The current paper is devoted to the analysis of ethical situations may arise when entering a new international market. In essence, the paper is concerned with conducting a conclusive analysis and illustration of major cross-cultural issues that may impact Company A’s marketing approach in China. It also highlights how cross-cultural communication affects marketing strategies of Company A in China. The paper also undertakes to give a thorough evaluation of the impact of cross-cultural ethical differences in marketing strategies between the United States and China as Company A enters the Chinese market.
A.
China would be appropriate market for expansion of Company A. eastern Asia is currently concentrated with countries with richer resources. These resources will in essence be beneficial to company A. It will be appropriate for company A to operate in China’s regional division. China is well recognized for its strong values besides its customs and citizens. With a lot of international companies currently concentrating Chinese market, implementing an expansion program in China would be advantageous as A is assured of potential larger market. China being one of the emerging Asian super powers is advantageous to the Company A of the Unites States as this will make it convenient for the Chinese consumers to buy their product. However, success of Company A is dependent on the implementation of proper cultural etiquette in Chinese market so that cultural barriers are overcome. Potential for ethical conflict regarding marketing approach is likely to increase as Company A enters Chinese market.
B.
The major cross-cultural issues that may impact Company A’s marketing approach in the Chinese market place revolve around the issues that relate to creating and maintaining successful business relationship with the Chinese consumers. These are cultural sensitivity and ethnocentrism. This notwithstanding, a major barrier is cultural difference and distance. The distance creates a lack of knowledge about the Chinese consumers, i.e. their preferences as well as their composition (Boontanapibul, 2010).Establishing, maintaining and developing superb business relationship is a major issue for the Company A’s marketing approaches. Building high quality relationships between USA and China with regard to aspects of buyer seller is very crucial for the company’s success (Pitta, Fumg and Isberg, 1999).
Also, the level of cultural understanding, awareness and cultural bias will be an issue on Company A’s marketing approach. In essences, level of cultural understanding, awareness and cultural bias will significantly influence Company A’s relationship marketing in the Chinese market place. The existence of higher cultural sensitivity will definitely affect the marketing approach to be used for the company to develop and maintain a stronger marketing relationship with the Chinese consumers.
Cultural difference existing between USA and China is also an issue that will impact the Chinese consumers. Cultural differences between the two countries are likely to create navigation that cuts across the market and this may make entering the Chinese market complex. In USA, for instance, Company A may enjoy free press and thus its consumers made aware of the company’s products. In China, however, the openness is lacking. There is general deficiency of exposure to the USA products. Still, in contrast to the USA government, Chinese government places high control on the mass media. It will therefore be impossible for the Company to frequently use the media to market its product in China (Pitta, Fumg and Isberg, 1999). This simply stems from cultural differences.
Also, the marketing approach is likely to take a different twist due to the difference in spoken language. Chinese speak Chinese language and only a few can write and read English. It therefore implies that the Company A’s marketing approach will have to be met by a culture shock, i.e. running adverts in Chinese traditional languages (Pitta, et al.1999).
The company is also likely to be met with traditional differences. This may manifest itself in terms of the country’s history, established conventions and history on the type of marketing strategies to be applied (Welsh, 2005). Chinese consumers are more likely to be tied to their traditions as opposed to accepting current marketing strategies like viral marketing. In fact, Chinese have business culture on that relies on individuals’ reputation and social standing as opposed to the USA’s. Therefore, Company A’s use of marketing approaches that demeans Chinese understanding of tradition and culture remains an issue as to which approach to employ that will uphold the Chinese culture and tradition (Welsh, 2005).
Another cross-cultural issues that may impact Company A’s marketing approach in Chinese market is the ethnocentrism of the Chinese. Usually, ethnocentrism affects negatively cultural sensitivity and the relationship quality between Company A and the Chinese consumers. In this case, Chinese are likely to keep their own judgment and may be unwilling to acquire the cultural norms from exchange that are considered to be different to theirs. This is likely to result in a failure to uphold high quality working relationship pertinent for developing sound marketing strategies.
China is perceived as a communist country. Their culture is based on communism as opposed to that of the USA. The Chinese government may thus act in a subjective manner to USA’s company A. the company may be denied licenses to undertake the appropriate strategies that are not in line with the country’s communism culture. On the same not, cultural sensitivity will allow Chinese consumers to apply different standards in the company’s marketing method and product evaluation (Pitta, et al.1999).
Marketing approach will as well change with respect to the mode it is conducted. The difference lies in the mode American’s use direct method. Their approach is so direct that it is hardly recognized in China (Boontanapibul, 2010). Their culture put them to demand honor and respect before engaging discussing marketing or business plans. Culturally, Chinese view Americans as individuals who jump left and right in making decision relating to marketing (“International Marketing”).
The cultural difference also manifests itself on working schedules. While Americans believe in tight schedule, ensuring that their operations are in time, meet deadlines, Chinese on the other hand are more lax and never in a hurry to accomplish set marketing goals or targets. Also, cultural difference exists in respect. Whilst Americans show little respect to their fellows in business, Chinese are very respectful and thus handle their associates with highest respect (Boontanapibul, 2010).
C.
Cross-cultural communication has considerable impact on company A’s marketing strategies. In essence, spoken language is a major part of culture. Since company A has plans of marketing and selling its products in China, they must be aware of language variations. Company A mostly use English as their business language, while Chinese market is flooded with the Chinese language. Even though one of the universal business languages is English, it will be favorable therefore if the company’s advertisements are in Chinese (Boontanapibul, 2010). More still, it will more favorable if company A’s sellers speak Chinese. Company A’s failure to understand Chinese language will ultimately cause communication problems. It is prudent to note that advertisements should be properly translated into Chinese. A mere wrong translation may have total embarrassment on company A. This may ultimately result in losing its sales (Boontanapibul, 2010).
Pertaining marketing strategies, cross cultural communication is essential. Chinese for instance perceive other adverts differently as perceived by Americans. Besides, translation of marketing strategies must be checked to ascertain accuracy as other words will properly translate while others do not. Chinese like their adverts in print media than pictures. Therefore, company A must consider not making adverts by pictures when designing its marketing strategies. Generally, the company may opt for making its adverts using transformational and indirect messages.
Lastly, Chinese prefer approach of soft sell while Americans like hard sell. This mismatch in preference may present Americans as rude and pushy (Boontanapibul, 2010).
D.
Company A’s advertising, promotions and marketing communications need to be adapted so that they suit the Chinese customers’ preferences and customs. Therefore, there need for the company to carry out an extensive study of practices of similar companies that operate in China so that its marketing strategies are modified to local culture. For instance, there is an official policy in China that does not allow giving gifts as this is taken as bribery.
Boontanapibul, C. (2010) Doing Business in China: Cultural Factors, Start-up Concerns, and Professional Development. Retrieved on 15 Mar. 2012 from http://www.bu.ac.th/knowledgecenter/executive_journal/july_sep_10/pdf/aw26.pdf
Perner, L. (n.d). International Marketing. Retrieved on 15 Mar. 2012 from http://www.consumerpsychologist.com/international_marketing.html
Pitta, D. A., Fumg, H. and Isberg, S. (1999). Ethical issues across cultures: Managing the differing perspectives of China and the USA. Journal of Consumer Marketing, 16(3). MCB University Press.
Welsh, R. A. (n.d). How Cultural Differences Affect Your Global Marketing Message. Retrieved on 15 Mar. 2012 from http://www.rawpowerwriting.com/article.asp?id=9
