importance of Cultural Understanding in Cross-Cultural Communication

Businesses and consumers being able to communicate cross-culturally is important for the success of any firm. Information gathering in order to understand different markets is responsible for the success of corporations’ sales in the global market. Study of culture of where one intends to do business is essential for success. Their marketing strategy should be able to incorporate already laid out and existing channels. However, firms can become instruments of change. Culture influences consumer behavior. Advertising budgets are determined by consumption styles of the target market. Business communication affects culture. Practices originating from other regions are transferred to different geographic locations.

The Role of Culture in Driving Business Results

Business results are driven by understanding cultural differences. Effectiveness gained is the most significant goal of cross-cultural communication in advertising. Standardization is not the most effective tools for cross-cultural marketing. Companies like Coca Cola are able to stay above other beverage firms in many markets because they are able to adopt to different cultural environments. Brand specifications must be elaborated for each culture firm operates or sells their products. Development of effective cultural strategies by organization can be very beneficial. A study or measure of the cultural values should form the basis of the cross-cultural communication.

References

Vadhanavisala, O. (2014). Ethnocentrism and its influence on intention to purchase domestic products. AU Journal of Management, 12(2), 20-30.

Balraj, N., & Vetrivel, M. (2016). The Impact of International Business on the Global Economy. Splint International Journal of Professionals, 3(9), 50.

Kaynak, Erdener, and Paul Herbig. Handbook of cross-cultural marketing. Routledge, 2014.

Katz, E., Lazarsfeld, P. F., & Roper, E. (2017). Personal influence: The part played by people in the flow of mass communications. Routledge.