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With the increasing globalisation, the international businesses world is changing significantly. Cultural differences among the different nations are one of the important things that is affecting international business management. Operating and managing the firm at an international level is not an easy task. It had become vital for international brands to understand that how cultural differences can affect their business performance in the local markets and international markets in which they are operating(Cateoraet. al.2020). In this report, the researcher would focus on studying the impact of cross-culture differences on international marketing. The researcher would focus on explaining that while marketing in the international market then how the businesses are required to consider the cultural factors while promoting their products and services. For explaining the research topic, the researcher would focus on using different literature sources.
The structure of a report is as follow: firstly, the methodology section will describe that how the researcher would conduct the research study. The next section would be the literature review that explains different themes related to the research topic. The conclusion would be the last section that will discuss the implications for the issues related to cross-cultural differences in international marketing.
Culture is having a major impact on the buying preferences of the customers. Morganite. al. (2018) had stated that while operating at the international market it is important for businesses to focus on having greater knowledge related to cultural awareness as this is having a major impact on their market position and business operations in the international market. Firms need to understand the local culture of the foreign market in detail before offering the products and services to the new market(Tien, et. al. 2019). Communication barriers is one of the challenges offered by the cross-cultural differences that affect the marketing practices of the businesses. With the help of this study, the researcher would explore the different factors related to cultural differences and how they affect market practices.
The research aims at studying the influence of cross-culture differences on international marketing.
The methodology is an important part of the research and it is vital for the researcher to select an appropriate methodology for the study. There are different types of researcher approaches such as inductive and deductive research. In the current study the researcher would be using the deductive research approach(Snyder, 2019). This would help the researcher in exploring the topic by reading and studying the research studies of other researchers and reading the existing literature. This would help the researcher in exploring the research topic in detail.
Research design is also an important part of the methodology. It is viral for the researcher to select an appropriate research design according to the research topic and objectives of the research(Ørngreenand Levinsen, 2017). In present study the research will use the explanatory research design. In this the researcher would focus on explaining the different concepts related to the research topic in detail(Turnbullet. al.2021).The next is the research strategy and they are broadly classified asqualitative and quantitative research strategy. In this study the research is conducted a qualitative research and will focus on understanding the different views related to the research topic in an appropriate manner.
In this research the researcher would focus on using the secondary data collection method. In this method the researcher focuses on using the previous research studies. The researcher would focus on reviewing the literature. The researcher would use the different literature sources such as journals, articles, and research studies for conducting the study in an effective manner(Snyder, 2019). The researcher had focused on including the studies from the year 2014-2021. This time span is selected because in the last decade only the globalisation had increased, and businesses had started focusing on cross-cultural differences. The research articles and studies have been categorised into two different themes based on the research objectives.
Marketing is referred as the practice of promoting the goods and services that are been offered by the company(Deepakand Jeyakumar, 2019). When the firm is operating in the international market then marketing become more complex for them because they must get involved in international marketing. Cateoraet. al. (2020) had stated that international marketing is referred as the practice of exchanging the goods and services across the borders for meeting the customer requirements and doing effective marketing of the products and services offered to them.
Culture and international marketing
Talayet. al.(2019) had mentioned that culture plays a major in international marketing and it is important for the firms to focus on this factor while offering products in the global market.
Serdari(2020) had mentioned that the marketing strategies of the organisation should be changes according to the culture. The study had stated that culture is having an influence onmarketing decision as it affects the product, pricing, promotion, and place. It can be said that the company needs to do effective market research and the culture values and buying preferences based on it.When the organisation is having better knowledge related to this then can use effective marketing strategy for attracting the customers in an appropriate manner.
De Mooij(2018) had stated that when the firm is looking forward to entering new market or into a foreign country then it is important for them to focus on country’s culture before entering the nation. The different factors such as language, religion norms, customs, society, values, education status are having a major impact on buying pattern.These culture factors are required to be the organisation so that they can understand their customers and their buying patterns before offering products and services to them.
Li and He, (2020) had discussed thatcultural difference is an important barrier in the business communication. And for this it is essential for the organisations to be aware of the different cultures of the nations in which they are operating. This would help them in reducing the risk of lack of management in the foreign nations.
Khosrow-Pour(2019) had stated that marketing communication is significant for the international firms and marketing as well. The study has described that the diverse factors related to the culture of a particular location affects the marketing practices. The factors such as lifestyle, attributes of the social groups, dressing style, eating habits and believes are an important factor for the customer preferences.
In support to this Songet. al.(2018) had also mentioned that the ability of the company to attract and retain the customers is highly depended on the way their marketing strategy fits with the culture of the nation or the location to which they are offering their products. The study had stated that the products that has been offered to the customer needs to align well with the customer’s traditions, normal and cultural values then only the customer would prefer to buy the product.
Ranaet. al.(2020) had mentioned that product promotions are highly influenced by the cultural values. According to the study it is crucial for the businesses to understand the different choices of the customers based on their cultural. All the nations are having different cultural values, and this is important for them to understand them. The researcher had explained that with the increased globalisation and cross border trade the businesses are facing several issues in redesigning their marketing strategies. Due to higher impact of cultural diversification firms are required to make changes in their marketing strategies.
Factors of cultural differences affecting marketing practices.
Miaoet. al. (2019) had stated that culture is playing an important role for the businesses because the costumers belonging to different culture react differently to the same products. For this it had become essential for the businesses to understand the culture and should bring modification in their product range and promotional strategies that would help them in attracting the customers in an effective manner.
Cross culture communication is also a significant factor that affects the international marketing in an effective manner. According to the study of ????????, (2020) when the firms are offering products in the foreign nations then it is important for them to focus oncommunication based on the culture. It can be said that it is important for the businesses to have an effective communication and marketing strategy based on the culture. When the messages are conveyed to the customers related to the products and services then they should be based on thereceiver’s culture, learning processes and customers. If the company isnot having better communication,they would face issues in communicating and connecting with their customers in an appropriate manner(Shamneet. al.2019).Thus, the report stated that the firms need to be effective at offering the products by using the marketing strategy that suits well with the culture.
In support to this Su(2020) had also mentioned that marketers need to focus on understanding the language and the culture of the target market then only they would be able toenter and do the business in an effective manner. Language can become an important barrier while communicating then it is important for the businesses to focus onsolving this issue.
Ismail (2018) had stated that effective market research needs to be done by the organisation before entering the new market. The study mentioned that social trends and cultural values the nation is different for all. For example, if the country is highly developed and is having high context culture then then it is important for the company to use marketing strategies based on the technologies. For an advanced nation digital marketing would work well. Based onthis it can be said that culture and social trends are having a strong influence on the buying behaviour of the customers.
Bramantyo(2017) had mentioned that culture is having a major impact on the lifestyle. Enterprises needs to understand the culture and lifestyle before offering the product or service to their customers.
Aufet. al.(2018) had mentioned that the buying decision of the customers are based on cultural values of the nation. The report had mentioned that businesses need to understand that the population of the country is making collective or individual buying decision. Then it would help them in developing an effective marketing approach with the help of that they can attract the entire society. This would help the in doing better advertising and promotion of their products in the international market.
Muhamadeet. al.(2019) had mentioned that religion is also an important cultural difference that affects the businesses and their marketing practices. The study mentioned that the religion beliefs affect that how the customers perceive the different products and services. It is important for the businesses to understand that how religion of a nation is affecting the buying pattern of their customers. And then based on it only they should offer and promote the products and services(Wanget. al.2018).
Diószegiet. al.(2019) taste and preferences are also essential factors that needs to be considered by the international firms before offering the products to the customers. For example, the food selling companies needs to do effective market research related to the eating habits and preferences of the customers. The international firms such as Dominos and McDonalds need to understand the eating habits of the nation and then based onit, they have to offer the food. Along with this the marketing strategies also needs to align well with this.
Demographics and age are also important cultural factors that are having an influence on international marketing (Abdurakhmanova and Zokirova, 2020). When the firm is offering the products then they need to consider the demographic factors of the nation because this is an important part of cross-cultural differences. Income is an important demographic factor that affects the buying behaviour of the customers. For example, the developed nations are having better employment rate and lower unemployment(Singhand Verma, 2017). Due to this reason in the people of the developing nations are having better or high living standard as compared to the developing nations. Businesses need to consider this factor before offering the products to the customers.
Education is also an important cross-cultural factor that affects the marketing strategies in the international market. It is vital for businesses to consider this factor while doing marketing of their products(Taylor, 2017). The marketing messages that are used by the businesses needs to be direct and should be based on the literacy level so that the customers can understand it in an effective manner. In support to this Alamet. al.(2019) had also mentioned that the literacy level is having a major influence on the product choice made by the customers. So, it can be said that marketers need to understand how literacy is affecting the customer buying pattern. For example, in the developed nations where the literacy rate is high the businesses can use the latest tools for effective marketing. This would help them in offering and promoting the products in an appropriate manner.
The above-mentioned report had focused on the studying the impact of cross-cultural differences in the international marketing. For understanding the research study in an effective manner different themes have been developed and with the help of different literature sources the researcher had explained the research objectives in detail. Based on the above-mentioned research study, it can be concluded thatthe different factors of cross-cultural differences are having a major impact on the marketing practices of the firm in international market. It can be recommended that it is important for the firm to do effective market research for understand the culture and the impact of different cultural factors on the buying preferences of the customers. This would help them in developing better marketing strategies with better promotions and advertisements. This would help them in doing business in the foreign nation in an appropriate manner and leading the firm towards success and development.
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