Cultural Factors and Marketing Approach in China
China has become attractive market for foreign investors as a result of globalization characterized by open policies and economic reforms. Multinational firms have been experiencing better success in China as a result of a better relationship with the Chinese as well as China’s openness to western ideas. This country has of late experienced rapid economic growth, but for western investors it remains a difficult country to navigate (Boontanapibul, 2010). There are many obstacles that should be overcome success of a business venture in China. This Company’s operation in China will face cross cultural management problems due to cultural differences between these two partners. A sensitivity analysis to cultural differences is ideal for international marketing.
Cross-Cultural Issues
Cultures tend to differ, and key products may face resistance. China and USA differ in regard to political & economic systems, laws and social values as outlined herein. Some of the issues in regard to cultural differences include the difference in terms of consumption cultures. Americans culture has a high consumption pattern whereas Chinese do not have enough purchasing power to meet these high levels of consumption. Time perspective differences also exist between these two cultures. Americans are straight forward and aggressively aim to dominate in their businesses. They come up confident and risk a lot in their pursuit for success caring less about rituals and social values. Greetings are another issue that should be addressed by the company’s marketing team as they make the first impression. Westerners pay more importance on personal liberty and privacy while the Chinese are known to greet each other with personal questions symbolizing their concerns and personal considerations (Huang, 2003).
Uncertainty avoidance issues also differ between the two cultures. The Chinese are considered more risk-Averse than Americans and will not readily purchase Company A’s Heavy duty engines. Americans have a short-term orientation, unlike the Chinese long-term orientation (Boontanapibul, 2010). Gestures are a powerful communication channel used to convey different messages. This method of communication has a different meaning between these different cultures. Therefore, the marketing team needs to learn about the dos and don'ts. Another cross-cultural issue that requires attention is the meaning of numbers. For example, 4 is a number that differs in meaning between US and China. In China 4 is disliked as it means death and the company should avoid such numbers. China is a centralized power economy while America is relatively decentralized with high degrees of individualism. The company should expect low degree of freedom in China.
Marketers should evaluate and identify issues regarding cross-culture differences that affect their marketing strategies. Company A should aim at developing personal relationship with Chinese in order to build long-term business contacts. In order to deal with authoritarian element in China, Company A should engage a negotiator who understands the Chinese decision making pattern, negotiation limitations and one who is ready for a traditional culture based power play. The company’s Marketers should exercise keen insight and tolerance to these cultural differences and the management can re-train its workforce in issues relating to these cultural differences. Company A can deal with the difference in shopping behavior through reviewing its pricing strategy as Chinese have grown up in a culture that values price consciousness. The company should consider rebranding as the current label and numbers used may mean different to the consumer upon translation. In China time is not as essential and long delays are way too often experienced before an action is taken, therefore company A negotiators should exercise tolerance. Negotiation styles an essential skill in marketing also differ between Americans and the Chinese. For example, the Chinese Confucian ideas guide their negotiating skills.
Cross-Cultural Communication
Communication is a key determinant of cultural orientation and behaviors. A company should examine the culture of a market it intends to explore so as to determine its viability. Cross-cultural communication has numerous potential problems, and an attempt to overcome them will influence the choice of marketing strategy. Success of a marketing communication depends on cultural factors regarding the market. Price consciousness should be understood and Chinese high price sensitivity leads to shopping differences between them and Americans. For example Chinese are known to value bargaining and these differences will affect store pricing as buyer is the king in China. Consumers also respond differently and appreciate marketing strategies that respect their cultural heritage (Solomon et.al, 2007). Chinese are known to have a high degree of taste and preferences for their local products and appropriate promotion campaign is essential to convince them otherwise. If the Chinese market is slow in responding to these engines, it should be understood that perhaps cultural differences and preferences are the cause of communication problems. Therefore, the company’s marketing strategy should exercise patience rather than resentment.
It should be understood that most locations will be different and the company should learn as much as possible about the location, culture and people before and after arrival. It is beneficial if the company can learn Chinese language for better contact and relationships with the locals. Appreciating these differences and behaving like a wise guest will ensure success of the marketing strategies. Cross-cultural communication also requires that when in conflict the best course of action is to step back and reflect before taking any action. Intermediaries’ strategy is especially valuable in cross-cultural communication situations. Marketing in this situation requires an intermediary who can translate the nature and content of what is said. For example, some strong statements can be used in negotiations which are acceptable to Americans but offensive to the Chinese. Communication influences marketing strategy success through appropriate branding and promotion of products. For example Coca cola entered Chinese marketing with a name sounding similar but that meant “bite the wax tadpole”.
Impact of Cross-Cultural Ethical Differences
Business community needs to deal with ethical issues across cross-cultural setting as a result of globalization of markets. Every marketer should behave in a moral and ethical manner. These ethical considerations will affect how the company will behave. A’s marketing strategy should not deny anyone his or her right, be lawful, not harm the environment nor take unfair advantage (Yucel et al, 2009). In US giving business gifts is condemned but the Chinese embrace this policy so this will be a strategy to consider. While giving gifts always use two hands as this shows respect. The Chinese also find licking of fingers and picking of your teeth disgusting and should be avoided at all cost. Across different cultural backgrounds, marketers face different moral values. Nepotism and hiring on personal relations is not acceptable and will affect marketing strategies. Chinese people are also known to be cautious and will allow you to enter elevators before them. Many Chinese are superstitious and marketing strategy should address these superstitions for its success. It is also important to show respect to religion and Confucian laws. There is a need to decide which ethics to use in international marketing.
During the marketing of these engines, different ethical approaches will be the basis of ethical decision making process. Nill (2003) classified these approaches as descriptive and normative approaches.
References
Boontanapibul, C. (2010). “Business in China: Cultural factors, Start-up concerns and Professional Development”, Executive Journal.
Huang, L. (2010). “Cross-Cultural Communication in Business Negotiations”, International Journal of Economics and Finance. Zhenjiang. China.
Nill, Alexander (2003). Global Marketing Ethics: A Communicative Approach. Journal of Macro-marketing 23(2): 90-104.
Solomon, M, R., et al. (2007). Consumer Behavior. Pearson NSW.
Yucel, R., Elibol, H., & Dagdelen, O. (2009). “Globalization and International Marketing Ethics Problems”. International Journal of Finance and Economics. V .26
