Introduction/Characteristics of Culture: Marketing To The World

Marketing to the World
Editor:
In Marketing to the World, Supercharged Managers will learn of the value in marketing their
products and services - not just locally, but in a way that speaks across borders and oceans.
The Internet has all but eliminated geographical boundaries, but some companies haven't yet
figured out how to broaden their marketing focus to include those from other cultures.

Unit 1
Introduction/Characteristics of Culture
OH, THAT SINKING FEELING
It's a jungle out there. Bad enough that you had no idea what that guy from New York meant
when he asked, "Yawana gotadacidy?." Or, that you completely misunderstood the folks from
Georgia when they left the meeting saying, "Ya'll cum agin, na ya eer." Then who knows
what those California people had on their minds when they enthusiastically responded that
the idea was, "Sick."
Now, you're winging your way to New Deli with the story of Ed's debacle fresh in your mind.
How could he have known that maintaining eye contact with an Indian during a business
meeting was seen as an American attempt to control the negotiations and impose a
prearranged agenda by direct physical confrontation? Poor Ed. He didn't know to look away
as a sign of respect? After all, Americans show respect by looking a person squarely in the
eye.
From body language to native language, from breakfast cheese to corn flakes and pigs,
cross-cultural diversity abounds. Each nuance, each glaring difference a potential obstacle to
effective communication. The risks range from a local embarrassment or inconvenience, to a
global marketing disaster.
Like the Boy Scouts, it's best to be prepared.
UNWITTINGLY UNDER THE INFLUENCE
Nobody wants to be embarrassed. Nobody looks for the chance to scuttle the big deal by
insulting the host in their own country. But we are, and we do. Usually we get ourselves into
these awkward situations because of our grossly inadequate understanding of the culture in
which we find ourselves.
What we really seek to do as marketers is to fulfill the wants and needs of our customers. We
want to understand our potential audience in terms of what they purchase, why they buy
what they buy, how much they spend, and when and where they shop.
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The challenge confronts us when we step out of our own culture -- of which we usually have
little recognition -- and walk into a foreign environment. The role of culture comes into stark
focus when we realize that every one of the typical research points -- the descriptors of who
buys what where, when, how often and why -- is influenced by, and varies according to
culture. Every one!
A CONTINUOUS THREAD, WOVEN IN TIME
The development of the subtleties woven into each culture evolve over time. Not just a few
years, but rather hundreds, sometime thousands of years.
In many Asian nations great significance is given to minimizing differences, and for
preserving a sense of harmony. They seek to foster group loyalty and place value on
conformity. These cultural values evolved over many generations. Derived from ancient times
when nations faced insufficient natural resources but had an abundance of human resource,
many Asian cultures nurtured a society that rewarded harmony and conformity. The need for
order and structure was a necessity for survival. Collectivism was a natural cultural
development.
Today, when Asians travel abroad, we see these cultural traits evidenced. They often dress
alike, travel in large groups, move as a unit, and follow directions. It is in their nature. It is
part of who they are culturally.
VIVA LA DIFFERENCE!
On the other hand, there are those abrasive, independent, non-conforming Americans. They
maximize the differences, question the directions, confront the issues, and take pride in the
rugged individual who stands on their own two feet.
For the American, these values are rooted in how their nation grew. It was out of a war for
independence that the nation was given birth. Men and woman determined to forge a new
sovereign nation, independent and self governing threw off oppressive rules and regulation,
and in exchange established their own.
When, for these early Americans, one's closest neighbors may be many miles, perhaps
hundreds of miles, away there was no choice but to stand on your own. To be tamed and
conquered, the rugged frontier life required self-directed, strong willed, individualistic
thinkers. This hardy and robust mind-set fostered respect for those who went their own way
and made their mark in life.
LIKE ALICE THROUGH THE LOOKING GLASS
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No matter where you go in the world you find these threads into the past. These are cultural
threads that blend together to weave the fabric of the tapestry of the world as it is now, in
that place, understood unconsciously by its members.
What one culture values as a strength is to another a liability. Vastly different philosophies of
life yield vastly different life experiences. To each they are practical, reasonable, and
understandable. The impact of history and geography serve to sculpt the culture of a nation.
It is these differences, tethered to a nations past, which we encounter when we step into
another's culture.
SHE WAS LIKE FISH OUT OF WATER
Bogota was not as intimidating as Stephanie had expected. While the inordinate number of
men in uniforms with guns was a bit overwhelming, she made it through customs, met her
contact and arrived at the hotel without incident and plenty of time to go over the agenda for
the meeting that afternoon. Now she waited. Hot, irritated, and anxious.
The meeting was set for 1:30 pm and it was now close to 2:30 pm. She had, after all, flow a
very long way for this important engagement. Finally the Colombians arrived with lots of talk
and enthusiasm. While there was no apology for their lateness, they were in good spirits and
Stephanie was eager to get down to work. She had prepared a tight agenda, with many
critical points to be discussed before they would conclude at 5:00pm. Her next meeting, set
at 7:00pm was also critical and decisions in this meeting would effect the transactions latter.
It was a disaster. For Stephanie the time spent in perfunctory talk of weather, weddings, a
local festival, friends and family stole valuable time from the otherwise tight agenda.
Discussions meandered far afield often never directly addressing the key issues at hand and
often going around and around on a subject. It seemed that time was like a rubber band
stretched to its limits with no thought of a deadline. Despite her misgivings she put on a good
front and pleasantly persevered.
Stephanie left the meeting bewildered, frustrated, and angry. How could these business
people be so ignorant, unprofessional and ill-mannered?
For the Colombians it was a different story.
THEY WERE LIKE FISH IN THE OCEAN
For the Colombians the luncheon meeting had been a great success, ending with a final
round of drinks and a song. Then off to the meeting with the American representative. Of
course she was waiting. The Americans are always waiting, ready to go. Despite the fact that
she seemed a bit impatient the meeting was terrific. As expected she was very organized and
had list of matters to discuss. It was helpful but it was good to address the other related
matters too.
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It was too bad she was not able to join them for dinner later, but no problem they could
finish with business tomorrow. All of the business that needed to be discuss was discussed
and the relationship seemed like it had the makings of a long term partnership. Papers would
be drawn up and the agreements signed in the next few days.
For the American it was a nightmare meeting. Lots of talk about unrelated issues; nothing
really settled except that they would all get together again in the next few days.
For the Colombians it was the beginning of a great new relationship.
What had happened?
FROM PYGMIES TO PARISIANS, SPEARS TO SILICON
From the tribal people of the highlands of Papua New Guinea or Africa, to the high tech
worlds of Asia or Europe; From the burgeoning cities of South Africa, to the vast expanses of
the Canadian prairies, cultures contain ten distinctive characteristics.
In his "Handbook of Cross-Cultural Marketing" Paul Herbig clearly outlines these important
elements of culture. Let's take a look...
COMMON CHARACTERISTICS OF CULTURE
1. CULTURE IS FUNCTIONAL - In every society, the culture of the society has a functional
purpose that provides guidelines for behavior that are crucial for the survival of the
group.
2. CULTURE IS A SOCIAL PHENOMENA - Culture arises out of human interaction, is a
human creation, and is unique to human society.
3. CULTURE PROVIDES PERSPECTIVE - Culture defines and prescribes acceptable
behaviors.
4. CULTURE IS LEARNED - Culture is not inherited genetically but is rather the result of
acquired behavior learned from other members of the society
5. ARBITRARY - Cultural practices have a certain arbitrariness since
behaviors acceptable in one culture are not acceptable in other
cultures.
6. CULTURE IS VALUE LADEN - Culture provides values and tells people what is expected
of them. It enforces and reinforces what is good and bad according to the society.
7. CULTURE FACILITATES COMMUNICATIONS - Both verbal and nonverbal
communication flows between individuals, groups and organizations within a common
set of perceptions established by the culture.
8. CULTURE IS ADAPTIVE AND DYNAMIC - Culture is constantly changing to adapt to new
situations and new sources of knowledge; it changes as society changes and evolves.
9. CULTURE IS LONG TERM - Contemporary cultures have resulted from thousands of
years of accumulated experience and knowledge.
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10. CULTURE SATISFIES NEEDS - Culture exists to satisfy
the needs of the people within a society. Culture takes on new
traits and discards the old and those that are useless to
society's needs. However, core values remain the same.
POTENTIAL PITFALLS ABOUND
Understanding the unique perceptions, values and needs of a culture other than one's own is
perhaps the most difficult task of conducting business in an international setting. Without at
least a rudimentary grasp of the foreign culture the obstacles are formidable.
The international marketer must appreciate that when a product satisfies the diverse needs
or wants of the firm's customers, it does so in the context of that particular culture. The same
product must not be expected to meet the same set of needs in a foreign culture. Why?
Because there are now a complete new and complex set of cultural norms and mores which
shape the audience perception of the product and its usefulness?
These cross-cultural differences include language, nonverbal communication, religion, time,

space perception, color, numbers, materialism, manners and customs, aesthetics, status
consciousness and food. There are, of course, many other subtleties. These are but a few
that commonly challenge the international marketer.
Let's take a look at cross-cultural differences in the areas of language, nonverbal

communication, time and food.
LANGUAGE - Oh the Beauty of Words!
The challenges of cultural sensitivity abound. And, the war stories are classic. Even the giants
of commerce are not immuring to stumbling over the nuances of language.
In the 1920's Coca-Cola attempted to enter the Chinese market. This first entry effort hit a
major language obstacle with the phonetic translation of the product name. Coca-Cola
carefully constructed a set of Chinese characters that translated "Bite the wax tadpole." This
was hardly what the company executives had planned for.
After regrouping the English translation means, "Happiness in the mouth" or "Let the mouth
rejoice!"
Of course there is the often told story of Chevrolet's efforts to introduce the Chevrolet Nova
into Mexico. General Motors changed the name of the vehicle to Caribe when it discovered
that in Spanish Nova translated as "it doesn't go." After the name change sales increased
dramatically.
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Even the giants of commerce are not immure to stumbling over the nuances of language.
LANGUAGE - Silver manure and resurrected ancestors.
Ford Motor Company stumbled when it introduced the Comet in Mexico as the Caliente. Had
Ford done its homework it would have known that Caliente is slang in Spanish for street
walker. Rolls Royce also crashed into the language barrier with the introduction of the Silver
Mist in Germany. Too bad they didn't do some research. If they had they would have
discovered that Mist means manure to the Germans. And, imagine Sunbeams chagrin when
they introduced the Germans to the Mist Stick.
Coors Beer could have saved itself some embarrassment had they taken time to research the
slogan "Get loose with Coors". In Spanish the literal translation read, "Get the runs with
Coors." Having not learned the lesson well initially, Coca-Cola suggested to their potential
Chinese audience that "Coke brings your ancestors back from the dead." Of course what
Coke meant to say was, "Coke adds life!" and could have avoided this faux pas simply by
recognizing that language is influenced by culture.
If language isn't enough to make us bolt for the research department then maybe how we
say what we say may.
NONVERBAL COMMUNICATION
Saying "Yes" but meaning "No"
Our international marketing efforts are also shaped by what we don't say. Behavior,
intentional or unintentional, carries meaning. The non-verbal communication will most often
be received within a cultural context. That cultural context can be expected to be different
than that of the originator of the message.
Nonverbal communication includes eye movement and contact, facial expressions, hand
motions, physical appearance, body positioning, personal space, touch, and perhaps even
how time is utilized.
We have all experienced discussing a matter with someone who was answering in the
affirmative while shaking their head negatively. Not only was this a mixed message, but
depending on the context of the situation it actually may have meant that they did agree,
didn't agree, were amazed at the situation, or found the situation humorous.
Imagine the same encounter in a foreign setting. To a Greek or Turk to shake their head
from side to side indicates agreement or "Yes". Just the opposite to the up and down
movement of that of someone from the United States or Canadian. It takes little imagination
to think of any number of predicaments in which an unthinking foreign business person could
find themselves because of their nonverbal behavior.
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Behavior, intentional or unintentional, carries meaning. Think of some instances where the
behavior of another was misconceived on your part, and what the actual meaning of the
behavior was intended to be.
Your perception of the
Behavior behavior. Actual intent of the behavior.
Behavior, intentional or unintentional, carries meaning. The non-verbal communication will

most often be received within a cultural context.
TIME
Is that a "football minute" or a "putting on makeup" minute?
The different ways in which cultures perceive time is illustrated clearly by the way the
Vietnamese and Americans approached the Paris Peace Talks during the Vietnam War. When
the American negotiators arrived they checked into the Ritz Hotel. However, when the
Vietnamese delegation arrived they leased a villa for two years! Clearly these two groups of
people had very different ideas of how much time would be invested or required for the
process of a negotiated peace.
Time is a universal aspect within cultures. How a people define time effects their lives in
virtually every way. The time given to developing relationships, when appointments are
made, how they are kept, when meetings begin and end, holidays, arrivals, departures -- all
is influenced by the cultural understanding of time.
TIME
Let's see, do we need a calendar or a clock?
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Mao Tse Tung, the revolutionary leader of China, was asked what he thought of the French
Revolution. "It is too soon to tell," he replied, perhaps only half joking, but never the less
indicating his perception of time.
Some cultures have a predisposition toward the past. Others focus more on the present,
while others look toward the future. Each cultural bent toward time will effect how they
conduct business, build strategies, and formulate decisions.
Not only is time perception a challenge for the cross-cultural marketer, but equally as
important to understand is how a culture organizes time.
Generally there are two ways that cultures organize time: Monochromic -- that is linear, and
Polychronic which is circular. Each presents tremendous obstacles for those of the opposite
organizational structure.
There are two ways that cultures organize time: Monochromic -- that is linear, and
Polychronic which is circular.
It really is a matter of perspective.
The island nations that dot the Pacific are known for their warmth and charm. The people are
a delight and balmy breezes, blue sky and azure seas are a magnet to tourists and business
alike. But be prepared because these folks don't conduct business like the Germans or
Americans.
Pacific Islanders are Polychonic in their approach to time. Time is circular, unlimited, endless,
beyond humanity, external to the demands and commands of men and woman. Time is
nonlinear. Events must run their course and relationships are more important than the
product which may be produced as a result of the relationship.
An American who is Monochromic (that is one who considers time as a continuum or linear in
nature) may begin a meeting with a brief discussion of family, weather and friends and then
"get down to business" and cover the agenda of items necessary to the business at hand. To
the islander this is offensive, rude and one-dimensional. The American is avoiding the
important issue of relationship building which is essential.
The Monochromic views the Polychronic as invasive. The Polychronic views the Monochromic
as evasive. Time is a continuum in Asia. In the West it is a commodity. In the Near East there
is plenty of time. To the West time must be saved, and controlled. To the Irish time is of little
significance because God made so much of it.
FOOD
All Big Macs are not created equal.
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While language may be the primary cross-cultural obstacle the international marketer will
encounter, food is a close second. Food is a highly sensitive cultural issue.
In France 80% of the corn harvested is used to feed pigs and chickens. The Japanese
traditionally have used cereals to produce children's snacks and the Germans are inclined to
eat cheese and bread for breakfast. The Indians, while accustom to having a good solid
breakfast, usually eat a hot meal in the morning and only 3% are inclined to eat cereal.
Clearly these markets present significant cultural barriers to Kellogg's Corn flakes.
Coffee for Americans, tea for the British. Juice for breakfast in one nation, for an afternoon
break in another. With a Big Mac it's wine in Paris, beer in Stuttgart, Coke in the US, and
green tea in Taiwan. Fresh eggs in the West, thousand year old eggs in the East. Coleslaw in
Dallas, Kimchi in Seoul.
In every culture, every meal has its variations. From the mundane to the ceremonial, from
holidays to holy days, food is central to cultural identity. While you may "do lunch" in LA, the
prudent international marketer will find out what's expected in Beirut.
Before moving on to some practical solutions, let's take a look at some foundational
principles.
1. Marketing objectives are same at home and abroad.
We seek to fulfill the wants and needs of our customers. This does not change when
we step outside of our own culture. And, it requires we understand the new
environment to meet those needs successfully.
2. Culture influences every aspect of a potential audience.
Every one of the typical research points -- the descriptors of who buys what where,
when, how often and why -- is influenced by, and varies according to culture. Every
one!
3. Culture develops over time and is inextricably linked to a nation's history.
Cultural threads blend together to weave the fabric of the tapestry of a given people. Vastly
different philosophies of life yield vastly different life experiences. To each they are practical,
reasonable, and understandable. The impact of history and geography serve to sculpt the
culture of a nation.
4. Conscious awareness of our own cultural values is rare.
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We are to our own culture as a fish is to water. Most of us just live in it like a fish lives
in water. It isn't until we are "fish out of water" that we become acutely aware of our
culture -- or rather lack of it.
5. There are ten common cultural characteristics of which we need to be aware.
Culture is functional and it is a social phenomena that provides perspective for it's
people. Culture is also learned, and is extremely arbitrary. It is also value laden,
facilitating communications. Culture is adaptive and dynamic, and is a long term factor
which satisfies the needs of it's people.
6. Cross-cultural differences are multi-faceted.
Cross-cultural differences include, but are not limited to, language, nonverbal
communication, religion, time, space perception, color, numbers, materialism, manners
and customs, aesthetics, status consciousness and food.
It is the complexity of these differences, combined with the unique characteristics of each
culture that we encounter when we step into another's nation.
Now, let's take a look at the gap that needs to be bridged.
Marketing to the World Unit 1 Quiz
Complete the quiz questions below, and click on the "Grade Quiz" button to have your quiz
graded and receive instant results.
1) In many Asian nations great significance is given to minimizing differences, and for
preserving a sense of harmony.
True
False
2) Culture arises out of human interaction, is a human creation, and is unique to human
society.
True
False
3) Nonverbal communication includes eye movement and contact, facial expressions, hand
motions, physical appearance, body positioning, personal space, touch, and perhaps even
how time is utilized.
True
False
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4) Not only is time perception a challenge for the cross-cultural marketer, but equally as
important to understand is how a culture organizes time.
True
False
5) It really is not a matter of perspective.
True
False
Unit 1 Quiz
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can go back and review any material you wish. When you are finished reviewing,
you may click here to proceed with the next unit.
Correct Your
Question Status
Answer Response
1. In many Asian nations great true true Correc Review

significance is given to minimizing t
differences, and for preserving a sense
of harmony.
2. Culture arises out of human true true Correc Review
interaction, is a human creation, and is t
unique to human society.
3. Nonverbal communication includes true true Correc Review
eye movement and contact, facial t
expressions, hand motions, physical
appearance, body positioning, personal
space, touch, and perhaps even how
time is utilized.
4. Not only is time perception a true true Correc Review
challenge for the cross-cultural t
marketer, but equally as important to
understand is how a culture organizes
time.
5. It really is not a matter of false false Correc Review
perspective. t
Scoring: 5/5 100%
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(2)Bridging The Gap
PERCEPTION IS NOT REALITY
Travel almost anywhere these days and one would think that the world had turned into one
supermarket, with few regional or national differences. MTV, Pizza Hut, Levi’s, Shell, Pioneer,
the NBA, Marlboro, Sony, MasterCard, they are everywhere. It appears that we have
achieved world peace through the ability of commerce to unify consumers. At least that’s the
perception.
That perception of a convergence of all cultures into one common international culture s
known as “Globalization” or “Standardization.
Research shows however, that despite all the talk of globalization, two remarkable effects are
taking place. First, cultures are not converging toward a global standard; and, secondly
national values are actually diverging.
It’s a paradox. While multinational corporations are building worldwide brand loyalty, at the
same time cultural nationalism is accelerating.
Beware the illusion of globalization. Let’s take a closer look.

Geert Hofstede’s studies confirmed the cross-cultural studies conducted by independent
researchers over the last 20 years, that the world is not homogenizing. National values
appear increasingly to be slowly moving away from a global standard, and toward increased
ethnic awareness. And, there is also simultaneously an increase of commonality of desire for
things modern, of quality and value that are universal.
FROM BRUSSELS TO BOSTON, SAME PRODUCT SAME MESSAGE
First let’s look at the concepts of Standardization or Globalization.
For our purposes we will use the term Standardization to describe the increased desire of
international consumers toward transnational products and industry’s response. Globalization,
in general, includes the actual presence of a product in an international market. However, the
mere presence of a product does not equate to its standardization or acceptance.
Standardization results from a process of narrowing the visual, editorial and audio marketing
content of a product to its most universal components. It also includes the manufacturing of
products that are standardized. Coca-Cola, Pepsi, Levi’s, McDonald’s, Kellogg’s, Whirlpool are
but a few examples.
Multinational companies generally view the world as a singular market. Typically these
corporations operate from a centralized global headquarters that provides international
direction and strategy with local representative offices providing the actual implementation
tactics. It is not uncommon for these organizations to apply marketing strategies, packaging
and service related function virtually uniformly from one nation to another. These companies
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view national borders and cultural differences as superficial and present the identical products
worldwide.
Despite cultural differences there are forces at work that indicate that standardized marketing
programs are not only feasible, but preferred. And, at first inspection there appears to be
merit in the arguments.
IF IT SELLS IN MELBOURNE IT CAN SELL IN SEATTLE
Forces that lead toward standardization include:
 Infrastructure - Not only in the West but in many emerging nations, distribution
channels and infrastructure are conducive to standardization of marketing efforts.
 Financial - National economies are growing and banking institutions once bound by
national boundaries are now transnational. Capital is now far more fluid than ever
before, increasing the expenditure of funds from a centralized source to many
international markets.
 Technology - Micro-processors, satellite up and down links, microwave transmission,
the internet, and other emerging technologies contribute to the ease use of
standardized marketing endeavors.
 Accessibility - From Taiwan to Times Square the ease by which products can be
produced, presented and acquired has contributed greatly to a preference for
standardization of marketing communication procedures.
 Competition - Local and international company’s ever
increasing acquisition of market share, compel other
competitors to seek every economic advantage.
Standardization enables companies to unify their efforts
globally. What isn’t spent on development can be spent on
promotion and advertising.
Research must take a close look at:
Infrastructure - Roads, mail service, telecommunications, and facilities to make sure they
are favorable for distribution and promotion activities.
Financial - How will banking at the local merchant, regional and national be transacted
to assure fluidity of capital?
Technology - What technological systems are essential to the implementation and

maintenance of your marketing system?
Accessibility - Will all necessary support systems be available to answer to market
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demand once the marketing strategy is implemented.
Competition - Will standardization, in reality be a prudent course of action? Or, would

development of more carefully targeted promotion actually yield a greater return?
BENEFITS OF STANDARDIZATION
Some of the benefits of a standardized marketing effort include:
 Lower promotion and advertising costs

 Consistent global advertising and promotional efforts
 Worldwide unified packaging
 Broader corporate image
 Improved quality of products through centralized quality control
 Customer preference is strengthened
 Competitive position strengthened
 Higher profits
 Lower production costs
 Global sourcing
 Worldwide corporate orientation
 Economies of scale
 Global corporate philosophy
However, standardized marketing strategies are extremely difficult to implement.
Why? Let’s look at the disadvantages of standardization.
DISADVANTAGES OF STANDARDIZATION
Some of the disadvantages of standardization include:
 Cultural differences impede implementation

 Geography and physical terrain
 Buyer behavior differences
 Company becomes less responsive to local consumer needs
 Less competitive because of broad focus
 Localized consumer preferences
The company that does not take these disadvantages, and perhaps hundreds of other, into
consideration does so at its peril.
The battle to shave the face of Japan is a good example.

True False
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Local laws are often restrictive to foreign corporations
Imports rarely prove a disadvantage to standardization
Consumer perceptions can be an advantage to standardization
Identity of national brands is a disadvantage to standardization
Language is usually a problem when standardizing marketing efforts.
A GOOD BAD EXAMPLE OF STANDARDIZATION
At 65 -70% of market share, the world leader in razors is Schick. In Japan they also hold the
high ground with a 62% share.
The comparison with Gillette’s efforts is striking.
Gillette has chosen to standardize its marketing strategy. Except for a quick tag on the end of
the television spots, the Japanese ads are virtually identical to those run on US television.
Product packaging is also very American with the brand name in bold English except for a
small corner section with the Japanese version noted in small characters. In addition, Gillette
has no local Japanese distribution system and has attempted to use its own sales people and
wholesalers.
The net result of Gillette’s efforts is unremarkable except as a good bad example of
standardization.
By contrast Schick took an adaptive strategy.
The television spots show a handsome young Japanese man in both a familiar interior setting
and also on a Japanese beach with his dog. The language is Japanese and the product has
been renamed. Tracer -- the English name -- proved to difficult for the Japanese to say.
Schick changed the product name to FX. The new name is more easily spoken and the
packaging is also Japanese in design. In addition Schick sells razors through Seiko and its
150,000 wholesalers. It’s no wonder that they hold a commanding position in the market.
Schick adapted. Gillette standardized.
ODD EXAMPLES OF STANDARDIZATION
If you have a chance to save $20 - $40 million in marketing production costs, you probably
ought to do it. That’s what Colgate-Palmolive did when they introduced its Colgate tartar-
control toothpaste in some 40 nations.
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Local advertisers had a choice of two television ads to run in their areas. These carefully
written and produced spots were developed around a set of standardized features and
benefits common to the 40 nations. Cultural diversity was also considered a low priority with
the design of a standard package for all regions. This resulted in $1 - $2 million saved in
production costs in each market.
Coca-Cola may have stumbled with the Chinese with “bite the wax tadpole,” but
standardization saved millions of dollars in global advertising. McCann-Ericson boasts $90
million in savings over a 20 year period through standardization. Anyone who has traveled to
more than one country, watched local TV and scanned a local newspaper recognizes the Coke
message. The agency standardized specific elements of the campaign and used them cross-
culturally worldwide.
Standardization is possible. But, you better be smart, resourceful and do your research.
INDUSTRIAL GOODS AND NON-DURABLE PRODUCTS
National habits and tastes generally influence the ability for a product to succeed within a
foreign culture. Non-durable products, those items consumed which need to be repurchased
often, are far more likely to require modification to be accepted. By contrast, industrial goods
and technological products seem to require less adaptation and can be standardized more
readily.
Standardization is preferred when . . .
 It is too costly to adapt the product to the local culture

 The product is an industrial in nature
 Local tastes are similar to those in other nations
 The product will be primarily used in an urban setting
 Advertising and promotion is similar in other nations
 Strong centralized management controls the strategy
 Saving can be realized in production, R&D, and general marketing efforts
 Other international products are also standardized
 The product is used by an international and mobile customer base
 The origin of the product is viewed in a positive light within the foreign nation
There are also times when Adaptation is preferred.
THE CHAMELEON PRINCIPLE -- ADAPTATION
Adaptation is the view that each national market should be approached separately. This view
holds that the cultural differences from nation to nation are such that each product or service
must be researched and analyzed for appropriate cultural impact. The marketing efforts are
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designed to allow the product or service to reflect the local culture. That which is a strength
in one cultural setting may be a liability in another.
Adaptation is preferred when . . .
 There are different technological specifications

 The products and services are primarily consumer and personal in nature
 Significant variations in consumer needs are present
 The way in which a product is used is different from other cultures
 Availability of the product is restrictive
 Income levels are dissimilar
 User sophistication is different
 Skill levels of users are unalike
 Cultural differences are obvious
 Environmental restrictions are present
 Raw materials and related support vendors are not readily available
 Competitors use the product
 Distinct cultural habits are evident
Standardization, Globalization, Adaptation . . . What’s a marketer to do?
Pick a product or service that your company is considering for release in a cross cultural
market.
What characteristics are What characteristics are What characteristics are
most adaptable? least adaptable? hopelessly culturally bound?
THINK GLOBAL AND ACT LOCAL
As noted earlier, studies over a 20 year period have shown that while there is a distinct
perception of convergence taking place globally, actually divergence is more the norm. Values
are not collapsing toward a common middle ground.
In many nations, especially in the West and in the United States, open immigration has
resulted in a melting pot effect. People from many nations, with diverse cultural habits and
values have increasingly coalesced. Yet it appears that assimilation is rejected. Not only is
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this true in the West but in Eastern Europe we see a clamor for ethnic identity. Russia is
experiencing tremendous pressure from culturally diverse groups.
While the world seems to be shrinking and drawing closer and closer together nationally,
culturally people are tenaciously holding on to their ethnic identities. Air travel, the internet,
satellite communications, and the global age all clearly demonstrate how small the world is
really becoming. We are losing our sense of uniqueness as a people.
But what are the unique qualities that make a people culturally distinct?
CORE VALUES MAKE THE DIFFERENCE
We are in the midst of the homogenization of the world. That is undeniable. But at the same
time people are clinging to deeper culture values that make them unique.
In the urban centers to the suburbs, from Los Angeles and New York, Hispanic-Americans
prize their Spanish or Mexican roots. In London and scores of African nations, one can see
the ethnic trappings of Islam. Black Americans, Chinese Singaporeans, Afrikaans South
Africans, Native Americans, Sovereign Hawaiians, Indigenous Australians, and New
Zealanders who are Maori, each proudly identifies with their ethnic roots.
While lifestyles may homogenize the masses, ethnic identity rises to unify individual cultural
groups.
This unification is along deep, core values. These values are treasured within the ethnic
psyche and are deeply rooted in religion, language, art, literature, music, dance, and family.
These values shape the cultural identity, providing integrity and definition of the self within
the ethnic community.
Values are not generally standardizing on a global basis. The more we become the same, the
more our differences are important.
If standardization is imprudent and risky, and adaptation is too expensive and impractical
what’s the international marketer to do?
Think global. Act local.
Understanding the core values of local ethnic groups can provide helpful data for use in
targeted promotional efforts. Developing a general standardized campaign that has
components which are tailored to specific ethnic groups can prove a wise investment,
developing brand loyalty from specific sub-groups within a regional or national setting.
GLOCALIZATION
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Perfect standardization is impossible. There are just too many levels within any give culture
that would have to be addressed. It’s impractical. It’s equally impossible to adapt to every
cultural setting into which a company would like to gain market share.
There is a third option that has emerged over the last few years -- glocalization.
Glocalization seeks to unify the strengths of adaptation and standardization. In matters that
are strategic there may be a standard, global approach. While tactical issues of
implementation are left to the local leadership to provide culturally relevant editorial, visual
and audio direction. While providing local implementation and application, globalization also
seeks to create international strategic marketing direction.
Coca-Cola’s much touted, award-winning commercial of the thousands of singing

children from around the world was edited some 21 different ways. Recognizing the
diversity of the nations it was reaching, Coke needed to literally put the right face on the
image, for the right nation. In the US after a hot and exhausting game Mean Joe Green
tosses his jersey to a young boy who gives him a Coke. Outside the US, where American
rules football has minuscule following, the creative direction remained the same. The
language, the boy and the sports star changed to meet the local target audience.
FRIED RICE, MUTTON PIES, TRIPE SOUP AND PLEASE DON’T TANGLE THE SARI
With a glocalized approach not only does the advertising and promotional message adjust on
a local level, but so too does the product.
Think global. Act local. Glocalize.
The next time you’re considering standardization of your marketing campaign, rather
than glocalization -- remember the last time you bought a “one size fits all” pair of socks
or panty hose. While the product may have served its purpose it probably wasn’t very
comfortable. “One size fits all” may work for handkerchiefs but rarely for marketing.
THE MORE WE’RE ALIKE, THE MORE IMPORTANT OUR DIFFERENCES
When a company begins to think seriously about venturing outside its borders, and beyond
its known cultural arena, adapt or standardize becomes a primary question.
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While standardization can increase profits and productivity by marketing a product the same
worldwide, there are substantial risks. Poorly instituted, it has the potential to project a
corporate imperialistic image that can be damning. Perhaps the most significant risk is that of
losing touch with the needs and desires of the local market.
Across the board standardization works only with a few consumer goods which are highly
visible, branded products. A universal approach may work with products which require the
customer to have only minimal understanding of how the product is used, and needs low
information content in it advertising message. However, few products can get away without
some adaptation.
Research suggests that organizations globally are becoming increasingly similar. However,
internally and at the local level they are maintaining their cultural identities and
characteristics.
NEVER ASSUME THEY KNOW HOW TO USE THE KETCHUP
If you have ever traveled outside your native country, you know the importance of finding
familiar foods. While it can be a great experience to taste exotic flavors and drink mysterious
libations, we eventually want to smell, taste, and see the familiar. Most Americans know the
joy of returning to the States and heading for their favorite hamburger stand. Somehow the
food just never tastes the same overseas.
When approaching the marketing of food products internationally the recognizability factor is
important.
Recognizability - This is the need that people everywhere have to recognize what their food is
made of and to have a general idea of how it is processed. Recognizability applies to
appearance, taste, and texture of the food. It just has to look, taste, and feel right.
Generally, a food product will not sell well in a foreign market where the customer does not
understand how the food is to be used, what it is made of, how it will taste, or how t is
produced. Overcoming predispositions toward particular products is a major obstacle.
Heinz had to develop an extensive educational campaign when introducing its ketchup in
Greece. The company had to show the Greeks how it could be poured on pasta, eggs, cuts of
meat and so on. In Japan Heinz sponsored cooking classes highlighting the joy of preparing
omelets, sausages and other Western styled foods with that “special sauce.”
GLOBAL IMPERIALISM AND THE WORLD CULTURE
Globally goods that fall between the low-priced products and luxury products are more
culturally bound. For example low-priced products such as candies, fast food and drinks tend
to standardize well with small adaptation requirements. This seems to also be true of high-
end products such as luxury cars, designer waters, jewelry and prestige credit cards. Products
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in the middle range are far more grounded in the local culture and require careful
consideration. These will need far more adaptation when being introduced into a foreign
market.
While cultural diversity requires careful attention to the need for adaptation and glocalization,
there is an emerging worldwide target group that exhibits common cultural characteristics --
youth.
With a projected customer base of 1.5 billion, marketers have been quick to develop strategic
communication techniques to reach the enormous homogenized group. Teens around the
world are remarkably similar in tastes and buying habits. Language is the last true cultural
limitation. They have more in common with each other than with their parents, whether they
are Taiwanese or Japanese, Canadians or Americans, Australians or Brazilians. They wear
Levi’s jeans and Benetton tops, listen to rap music on a Japanese Walkman, watch MTV on a
Pioneer, eat and hang out at McDonald’s, sport Nike shoes and wait for hours in line to watch
movies from the US. These are the global generation with a truly world culture.
When working on youth related product remember that, as with most things, youth
provide the exceptions to the rules. While standardization is risking for most product, for
youth product it may be perfect. Thanks MTV.
THE PARADOX OF CONVERGENCE AND DIVERGENCE. That perception of a convergence of all

cultures into one common international culture is known as “Globalization” or
“Standardization. Research shows however, that despite all the talk of globalization, two
remarkable effects are taking place. First, cultures are not converging toward a global
standard; and, secondly national values are actually diverging.
It’s a paradox. While multinational corporations are building worldwide brand loyalty, at the
same time cultural nationalism is accelerating.
STANDARDIZATION - One size fits all!
To accommodate the need to reach a global market, many companies use standardization to
increase the desire of international consumers toward transnational products. Standardization
results from a process of narrowing the marketing focus, and the product itself to a common
set of specifications.
These corporation centralize global direction and strategy, while localizing the actual
implementation tactics. These companies view national borders and cultural differences as
superficial and present the identical products worldwide.
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Despite cultural differences there are forces that suggest that standardized marketing
programs are not only feasible, but preferred. Infrastructure, national banking institutions,
technology, accessibility to production and distribution channels and international competition
combined to form a strong basis for standardization.
National habits and tastes generally influence the ability for a product to succeed within a
foreign culture. Non-durable products are far more likely to require modification to be
accepted. By contrast, industrial goods and technological products require less adaptation.
ADAPTATION - Of course we can customize that for you!
Adaptation is the view that each national market should be approached separately, and that
each product or service must be researched and analyzed for appropriate cultural impact. The
marketing efforts are designed to allow the product or service to reflect the local culture.
Standardization is marked by its apparent cost benefits of a single worldwide product and
marketing effort. Adaptation is marked by increased costs to localize the product and the
marketing. Upon close evaluation each approach has limitations.
As noted earlier, studies over a 20 year period have shown that while there is a distinct
perception of convergence taking place globally, actually convergence is more the norm.
Values are not collapsing toward a common middle ground. People are clinging to deeper
culture values that make them unique. These values are rooted in religion, language, art,
literature, music, dance, and family, which shape cultural identity. Values however, are not
generally standardizing on a global basis. The more we become the same, the more our
differences are important.
If standardization is imprudent and risky, and adaptation is too expensive and impractical
what’s the international marketer to do?
Think global. Act local.

GLOCALIZATION - Here’s the ball, you run with it!
Glocalization seeks to unify the strengths of adaptation and standardization. It seeks to

create international strategic marketing direction, while providing local implementation and
application.
When a company begins to think seriously about venturing beyond its known cultural
borders, adapt or standardize becomes a primary question. Research indicates that
organizations globally are becoming increasingly similar. However, internally and at the local
level they are maintaining their cultural identities and characteristics. This tendency reinforces
the practice of glocalization.
Of course there is always that one exception.
22
While cultural diversity requires a balance between standardization and adaptation, there is
an emerging worldwide target group that does exhibit common cultural characteristics --
youth.
With a projected customer base of 1.5 billion, marketers have been quick to develop strategic
communication techniques to reach the enormous homogenized group. Language is the last
true cultural limitation. These are the global generation with a truly world culture.
UNDERSTAND THE ABYSS BEFORE ATTEMPTING TO BUILD A BRIDGE
One of the things that strikes foreigners about Americans is how casual they are. T shirts and
jeans are almost the national uniform in the US, sending a message of informality and a lack
of concern for status conveyed by clothing. Walk the streets of Moscow dressed in jeans and
a T shirt and the message is quite different. In Russia, where jeans are in short supply and T-
shirts are not the common choice, those wearing them draw attention to themselves as
fashionable, trendy, and very status conscious.
If you travel from Columbia to Chile you better remember which country greets with one kiss
and which with two. Instant coffee in Germany is akin to instant tea in Britain. And while
Americans use their flag proudly for everything from swim wear to table wear, the Mexicans
were horrified when McDonald’s used the flag as a decorative element on its place mats.
The fact is that it is naive to attempt cross-cultural marketing with the idea that people are
pretty much the same, and behave predictably wherever you go. Before one takes the step
across that international border with the idea of capturing the market, better do your home
work.
Having taken a brief over view of what the abyss looks like that needs to be bridged, let’s
focus now on cross-cultural negotiations and international research -- both are fundamental
to success in the global marketplace.
1) Standardization is:
a) The adaptation of a national standard to measure all marketing goals.
b) Providing a measuring system by which local targets can be reviewed against
international objectives.
c) The development of a single product or marketing strategy that is applied globally.
d) None of the above.
2) Adaptation is:
a) The process of refining a product or marketing strategy to completely reflect the

regional cultural standards.
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b) When the local marketing director within a national setting adds international emphasis
to the marketing strategy.
c) How products are retro-fitted with adaptors designed to handle local power loads.
d) All of the above.
3) Glocalization is:
a) When local company representatives control the marketing efforts of the international
company.
b) The strategy of a multi-national that develops a global perspective on marketing

strategy, while maintaining a local flavor to the campaign or product.
c) Deals with the financing of local marketing efforts based on a trans-national model.
4) The world is fast becoming homogenized culturally resulting in a global mind-set that
supports standardization of product lines and marketing strategies.
True
False
5) While many cultures require careful attention to their differences enabling astute
marketing, one market stands out as unique in this regard. This cultural group seems to be
trans-national demonstrating a generally common language, dress, and value system. It is
the youth market.
True
False
Unit 2 Quiz
Below are the results for the quiz you just completed. Links are provided so you
can go back and review any material you wish. When you are finished reviewing,
you may click here to proceed with the next unit.
Your
Question Correct Answer Status
Response
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1. Standardization is: c) The d) Incorrect Review
development of a
single product or
marketing strategy
that is applied
globally.
2. Adaptation is: a) The process of d) Incorrect Review
refining a product
or marketing
strategy to
completely reflect
the regional
cultural standards.
3. Glocalization is: b) The strategy of b) Correct Review
a multi-national
that develops a
global perspective
on marketing
strategy, while
maintaining a local
flavor to the
campaign or
product.
4. The world is fast false false Correct Review
becoming homogenized
culturally resulting in a
global mind-set that
supports standardization of
product lines and marketing
strategies.
5. While many cultures true true Correct Review
require careful attention to
their differences enabling
astute marketing, one
market stands out as
unique in this regard. This
cultural group seems to be
trans-national
demonstrating a generally
common langauge, dress,
and value system. It is the
youth market.
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Scoring: 3/5 60%
(3)Understanding the Words

BEWARE OF THE UNCONSCIOUS SELF
We’ve all seen it in little children. It’s that self centered, I’m the hub of the universe
mentality, from which the child begins to grow. As their awareness of the world around them
increases they begin to realize that there are other people in their world. Gradually their
world view shifts from the self to include others. Their view of the world around them is
shaped and molded by the values, attitudes and life-style of the family, community, and
culture in which they live.
There is in each of us as we grow the inclination to measure the world around us by our
personal understanding of that world. What’s good and what’s bad; what’s appropriate or
inappropriate; when to talk and when to listen, are all determined by an unconscious
reference to what we believe about a particular situation within the context of our culture.
This is called the Self Reference Criterion (SRC).
The use one’s self -- either personally or corporately -- as the primary reference point is
arrogant. It leads to assumptions based only upon a narrow foundation of data, and almost
always has negative consequences.
Consider EuroDisney.
The Self Reference Criterion is the unconscious inclination to presume that other people
share our values, attitudes and life-style. This is a dangerous assumption when working
within our own cultural setting. It is potentially disastrous when working cross-culturally,
and internationally.
AN AMERICAN MOUSE IN FRANCE
The self reference criterion (SRC) was in full form as Disney descended on Europe.
Despite the French abhorrence to using lawyers to conduct the initial negotiations, the efforts
to accommodate European tastes was admirable once they got over the swaggering
American’s way of doing business. These included Disney’s incorporation of European fairy
tales into the rides, exhibits which featured Europe’s great writers, artists and history, as well
as cultural achievements. Signage and the staff were multilingual. Reservations boasted 12
language options and the traditional Disney characters spoke with European accents, not
American.
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But despite these efforts, the self reference criterion persisted. The strategy clearly was to
clone the American theme park and plant it in Europe with all its cultural baggage. Dress
codes, management systems, training practices, dinning schedules, and even the types of
beverages offered reflected an American cultural bias.
Disney’s position was that the Disney system worked other places, it would work in Europe.
OPPS, PARDON OUR CULTURE
Disney “family values” prohibited wine and bear with meals. Europeans are accustomed to
drinking both with meals. Lawyers are a last resort with the French, the first line of
negotiation with the Americans. Facial hair is normal for European youth, but not considered
“clean cut” by Disney standards. Guests stayed two days in the hotels, not three or four as
the American theme parks experienced.
Monday was a heavy guest day not Fridays as in the US. Family vacations are longer in
Europe but tightly budgeted as opposed to many smaller trips made by Americans. The
Europeans hold education higher that Americans and would not take their children out of
school to go to EuroDisney.
Disney’s high service emphasis was not understood by the Europeans and young employees
saw no need to sport the traditional happy, smiling face found in the US theme parks. The
Europeans wanted to sit down and eat meals in a leisurely manner. Disney wanted the guests
to grab a burger and keep moving. Repeatedly Disney chose to make decisions based on its
own perceptions of reality -- Self Reference Criterion -- rather than take the council of its
European partners.
THE COST OF CULTURAL ETHNOCENTRICITY
EuroDisney’s first year was a major loss. Projected at 12 million, actual attendance came in at
9.5 considerably less than the request 11 million to break even.
In addition to a glaring lack of cross cultural awareness, high prices, higher than the US, in
an economy with lower disposable income didn’t help. The Europeans were in the throws of a
recession, allocated less percentage of their income to vacations, stayed shorted times, and
spent less time and money on shopping. Generally the impression was that it was too
expensive, not a good as the States, and not worth the effort.
Net result: Disney and its partners had to restructure and rethink how it conducted business
in a foreign environment.
Disney isn’t alone. Europeans in the US. Japanese in Australia. Chinese in Indonesia. No one,
and no company is immune from the Self Reference Criterion.
But there is a defense.
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ON GUARD!
It must be remembered that one’s culture is virtually invisible to them. We see their cultural
idiosyncrasies, but not our own -- and vice versa. Culture is something that has been learned
from parents, family, friends, teachers, and a million subtle lessons over years.
Financial loss can soar into the millions as a result of cross cultural incompetence. Wasted
negotiations, lost sales, closed markets, and abandoned alliances are but a few of the results
of those who fail to understand the nuances of the other’s cultural underpinnings.
Cultural bias is universally conservative and resistant to change. International marketers must
accommodate the differences, not attempt to adjust them.
4 STEPS TO EXPOSING CULTURAL BIAS
Whether it is negotiating a contract, recruiting personnel, training local representatives, or

any other of a thousand interpersonal transactions, the Self Reference Criterion can be the
undoing of a successful cross cultural exchange.
Here are four simple exercises designed to raise awareness and reveal unconscious cultural
bias.
1. Define indigenous rules as they apply to the objective.

2. Delineate foreign rules as they apply to the objective.
3. Detail idiosyncratic factors that influence the situation.
4. Develop a culturally accommodating strategy.
1. Define indigenous rules as they apply to the objective.
To increase the probability of a successful cross cultural negotiation begin by defining the
objective by characteristic expectations as if the meetings would be conducted in your home
country. What cultural traits, values or norms would be expected to be at play during the
transactions?
For instance in the United States Americans would expect a certain level of dignity while
maintaining informality and would assume a general equality of the members at the
meetings. There would be an understanding that information would be presented in a linear
way - building to a stated conclusion. The presentation would clearly address the issues and
argue the strengths of the matter in a straightforward manner that clearly states the required
action by the other parties. There would be an expectation of some sort of commitment or
rejection at the conclusion of the meetings.
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These cultural characteristics will vary, not only from nation to nation, but also regionally
within a national setting. Once the indigenous rules have been defined as they apply to the
objective, then the foreign rules need to be delineated.
2. Delineate foreign rules as they apply to the objective.
Prior to encountering any major negotiations or cross cultural transaction, it is critical to

research the cultural context into which you are entering. Investigate what is considered
appropriate business settings for the type of meeting planned. What will be expected of each
member of the meeting? Understand the cultural value and norms surrounding leaders and
subordinates. Examine secondary research related to every identifiable facet of the proposed
transaction. If necessary conduct primary research to uncover unexpected cultural biases that
could derail the communication process.
Americans in a meeting with Japanese could expect to spend a great deal of time developing
a sense of relationship both in formal and informal settings. The need for a attitude of
personal trust would need to be developed early in the process. Conversations could be
expected to include a wide variety of seemingly unrelated issues before substantive
communication takes place. This could take days, not hours. The Japanese would be
expected to be extremely formal and adhere to a strict hierarchy within the business
relationships. The primary authority may not carry the meeting orally, but control by presence
and body language.
Recognizing the foreign cultural distinctions as they impact the objective of the transaction
reveals hidden obstacles to success.
3. Detail idiosyncratic factors that influence the situation.
Every negotiation will have its own set of unique factors. The key will be to isolate as many
Self Reference Criteria as possible that may impact those unique factors involved in the cross-
cultural communications. Looking carefully at the objective of the communications in light of
the foreign values, traits and norms will reveal the issues critical for analysis.
In the Eastern European environment there is a long tradition of top down directive
management, collectivism, state planning and a diminishing of the individual destiny in favor
of the national or corporate well being. This set of cultural values is in sharp relief to that of
the American pride of individualism, independent enterprise, and self reliance that is
demonstrated in both private and public life.
Detailing influences that are ethnocentric, raising awareness of their impact and making the
appropriate accommodations is essential to effective cross cultural communications.
4. Develop a culturally accommodating strategy.
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Armed with an understanding of what the communication process would include in your
indigenous setting as well as the foreign setting reveals the key factors for SRC influence
evaluation. Equipped with that information you can build a strategy which avoids the hazards
of the Self Reference Criteria.
Management of the diversity of personalities, organizational systems, hierarchy and functions

within a domestic setting can be formidable. These are compounded when an organization
moves into the global marketplace.
Cross cultural negotiations are a communication mine field. Those unprepared enter at their
peril.
AHH, THE FINISH SAUNA
Negotiations are tough enough in one’s home country, but unless you do your homework you
may never know what to expect in a cross-cultural situation. Don’t be surprised if your Finish
counterparts invite you to take a sauna at a critical juncture in discussions. The Finns love
their saunas -5 million Finns and a million and half saunas. Who needs a stodgy board room
to close a big deal when you can get naked and relax.
When two parties come to an agreement on issues of mutual benefit, we call that
“negotiations.” It’s a dance of communication blending perceptions, information, interactions
and reactions. Underneath the process lies a matrix of cultural values, norms, beliefs and
expectations. And, each person brings their own unique perception of the world, viewed
through their cultural grid, to the negotiation process.
Whether it’s in the high rise board room of New York, on the sun drenched beaches of the
Riviera, or in steamy Finnish sauna, the domestic rules taught and used rarely apply in the
foreign setting.
International success requires a cross-cultural perspective of the process of negotiations.
SAME SONG, DIFFERENT TUNE
The traditional four stages of negotiation as noted in “Cross Cultural Negotiation” by Hendon,
Hendon and Herbig are: Nontask, Task, Persuasion, and Agreement.
Moving outside one’s home culture doesn’t seem to alter the primary steps. It does however
radically impact the strategies, tactics, content, time, and order spent on each phase. In
addition the significance placed on each step may also be different between the negotiating
teams.
While the basics are the same, the process of reaching agreement is under significant cultural
influence. One culture may arrive at a settlement by a series of compromises and trade offs
on specific items. Another culture may prefer to start with agreement on a variety of broad
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generalities. For some cultures the contract is not expected to be binding in the real world,
and is only a broad set of ideas.
Taking the time to study the negotiating styles, expectations and customs may just save the
project.
NONTASK
All negotiations have an introductory time where relationships amongst the key parties are
established. Typically, during this nontask phase the parties seek to get to know and
understand one another. The specifics under negotiation are rarely addressed during this
stage.
Fundamental cultural and philosophical differences abound at the nontask phase of the
negotiations as each side takes sounding of their counterparts.
Imagine the confusion between uniformed Americans and equally ill prepared Japanese when
they first meet. The Americans are eager to negotiate a strong, mutually beneficial contract.
On the other hand the Japanese are far more concerned about negotiating personal
relationships as they do not believe that a contract alone will guarantee success.
Understanding the other party’s expectations at each phase is critical to success. Time
committed to this stage of the process will vary significantly depending on the cultural
objectives.
TASK
When the negotiating parties are comfortable with one another, they move on to the
exchange of important information relative to the task at hand. Each side evaluates the data
in light of what both sides will need and what alternative options may be available.
Contrasts in cultural expectations of this fact gathering stage can, if not anticipated, derail
the negotiations.
While Americans would expect that a presentation would contain all important and relevant
data germane to the project, the Japanese expectations are quite different. Americans may
spend some time discussing and delving into details. However, the Japanese by contrast,
assume that there is much more to know and discover and will invest countless hours seeking
to place the project within a context they understand. They will spend, what to Americans, is
an inordinate amount of time questioning every possible detail. They want to thoroughly
appreciate the other parities point of view, objectives and preferences.
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Your cultural bias will set the expectations -- and the same is true for your counterpart.
The limit on time invested at this stage of the negotiations is critical. It is imperative that
the other parties’ expectations are understood prior to meeting. To rush this phase may
be seen as deceptive. To take too long may appear that you are not serious about
closing the deal.
PERSUASION
This stage is often entwined with the Task phase of the negotiations and also with the
Agreement and Concessions stage. Never the less, taken on its own, it is the stage designed
to modify the other parties’ views on the subject through the use of convincing tactics. Our
willingness to be persuaded and to make concessions is, like most everything else, culturally
bound.
Always the pioneers, when Americans persuade someone to their position, they’ve conquered
the foe. It’s a conquest. Japanese are understandably irked at this posture. To the Japanese,
persuasion is a meeting of the minds -- to be included. Frank and open discussions, typical of
American culture, are an offense to the Japanese who are more interested in maintaining
harmony.
The process of persuasion is a ballet. To accomplish it well, and with grace both parties must
be dancing to the same music. A little research can yield enormous dividends.
AGREEMENT
Finally! The culmination of the negotiations is close at hand. There has been a mutually
beneficial and acceptable set of understandings put forth. But, to arrive at agreement, both
sides had to make concessions. How those concessions are understood and adhered may be
profoundly different from one cultural setting to another.
Cultural expectations will again have a major influence. In some cultures the breaking of a
promise may carry significant moral weight. In another it may be tolerated to break the
promise, perhaps even expected. The final agreement may be perceived by an American as
binding and absolute, while a Mexican may view the contract as an exercise in ideas, with no
specific expectation of applying it consistently in reality.
The cultural underpinnings, history, moral structure, and values will overshadow the final
agreement and its implementation. The international marketer is well advised to discern the
cultural context, the spirit and the letter of the agreement. Take nothing for granted.
Select a cross cultural situation in which you expect to arrive at an agreed course of action.
What are your expectations of the negotiated agreement, what do you believe your
counter-part’s expectations to be, and what do you believe is the reality?
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My expectations Their Expectations The reality
IN AND OUT OF CONTEXT
We’ve all encountered a situation where something was misunderstood because it was “taken
out of context.” We’ve also experienced clarity when the subject was presented “in context.”
Context is the sum total of the communication -- vocal and non-vocal. It is all aspects of the
communication that surround the remark or written document and provide clarity.
There are two primary categories of cultural context -- High Context and Low Context. When
approaching cross cultural negotiations understanding the cultural context for the
communication is essential.
Context: When distinct and precise information is transmitted in verbal and non-verbal
communication through use of a set of culturally understood codes that is known as
“Context.” Context is the combination of what is being said, and how it is being
transmitted.
FACTORS OF CONTEXT
Verbal Factors include:
 Rate at which words are spoken

 Voice pitch or tone
 Intensity of voice patterns
 Loudness
 Flexibility of the voice to the physical setting
 Quality of the voice
 Fluency
 Expressions in the voice
 Nuances and inflections
33
FACTORS OF CONTEXT
Non-Verbal Factors Include:
 Eye contact
 Pupil contraction and dilation
 Facial expression
 Odor
 Skin appearance - blushing, blanching, etc.
 Hand gestures
 Body movement
 Physical proximity of the speaker to listener
 Use of presentation space
CONTEXTUAL ESCALATION
The higher the reliance on context to communicate the higher the degree of difficulty for
information to be transmitted and received successfully. Of course the opposite is also true. If
a culture reliance on a low set of contextual codes to communicate, then messages can be
sent and received with a higher expectation of success.
High-context cultures rely on a major portion of the communication about an individual to be

transferred by non-verbal codes. Friends, associates and family members may also convey
the status of the individual through non-verbal factors. Casting the eyes downward, not
extending a hand in greeting first, a bowed head, and so on are non-verbal indicators about
the individual and the group’s expectations.
Creating and interpreting communication in a high-context setting requires understanding of

the external environment, circumstances surrounding the setting and a grasp of the non-
verbal behavior of the participants.
Whether it’s high context or low context outsiders are usually at a loss to figure out what is
being communicated in these situations without assistance from a contextual translator. Hint:
Look for someone who not only has a good grasp of their own culture, but also one who has
some insight into your culture. This way they can help to clarify the differences.
HIGH CONTEXT
High-context cultures typically have an open air lifestyle, an elaborate network of personal
contacts, social interaction is important, they favor innovation and have a flair for living.
Expect meetings to last far longer than low-context cultural. The communication is often seen
by low-context cultures as non-committal, vague, ambiguous, and too relationship oriented.
These cultures include:
34
 Southern European
 Latin and South American
 Asian
 Pacific and Polynesian
 Arabic
 Russian
If you were negotiating in Germany with

representatives from a BMW you could
expect that the context would be:
Extrem Extrem
ely Somewh Neutr Somewh ely Low
High at High al at Low
LOW CONTEXT
Because of a lack of shared contextual meanings, low-context cultures rely heavily on an

explicit code to transmit information. This code is called, “words.” The low-context culture
places emphasis on the substance of issues. The details are important and are provided
generally in a direct, straightforward manner with little ambiguity. The communication is
often seen by high-context cultures as rigid, highly structured, and far to direct.
Low-context cultures tend to be heterogeneous and personal relationships are far shorter in
duration than those in a high-context cultural setting. Relationship building is not considered
a high priority and is often passed over quickly in an effort to move on to more substantive
issues. Business agreements are usually written, rarely verbal.
These cultures include:
 Anglo (North American, Australian, etc.)

 Scandinavian
 Germanic
 Northern European
High Context / Low Context Think of “High” as in enough room for lots of things. The
higher the lid the more the container can hold. High Context means room for lots of
things to surround the words spoken.
35
Think of “Low” as in “how low can you go?” in limbo. The lower the limbo bar the less
room to go under. Low Context means not much room for anything but the words.
WHEN “YES” MAY MEAN “MAYBE”
The critical nature of understanding context can be illustrated by the difference between and
American “Yes” and a Japanese “Yes.”
For an American, “Yes” in terms of a business agreement generally means that the terms are
understood, accepted and presented and will be adhered to without deviation. That’s because
Americans are low-context. The high-context Japanese on the other hand may perceive any
one of as many as four different meaning for the same “Yes.”
“Yes I understand you’re speaking. Don’t know what you said.” Or, “Yes I understand, but I
don’t agree.” Then perhaps it may be, “Yes I understand what you have presented. No more.
No less.” Finally, it may mean, “Yes I understand and agree to what’s been said.” The
contextual setting for the discussions -- vocal and non-vocal -- will establish the meaning.
One culture may negotiate a legal, binding, detailed, unambiguous written contract. While
another, negotiating the same deal, focuses on the contract as a starting point and is more
concerned with the personal relationship. High context cultures may look at the detailed
clauses of low context contract as general guidelines, perhaps irrelevant as time passes and
other issues develop.
Despite the best of intentions, it is reported that over two-thirds of US/Japanese contracts
fail. The contrast between high and low context cultures is a serious factor in cross cultural
negotiations. While not sure-proof, there are some guidelines that can be helpful.
PRINCIPLES TO NAVIGATE THE TREACHEROUS SHOALS OF CROSS CULTURAL

NEGOTIATIONS
1. You can never be too prepared.

2. Never under estimate the value of intermediaries.
3. Knowing the language increases the potential for success.
4. Pictures are worth at least as much as a competent translator.
5. Winning goes to the side with superior time management skills.
6. Agreements - oral and written - have long lasting impact.
7. Knowing when to fold is an asset.
1. You can never be too prepared.
The Boy Scouts are right. Be prepared. The challenge of negotiation in a domestic setting are
tough. Add to this the complexities of a foreign set of expectations, procedures, and
hierarchies and you can not afford to assume you can do it like you’ve always done it before.
36
Here are some areas to give special attention:
 Technical details - Any possible technically related issue should be researched and the
data at hand.
 Operational procedures - Understanding how the parties will work together on the
project should be clearly understood and ready to discuss.
 Cultural Protocol - Know what is expected of each player on both sides of the table. In
addition understand expectations regarding social gatherings, dinner, night-life, parties,
etc. Leave nothing to chance.
 Time - Negotiation time may require two to six times longer in a cross-cultural setting.
Don’t rush.. Prepare for to be patient.
 Language - Learn at least some key phrases in the host language. Show respect for
their language. Provide copies of key documents translated into their language.
 Tactics - Research your counter part’s culturally excepted negotiation tactics. This
enables you to counter their positions quickly and decisively.
Remember the Boy Scouts. Be prepared.
2. Never under estimate the value of intermediaries
Extensive preliminary work by qualified, cross-cultural intermediaries is often a basic

prerequisite for successful negotiations. It may cost a substantial amount of money to
guarantee a positive outcome -- as much as anything can be guaranteed in a cross-cultural
environment. Spend time and money up front with the other side’s key subordinate players.
Take every effort to assure they understand the proposal, the implications, and so on. Make
them your allies, not you opponents.
Recognize that in many foreign settings the final meeting may be only a formality. The details
of the negotiation may need to be worked out over an extended period of time. Then, when
all is agreed to behind the scenes, the leadership assemble to formalize the agreement.
No matter how well you think you know the other organization and its key players, do not
underestimate the value of a key person, working on your behalf.
3. Knowing the language increases the potential for success.
A foreign language -- if unknown can be a formidable obstacle. By contrast, if you know the
foreign language it can be an enormous asset.
Unfortunately North Americans generally do not have a command of a language other than
English. And, American English is profoundly different that English taught in many non-
English speaking nations. When using English as the negotiating language avoid the use of
jargon, idiom and slang. These are usually culturally biased and not understood by the host
national.
37
The inclusion of someone who speaks the host language on the negotiating team can be a
tremendous benefit. If however this is not possible, remember to paraphrase your responses,
speak slowly and articulate clearly. Restate each point in a variety of ways in an effort to
assure understanding.
Remember that language is culturally anchored and laden with contextual nuances.
4. Pictures are worth at least as much as a competent translator.
A mutual lack of understanding of the languages of the negotiating parties can present
significant barriers. These barriers can be partially overcome by well prepared visual
supports. These may take the forms of diagrams, charts, photographs, drawings, enlarged
copies of key documents, samples of products, parts and so on.
When using visual support elements remember that cultures place negative and positive
values on colors, shapes and symbols. Black in the west represents death in many situations,
while in Asia it is white. The number 4 is unlucky Korea, while in many Western nations it is
the number 13. Red for stop in one nation. Red for celebration in another.
Prior to presentation of any visual support, have a bicultural interpreter analyze each piece. A
little financial investment at this stage could be the difference between success and failure.
5. Winning goes to the side with superior time management skills.
The perception of time is culturally bound. It effects our world view and how we conduct our
personal, private and public lives. Latins, and Pacific Islanders who are even oriented typically
arrive later than the time set for a meeting. North Americans, for whom time is “running out”
will arrive a bit early to show they value the starting time. The Chinese are not interested in
accomplishing the negotiations quickly as this does not provide time sufficient to nurture
relationship.
For the Japanese time is a continuum. In the West time is commodity that can be depleted,
saved, wasted, controlled or invested. In the Arab world to plan is unimportant because only
Allah knows how time will develop. And, for the Irish time is far less important that in most
Western nations because, “God made so much of it.”
A little research should reveal how your hosts value time. Be prepared to use time to your
advantage. Don’t rush.
6. Agreements - oral and written - have long lasting impact.
While the West views a contract as the culmination of the discussions, it is not necessary so
in many other areas of the world. Here are few variations that demonstrate the importance of
knowing how the host culture views contracts.
38
 Contracts are the beginning of a relationship and provide guidelines.
 Contracts enable the parties to increase demands upon one another which may not be
included in the agreement.
 Contracts are never complete. Even after signing greater and greater agreements may
be asked.
 Contracts are valid only as long as they serve both party’s interests.
 Contracts are interpreted broadly or narrowly depending on the impact of either party.
 Contracts are legal and binding.
Clearly the possibilities for major misunderstandings are inherent in the process of contractual
agreements in a cross-cultural negotiation.
7. Knowing when to fold is an asset.
Using the common term from poker -- “Know when to fold ‘em” applies to cross-cultural
negotiations. Going into a negotiation session, know at what point the deal will not work and
you are willing to close off the conversations. “Necessity never made a good bargain”
Benjamin Franklin is quoted as saying.
Most international negotiators understand that the Americans are virtually bound to return
home with a “done deal.” This works against them in the discussions. Asians on the other
hand are willing to take as long as is needed to reach agreement. To leave the deal
unresolved until relationships are settled is more important than coming to a compromised
agreement.
Better to not close the deal, than to agree to a poorly structured agreement than will not hold
or serve all parties concerned well.
The cost of cultural ethnocentricity can be extremely high. To not recognize the destructive
force of the Self Reference Criteria is fatal flaw for anyone wanting success on the
international field of commerce.
Research, prepare, study, discover all you can about the cultural setting into which you are
going. Everything of importance will be culturally bound. There will be few, if any, significant
matters that will be perceived by your host the same way you see them.
Ancient wisdom says, “Study to show yourself approved, a workman who will not be
ashamed.”
39
1) The SRC is:
a) Security Related Company
b) Self Reliant Counterpart
c) Self Reference Criterion
d) All of the above
2) Ethnocentricity can result in:
a) Incorporating the cultural values of the host country into the marketing plan
b) Misunderstanding the local cultural values related to your product or service
c) Focusing your marketing strategy on only ethnic centered cities
d) None of the above
3) There are four steps to exposing cultural bias.
True
False
4) When Americans persuade they conquer. When the Japanese persuade they:
a) Intimidate
b) Include
c) Indoctrinate
5) Low context requires an abundance of facts, figures and details.
True
False
Your
Response
1. The SRC is: c) Self Reference c) Correct Review
40
Criterion
2. Ethnocentricity can b) Misunderstanding the d) Incorrect Review
result in: local cultural values
related to your product
or service
3. There are four true true Correct Review
steps to exposing
cultural bias.
4. When Americans b) Include d) Incorrect Review
persuade they
conquer. When the
Japanese persuade
they:
5. Low context true true Correct Review
requires an
abundance of facts,
figures and details.
Scoring: 3/5 60%
(4)Determining the Message

CROSS CULTURAL RESEARCH
The majority of mistakes made on the field of international commerce are the result of
ineffective or non-existent research. While the principle of “never enough time, money or
people to do it right the first time, but always enough to do it right the second time” plays a
major role, the Self Reference Criteria is, more often than not, a major contributor to these
failures.
Before addressing issues such as advertising, sales promotion and public relations in a cross-
cultural setting, we must take a close look at the use of research. These other areas of
marketing will be doomed to failure, if appropriate research has not been undertaken in
advance of their implementation.
Research will not guarantee success. What it can do is provide leadership with insight into the
cross-cultural setting and assist in the structuring of the pivotal communications tools
required.
FAMILIAR TOOLS IN AND UNFAMILIAR SETTING
41
The basic tools used in marketing are generally the same. The researcher needs to gather,
analyze, and present the data. To do so the researcher will use the customary interview,
survey, focus groups, observation and experimentation techniques.
What is always dynamic in a cross-cultural setting is the environment in which the research is
being conducted and, the conclusions that can be drawn.
It is imperative that the focus of the research be clearly identified. The problem must be defined in light of the
cross-cultural setting to provide information which will be trust-worthy. A little basic research would have
saved Mattel a lot of time, money and face with the Japanese when they introduced Barbie. Unable to crack the
market, they discovered that the big breasted, long legged, blond image Barbie presented was unpleasant to the
Japanese girls. They wanted brown eyes, dark hair, shorter legs and smaller breasts. A complete Barbie make
over netted 2 million units sold in two years.
PRIMARY AND SECONDARY DATA
Let’s first consider the value of secondary data (previously gathered, analyzed and presented
data) in a cross-cultural environment.
In a domestic research setting much valuable information can be acquired through secondary
data. The data, researchers, end users of the data, and the products or services to be
marketed are generally culturally anchored. This is not so cross-culturally.
Research in a cross-cultural setting is a mine field for the unsuspecting marketer. Potential
errors, from which erroneous conclusions can be drawn, include:
 Not knowing who gathered the data, for what reason and under what conditions.
 Unknown relationship of the data to the researcher’s objectives.
 Unreliable measurements and definitions for comparisons to other data.
 Lack of assurance of common controls of data acquisition.
 Accuracy and reliability of the data.
 How old the data is? When and how often is it updated?
 Appropriate availability of the data.
The difficulties with secondary data in a cross-cultural environment are demonstrated by the
use of the term “urban.” In Japan it represents a population base of 50,000 or more. The
same term in India covers 5,000, while in France and Germany a community of as few as
2,000 may be designated as “urban.” Clearly the reliability of secondary data is questionable
when researching across national boundaries.
PRIMARY DATA
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While more reliable, the collection of primary data also poses distinct challenges for the
researcher working in a cross-cultural setting. The data gathered by the standard tools can all
be influenced culturally.
The researcher must question the results in terms of problems which may have occurred as a
result of the measurement methods and the actual instrument used. In addition, erroneous
information may be the result of cultural influence on the methods and instruments.
Let’s take a look at some of the hazards that can jeopardize cross-cultural data collecting
techniques.
THE PERSONAL INTERVIEW

Remember that culture is like water to a fish -- only noticed by the fish when it is missing.
When using the personal interview for research cultural bias is a constant danger. Presuming
that the foreign interviewer has not succumbed to their own Self Reference Criteria, the data
gathered may be laden with errors.
True False
Faulty data may result from:Translators who may not translate accurately
cultural nuance.
Faulty data may result from: Multiple language groupings which may have
multiple dialects within each language group.
Faulty data may result from: Idioms and slang which are unique to each
language and dialect and may not be the same in different geographic areas.
Faulty data may result from: Questionnaires simply translated and used in a
new geographic area without study or testing.
Faulty data may result from: Believing that because the language is the same
the instruments should work the same in a new geographic or cultural area.
THE PERSONAL INTERVIEW

A cross-cultural interview must be carefully constructed for methodology, sampling, and the
instruments which are to be used. Analysis of the data must also be conscientiously
undertaken in light of cultural influence.
Faulty data may also result from:
 Not understanding that many languages have high and low forms which reflect class
standings.
 Respondents may be reluctant to share accurate information because of fear.
 Gender of the interviewer may interfere with the respondents willingness to share
information.
43
 Questions may be answered erroneously because they are viewed as intrusive.
 The “Courtesy Effect” -- Respondents provide the answer they think the interview
wants to receive.
 Outsiders or foreigners can fall prey to the “Sucker Bias” which is to purposefully
supply the interview with misleading data.
 Lack of understanding required a non-response. It could mean that the respondent is
uneducated, illiterate or unfamiliar with the instruments technical terms.
 An unwillingness to discuss personal issues such as hygiene, finances, or family matters
with a stranger.
TELEPHONE INTERVIEW
It is amazing how invisible and supportive telephone infrastructure is in most Western

nations. We hardly take a second thought about telephone books and operator assisted
information. The intricate system of telecommunications is such and integral part of Western
life it is often taken for granted that the rest of the world is also wired.
The reality is far different.
Most developing nations have few, if any of the telephone services upon which we have
become so completely reliant. Telephone penetration may be as low as 10% as it is in the
Philippines, or perhaps as get high as 60% in Mexico City. Poland has a ratio of less than 9
telephones for every 100 people. Millions of people are on waiting lists for installation. These
samples are representative of vast segments of the emerging nations of the world.
Do not assume that telecommunications is readily available. Even in some Western

settings the telecom systems are very different and less accommodating than found in
the US. Take the time to research the system before including it in your marketing
strategy for research.
TELEPHONE INTERVIEW
In most non-Western regions -- Latin America, Russia, China, Africa, the Sub-Continent -- it
must be presumed that telephone infrastructure will not be sufficient to conduct quality
telephone interviews. However, even if the systems are in place, culturally there are quantum
obstacles to overcome when attempting to use the telephone.
Cultural barriers abound when it comes to using the telephone to conduct research.
44
 Chinese, Latins and Polynesians prefer not to conduct business on the telephone. It is
much more appropriate to meet face to fact. Remember they are a high context
culture.
 Saudis consider their homes sanctuaries -- off limits. Besides, Saudi women are not
permitted to talk to strangers, especially men.
 Mexicans are not accustom to strangers asking personal questions. Response would be
evasive or misleading when asked for information on the telephone.
 Many Asian cultures do not use the telephone for social conversation.
Research into the telephone infrastructure and how people within the cultural setting use the
telephone is crucial before attempting any kind of telemarketing.
MAIL SURVEYS
The Self Reference Criterion can once again prove unreliable when it comes to using the
postal system for broad marketing research.
Hindrances to success include:
 Infrastructure limitations.
 Illiteracy. People can not read.
 Technical illiteracy. People don’t understand the information presented.
 Poor education.
 Criminal activity
 High cost of postage.
 Inflexible postal system.
 Unreliable system. Delivery time may be weeks or months, or perhaps never.
 Lack of trust because relationship is not established.
 Unreliable addressing system.
Any one or combination of these types of obstacles can impede the successful gathering of
reliable information. The data gained under these conditions will be corrupted, skewed or
biased.
NO MAIL. NO PHONES. NO INTERVIEWS. WHAT’S A RESEARCHER TO DO?
Crossing the cultural divide is no easy task. The combination of inadequate infrastructures
and remarkably diverse cultural mores conspire to defeat the best efforts to gather reliable
data. What can be done that is trustworthy?
In many situations, observation in conjunction with personal interviews is the most useful
research technique.
45
After reviewing the hindrances to successful interviews listed earlier, one may wonder if it is
possible to conduct a valid, fact finding interview? Yes it is. But it must be carefully
constructed and conducted. Preferably by a national.
Stop, Look and Listen... Then Plan
Stop what you’ve done in the past.
Look at what is actually transpiring in the culture.
Listen to what local people have to say.
Then build a plan that reflects your observations and interview results free of your own
personal bias and cultural influences.
A WINNING COMBINATION - INTERVIEWS AND OBSERVATION
While many researchers prefer quantitative date (that which in measurable), soft data, or
qualitative information (that which is subjective), can be extremely useful.
Japanese managers believe that much can be gathered from a careful interview and
observation of actual clients, customers, vendors and others involved in the system. A true
“snapshot” can be developed from observations of the true behavior and responses by the
consumer.
Hands on data gathering provides a unique “feeling” for those involved at the wholesale and
retail levels. This process can neither be indiscriminate or careless. When methodically
constructed and undertaken, the data acquired can provide a remarkably accurate picture of
how consumers, vendors, wholesale people and manufactures are actually responding to the
product.
This information, used in combination with quantitative data such as units sold, location
activity, shipments, inventory levels, and information on the competition can be useful in
structuring marketing strategy when working in a cross cultural environment.
FOCUS GROUPS
In addition to the individual interview, the focus group is another source of data. Long a
staple of Western research, the focus group -- a selected group of individuals in a controlled
environment -- is also a valuable tool in a cross-cultural setting.
46
As with other methods and instruments, the straight transfer from one culture to another is
most unreliable. Comparable data simply will not result from such an exercise. The underlying
cultural influences will permeate the data yielding skewed results.
Before conducting focus group research in an international setting, the process,

objectives and materials should be evaluated in light of the cross-cultural setting. Use a
national who you have determined has some sense of the local cultural nuances, and a
knowledge of your core values to evaluate your strategy.
OBSTACLES TO FOCUS GROUP SUCCESS
Countless challenges face the focus group facilitation team when operating cross-culturally.
Depending on the national setting, each research project will face its own unique set of
challenges. These must be discovered, assessed, remediated and implemented reflecting the
cultural changes to secure the highest possibility of success. Here are a few issues that
should be considered.
 Time. Experience shows that at least twice the time will be spent in a cross-cultural
focus group session as opposed to those conducted in a domestic setting.
 Group participants may not respond to future scheduling. Because future commitments
hold little value, in some situations they will need to be taken immediately to the
session.
 Size of group will be influenced culturally. In the US 8 - 10 is acceptable. However, in
foreign settings this may be as low as four to six people. This obviously lengthens the
time process.
 Payment may be required in some situations. In other settings a luncheon or dinner
may be required for the participants to get acquainted.
 Straightforward discussion of issues is not acceptable in many
cultural settings -- especially with strangers. Honest answers
may be hard to come by in such an environment.
MORE OBSTACLES TO FOCUS GROUP SUCCESS.
 Disagreement may not be considered polite. This would prohibit individual opinions
which may be in contradiction one with another.
 The need to comply with the group may be culturally overwhelming. The contrast
between Asians and North Americans in this regard is glaring.
 In Latin cultures commitments to future schedules are not binding. Perhaps one or two
people will actually show up for the session out of 10 or more who had confirmed
attendance.
47
 In some cultures the participants will bring friends and family with the expectations
that they will join in the group discussions.
 If members of the clergy, political figures, government employees, military or police
participate, other group members will be guarded or non-responsive.
 Western facilitators tend to be far less structured in an effort to create a relaxed
environment. This may pose a problem in a culture such as Korean or Japanese that
expects strong leadership in such settings.
A predisposition that what has worked in other cultural settings will also work in another
locality is dangerous. Clearly culturally bound social mores that govern behavior in a group
meeting will influence the process and the results.
Let’s look at a few helpful tips in planning a cross-cultural focus group.
HELPFUL HINTS FOR CROSS CULTURAL FOCUS GROUPS
To meet the goal of the focus group to acquire valid, reliable data regarding the product,
service or organization here are a few helpful hints. When working cross-culturally with a
focus group:
 Allow at least twice as much time to conduct the sessions.

 Be prepared to host advance dinners or luncheons to help people get acquainted.
 Group people by age, educational, social or cast level to avoid influence of someone
from a superior social strata.
 Avoid the inclusion of any group member that may be feared or intimidate others. This
would include military, police, clergy, etc.
 Use a national moderator to run the session. A national moderator with minimum
training, will generally provide superior leadership to an expert foreigner. Training of
the national is a key factor.
 Interactivity may have to be directed. Instead of a free flow of comments from
participant to another, the moderator may need to direct questions to specific
participants.
 Avoid a group of total strangers. Friends, family, and same level associates will provide
a more relaxed and productive environment.
Experience has shown that foreign concepts and beliefs regarding group dynamics is most
often in error. Remember that cultural social behavior has developed over scores, perhaps
hundreds of generations. You cannot impose external expectations.
MORE HELPFUL HINTS FOR FOCUS GROUPS
 Avoid grouping people together who do and do not use the product or service. Many
cultural groups identify strongly with the product. Participants may avoid making
comments about the product for fear of upsetting the other group member.
48
 The group moderator must be willing to “pull” negative comments from the
participants. In many cultures to comment negatively would be impolite.
 Use of a moderator who is not a recognized or identified with the product or service
being researched will add to more honest answers. Many cultures would find it rude to
comment negatively about the moderators product or service.
 The facilitator must be ready to push through superficial, abbreviated, and non-
committal answers. Nods and grunts of agreement may mean only that the question
was understood, but not necessarily agreed with.
 The focus group should be led in an inviting, warm yet authoritive manner. Assertive
communication may meet resistance as it will be perceived as rude, demanding,
insincere, arrogant and perhaps ignorant.
 Educating the participants as to the objectives and process will assist in enabling them
to be more responsive, cooperative and forthright.
The importance cannot be underscored enough of the need of inculturating the focus group
process, techniques and instruments. You want every advantage possible to acquire vital,
reliable data. This will strengthen your probabilities of that occurring.
WORDS AREN’T EVERYTHING

The careful observer of a focus group will pay every bit as much attention to how things are
said as to what is being said. Nonverbal communication is estimated at some 93% of the
total communication that takes place. Observation of the context in which the information is
being presented is essential to developing a comprehensive picture about a product, service
or organization based on the expressed opinions and beliefs.
Communication - Parts and Pieces
* 7% Verbal Communication
* 55% Body Language
* 38% Paralinquistic
 Tone
 Pitch
 Amplitude
 Inflection
WARNING! DEFINITION, SELECTION, CONSTRUCTION AND INTERPRETATION

ERRORS AHEAD
DEFINITION
49
How the research problem is defined is critical. Definition must reflect the culture in which the
marketing is going to occur. Because custom and value weigh heavily on the reality of the
definition, the problem must be stripped of its former cultural baggage, and take on the new
culture.
A research study some time ago indicated that the French and Germans consumed more
spaghetti than Italians. The problem had been defined in terms of the purchase of packaged
spaghetti which was traditional in German and French shopping patterns. However, the
reality was quite different. Italians consumed far more spaghetti when bulk buying was
included in the definition of the research.
Definition must include consideration of the unique cultural diversity.
SELECTION
Two areas of error may occur in the comparison and selection of sample groups.
1. A frame error may occur if the populations drawn from are different clusters from
different cultural groups. The comparisons in this case will be a classic “apples and
orange” scenario. All forty to fifty year old males living in urban centers are not of
equal comparison value. This is especially true if one urban center is Sao Paulo, Brazil
and the other is Ho Chi Min City, Vietnam.
2. A selection error may occur if the geographic sampling area
cannot yield a valid sample. The actual sample, must indeed
be a “sample” of the targeted group. Lack of infrastructure
such as street addresses, telephone listings, limited numbers
of telephones (one to a person, a family, a home, a
community, etc.), and transportation may all complicate the
reliability of the sample to adequately represent the target
population.
CONSTRUCTION
Recognizing that behaviors, values and attitudes differ widely from culture to culture, the
construction of the various facets should reflect and understanding of “equivalency.”
Construction equivalency dictates the degree of change necessary in the concepts, functions
and instruments to be used from one cultural setting to another.
In his “Handbook of Cross-Cultural Marketing” Paul Herbig explains the need for construction
equivalency. A brief review is worth noting.
 Concepts - Do the abstract ideas, the concepts, expressed mean the same thing from
one culture to another? This is a critical question when one considers concepts such as
“family”, “clean”, or “savings.” For instance, to a parent in Japan cleanliness means
50
changing a baby’s diaper two to three times more often than to a mother in the USA. A
critical difference in marketing terms.
 Functions - Products which serve basically the same purpose, may differ in their
function from one nation to another. The function of the product within its cultural
setting should be considered when gathering marketing data. Herbig notes that,
“Refrigerators are sued to store frozen foods in some countries and to chill water and
soft drinks in others, in ceratin markets, they serve as status symbols and are
prominently displayed in the home, often in the living room.” A striking example of
need to review functional equivalence.
 Instrument - When comparisons of market characteristics
across cultural lines are important, the equivalence of the
instruments is essential. Scales -- seven point in the US and
10 to 20 in many European nations, response categories and
the structure of questionnaires must be identical across
cultural lines for reliable data.
INTERPRETATION
Potential hazards in cross-cultural research also lie in the interpretation of definitions, social
issues, emotion, and statistical measurements.
 Definitions - In parts of Europe beer is not considered an alcoholic beverage, in the

North America it is. In Australia a napkin is what Americans call a diaper. Supermarkets
in Indonesia often are in high-rise buildings and sell a wide range of retail merchandise
other than foods; not so in the US. Definitions must be clearly interpreted.
 Social Issues - Sex, money, women, men, alcohol, and a wide range of other issues
have broadly different social controls from one cultural setting to another. Sex is taboo
as a subject for discussion openly in India, Saudi Arabia and other nations. Not so in
many Western countries. Interpreting the social issues accurately is essential.
 Emotion - Finns are stoic, Germans are orderly, Italians are demonstrative and Latins
are effusive. While these are broad generalities, cultural emotions are complex and
must be taken into account when interpreting responses.
 Statistical Measurements - The results of survey and interview
work must reflect cultural equivalency in its interpretation.
Instruments must mean and measure the same thing
following translation. Meticulous attention must be given to
assure reliable data.
INVISIBLE DANGERS
Cultural bias lurks in every detail of the international marketing process. It is inescapable,
often invisible, and many time unexplainable. It’s just the way things are. And, it can
devastate the best efforts of the giants of commerce, as well as be the undoing of the
international entrepreneur.
51
Significant dangers lurk at every turn from unwilling respondents to over-eager respondents.
But, to those who take the time, spend the money and make the effort success is possible.
Herbig tells the story in “Handbook of Cross-Cultural Marketing” of the success of Proctor and
Gamble’s efforts to sell diapers in Japan. They discovered that Japanese mothers, concerned
about cleanliness, change their children’s diapers more often than American mothers. Taking
that information to heart, P&G developed Ultra Pampers which were more absorbent and
made frequent changes less messy.
Kentucky Fried Chicken also benefitted form careful research in Japan. KFC became trendy
and up-scale. The menu reflected local taste for corn salad, french fries, less sugar in the
coleslaw, fried fish, and smoked chicken.
Travel to Taiwan and you’ll find Pizza Hut doing well despite incredible traffic congestion.
Deliveries are made on special scooters and within a limited area. Domino’s Pizza also came
to the same conclusions in Japan when faced with the same type of problems. A willingness
to adapt the menus to the local pallet, develop new ways to deliver the product and still
provide prompt delivery provided a winning formula.
Success goes to the flexible and informed.
Truth can be hard to uncover when

complicated by cultural idioms, slang,
dialects, illiteracy, poor infrastructure and
limited communications systems. After
answering, think about why you answered
as you did.
Strongl
Strongl y
y Somewh Neutr Disagre Disagre
Agree at Agree al e e
FINAL HELPFUL HINTS FOR CROSS CULTURAL RESEARCH
 Use a limited vocabulary

 Use short, uncomplicated sentences
 Use familiar words
 Avoid idioms, colloquialism and slang
 Be relevant to the cultural setting
 Back translate all materials -- translate into host language, have another translator
translate it back into the original language, compare for errors. Repeat until there is an
accurate back translation.
52
 Incorporate the use of nationals
 Pretest all instruments
 Be patient.
 Be flexible.
KISS IT!
Keep It Simple Stupid!
One way to lesson the impact of our culturally stupid actions is to keep every thing
simple words, sentences, requests, and simple actions. Not simplistic -- just simple and
uncomplicated.
An American businessman meets a prospective customer for the first time. He politely refuses
coffee as he has just finished breakfast. After taking his seat he nonchalantly crosses his legs
exposing the bottom of his shoe. He then passes the promotional material to his prospective
customer with his left hand while inquiring as to the health of his hosts’ wife and children. In
and effort to persuade the prospect the American assertively pursues the deal. Within
minutes of entering the executives office the meeting is terminated without the American
acquiring a new client.
Why?
The American has committed at least five cross-cultural mistakes within this Saudi Arabian
setting. Refusal of hospitality, exposing the bottom of the foot a sign of disrespect, using his
left hand which is reserved for handling ones genitals or cleaning up after defecating,
inquiring about family matters which are considered very private, and pushing hard to close
the deal on the first encounter -- each could have been avoided with minimal research.
LAYING SOLID FOUNDATIONS
Conducting cross-cultural research is like removing a blind fold before entering a house of
mirrors. It’s still going to be a challenge, but you will have a far better chance of finding your
way through the maze.
Cross-cultural research lays a strong foundation upon which sound strategies for advertising,
promotion and public relations can be built. Laying a sure foundation is essential to a
53
trustworthy structure. The broader, deeper, more solid the foundation, the more substantial
the structure can be. A broad, deep and solid foundation of cross-cultural research will
provide the opportunity to build significant market share.
Ancient wisdom says, “A wise man digs deep and lays the foundation of the house on solid
rock, not shifting sand.”
1) Issues such as advertising, sales promotion and public relations in a cross-cultural setting
will be doomed to failure, if appropriate research has not been undertaken in advance of their
implementation.
True
False
2) The reliability of secondary data is very high when researching across national boundaries
because it has been accomplished by nationals.
True
False
3) Because the telephone is such a universally used communication tool, cultural barriers are
reduced significantly when it is used cross culturally to conduct research.
True
False
4) When using focus groups in a cross cultural research project the straight transfer from one
culture to another is most unreliable. Because the underlying cultural influences will permeate
the data yielding skewed results.
True
False
5) How the research problem is defined is critical because custom and value weigh heavily on
the reality of the definition.
54
True
False
Correct Your
Question Status
Answer Response
1. Issues such as advertising, sales true true Correct Review

promotion and public relations in a
cross-cultural setting will be doomed to
failure, if appropriate research has not
been undertaken in advance of their
implementation.
2. The reliability of secondary data is false false Correct Review
very high when researching across
national boundaries because it has
been accomplished by nationals.
3. Because the telephone is such a false false Correct Review
universally used communication tool,
cultural barriers are reduced
significantly when it is used cross
culturally to conduct research.
4. When using focus groups in a cross true false Incorrect Review
cultural research project the straight
transfer from one culture to another is
most unreliable. Because the
underlying cultural influences will
permeate the data yielding skewed
results.
5. How the research problem is defined true true Correct Review
is critical because custom and value
weigh heavily on the reality of the
definition.
Scoring: 4/5 80%
Unit 5 Presenting The Message

THE MARKETING MIX
To achieve success in the market place a company must out perform its competition in how it
satisfies its customers needs. Having identified not only the customer’s needs, but also the
55
core product benefits that will meet those needs, a strategy to reach the identified market
must be established. To accomplish this a blend of elements must be brought together. This
blend is called the “Marketing Mix.”
The Marketing Mix is the complement of controllable, tactical marketing components used in
concert to produce a desired response from a target market.
The Marketing Mix for a company doing business in Switzerland where this are four distinct
native cultures -- German, French, Italian and Romansch -- will be very different from that of
Japan which has one dominate cultural group.
Satisfying customer needs, not selling a product is how success is achieved in the
marketplace whether at home or in a foreign environment. Meeting needs is what
marketing is always all about.
The Six “P’s” of Marketing
Oh no, not another set of letters to remember!
Traditionally the mix of marketing elements is understood in terms of four P’s -- Product,
Price, Place and Promotion. To these let’s add Presentation and People.
Product, Price, Place, Promotion, Presentation, and People. The system can be developed
around these six "P's."
True False
The Product should be priced to correspond to the customers perceived value.
If the product does not have to meet a perceived need to be successful.
The product must have a place, either physical, by post or digital, that the
customer can access.
If we have good product people will find it.
The SRC really isn’t much of a problem cross-culturally.
People are always critical to the marketing process regardless the cultural setting. The
56
savvy international marketeer will utilize the cultural distinctions as a critical element of
the marketing mix.
Let’s take a brief look at each.
PRODUCT - Yes it’s nice, but I don’t want a left handed, glow-in-the dark back scratcher for
sensitive skin.
For the marketing system to function there must be a product or service that answers to a
real or perceived need in the marketplace. If that product or service does not answer to
either a real or perceived need in an individual's mind, there is in fact nothing to which the
audience can respond.
To motivate the public to respond in the desired manner requires that felt needs (or client
perceived needs) be addressed. Is what we are offering our audience, something for which
they understand or sense they have a need?
Nabisco found that the Japanese market didn’t want or need a sweet Oreo cookie. When the
sugar content was reduced Japanese consumers still were unimpressed with the flavor. They
preferred the wafer without the creme. Nabisco produced a product answering the felt need
of the market and launched the Petit Oreo Non-Cream Cookie -- single wafers without the
creme.
Find out what is needed by your target audience and structure your product or service
to meet that recognized need. Then present the message in a way that arrests their
attention and provokes a response. Remember to push the benefit that meets the need.
PRICE - Why can’t I find a price on this thing? What does this bar code thing mean anyway?
All I want to know is, "how much is this going to cost me?"
Suffice it to say that a good product, well packaged, readily accessible, is not going to sell,
regardless of the advertising and promotion, if the price is not set at fair market value. We all
want to know the price.
In structuring our communication we must ask, "What is the price that we are asking our
audience to pay? Is it fair? Will they pay it? Should it be less or more?" Price not only needs
to be appropriate, it must also be in line with the perceived value the customer hold of the
product.
57
Levi’s 501 jeans were perceived as a high fashion item when first introduced in Spain. As
such, 501s commanded a far higher price than other European markets. While the cultural
setting may impact the perceived product value, it rarely impacts the fact that customers will
not pay more than the perceived value.
The company sets the price, but the customer sets the value.
PLACE - It’s at the back of the store, just down aisle number 51, turn right at the bikes, and
left at the tennis shoes. You’ll see it right there by the blue baby bibs on the bottom shelf.
Of course, once we have a product or service that answers a need, and it is packaged well,
the product's acceptability will be enhanced only if it is accessible. Poorly placed, inaccessible,
distracting surroundings, and inconvenient availability each hamper the effectiveness of the
presentation and impair communication about the benefits of the product.
If communication is diluted or non existent the audience fails to have the opportunity to
evaluate and respond to our message resulting in lost sales.
We must be careful to place the product and our messages where our prospects are located.
In many nations point-of-purchase displays work well in a self-service environment. However,

in developing nations, individual attention by shop keepers and their employees often renders
point-of-purchase selling inappropriate. Careful research of the selling environment will
enhance sales potential.
PROMOTION - If it’s the best, why not shout about it?
Promotion - 1: the act of advancing in position, being raised in rank. 2: the act of furthering
the growth or development of acceptance of something through advertising something, 3:
the furtherance of the acceptance and sale of the merchandise through advertising and/or
publicity.
Webster's Collegiate Dictionary
58
If we believe that we have a product or service worthy of others' acceptance, then integrity
requires that we do all in our power to position it within our audience’s mind in the highest
rank possible. Stewardship of what has been committed to us requires that we further its
growth and development through all appropriate means available.
The objective is for the promotional and advertising materials to persuade the prospective
user to seek out what you are offering and to bring them to the point of responding in a
desired manner.
Cross cultural promotion efforts can easily fall victim to the Self Reference Criteria. While
money back guarantees are a strong incentive in the United States the opposite is true of
Hispanic culture. The Hispanic view is that the product must be inferior or cheap if the
company is offering a money back guarantee.
Good rule of thumb when you’re thinking about promotion: If others are shouting
whisper. If others are whispering, shout! Look for creative ways to separate yourself
from the pack and be noticed.
PRESENTATION - You can sell almost anything once if it is packaged and presented well.
In addition to placing product well, it must be presented in a way that maximizes the benefits
and minimizes the deficiencies in a positive and favorably aesthetic way. It’s true that you
can sell almost anything once if presented well. However, if the product or service offered is
of genuine value, you can sell it several times — perhaps even for a lifetime. If the product or
service is poor, the customer simply will not come back. Never the less, outstanding
presentation is essential to that first sale.
Excellence in presentation is one of the key communication principles. Presentation includes

packaging, displays, how the product is positioned with other products, the environment in
which the product is shown, and all the subtle and bold actions taken that contribute to the
audience perception of quality, distinction and superiority.
A Johnson and Johnson new baby care product was not well received in Poland because it
was shown in the context of a maternity ward of a hospital. Polish woman only deliver babies
in a hospital if they or the baby are critical ill. The product presentation missed the target
because cultural differences. The same product presented in the same context in the United
States would have a positive reception.
Finally ... marketing deals with the key elements of people.
59
A well designed -- both visual and editorial -- presentation of your product, that is
culturally sensitive, enables the customer to understand the characteristic benefits of the
product. Think benefits, not features.
PEOPLE - Making the whole system work...Most of the time.
Throughout this marketing system, people will be involved. They will make either a positive
or negative impact on your prospective audience. It is critical to keep in mind that every
individual involved in the process is presenting — or should be — an image of quality, care,
and concern that makes the potential customer feel that he can trust those with whom he is
doing business.
How are those involved with our message doing? Do they know their role? Can they articulate
the message? Do they know the message?
These questions take on major significance when an organization is working cross culturally.
In the US a sales call may require two visits from a general sales person. In another cultural
setting the same sale may require several meetings, each with a progressively more
important person representing the company. In Malaysia Electrolux averages five sales
demonstrations to close the sale. However, in the Philippines the same sale will take an
average of 20 demonstrations.
So we have six "P's."

We have Product, and the Presentation of that product must be in a Place that is accessible.
It must be Priced appropriately and it must be Promoted with a persuasive message designed
to impact attitudes about the product or service to "get the customer to open the door." All of
these elements need to be undergirded by People who have been selected to represent the
product in the most favorable way possible.
The Six P’s of Marketing from the customer’s side of the equation.
Each of the marking mix P’s focuses on the organization’s view of the marketing tools needed
to succeed in the market-place. But, whether domestic or foreign, equally important is the
customer’s view of these critical components designed to present the product benefits to the
target audience.
 Product -- Customer needs and wants

 Price -- Cost the customer will pay to satisfy their needs and wants
 Place -- Convenient location the customer can purchase the product
 Promotion -- Communication with the customer
 Presentation -- Characteristic benefits understood about the product
60
 People -- Contact with the customer
Ancient wisdom says,”.....The way of a fool seems right to him, but the wise listen to advice...
Those who cherish understanding prosper.”
Ancient wisdom says,”.....The way of a fool

seems right to him, but the wise listen to
advice... Those who cherish understanding
prosper.”
Strongl
y Somewh Strongl
Disagre at Agre Somewa y
e Disagree e y Agree Agree
1) The Marketing Mix is the complement of uncontrollable, tactical marketing components

used in concert to produce a desired response from a target market.
True
False
2) The Six “P’s” of Marketing are Product, Price, Place, Promotion, Presentation, and
Performance.
True
False
3) To motivate the public to respond in the desired manner requires that felt needs (or client
perceived needs) be addressed.
True
False
4) Promotional and advertising materials should persuade the prospective user to seek out
what you are offering and to respond in a desired manner.
61
True
False
5) Research of the foreign market environment is indispensable when operating cross

culturally.
True
False
1. The Marketing Mix is the complement of false fals Correct Review

uncontrollable, tactical marketing components e
used in concert to produce a desired response
from a target market.
2. The Six “P’s” of Marketing are Product, Price, false fals Correct Review
Place, Promotion, Presentation, and e
Performance.
3. To motivate the public to respond in the true true Correct Review
desired manner requires that felt needs (or
client perceived needs) be addressed.
4. Promotional and advertising materials should true true Correct Review
persuade the prospective user to seek out what
you are offering and to respond in a desired
manner.
5. Research of the foreign market environment true fals Incorrect Review
is indispensable when operating cross culturally. e
Scoring: 4/5 80%
Unit 6Advertising
CULTURALLY BOUND AND HIGHLY VISIBLE
With international advertising revenues racing toward the $650 billion target by the year
2000, it is strategic role is unquestioned. Whether in a highly sophisticated culture or one of
the fast emerging nations, advertising paves the way for the sales force, establishes
distribution channels, and builds product awareness and good will.
Advertising is characterized by three primary key components:
62
1. It is a paid presentation of the product or service.
2. It is non-personal in the nature of the presentation.
3. It utilizes the mass media to platform benefits.
Advertising is the most culturally bound and

visible of the marketing mix.
Strongl
Strongl Somewh Somewh y
y at Agree Neutr at disagre
agree al disagree e
THE LURE OF STANDARDIZATION
With the ever rising costs of advertising, Standardization presents a strong appeal to those
controlling the finances. Standardization is advertising that is virtually the same from one
cultural setting to another. And, while it can be accomplished successfully, it is extremely
risky because advertising images are culturally linked, carrying powerful non-verbal
messages.
Standardization seeks to use advertising with no change to the visual, editorial or thematic
content. In some instances advertisers attempt to produce advertisements which use a
common language from one nation to the next.
While this is usually not successful because it reduces the potential for comprehension of
content, the exception is MTV. With more than 200 advertisers, European MTV has unified its
advertising around English based campaigns in some 28 nations.
True False
Standardization appears appealing when advertising cost are high.
Advertising images are global and rarely culturally linked.
The most commonly used advertising language is French.
Music has been used successful to standardize advertising.
European TV has used German as a common advertising language.
CONSIDER THE COST
Standardization of advertising campaigns is best avoided when:
63
1. The complement of national or ethnic markets are at differing stages of maturity.
2. The creative content requires exceptionally large budgets to support a sustained
campaign.
3. Local laws, regulations, customs or mores may be potentially violated.
The commonality of visual, editorial and thematic elements from one cultural setting to
another is extremely limited. The cost of standardization is very enticing until the cost of
failure is also considered.
Advertising messages -- visual, editorial and thematic -- which attempt to force

themselves upon a local culture through ineffective standardization are doomed to
failure. A high-bred blend of careful standardization and adaptation provides the balance
between financial savings and effectiveness.
ADAPT OR DIE
Pure standardization is rarely successful. Even the giants like McDonald’s and Coca-Cola
cannot swagger into a market without adapting their message to the local culture.
Coke’s “Can’t beat the feeling” became “I feel the Coke” in Japan. And, Mcdonald takes on a
unique Aussie feeling in Australia with the inclusion of it’s local identity as “Mackers” with
visuals reflecting distinctive Australian locations and people in its TV ads.
Successful advertising must reflect to a significant degree the society to which it is speaking.
When this is accomplished well, the advertising has a higher probability of success.
Glocalize -- Don’t Standardize.
The more tailored to the host culture, the higher the degree of success the advertising
messages will have.
CONTEXT CAN MAKE THE DIFFERENCE
High context cultures -- cultures that rely on the context of the message as much as the
message itself to convey information -- perceive low context advertising as aloof, cool,
uncaring, even contemptuous of the audience.
64
On the other hand a low context culture such as Germany, that expects little contextual
baggage with its messages, finds the emphases on touching, scenery, people, children, pets
and so on as “odd.” They don’t seem to “get it” because the richness of the context gets in
the may of the clarity that comes with an emphasis on performance and data.
To be successful, a California wine advertised in Spain and in Germany must take into the
consideration the vast contextual differences between these two nations. Construction of the
visual, editorial and thematic content will be significantly different between the two regions.
Context is critical to all cross cultural advertising. Do not underestimate the power of
context. High Context and Low Context cultures draw very different conclusions from
visual, editorial and thematic information.
WORDS, MOTIONS AND SYMBOLS
Language, with its direct links to context, is also a primary factor in successful cross cultural
advertising. Language dependant communication must reflect the high or low context needs
of the culture.
Body movements and motions must also be carefully considering. When attempting to
communicate across the cultural divide. The sole of the foot to the Arab can be highly
insulting, the finger to the chest indicate the need to bathe to the Japanese, and public
kissing is a disgrace to the Indian.
Add to language and body motion, symbols. Dragons may be a terror in the west, but a good
luck symbol in Asia where white is the color of death and four an unlucky number.
Advertising is the key to international marketing. But, like so many keys, it can both unlock
and lock the doors to success depending upon its intelligent use.
Low context cultures generally prefer highly verbal advertising -- lots of facts, figures,
and statistics. However, this type of ad is too language dependant for high context
cultures requiring a rich imagery to get the point across.
EXCUSE ME BUT YOUR CULTURE’S SHOWING
The interpretation of images and symbols is a product of our culture. And, each culture has
its set of accepted public and private symbols that have meaning and value. The international
65
marketeer must tread carefully into this arena avoiding the self referencing criteria which can
prove embarrassing, and sometimes disastrous.
Parker Pen could have avoided a marketing and public relations nightmare by conducting a
little research prior to a new product release in Latin America. To the company’s
embarrassment they discovered too late that the “Jotter” pen translated the “Jock Strap” pen
in Spanish.
Est`ee Lauder escaped a potentially embarrassing situation when it discovered that its
“Country Mist” makeup translated into German meant “Country Manure.” The company wisely
introduced the product as “Country Moist.”
Research, research, research. It may seem expensive on the front end of the project, but the
alternative of a major public embarrassment is far more costly -- financially and in the arena
of public perception. A cost from which the company may not recover.
RULES, REGULATIONS, REGISTRATIONS, AND REGIMENTATION
Somewhere, right now, there is a rule or policy lurking, just waiting to limit, control or restrict
your marketing creativity. And that rule will, more likely than not, be under the control of
some local bureaucrat in the nation where you want to introduce your new product.
Never take for granted that freedom -- or lack of freedom of public expression is the same
form one culture to another. Germany, Italy and Belgium forbid comparative advertising; you
will only have 32 minutes each evening of TV ad time to use in Kuwait; there’s no guarantee
of airing of purchased ad spots in Italy; pharmaceuticals cannot be advertised in Belgium;
you won’t be able to use superlative descriptions in the mid- east; showing the tongue is
considered pornographic in Arab countries; and plan on using a local agency if you’re going
to advertising in Indonesia, Nigeria or Pakistan.
Bottom line: Don’t take anything for granted. Again, protection lies with good, solid research
that influence the advertising strategy.
Be on the alert for “hidden” costs government fees and taxes that may radically effect
your ad budget. For instance, taxes of 30% may put a substantial dent in your budget in
Austria. Check for these costs through local government agencies, communications
associations, and advertising companies.
MAKE IT A TRULY TEAM EFFORT
66
International advertising, to be successful, requires the marketeer to be thoroughly
committed to communication reflecting the local setting. As noted earlier “Glocalization” is a
key mind set for success.
The ability to function with an eye on the big picture while at the same time exercising a
national sensitivity is essential. Whether it be in the message content, the visuals, editorial
structure or thematic creativity the combine communication must be meaningful to the local
audience.
Incorporate local creative people, writers, advertising, marketing and media professionals into
the national team. Together you can produce advertising that will pave the way for success.
Ancient wisdom says, “Preserve sound judgment and discernment, do not let them out of
your sight, then you will go on your way in safety and you will not stumble.”
Advertising is a team sport. While there may be some big stars, winning teams have a
complement of gifted players in different positions. Don’t loose the game by forgetting
to put in the local players. They’ll give you the edge.
1) When working cross-culturally, advertising is:

a) The least culturally bound of the marking mix
b) One of the marketing mix that can always be standardized
c) The most culturally bound of the marketing mix
d) Reliant on public relations to be successful
2) Which of the following items does not apply to trans-national advertising.
a) It is a paid presentation of the product or service.
b) It is non-personal in the nature of the presentation.
c) It utilizes the mass media to platform benefits.
d) It can be standardized with little negative impact.
67
3) Successful advertising must reflect to a significant degree the __________ to which it is
speaking.
a) Society
b) Media
c) Geography
d) Commerce
4) The reliance on information that surrounds the message such as gestures, visual cues,
expressions, colors, etc. Is:
a) Pretext
b) Context
c) Kleenex
d) Rolex
5) The interpretation of images and symbols is a product of our:
a) Educational system
b) Government regulations
c) Cultural environment
d) Media awareness
Your
Response
1. When working cross- c) The most b) Incorrect Review

culturally, advertising is: culturally bound
of the marketing
mix
2. Which of the following d) It can be d) Correct Review
items does not apply to standardized with
trans-national advertising. little negative
68
impact.
3. Successful advertising a) Society a) Correct Review
must reflect to a significant
degree the __________ to
which it is speaking.
4. The reliance on b) Context b) Correct Review
information that surrounds
the message such as
gestures, visual cues,
expressions, colors, etc. Is:
5. The interpretation of c) Cultural c) Correct Review
images and symbols is a environment
product of our:
Scoring: 4/5 80%
Unit 7 Sales, Promotion and Public Relations

SCRATCH, SNIFF, CLIP AND MAIL
Sales promotion includes games, coupons, special pricing, point-of-purchase displays,

refunding, contests, trading stamps, sweepstakes, discounting, sponsorships, and public
product demonstrations. In short, sales promotion is everything other than advertising, direct
selling and public relations.
Sales promotion is reliant on solid, effective mass media advertising coverage. Successful
sales promotion efforts require a structured retail network within the targeted national
environment. However, even with a well developed retail system cultural differences will
dictate the nature of the sales promotional efforts.
Like most marketing efforts, it must not be assumed that a successful sales promotion
effort in one nation can be duplicated in another. The facts indicate that it cannot.
Repeat... The fact indicate that it cannot.
SOME CLIP AND OTHERS HAGGLE
The intricacy of a culture influences the type of sales promotion tools that will be effective.
In a culture that incorporates bargaining or haggling over prices, couponing and price-off
schemes have little success and are often abused. In cultures where delayed gratification is
69
the norm, redemption stamp programs show strong return. Money-back guarantees are often
viewed with suspicion by Latin communities who presume the company has a hidden agenda.
In less advantaged nations, direct mailing of samples may prove disastrous. In Poland mail
boxes were destroyed as people stole P&G’s free samples of Vidal Sasson Wash & Go
shampoo samples to sell on the black market.
BEWARE! UNMARKED ROAD AHEAD!
Complex is an understatement when describing promotional sales efforts in a cross cultural

setting. Legal restrictions vary vastly from one nation to another impacting sweepstakes,
contests, direct mail, sampling, couponing, and most all promotional programs used in the
West. In some cases the impact can impact budgets significantly.
In some European countries unfair competition laws radically curtail promotional efforts
involving giveaways, boxtop and direct mail coupons. In Germany in an effort to promote fair
competition promotional efforts are often required to continue as a consistent policy for a
minimum of a year. And, in Mexico special promotional efforts offering discounts at the point
of sale require government approval.
Take the time to research local and national regulations that govern advertising, public
relations and other related elements of the marketing campaign. Do not take anything
for granted. If something can go wrong in this area of your efforts, it will.
STRUCTURE. WHAT STRUCTURE?
In developing nations there often is not the sophisticated systems necessary to support
traditional promotional efforts. Nations with a high illiteracy rate are not good candidates for
couponing and often scattered, independent, modest retail outlets are inexperienced in
marketing proficiency. These pose major challenges to the marketing manger attempting to
roll out a new product.
In addition, promotional programs such as direct mail and related campaigns require a
sophisticated printing industry and postal service to support large distribution. In those
regions where the systems can support a promotional effort, there is also the additional
weight of understanding what gifts, prizes and awards are culturally appropriate. This in itself
is no small challenge.
THERE IS HOPE
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While the obstacles are monumental, the rewards can be equal to the challenge. But you
better do your home work. P&G did and had great success in China.
Shampoo and detergent sales roared to a whopping $450 million, a 50% increase over the
previous year when P&G used the unique cultural habit of individual personal attention to
customer in Asia. P&G hired thousands of workers to pass out samples door to door taking
appropriate advantage of the Chinese expectation of individual attention, and the yellow and
orange gift packaging reflected cultural awareness to color. P&G’s astute cultural sensitivity
has resulted in its dominate position as the largest consumer products company in China.
In developing nations infrastructure is critical to sales promotion campaigns. What strengths

and weaknesses may be present in the areas listed? What needs to be researched?
Postal System Printing Industry Appropriate Gifts
OPENING THE LOCK
Part of the combination that will open the lock is quality research. A quality product,
supported by research, teamed with first class creative work, supported by culturally sensitive
advertising and promotion is a winning combination.
International marketing is not easy. And, cross cultural promotional efforts face major
obstacles from local and national legal restrictions, poor communication infrastructures, and
wide spread lack of marketing proficiency. But, it can be done.
PUBLIC AND MEDIA RELATIONS
"It ain't that people don't know so much, but that they know so much that ain't so." Will
Rogers, American humorist
When a company steps out of its home environment it will encounter the preconceived
impressions -- both good and bad -- held by the host culture. These opinions often reflect not
only the view of the company and its products, but also the culture it represents.
While in some sectors companies from the United States may be looked at positively, other
cultures may have a negative impression based on moral or religious differences. Other
nations may be viewed as producing inferior products, while the impression of the Swiss or
Germans carries a superior image in the automobile and watch industry.
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Often perception is greater than reality -- especially in the arena of public opinion. Whether
positive or negative, the role of public relations is essential when marketing cross culturally.
Public and media relations work is an integral part of the marketing mix. Remember, if
you don’t shape what people think about your company and its products and services,
someone else will.
TAKE NOTHING FOR GRANTED
Public relations is planned, persuasive communication designed to influence significant

publics. This is a big challenge when working in one’s home cultural, it can be massive when
working trans-nationally. Freedom of the press as known in most western countries is rare in
other cultures. The international marketeer must carefully evaluate the nature of the media in
the host culture.
The center of power in a totalitarian state is also viewed as the seat of truth. China’s
communist controlled press therefore reflects this thinking. Government’s “face” is far more
important as a result than the consequences of its actions.
A little research into the political structures will help shape a successful campaign.
Understanding the role of media in a nation with strong central control will begin to
provide guidelines and tactics for the execution of public and media relations efforts
within the cultural setting.
SHAPING THE IMAGE
When the public encounters your product, service or company they will begin to form an
opinion. The impression they hold can be shaped by you or others. If you don’t communicate
about yourself, someone else will. Its imperative that you be the primary architect of what
people think of your product, service and company.
Public relations are not accidental and must be carefully planned. Three key words mark
effective public relations:
Persuasive - Targeted - Management
PUBLIC RELATIONS IS PERSUASIVE
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It must be persuasive because you want someone else to do something or to believe
something. However, you must keep in mind that how people are persuaded varies widely
from culture to culture.
The Japanese are private and self-effacing as a people. Secrecy and exclusivity mark their
corporate structures and management organizations. In addition reporters typically are
members of media clubs assigned to specific industries and corporations. They are dependent
on their working relationships within the companies for information. They are not
independent of the system but rather dependent upon it. Western objectivity is of minor
importance.
Persuasion will not be accomplished by communication which appears self serving or boastful
in a Japanese environment. Neither can it have the appearance of being critical or to reveal
private information. Other means must be discovered to utilize public communications to
establish a positive image. This will differ from nation to nation.
PUBLIC RELATIONS IS TARGETED
Public relations must communicate to particular groups of people rather than to scattered
individuals. Public relations can be considered as the art of making your organization liked
and respected by its employees, customers, vendors, constituency and the general public.
Entering a host culture may require as much work on establishing a positive image amongst
company personnel as amongst a specific targeted customer base. The need to be selective
in targeting communication is increased when entering a foreign culture. It requires careful
research to discern critical arenas of influence necessary to public acceptance.
PUBLIC RELATIONS IS A MANAGEMENT FUNCTION

The role of public relations on the international playing field is essential. It should be a
management function operating as a strategic element in the overall plan. Public relations
evaluates public attitudes, identifies the policies and procedures of an organization with the
public interest, and executes a program of action (and communication) to earn public
understanding and acceptance. Success in these endeavors requires the authority to
implement research, action plans and communication efforts on behave of the company.
PLAYING THE MEDIA GAME
A clear differentiation needs to be made between merely waiting for the media and
aggressively pursuing news and feature stories by developing important "newshooks" or
angles about your operation.
These specific angles or pegs upon which you can hang your story are not necessarily the
most important thing about your operation, but they serve as a springboard upon which your
entire story can be told.
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Too many organizations approach the media asking, "Will you publicize our event or promote
our products?" Instead, you have to approach the media saying, "I have something of
interest to your audiences." To do this, translate your story into traditional news values that
they understand within the cultural context.
Remember what is important to the public at home, may not be of interest to the host
audience.
The best defense is a good offense.
Don’t wait for the media to come to you. Go to it. Develop the relationships. Feed them
the stories you want them to cover. Be on the offense, that’s where you score.
NEWSHOOKS
The following are some general examples of "newshooks"
 A leading politician will be making an announcement about safety legislation at your

company’s offices. Your plant has a perfect safety record.
 Representatives from your organization are volunteering to spend half of their vacation
time in service to help local residents build a park for children.
 Your product has won several international design awards. The national workers in the
factor are “heroes” to the city -- perhaps the nation.
 Representatives from your organization are recognized for their charitable contribution
to local civic organizations.
 The leadership of your firm’s operation within the country is turned over to a national
manager.
 Your company has created new jobs for an area hit by high unemployment.
 National employees are provided special honor and training for outstanding
performance.
Remember that the objective is to increase positive public understanding regarding your
product and company within the national and cultural setting. Focus on what your company
or product is doing for them.
From the company’s perspective think about subjects that may be of interest to the media
within your host country.
What subjects do you What subjects are of high What subject do you not want
want known? public interest? made public?
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CONTEXTUALIZE YOUR STORY
Some of the "news hooks" can be expanded into a full feature story on you, your
organization, product, or a business philosophy as it relates to the host culture.
Localize your releases. You can provide a localized version of an event in a remote location by
identifying a local participant in that event. Big event in Seoul Korea. No interest in general to
Melbourne, Australia. But if Melbourne people were involved it may get some coverage.
Get to know the media in your community — take an editor to lunch, invite them to your
facilities etc.
Bring the public and press to your organization’s facilities for special occasions. Make those
occasions newsworthy by inviting local and national officials or celebrities.
Position yourself as a friend and resource to the local media. If your company is highly
specialized you may be able to provide expert insight to help the media report on special
issues. As a guest in the country maintain a humble attitude. Seek to serve the interests of
the local media and they in turn will be more inclined to server your objectives in terms of
positive news coverage.
TAILOR MADE TO FIT THE CULTURE
Public and media relations provide information, news, and feature material about an
organization or person. This must be tailored to meet the unique cultural requirements in
which you are attempting to market your product or service. In utilizing publicity for your
organization, action is required in striving for three objectives within the cultural
environment:
1. To attract attention in a favorable way to your organization, product or service.

2. To win belief that this is a viable and worthwhile organization, product or service.
3. To impart understanding about the organization, its products and services.
The communication needs to fit the culture like a glove.
Finally, the best public relations is the organization itself, its product and services. Key people
within the organization may be the only aspect of the firm that the public within the host
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culture ever sees. Make sure that they always endeavor to put their best foot forward! You
will be surprised at the results.
Ancient wisdom says, “Every prudent person acts out of knowledge, but a fool exposes his
lack of understanding.”
It has to fit like a glove.
Public and Media relations need to fit the local culture like a glove. If it does it will hardly
be noticed. If it doesn’t it will be obvious and actually impede the contexualization
process.
1) Sales promotion is reliant on solid, effective ___________ .

a) Telecommunications industry.
b) Mass media advertising coverage.
c) Transportation system.
d) News and entertainment industry.
2) Promotional programs such as direct mail and related campaigns require a sophisticated
_______________ to support large distribution.
a) Printing industry and postal service
b) Transportation and telecommunication system
c) Government and military structure
d) Interstate highway system
3) Which of the following obstacles applies to international marketing and promotional

efforts.
a) Local legal restrictions
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b) Poor communication infrastructures
c) Wide spread lack of marketing proficiency
d) All of the above
4) Public relations is planned, persuasive communication designed to __________ significant

publics.
a) Influence
b) Inform
c) Induce
d) Incense
5) As a management function, public and media relations must be Persuasive and ________:
a) Standardized
b) Local
c) Targeted
d) Global
Correct Your
Question Status
Answer Response
1. Sales promotion is reliant on b) Mass media b) Correc Review

solid, effective ___________ . advertising t
coverage.
2. Promotional programs such as a) Printing a) Correc Review
direct mail and related campaigns industry and t
require a sophisticated postal service
_______________ to support
large distribution.
3. Which of the following obstacles d) All of the d) Correc Review
applies to international marketing above t
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and promotional efforts.
4. Public relations is planned, a) Influence a) Correc Review
persuasive communication t
designed to __________
significant publics.
5. As a management function, c) Targeted c) Correc Review
public and media relations must t
be Persuasive and ________:
Scoring: 5/5 100%
Unit 8Conclusion
For those companies looking to expand their market, the world is now at their doorstep.
Never before has opportunity been in such abundance. With the rapid globalization of world
trade, new opportunities -- and challenges -- abound. However, international marketing is far
more complex than the simple exportation of successful domestic product. Success in the
international arena can be directly related a thorough understanding of the host environment.
Cross cultural challenges abound. Virtually every aspect of the marketing system must be
carefully reviewed in light of the local cultural setting.
Unexpected pitfalls are everywhere and the differences between national values, morals,
customs and traditions permeate every aspect of life. The simplest cultural practices reflect
the often perplexing cultural differences faced by the international marketeer. While you may
enjoy a fresh minty tooth paste, your counterpart in the Middle East appreciates a spicy,
bracing flavor. Black shampoo is the choice for Filipinos, and the French can’t quite
understand why anyone would drink orange juice for breakfast.
Always remember that cultural surrounds us like water to a fish. We rarely notice it, are
dependant upon it, and notice it most by its absence.
Effective transnational marketing reflects an understanding that culture is functional. It

provides guidelines for behavior that are crucial for the survival of the group. The social
nature of culture arises out of human interaction and is unique to human society, defining
acceptable behavior.
In addition international marketing appreciates that culture is the result of acquired behavior
learned from other members of the society. Practices are adjusted to accommodate behaviors
acceptable in one culture yet not acceptable in other cultures.
Critical to the success of international marketing is the recognition that culture provides
values and tells people what is expected of them. It enforces and reinforces what is good and
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bad according to the society. Those hoping to gain significant market share incorporate these
principles into their strategic planning.
True False
Effective transnational marketing is: Functional
Effective transnational marketing: Provides guidelines for behavior
Effective transnational marketing: Is crucial for the survival of the group
Effective transnational marketing: Defines acceptable behavior
Effective transnational marketing: Is the result of acquired behavior
The development of the marking mix is shaped by building on the knowledge that culture
facilitates communication within a common set of perceptions. And, it is constantly changing
to adapt to new situations and new sources of knowledge.
Contemporary cultures have resulted from thousands of years of accumulated experience and
knowledge. Cultural values are deeply ingrained and exist and while society may change
outwardly, core values rarely change.
Deeply embedded cultural habits provide both obstacles and opportunities to the
international marketeer. Conscientious research will provide keys to unlock the potential.
Understanding the unique perceptions, values and needs of a culture other than one’s own is
perhaps the most difficult task of conducting business in an international setting. The
international marketer must appreciate that when a product satisfies the diverse needs or
wants of the firm’s customers, it does so in the context of that particular culture.
Cross-cultural differences include, but are not limited to, language, nonverbal communication,
religion, time, space perception, color, numbers, materialism, manners and customs,
aesthetics, status consciousness and food.
It is the complexity of these differences, combined with the unique characteristics of each
culture that we encounter when we step into another’s nation.
While MTV, Nike, Pepsi and Mitsubishi may be uniting us globally, the reality is that we are all
still extremely culturally bound. The perception of global convergence is only true in part.
Actually divergence is more the norm. Values are not collapsing toward a common middle
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ground. Culturally people are tenaciously holding on to their ethnic identities and core values.
These can rarely be violated in the marketing arena.
While lifestyles may homogenize the masses, ethnic identity rises to unify individual cultural
groups. This unification is along deep, core values and are deeply rooted in religion,
language, art, literature, music, dance, and family. These values shape the cultural identity,
providing integrity and definition of the self within the ethnic community.
Standardization of marketing strategies across cultural boundaries is highly risky. Adaptation

while a great idea, is cost prohibitive resulting in the need to glocalize -- think global. Act
local.
Glocalization seeks to unify the strengths of adaptation and standardization. In matters that
are strategic there may be a standard, global approach. While tactical issues of
implementation are left to the local leadership to provide culturally relevant editorial, visual
and audio direction. Glocalization seeks to create international strategic marketing direction,
while also providing local implementation and application.
Just a reminder...
When working toward globalization,
It’s to big for standardization,
And you know it’s way to thin for adaptation,
No, when all is said, and all is done,
If you’re going to some real fun You’ll have to go with Glocalization.
The inclination to measure the world around us by our personal understanding of that world
seems common to each of us. This unconscious reference to what we believe about a
particular situation within the context of our culture is called the Self Reference Criterion
(SRC).
The use one’s self -- either personally or corporately -- as the primary reference point is
arrogant. It leads to assumptions based only upon a narrow foundation of data, and almost
always has negative consequences.
The cost of cultural ethnocentricity can be extremely high. To not recognize the destructive
force of the Self Reference Criteria is fatal flaw for anyone wanting success on the
international field of commerce.
Research, prepare, study, discover all you can about the cultural setting into which you are
going. Everything of importance will be culturally bound. There will be few, if any, significant
matters that will be perceived by your host the same way you see them.
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To not appreciate the disastrous
significance of the Self Reference Criteria is
fatal flaw.
Strongl
Strongl Somewh y
y Somewh Agre at Disagre
Agree at Agree e disagree e
The majority of mistakes made on the field of international commerce are the result of
ineffective or non-existent research. Research will not guarantee success. What it can do is
provide leadership with insight into the cross-cultural setting and assist in the structuring of
the pivotal communications tools required.
As noted earlier, conducting cross-cultural research is like removing a blind fold before
entering a house of mirrors. It’s still going to be a challenge, but you will have a far better
chance of finding your way through the maze.
Laying a sure foundation is essential to a trustworthy structure. The broader, deeper, more
solid the foundation, the more substantial the structure can be. A broad, deep and solid
foundation of cross-cultural research will provide the opportunity to build significant market
share.
While the researcher gathers, analyzes, and presents the data, it is imperative that the
focus of the research be clearly identified. The problem must be defined in light of the
cross-cultural setting to provide information which will be trust-worthy.
Careful research of the foreign market environment, and review and implementation of the
marketing mix is indispensable when operating cross culturally. To achieve success in the
market place a company must out preform its competition in how it satisfies its customers
needs.
Whether at home or abroad “The Six “P’s of Marketing” help to shape the marketing mix. We
have Product, and the Presentation of that product must be in a Place that is accessible. It
must be Priced appropriately and it must be Promoted with a persuasive message designed
to impact attitudes about the product or service to "get the customer to open the door." All of
these elements need to be undergirded by People who have been selected to represent the
product in the most favorable way possible within the local cultural parameters.
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Keep it simple...
“The Six “P’s of Marketing” will always apply.
Product, Presentation, Place, Priced, Promotion, and People
Some things never change... Nor should they.
The lure of standardization impacts the essential elements of the marketing program --
advertising, sales promotion and public relations.
Advertising messages, sales promotion endeavor, and public relations campaigns which
attempt to force themselves upon a local culture through ineffective standardization are
doomed to failure.
Successful advertising, sales promotion and public relations work must reflect the society to
which it is speaking. Glocalization. When this is accomplished well, the advertising has a
higher probability of success.
Advertising is the most visible of the marketing mix. But don’t forget that each facet of
the mix is culturally bound and the commonality of visual, editorial and thematic
elements from one cultural setting to another is extremely limited.
International marketing must also consider a labyrinth of regulations, restrictions, and

national and local government controls. The best laid plans, no matter how culturally
sensitive, can be of no use if the host system is not accommodated.
Trade restrictions, embargoes, tariffs, and the general political and legal environment will also
need to be considered before entering into a foreign market. Coca-Cola abandoned its plans
to expand into India as a result of a government policy that would require the company to
reveal its secret formula. A little research in this area well before gearing up, can save a lot of
time, money and creative energy.
Global marketing requires a global mind set. A way of thinking that understands the nuances
of working trans-national is essential. A great product on the home front is no guarantee of
success in a cross cultural environment.
A final story underscores the need for careful planning built on a foundation of thorough
research.
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In an attempt to enter the Spanish market, the Perdue Chicken tag line, “It takes a tough
man to make a tender chicken,” was translated, “It takes a sexually excited man to make a
chicken affectionate.” Caught by surprise by the obvious blunder, Frank Purdue quickly shot a
new spot. In the new commercial, he used his own appallingly inadequate Spanish and closed
with, “It’s a good thing for you that my chicken is better than my Spanish.” A great recovery
from a potential cross cultural humiliation and financial disaster scored big and won the
audience.
International marketing holds great potential. Solid research, good planning, and generous
measures of humility and self effacing humor are a must. With them, you can expand your
borders, reap financial reward, and discover the joy of working with fascinating people
around the world.
1) International marketing is far more complex than the simple exportation of successful
domestic product.
True
False
2) The development of the marking mix is shaped by building on the knowledge that culture
facilitates communication within a wide set of perceptions.
True
False
3) Understanding the unique perceptions, values and needs of a culture other than one’s own
is perhaps the most difficult task of conducting business in an international setting.
True
False
4) While lifestyles may homogenize the masses, ethnic identity rises to unify individual
cultural groups.
True
False
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5) The majority of mistakes made on the field of international commerce are the result of
effective research.
True
False
Correct Your
Question Status
Answer Response
1. International marketing is far more true true Correct Review

complex than the simple exportation
of successful domestic product.
2. The development of the marking false true Incorrect Review
mix is shaped by building on the
knowledge that culture facilitates
communication within a wide set of
perceptions.
3. Understanding the unique true true Correct Review
perceptions, values and needs of a
culture other than one’s own is
perhaps the most difficult task of
conducting business in an international
setting.
4. While lifestyles may homogenize the true false Incorrect Review
masses, ethnic identity rises to unify
individual cultural groups.
5. The majority of mistakes made on false false Correct Review
the field of international commerce are
the result of effective research.
Scoring: 3/5 60%
Final Exam
You are about to begin the final exam for the Marketing to the World course.
This exam consists of 40 questions. You will be presented with one question at a time. After
you have answered every question, you will have an opportunity to review the answers you
have given, and change any answers you wish. Your exam will then be graded, and the
results displayed to you.
Question 1
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When transacting business negotiations with German business people, which of the following
possibilities would have the best chance of success:
a) Because Germans are generally a high context culture, process that allows for general
terms and concepts to be discussed in an atmosphere of friendship and uncomplicated
relationships is preferred.
b) Germans best respond to direct and detailed communication, which is not punctuated
by hand gestures or emotion. They are low context. The agenda should be specific and
expect decisions to be processed at the top levels of management.
c) The low context nature of the German culture requires an informal setting, the
involvement of a limited number of technical people and an open agenda for superior
negotiations.
Question 2
An American businessman meets a prospective customer for the first time to introduce a new
product line. The American politely refuses coffee as he has just finished breakfast. After
taking his seat he nonchalantly crosses his legs exposing the bottom of his shoe to his host.
He then passes the promotional material to his prospective customer with his left hand while
inquiring as to the health of his hosts’ wife and children. In and effort to persuade the
prospect the American assertively pursues the deal. Within minutes of entering the executives
office the meeting is terminated without the American acquiring a new client.
The American has committed at least five cross-cultural mistakes.
In which country was our unwitting American attempting to do business?
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a) Saudi Arabia
b) Argentina
c) Korea
Question 3
Standardization is:
a) The adaptation of a national standard to measure all marketing goals.
b) Providing a measuring system by which local targets can be reviewed against

international objectives.
c) The development of a single product or marketing strategy that is applied globally.
Question 4
Nurturing client relationships generally is less important than product features, benefits and
competitive pricing in which low context geographic regions:
a) North America and Northern Europe
b) Latin America and East Asia
c) East Asia only
d) Northern Europe only
Question 5
Services such as banking, tourism, and entertainment are more easily marketed
internationally than goods may be. This is because these “products” enjoy a degree of
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freedom from cultural restrictions which make them appear to be good candidates for
standardization.
True
False
Question 6
Promotional programs such as direct mail and related campaigns require a sophisticated
Question 7
The underlying cultural __________ will permeate focus group data yielding skewed results.
a) Influences
b) Family relationships
c) Government structures
d) Transportation systems
Question 8
Which of the following must be utilized to avoid the trap of the Self-Reliance Criterion?
a) Examine cultural and environmental attributes of the product that make it successful in
the home market.
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b) Compare attributes to those found in the target international market.
c) Note the attributes which are contextually different.
Question 9
In the international marketing environment the marketing mix is the complement of
uncontrollable, tactical marketing components used in concert to produce a desired response
from a target market.
True
False
Question 10
Multinational companies generally view the world as a singular market.
True
False
Question 11
In Japanese business dealings, emotion and personal relationships are more highly valued
than sterile contractual details because:
a) The issues of personal compatibility, and the belief in the product or service is of
primary importance.
b) The issue of saving face requires that there be no question regarding the financial
success of the agreement.
c) Confidence is needed that the second party is not disdainful, disagreeable, or one who
does not appreciate their company, them as individuals or dislike their nation. Harmony is
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critical.
Question 12
Glocalization is:
a) When local company representatives control the marketing efforts of the international
company.
b) The strategy of a multi-national that develops a global perspective on marketing

strategy, while maintaining a local flavor to the campaign or product.
c) Deals with the financing of local marketing efforts based on a trans-national model.
Question 13
The world is fast becoming homogenized culturally resulting in a global mind-set that
supports standardization of product lines and marketing strategies.
True
False
Question 14
Consumer perceptions can be an advantage to standardization
True
False
Question 15
The SRC is:
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a) Security Related Company
b) Self Reliant Counterpart
c) Self Reference Criterion
Question 16
Ethnocentricity can result in:
a) Incorporating the cultural values of the host country into the marketing plan
b) Misunderstanding the local cultural values related to your product or service
c) Focusing your marketing strategy on only ethnic centered cities
d) All of the above
Question 17
There are four steps to exposing cultural bias.
True
False
Question 18
When Americans persuade they conquer. When the Japanese persuade they:
a) Intimidate
b) Include
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c) Indoctrinate
Question 19
Low context requires an abundance of facts, figures and details.
True
False
Question 20
Issues such as advertising, sales promotion and public relations in a cross-cultural setting will
be doomed to failure, if appropriate research has not been undertaken in advance of their
implementation.
True
False
Question 21
The reliability of secondary data is very high when researching across national boundaries
because it has been accomplished by nationals.
True
False
Question 22
Because the telephone is such a universally used communication tool, cultural barriers are
reduced significantly when it is used cross culturally to conduct research.
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True
False
Question 23
When using focus groups in a cross cultural research project the straight transfer from one
culture to another is most unreliable. Because the underlying cultural influences will permeate
the data yielding skewed results.
True
False
Question 24
Identity of national brands is a disadvantage to standardization
True
False
Question 25
How the research problem is defined is critical because custom and value weigh heavily on
the reality of the definition.
True
False
Question 26
The Marketing Mix is the complement of uncontrollable, tactical marketing components used
in concert to produce a desired response from a target market.
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True
False
Question 27
While many cultures require careful attention to their differences enabling astute marketing,
one market stands out as unique in this regard. This cultural group seems to be trans-
national demonstrating a generally common langauge, dress, and value system.
It is the youth market.
True
False
Question 29
To motivate the public to respond in the desired manner requires that felt needs (or client
perceived needs) be addressed.
True
False
Question 30
Adaptation is:
a) The process of refining a product or marketing strategy to completely reflect the

regional cultural standards.
b) When the local marketing director within a national setting adds international emphasis
to the marketing strategy.
c) How products are retor-fitted with adaptors designed to handle local power loads.
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Question 31
Promotional and advertising materials should persuade the prospective user to seek out what
you are offering and to respond in a desired manner.
True
False
Question 32
Research of the foreign market environment is indispensable when operating cross culturally.
True
False
Question 33
Sales promotion is reliant on solid, effective __________ .
a) Telecommunications industry.
b) Mass media advertising coverage.
c) Transportation system.
Question 34
Promotional programs such as direct mail and related campaigns require a sophisticated
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Question 35
Which of the following obstacles applies to international marketing and promotional efforts.
a) Local legal restrictions
b) Poor communication infrastructures
c) Wide spread lack of marketing proficiency
d) All of the above
Question 36
Public relations is planned, persuasive communication designed to __________ significant
publics.
a) Influence
b) Inform
c) Induce
d) Incense
Question 37
When negotiating a contract with representatives from a Japanese firm, which of the
following possibilities best describe the preferred process:
a) With directness and frankness, follow a course to a negotiated compromise which

enables all parties to confer and arrive at a position of agreement without embarrassment.
95
b) Negotiations should flow from a single persuasive, energetic negotiator demonstrating
unswerving confidence which invites discussion and concession.
c) Provide a thoughtful, cooperative environment which enables the seller to present the
full expectations of the proposal and accept the buyer’s first response.
Question 38
As a management function, public and media relations must be Persuasive and _______:
a) Regionalized
b) National
c) Targeted
d) Global
Question 39
Some of the characteristics which are common to all cultures are:
a) Functional
b) A social phenomena
c) That which provides perspective
d) All of the above
Question 40
Understanding the unique perceptions, values and needs of a culture other than one's own is
perhaps the most difficult task of conducting business in an international setting.
96
True
False
Question Correct Answer Your Response Status
1. When transacting b) Germans best b) Germans best Correct

business negotiations respond to direct and respond to direct and
with German business detailed detailed
people, which of the communication, communication, which
following possibilities which is not is not punctuated by
would have the best punctuated by hand hand gestures or
chance of success: gestures or emotion. emotion. They are low
Review
They are low context. context. The agenda
The agenda should should be specific and
be specific and expect decisions to be
expect decisions to processed at the top
be processed at the levels of management.
top levels of
management.
2. An American a) Saudi Arabia a) Saudi Arabia Correct Review
businessman meets a
prospective customer
for the first time to
introduce a new
product line. The
American politely
refuses coffee as he
has just finished
breakfast. After taking
his seat he
nonchalantly crosses
his legs exposing the
bottom of his shoe to
his host. He then
97
passes the promotional
material to his
prospective customer
with his left hand while
inquiring as to the
health of his hosts’
wife and children. In
and effort to persuade
the prospect the
American assertively
pursues the deal.
Within minutes of
entering the executives
office the meeting is
terminated without the
American acquiring a
new client.
The American has

committed at least five
cross-cultural mistakes.
In which country was

our unwitting American
attempting to do
business?
3. Standardization is: c) The development d) All of the above. Incorrect
of a single product or
marketing strategy Review
that is applied
globally.
4. Nurturing client a) North America and d) Northern Europe Incorrect
relationships generally Northern Europe only
is less important than
product features,
Review
benefits and
competitive pricing in
which low context
geographic regions:
5. Services such as True False Incorrect Review
banking, tourism, and
entertainment are
98
more easily marketed
internationally than
goods may be. This is
because these
“products” enjoy a
degree of freedom
from cultural
restrictions which
make them appear to
be good candidates for
standardization.
6. Promotional a) Printing industry b) Transportation and Incorrect
programs such as and postal service telecommunication
direct mail and related system
campaigns require a
Review
sophisticated
_______________ to
support large
distribution.
7. The underlying a) Influences b) Family relationships Incorrect
cultural __________
will permeate focus Review
group data yielding
skewed results.
8. Which of the d) All of the above. d) All of the above. Correct
following must be
utilized to avoid the Review
trap of the Self-
Reliance Criterion?
9. In the international False False Correct
marketing environment
the marketing mix is
the complement of
uncontrollable, tactical
Review
marketing components
used in concert to
produce a desired
response from a target
market.
10. Multinational True False Incorrect Review
companies generally
99
view the world as a
singular market.
11. In Japanese c) Confidence is c) Confidence is Correct
business dealings, needed that the needed that the
emotion and personal second party is not second party is not
relationships are more disdainful, disdainful,
highly valued than disagreeable, or one disagreeable, or one
sterile contractual who does not who does not Review
details because: appreciate their appreciate their
company, them as company, them as
individuals or dislike individuals or dislike
their nation. Harmony their nation. Harmony
is critical. is critical.
12. Glocalization is: b) The strategy of a b) The strategy of a Correct
multi-national that multi-national that
develops a global develops a global
perspective on perspective on
Review
marketing strategy, marketing strategy,
while maintaining a while maintaining a
local flavor to the local flavor to the
campaign or product. campaign or product.
13. The world is fast False True Incorrect
becoming
homogenized culturally
resulting in a global
Review
mind-set that supports
standardization of
product lines and
marketing strategies.
14. Consumer False True Incorrect
perceptions can be an
Review
advantage to
standardization
15. The SRC is: c) Self Reference c) Self Reference Correct
Review
Criterion Criterion
16. Ethnocentricity can b) Misunderstanding d) All of the above Incorrect
result in: the local cultural
Review
values related to your
product or service
17. There are four True True Correct Review
100
steps to exposing
cultural bias.
18. When Americans b) Include a) Intimidate Incorrect
persuade they
conquer. When the Review
Japanese persuade
they:
19. Low context True True Correct
requires an abundance
Review
of facts, figures and
details.
20. Issues such as True True Correct
advertising, sales
promotion and public
relations in a cross-
cultural setting will be
doomed to failure, if Review
appropriate research
has not been
undertaken in advance
of their
implementation.
21. The reliability of False False Correct
secondary data is very
high when researching
across national Review
boundaries because it
has been accomplished
by nationals.
22. Because the False False Correct
telephone is such a
universally used
communication tool,
cultural barriers are Review
reduced significantly
when it is used cross
culturally to conduct
research.
23. When using focus True False Incorrect Review
groups in a cross
cultural research
101
project the straight
transfer from one
culture to another is
most unreliable.
Because the underlying
cultural influences will
permeate the data
yielding skewed
results.
24. Identity of national True False Incorrect
brands is a
Review
disadvantage to
standardization
25. How the research True True Correct
problem is defined is
critical because custom
Review
and value weigh
heavily on the reality
of the definition.
26. The Marketing Mix False False Correct
is the complement of
uncontrollable, tactical
marketing components
Review
used in concert to
produce a desired
response from a target
market.
27. While many True True Correct
cultures require careful
attention to their
differences enabling
astute marketing, one
market stands out as
unique in this regard.
This cultural group Review
seems to be trans-
national demonstrating
a generally common
langauge, dress, and
value system.
It is the youth market.
102
28. The Six “P’s” of False False Correct
Marketing are Product,
Price, Place, Review
Promotion, and
Performance.
29. To motivate the True True Correct
public to respond in
the desired manner
Review
requires that felt needs
(or client perceived
needs) be addressed.
30. Adaptation is: a) The process of a) The process of Correct
refining a product or refining a product or
marketing strategy to marketing strategy to
Review
completely reflect the completely reflect the
regional cultural regional cultural
standards. standards.
31. Promotional and True True Correct
advertising materials
should persuade the
prospective user to
Review
seek out what you are
offering and to
respond in a desired
manner.
32. Research of the True True Correct
foreign market
environment is
Review
indispensable when
operating cross
culturally.
33. Sales promotion is b) Mass media d) All of the above. Incorrect
reliant on solid, advertising coverage. Review
effective __________ .
34. Promotional a) Printing industry b) Transportation and Incorrect Review
programs such as and postal service telecommunication
direct mail and related system
campaigns require a
sophisticated
_______________ to
support large
103
distribution.
35. Which of the d) All of the above d) All of the above Correct
following obstacles
applies to international Review
marketing and
promotional efforts.
36. Public relations is a) Influence c) Induce Incorrect
planned, persuasive
communication
Review
designed to
__________ significant
publics.
37. When negotiating a c) Provide a c) Provide a Correct
contract with thoughtful, thoughtful,
representatives from a cooperative cooperative
Japanese firm, which environment which environment which
of the following enables the seller to enables the seller to
Review
possibilities best present the full present the full
describe the preferred expectations of the expectations of the
process: proposal and accept proposal and accept
the buyer’s first the buyer’s first
response. response.
38. As a management c) Targeted c) Targeted Correct
function, public and
media relations must Review
be Persuasive and
_______:
39. Some of the d) All of the above d) All of the above Correct
characteristics which
Review
are common to all
cultures are:
40. Understanding the True True Correct
unique perceptions,
values and needs of a
culture other than
one's own is perhaps Review
the most difficult task
of conducting business
in an international
setting.
104
105

Introduction/Characteristics of Culture: Marketing To The World

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Marketing to the World

Marketing to the World

Like the Boy Scouts, it's best to be prepared.

UNWITTINGLY UNDER THE INFLUENCE

A CONTINUOUS THREAD, WOVEN IN TIME

LIKE ALICE THROUGH THE LOOKING GLASS

SHE WAS LIKE FISH OUT OF WATER

For the Colombians it was a different story.

THEY WERE LIKE FISH IN THE OCEAN

For the Colombians it was the beginning of a great new relationship.

What had happened?

FROM PYGMIES TO PARISIANS, SPEARS TO SILICON

COMMON CHARACTERISTICS OF CULTURE

POTENTIAL PITFALLS ABOUND

These cross-cultural differences include language, nonverbal communication, religion, time,

Let's take a look at cross-cultural differences in the areas of language, nonverbal

LANGUAGE - Oh the Beauty of Words!

LANGUAGE - Silver manure and resurrected ancestors.

Saying "Yes" but meaning "No"

Behavior, intentional or unintentional, carries meaning. The non-verbal communication will

Is that a "football minute" or a "putting on makeup" minute?

Let's see, do we need a calendar or a clock?

It really is a matter of perspective.

All Big Macs are not created equal.

1. Marketing objectives are same at home and abroad.

2. Culture influences every aspect of a potential audience.

3. Culture develops over time and is inextricably linked to a nation's history.

4. Conscious awareness of our own cultural values is rare.

5. There are ten common cultural characteristics of which we need to be aware.

6. Cross-cultural differences are multi-faceted.

Marketing to the World Unit 1 Quiz

5) It really is not a matter of perspective.

1. In many Asian nations great true true Correc Review

Beware the illusion of globalization. Let’s take a closer look.

First let’s look at the concepts of Standardization or Globalization.

Forces that lead toward standardization include:

Research must take a close look at:

Technology - What technological systems are essential to the implementation and

Accessibility - Will all necessary support systems be available to answer to market

Competition - Will standardization, in reality be a prudent course of action? Or, would

Some of the benefits of a standardized marketing effort include:

 Lower promotion and advertising costs

However, standardized marketing strategies are extremely difficult to implement.

Why? Let’s look at the disadvantages of standardization.

Some of the disadvantages of standardization include:

 Cultural differences impede implementation

The battle to shave the face of Japan is a good example.

Imports rarely prove a disadvantage to standardization

Consumer perceptions can be an advantage to standardization

Identity of national brands is a disadvantage to standardization

Language is usually a problem when standardizing marketing efforts.

A GOOD BAD EXAMPLE OF STANDARDIZATION

The comparison with Gillette’s efforts is striking.

By contrast Schick took an adaptive strategy.

Schick adapted. Gillette standardized.

ODD EXAMPLES OF STANDARDIZATION

INDUSTRIAL GOODS AND NON-DURABLE PRODUCTS

Standardization is preferred when . . .

 It is too costly to adapt the product to the local culture