A

Presentation
On

Cross Culture Marketing

By

D.Pradeep kumar
EXE-MBA, IIPM,HYD
 What is Culture…?

A set of beliefs, values, attitudes,

customs and acceptable behavior as
practiced by a group of people in a
region…!
 What is Culture…?
“Everything that people have, think, and do as members of a
society” (Ferraro, 2005)

Characteristics of
Culture
 Culture is learned
 Culture is unconscious
 Culture is Symbolic
 Culture is a way of life
 Culture is Dynamic
 Culture is Relative
 Dimensions of Culture
 Values
 Norms
 Ideas/Beliefs
 Attitudes
 Symbols
 Traditions
 Artifacts
 ARTIFACTS
( Visible )

VALUES
( Partly Visible )
BASIC ASSUMPTIONS
( Not Visible )
What is Cross Culture….?
Cultural Environmental Factors
• A cross-cultural analysis involves the
study of similarities and differences
among consumers in two or more
nations or societies
• The cross-cultural analysis creates an
understanding about values, customs,
symbols, & languages of other
societies.
Cultural Environmental Factors:
Values
• A society’s values represent
personally or socially preferable
modes of conduct or states of
existence that are enduring. Values
influence the behavior of the
consumers.
– McDonalds example in India
 Cultural Environmental Factors:
Language & Back Translation

• The best language to communicate

with consumers is in their own.

• Over 3,000 languages spoken world-

wide

– Vicks example in Germany

 Great Britain
• Intimate questions
• Time
• Precedent
• Voice
• Ice breakers • Approach
• Use of titles • Intensely hierarchical
• Eye contact
• Decision making style
• Humor
• Don’t use pressure for
• U.S. relations, Royal decisions
Family
• They won’t hesitate to say NO
 Germans! What are They?

• Handshake • Humor?
• Eye contact • All relevant data
• They stand very close required
• Men should rise for • Presentations
women • Punctuality
• Who enters first • Gifts
• Thinking Styles • First names
• Feelings • 3rd party intros
• New ideas
 Japan
• First Names
• Titles
•Negotiations
• Don’t talk with hands
• Decisions
• Meaning of a Smile
• Silence is Cool
 United State of America

• Responsibility • First names

• - with each individual • Discusses family
• Level • Humor
• - operational • Have’e gott’deal
• Evaluation • Informal
• - specific abilities • Dread silence
• - task – orientation • Quick decisions
• Time • Opportunistic
• - limited resource • Persistent
• Consistent
 Cultural Implications
The material evidence of what a cultures does
What its people value
What attitudes prevail, how they conduct their lives
Usually embody the ideas and traditions of a society
 Why is it important for businesses to
understand Culture?
Culture is the lens through which people view products as well
as your company…!
Culture channels our values, attitudes, motives and goal
directed behavior, as well as our personality….!
Culture influences the overall priorities consumers attach to
different activities and products..!
Consumption choices cannot be understood without
considering the cultural context in which they are made…!
Determines the success or failure of specific products or
services…!
Determines the success or failure of marketing
communications…!
 Everyone should use a
deodorant
USA 89%
French Canada 81%
English Canada 77%
United Kingdom 71%
Italy 69%
France 59%
Australia 25%

Such findings signal that Canadian values, ideas, and attitudes should be relied
upon when planning marketing forays into foreign consumer markets
 A house should be dusted and polished three
times a week….!
Italy 86%
United Kingdom 59%
France 55%
Spain 53%
Germany 45%
Australia 33%
Canada 25%

Each product or service must be evaluated for its potential fit with the cultural
norms and values of consumers in a particular country or region
“Sacred” can include
Things
Events
Places
People

Marketers need to be aware

of what is sacred – and
perhaps taboo in advertising
Dr. Geert Hofstede’s
4 Dimensions
 • UAI
Uncertainty Avoidance Index
High

Germany, Spain, Portugal, Turkey, South

Korea, Greece, Belgium, Japan, France

Low

U.S., Malaysia, India, the U.K., Singapore,

Denmark, Sweden, Hong Kong
 • IDV
Individualism Vs. Collectivistic
High ( Individualistic )

U.S., Canada, U.K., Australia, France, Italy,

Netherlands, Italy, Belgium

Low ( Collectivistic)

Ecuador, Colombia, Hong Kong, Latin

America, Taiwan, Pakistan, Indonesia,
South Korea, China
 • MAS
Masculinity Vs. Femininity
High ( Masculinistic )

Switzerland, U.S., U.K., Mexico, Germany,

Japan, Slovakia, Hungary, Austria, Venezuela,
Italy

Low ( Feministic )

Denmark, Finland, Norway, Sweden,

Netherlands, Chile, Thailand
 Confusian Dynamism
• L T O Vs. S T O
High ( Long Term Orientation )

China, Japan, South Korea,

Brazil, India
Low ( Short Term Orientation )

West Africa, Philippines, Norway,

U.K., U.S.
 Dr. Hofstede’s Country Scores
PDI IDV MAS UAI LTO
COUNTRY  

Germany 35 67 66 65 31
India 77 48 56 40 61
U S of America 40 91 62 46 29
United Kingdom 35 89 66 35 25
Canada 39 80 52 48 23
China 80 115
15 55 40
Japan 54 45 95 92 80
Case Study of Mc Donald’s Marketing(Cross Culture)
United States…! Thailand…!
McDonald’s became very popular across different countries because they were
able to adapt to local markets and local communities. They not only produce
advertising campaigns suitable for each unique culture but also able to
understand their consumers and therefore know what they want.

This can be seen through McDonald’s strong menu across the world :-

1. Indonesia: chicken, rice, vegetable soup and drink as a set meal

2. India: big mac without beef (because Hindu people don’t eat beef), instead
uses lamb and chicken
3. Germany: meal includes beer
4. Chilli: avocado sauce in the burger
5. Norway: grilled salmon wrap
6. Hong Kong: rice burger
7. Japan: prawn with sesame burger and
8. Japan: tamago (egg) burger
9. Canada/England: lobster burger
10. Hawaii: spam, sausage, egg and rice breakfast meal
Lack of local sensitivity can result to the decline in company’s profit as well
as to weaken brand image.

Interesting fact people tend to forget is that when a country is developing,

they always focus more on international (western) value but once the
country is developed they will shift their focus back to their own historical
values and preferences.

 Therefore advertisers must understand the situation of certain country and

understand their culture before launching any kind of global advertising
campaigns.

 There are indeed many globally popular brands such as Coca-Cola

however, it would be a mistake to assume that everyone purchase/consume
Coca-Cola for the same reason. Coca-Cola itself made the mistake of
assuming that there is such thing as universal motivation. However, with the
decline in their sales in the year 2000, they started to realize the importance
of local markets which then led to the success of Coca-Cola’s advertising
campaign across different countries.

“We kept standardizing our practices, while local sensitivity had become
absolutely essential to success” – Douglas Daft, Coca-Cola’s CEO from
Financial Times.
Why is KFC so much more successful in China than
McDonald’s, at least for now?

Marketing campaigns may have convinced people that KFC is more healthy in China
than America - Their message is that KFC in China is the “new fast food” - healthier than
other fast food options abroad and in China.

More Chinese people like fried chicken more than hamburgers - Although McDonald’s
rolled out a new marketing plan aiming at young adult Chinese consumers last year.

KFC has more China-specific choices than McDonald’s - by far. They have a much
more China specific menu.

KFC has better coupon deals than McDonald’s - which is very important to most
Chinese consumers. About half of customers of either restaurant use coupons - but the
best tasting stuff at McDonald’s, the beef, rarely has good coupon deals.
 Reasons for Sensation of Mc Donald’s
Abroad…?
 In countries where customers prefer something else, McDonald's
incorporates it in the menu.

It resects their cultures, their beliefs and likings.

 The company has is being nationally responsive, which is a key factor in any plan for
global expansion.

 Many firms bring their own management to the foreign that is not very familiar with the
culture, customs or traditions in the country's. It can be said that many business
ventures are doomed from exception because of this fact.

It caters to people's needs in a wholesome manner

 Other key elements in business practices in the United States versus China are
modifications in the menu and the approach in which McDonald’s management
overseeing the operations in China advertises.
 Modifications done by Mc Donald’s in other
Countries…!
 McDonald's INDIA offers Aloo Tikki and Paneer. And it doesn't serve beef or
pork at all.

 The Big Mac becomes Maharaja Mac in India (20). For vegetarians (a
majority in India), there's an assurance of separate kitchen, utensils and
cooks.

 In Ahmadabad (a predominantly vegetarian city), McDonald's is actually

toying with the idea of opening an all-vegetarian outlets.

 Have a pommefrite sauce in Belgium and Holland, and a special

Mayonnaise based sauce in Iceland.

 McDonald's in all Islamic countries doesn't serve pork, in deference to

Muslim tenets of belief.
 Cont….!
Saudi Arabia: McDonald’s McDonald's Saudi Arabia closes five times a day for
Muslim prayers.

 There are two restaurants that are located in the Holy City of Makkah that are quite
unique. These restaurants are the only two (2) restaurants in the world that serves
exclusively to Moslem customers.

 These restaurants are also the only two that are fully staffed with Moslem employees,
from the Service Crew to the Restaurant Manager level.

 In China McDonald’s has met the demands of consumers by adding the teriyaki
burger (a sausage patty on a bun with teriyaki sauce) to its menu. McDonald’s has
became so accustomed to the Chinese culture many of it’s customers do not realize it is
an American-Based Corporation.

 Another factor that worked well in McDonald’s favor in Europe was the management’s
ability to allow Asian consumers to gradually twist the McDonald’s company culture for
their own purposes.
Any Questions or Comments?

Thanks for listening

By
D.PRADEEP KUMAR
Exe-MBA ,IIPM ,HYD\
Reach me : [email protected]