Sub Culture

People generally try to avoid behaviour frowned upon by the society. Thus culture is universal in man's experience but each local manifestation of it is unique. However, within the larger society there are specialties or sub systems of values resulting in a considerable variation in behaviour pattern, which exist within the total culture. Rarely do we find perfect homogeneity in the content of melting pots. Similarly, we also find subcultures within a society.

Within the larger society there are specialties or subsystems of values resulting in a considerable variation in behaviour pattern, which exist within the total culture.

Sub cultures can be said to be sets of learned beliefs, values, attitudes, habits and forms of behaviour that are shared by subsets of a society and are transmitted from generation to generation within each subset. Members of a subculture do conform to most of the norms of the dominant wide culture but deviate from those which are not compatible to the norms of the sub culture.

Marketers have begun to segment larger societies into smaller sub groups or sub culture groups that are homogenous in relation to certain customs and ways of behaving - say sociocultural or demographic variables. For instance in India, few of the sub cultural categories and their variations are shown in table below.

Though the above table shows a broad segmentation of the society into various sub cultures, any group that shares common belief, values and customs may also be categorized as a sub culture. For instance, college graduates, unmarried working women in a working women's hostel, etc.

Sub cultural Division and Consumption Pattern

The individuals of a particular sub culture may show different consumption patterns related to their lifestyle, financial ability, food preferences, reading habits, purchase of specific brands in a particular product category (brand loyalty), purchase time, store patronage, etc.

India presents a picture of varying styles and consumption pattern. Each state and religion has got its own traditional style of dressing, wearing ornaments, food preferences, etc. Certain communities do not accept non vegetarian food, while among the other communities, non vegetarian food is popular with slight differences - For the Muslims, eating pork is a taboo, while Christians find this a delicious food. Moreover, there are cultural taboos related to the consumption of certain products like liquor, etc.

There is also a lot of difference observed in the consumption pattern related to rural-urban sub cultural division. This is more visible in their tastes and preferences in food items, housing, clothing, home furnishing, transport vehicle used, recreation and leisure activities, saving pattern, etc.

Another visible sub cultural variation is the social class distinction based on the economic status. The social class can broadly be divided into three classes, namely, the upper or affluent class, the middle class and the lower class. The affluent class is only a negligible minority. Their consumption of real luxury items is more prominent as compared to their purchase of the necessary items. At the other end is the lower class or the poor sections of the society, who though large in size, have very little purchasing power. Their consumption pattern will not be of much significance because they are hardly able to make ends meet and hence will spend money only on the bare necessities of life. However, it is the middle class, whose consumption pattem is of interest to the marketers today. Marketers have noticed that it is the middle class which forms the demand basis for most of the products. A notable aspect of the middle class consumer is that inspite of the regional, linguistic and cultural diversities in India, they generally follow a common pattern of lifestyle and buying behaviour.

Some of the middle class consumers are security seeking or security conscious class. He/ she wants social security along with economic and emotional security. He is receptive to new ideas and will welcome innovations only if convinced that these will satisfy his sense of security and help to improve his economic status and social relationships. The success stories of ICICI Prudential, HDFC Life insurance are because of the brand being able to create awareness towards planning for enjoying life after retirement. Usually, living on a fixed income and maintaining a reasonably good lifestyle, the middle class consumer is readily acceptable to the credit facilities made possible through the credit card. This consumer is also very status/prestige conscious and is always striving to rise higher in the social class. The middle class is also seen as a home loving person who enjoys indulging in purchasing products, which will add to the 'joy and comforts' of his family.

Thus, understanding of behaviour pattern of people based on sub cultural variations will enable the marketer to work out marketing programmes suitable to each sub culture category of consumers.

Sub cultural Effect on Advertising Media and Messages

As with social classes, sub cultures may be attracted to particular media often designed for that specific group. The advertiser chooses the advertising media to carry the advertising message depending upon the desired reach, frequency and impact needed to achieve the advertising objectives.

They usually use television while trying to reach out to housewives and teenagers. While for marketing home appliances like vacuum cleaners, cooking range, microwave oven, washing machines, refrigerators, etc. marketing decision makers like to use media which has the potential for demonstration, visualization, explanation, colour and believability. Since the sub culture category for the above products comprise of housewives, working spinsters, young married working couples, working bachelors, etc. - the most effective advertising media would be a combination of print, visual/mass communication along with demonstration. Television offers the perfect setting for eliciting the affective-or hot responses and the print media is better suited for appealing to rational or cold responses. For instance, Titan Industries had used television for its emotionally packed commercials on the theme of gifting a watch Bandan Raga range but switched to print media when it had to display the product and announce special schemes.

Another example can be of the U.S. based lingerie maker, Lovable Inc., when it decided to enter the Indian market through a joint venture with Maxwell Apparel. This company discovered its sub cultural market comprising of the usage occasion and the stage in the women's life cycle -student, working woman, bride, mother, non working housewife, etc., played a crucial role in determining the choice of the lingerie. This information was used and various value media, relevant to each of the above sub culture market segments was used by the company to convey messages highlighting the need and experience of feeling thrilled at being noticed, the comfort, indulgence and functionality aspect of the product.

Marketers need to work out and identify consumer insight into what they desire. Long back, while wanting to be different, the Onida Devil had worked wonders for the brand, through its effective tagline 'Neighbour's Envy Owner's Pride. Subsequently this campaign had to be discontinued when it lost its charisma. Some time in early 2005 Onida brought back its devil in a new avatar.

Advertisers have to do a lot of proper planning in its media and communication strategy for the brand to succeed. Long back Real Value had launched 'Ceasefire fire extinguishers' and communicated about the brand attributes through ad spends on television and print media. The product brand had been tremendously successful. However, when the same company launched another innovative product 'Real Value Vaccumised containers,' it failed to click in the market. This was in spite of huge ad spends and massive advertising on T.V. This was probably because the company had failed to understand that for years together the Indian women preferred to store food in containers, just as her mother, so there was no real demand for Real Value's Product in the Indian Market.

Depending on the sub cultural category, the marketer will have to identify those who belong to the particular subculture, what are their reading habits, lifestyle, stage of family life cycle, preferences towards media, etc. This information will be required to break up each of the sub cultural group into smaller segments that can be reached through a specific media. Thereafter, needs of the market segments need to be communicated through a suitable media, so as to be able to build a brand image and also gain a competitive edge over rival firms.

Cross Cultural Marketing Analysis

Today, various companies are going for cross cultural marketing or marketing in a big way. The reasons behind such a move are (1) pushed by poor opportunities in the domestic market (2) pulled by better and superior opportunities abroad. There are certain characteristic features of a firm going global:

• Advantageous economies of scale

• Access to marketing/manufacturing bases across global borders

• Availability of resources and capability to absorb huge losses

• Product/technology clout

• Cost and differentiation advantages.

Inspite of the characteristic features of a global firm, there is a great element of risk involved in cross cultural marketing. We have so far discussed in this book, about the challenges faced by marketing manager within the domestic market, on account of various social, cultural, economic factors which govern an individual consumer's purchase decision. So one can imagine the dynamic world markets, where each country has got its own environmental, cultural, political legal and economic determinants! The dynamic markets of the various countries can be understood only by studying the respective people, their life pattern, their sensibilities, their social interactions, values, beliefs, their faith and fancies. Thus, one can easily say that it is the above socio cultural dimension of the global markets which contributes most to the complexity of international cross cultural marketing.

Although advances in modern sciences, technological improvement through effective modern communication network and logistics have helped in slowly bridging the gap between the different countries, the cultural diversity between countries still continues to exist. So cross cultural marketing analysis means getting to know a country's history, social and cultural heritage, beliefs, value systems and the code of conduct of its people carried forward from generations together. These are all components of a country's cultural environment.

Cross cultural marketing is defined as "the effort to determine to what extent the consumers of two or more nations are similar or different". (Consumer Behavior, L. G. Schiffman, Leslie Lazar Kanuk, 1997, pp. 474)" This will facilitate marketers to understand the psychological, social and cultural aspects of foreign consumers they wish to target, so as to design effective marketing strategies for each of the specific national markets involved.

As we have seen in the above discussion earlier, culture is alive, moving and ever changing. Cultural influence is deep rooted and has far reaching consequences which can be seen in the pattern of decision making and consumption of the individual consumer. Thus, sizing up the cultural diversity of various markets of the world is a mammoth task before the marketers. The way foreign consumers think about and use certain products must also be verified before going into the marketing programme fully.

Given below are a few of the differences in the behaviour pattern in the consumer markets over the world:

• The average Frenchman uses almost twice as many cosmetics and beauty aids as does his wife

• Women in Tanzania would not give eggs to their children for fear of making them bald or impotent

• Italian children like to eat a bar of chocolate between two-slices of bread as a snack

• The Germans and the French eat more packaged branded spaghetti than the Italians

• Using the shampoo or hair conditioners had been a new concept for Russians, who washed their hair with soap. So when Procter and Gamble introduced their Wash and Go, a combination of shampoo with conditioner. Russians mistook the claim as 'air conditioner Wash' and got quickly popularised into a euphemism for washing down a vodka before heading out.

• Consumers in Peru and Bolivia cannot drink milk because they do not retain an enzyme enabling them to digest it, so they use powdered milk donated by the USA to whitewash houses.

• Venezuelan women use to wash their laundry by using slivers of bar soap they kneaded together to form a paste.

• In South East Asia, in some regions, people follow the custom of chewing betal nuts to achieve social prestige of darkly stained teeth. So toothpaste makers find it difficult to sell tooth paste by using the basic appeal-getting teeth whiter.

Similarly, business norms and behaviour also vary from country to country. For example:

• In the United States (USA) people put more pressure on results, want things to take place faster and believe in direct communication while taking business decisions

• In the United Kingdom (UK) business talk is always from top to down and hierarchical. During business negotiations there is a tendency to avoid confrontations and disagreements. This could be one of the reasons whey they are indirect, reserved and tactical

• In China, for business approaches, Chinese, emphasise on maintaining order and avoiding of chaos

• In South America, all business talk is held in close physical proximity with the other members. Sometimes almost nose to nose. Whereas, American business executives prefer to keep a reasonable distance during business talk

• In face to face communication Japanese business executives rarely say ‘no' to an American business executive. Americans get frustrated and don't know where they stand. Moreover, Americans come to the point quickly, whereas Japanese business executives need time to mutually discuss the issue and take time before taking a decision. They (Japanese) instead of discussing profit tend to establish a long term business relationship that benefits all partners.

Thus, each country has its own tradition, culture, preferences, mores and taboos, which the marketers must understand before entering the global market.

A marketer will have to consider various dimensions of the global market while formulating a suitable marketing strategy. He has at first to study the target market, i.e., determine the wide geographical area to be covered, and the economic environment comprising namely its products and service requirements, income level, standard of living, employment level, etc. He has to understand the market position in terms of whether it is a growing market, the market condition, relationship between the demand and supply factors, the level of competition, efc. What is the nature of the product - is the product a new or an innovative product? If so how to position it so as to get a price advantage alongwith increasing demand? Along with the above factors certain equally important aspects have also to be considered. Firstly, the environmental factors. Nations differ greatly in their political legal environment. So the marketers have to determine how is the nation's attitude towards international marketing? (encouraging or hostile), Has the nation got a stable or fluctuating exchange rate? What is the government's attitude towards monetary regulations? Has the nation got a stable government who will continue for a longer period in the future? Has the foreign country got an efficient bureaucratic framework for assisting foreign companies? There are also other vital aspects to be considered by the marketer. Each individual firm's corporate orientation with regards to effective delegation of authority and relationship between the Head office and the subsidiary office also assumes importance before a company takes the decision to go for cross cultural marketing.

Cross Cultural Marketing Objectives and Policies

Before entering the global market, the company must determine its international marketing objectives and policies.

There are many options before a company planning to enter a foreign market. It can gain entry as a domestic exporter or as a foreign importer or as a foreign government - solicit the firm to sell abroad. At times the firm may think of entering the global market because it sees better marketing opportunities in other countries when compared to the domestic market or it might face over capacity, which they feel can be utilized for global marketing.

Irrespective of the reason for cross cultural marketing way, the firm will have to work out the objectives, which will usually be :

• To determine how consumers in two or more societies are similar/different and devise suitable, appropriate strategies.

• Devise individualized marketing strategy if cultural beliefs, values and customs of a specific country are different.

Cross Cultural Influences

Today with the nations in the world getting closer, international marketing or cross cultural marketing has become popular. Nevertheless, cultural diversity continues to exist between the various countries. So the marketer must understand the cultural variances and nuances and respond to them in a way that is appealing to the consumer of that country. The success stories of companies such as Hindustan Unilever Ltd, (HUL), Procter & Gamble, Colgate-Palmolive, Kellogs, Coca-Cola, IBM, Pizza Hut, Pizza Corner, McDonalds etc. shows how they have identified the cultural variations and suitably modified their marketing strategy to suit Indian consumer's requirement. They typically need to 'Think Global act Local.

Identify Cultural Variations Affecting Consumer Behaviour

Broadly we will discuss about six cross cultural factors influencing marketing strategies abroad:

1. Consumer Customs and Values

Americans have a certain value system oriented towards achievement materialism, individual and youthfulness. However, in many Asian countries acceptance of one's place in society, is more important than individual initiative in influencing behaviour. Americans, while carrying out business deals structure their work schedule for the day and pleasure based on business. While, in European countries, people have the tendency to mix business with pleasure and arriving late for the appointment may be the norm. In India also it will not be unusual to find business transactions being carried out in an informal environment where business and pleasure are mixed. Hyundai motors when it launched Santro in India, had used 'the tall boy' image, with Shahrukh Khan endorsing and communicating about the car's features, which would suit a small family. This new design and car got a overwhelming response and even replaced Maruti800 as a first time car.

Cultural Values Can Affect Consumers Product Preferences and Product Usage

In late 1990 on the one hand there were a lot of MNC fast food providers like McDonalds, KFCs, Wimpys and Dominos trying to woo the Indian housewife to their product launches. And on the other hand, the local Kirana shops' shelves were packed with the so called convenience food packets of tomato purees, garlic pastes, onion pastes, pre cooled pulao and the like from 'Kissan Dabur.' The instant protein cereal mix Kellogs was also easily available at various outlets. However, the consumers' response to these convenience foods was far from satisfactory for the marketers. Research and insight into the lack of usage of convenience foods (to the extent it should) indicated the role of culture, values and lifestyle.

In the West, consumers prefer to use semi processed or processed foods due to the convenience factor. In India, traditionally, the wife manifests this aspect by spending time and effort in cooking nutritional fresh food for her family. Secondly, convenience food was perceived to have high status value and so only meant for the so called elite classes lifestyle.

Subsequently through appropriate communication strategy the companies were able to convince households the benefits of using convenience food. And today packaged food industry is doing very well. In early February 2007, Norwegian consumers goods giant Orkla acquired the Bangalore based MTR, which could give the former a strong foothold in the fast growing packaged food Asian Market.

2. Language & Meaning

Language is one of the major aspects of culture. Research into the country's language - its meanings and interpretations will help the marketer to have a better understanding of the cultural variances and nuances and respond with a suitable form of communication easily understood by the consumer.

3. Differences in Market Segmentation Opportunities

Even if a company has a superior product in terms of quality, cost, service, technology clout, financial muscle and a brand equity in the domestic market, understanding the marketing opportunities in the global market and doing a suitable market segmentation will help the firm to do well internationally. For example, Readymade garments is a segment where India has a strong competitive advantage in terms of low labour cost when taking into consideration the total cost of production of the readymade garments. To take advantage of this aspect, some of the Indian marketers have tried to establish their presence in global markets.

For example, Arvind Mills has established an international network for marketing garments. Bhilwaras have set up Bhilwara Overseas Ltd in Douglas UK, to market its products in Europe Zodiac is trying to market Indian brands such as Globe Trotter and Mark Gibaldi abroad. It has set up exclusive shops with wholesalers in India.

4. Differences in the Criteria for Evaluating Products and Services

India has tremendous scope in the 'Textile and readymade garment' category. This is because of the availability of quality natural fabrics at competitive prices. However, the 'quality' aspect is not given due importance by the Indian firms. This fact was emphasized by the 'Japan Apparel Manufacturers' Association'. The Japanese firms are very particular about quality assurance. However, a survey done by the above mentioned association revealed that there was a fundamental difference in the perceived evaluation of the products 'quality'. The report from the survey says" Apparel firms in India believe that the quality of the fabric determines the quality of the garment, whereas, the Japanese think that every aspect of the garment from sewing to packaging decides quality". The above example shows that cross cultural analysis reveals differences in the criteria for evaluating products and services and this aspect cannot be ignored by the marketer for cross cultural marketing.

5. Differences in Consumption Pattern and Perceived Benefits of Products and Services

It has been seen that leather and leather products constitute an expanding category in India's exports. This has been because India has a competitive advantage in a durable product like leather. The reason behind this is that India has one of the largest livestock population in the world. Thus procurement of the best quality raw hides and skins is a big advantage for India. Another positive aspect is the availability of inexpensive skilled manpower. Moreover, leading global leather goods manufacturers such as Italy, South Korea and Taiwan were forced to curtail production due to rising cost of production and labour charges. Here again, India scored over her competitors because labour is comparatively cheaper here.

The consumption pattern in the world markets show that the demand for leather and leather products is rapidly increasing with footwear, belts, bags and wallets being considered as an inseparable part of the every day attire. However, for several years, India had been exporting her leather in the raw form to competitors, who made products out of them and sold in the same markets at cheaper prices. Since India had been exporting without a brand name, she was exporting only a commodity. It was perceived that India lags behind as far as adequate product design, quality of craftsmanship and inadequate supply base for handling large volumes were concerned. Thus, in order to assure its global customers about the perceived value added benefits received on buying Indian leather products, India could go for a tie up with well known companies with well known brand names and gain the benefit of ongoing brands and a ready marketing infrastructure.

Study by a Swiss software consultant found that there was great potential for Indian software exports to Switzerland, where the software market is estimated to be around SFr 6 billion. The consultant further reiterated that the market could be penetrated through a local partner only. TCS followed this route by tying up with a local company Teknosoft and won a contract from the Swiss Securities and Exchange Agency (SEGA).

Similarly, China has got a huge domestic, market in IT, but they want the software in their language. Seeing this as an opportunity, Infosys hired Chinese software personnel to penetrate the Chinese market.

6. Differences in the Economic and Cultural Social Condition and Family- Structure

Across the world, one could find differences in the consumption pattern not only among various cultures but subcultures too.

Professor W. Lloyd Warner of the University of Chicago, based on certain investigations carried out by him had divided the United States society into six social classes. (Consumer Behavior, Peter D. Bennet, Harold H Kassarjian, PHI, 1987, pp 113-115.)

Professor Warner had broadly divided the society into six social classes: Upper- upper, Lower-upper, Upper-middle, Lower-middle, Upper-lower and Lower-lower classes. The social class differences were worked out by taking into consideration parameters such as occupation, source of income, type of house, and neighbourhood. This study was carried out long back and many social changes must have occurred in the United States there after. Further, now with the recession affecting the global economy at large there could be many changes occurring in all cultures and sub-cultures across the world.

Nevertheless, marketers have found such social class differences to be useful in explaining consumer behaviour variations in relation to (a) preferences for products and brands (b) store patronage or shopping behaviour (c) exposure to promotion media and (d) saving and the use of credit for purchasing products.

Research has indicated that consumers prefer price-off and extra product free rather than getting a promotion item of the same value. Many MNCs have used this strategy in their promotional offers. Both Coke & Pepsi generally run the promotion in the summer on their 1.5 Lt. PET Bottles. The original 300ml bottle was the result of a consumer promotion by Thums-up offering Maha Thums up at the same price as 250 ml.

Fritolay carried out a successful promotion in foreign market, which was also replicated in the Indian market. Little Kids had gone crazy with round plastic coins (or Tazos) freely offered with Frito Lays. Although the monetary value was not much it had created brand awareness and tremendous excitement among the consumers. Similarly temporary tattoos were given with bubble gum brands like Boomer, which also created a similar impact on the children (users).

Keeping in mind the importance of a festival like, Diwali in India, in 2002, Samsung India came out with a 'Phir-se-Phod Ke Dekho' offer, where the consumers got a coconut with each purchase of a Samsung product. There was a guaranteed prize along with a surprise gift inside the coconut (symbolizes cultural value). These gifts ranged from products of Samsung to all expenses paid trip to the cricket World Cup in South Africa.

During Mark Knopfler's tour to India, Pepsi ran a promotion where winners get to share a Pepsi with Mark Knopfler. This only added to Pepsi's trendy image something which the brand strives for.

Thus, while working out promotional activities to be carried out in international markets, marketers will need to develop a strong international trend spotting and consumer insight tracking mechanism to understand what will excite the target consumers of those countries.

This shows that the international marketer must be aware of the internationalized norms of the social class and the cultural issues prevalent in that country and then prepare marketing communications accordingly.

Apart from the above specific issues, the international marketer has to probe and find out about the market structure and conditions and also identify the marketing research possibilities in the international markets, where he plans to enter. In other words, there is an urgent need for a more systematic and conceptual cross cultural analysis of the psychological, social and cultural characteristics concerning the consumption habits of foreign consumers.

Problems In Cross Cultural Marketing

The following are generally the problems related to cross cultural marketing:

1. Problems related to Symbols, Colour and Names Selection

In cross cultural marketing, there could be problems related to symbols, colours and names solection. For, usage of symbols can affect the consumer behaviour colours is another sensitive issue. Marketers will have to weigh the legal availability of a rand name as well -s its acceptability.

Usage of symbols also affect the consumers' behaviour. For instance, the symbol of two elephants signifies bad luck in many parts of Africa. So Carlsberg was forced to add a third label for its Elephant Bees. In most of the Chinese ads a moon is shown as it symbolizes good luck in that country. In a country like India, which is God fearing, Maruti Suzuki uses the term and symbol of Maruti (God of Wind). While shooting for a film Aapka Suroor, (in which popular musician and singer Himesh Reshammiya debuted as an actor,) in Germany, the Bollywood had used a church in the German city of Cologne. The members of the diocese of Cologne had shown wide protests in the usage of the church as a film unit. They argued that a church is a symbol of 'the house of God' and cannot be used as a function room.

Colour also is a sensitive issue. Pink is associated with femininity in the United States, while in many other parts of the world yellow is considered to be feminine. In India, Vastu Shastra influences choice of colours to a great extent. Blue indicates calmness or a cooling quotient, white signifies purity, yellow energies oneself and so on.

Most of the car manufacturers use different brand names that match the particular country's consumer segment's needs. Further, the auto brands are sometimes positioned in different segments across various (international) markets. So the brand name should be such that it fits in with the needs of that particular segment. For instance, GM's Aveo is positioned as a small car in America while India it is an aspirational mid level car.

While going for cross cultural marketing, marketers also weigh the legal availability of a brand name as well as its acceptability. For instance, Ford could not use the name Everest in India, so they used the brand name Endeavor. Accordingly Maruti's Zen in India is called Alto in Europe, Hyundai's Santro (in India) is called Atos in many European countries and Getz is called Click in Korea. Toyota Qualis (India) is known as Kijang in Indonesia and General Motors Optra becomes Buick in China and Lacetti in Korea.

Arvind Saxena, Head Marketing Hyundai Motors India, says that situations where it becomes difficult to use the name of the launch country due to cultural sensitivities attached, then the company has to either pick a name from its global portfolio or come up with something totally new.

2. Problems Related to Product Selection

own psycho- cultural upheavals, the international customer is a truly moving target today. Thus the marketer going for cross cultural marketing has to select the customers/market not on the basis of the superficial similarities of age or income, but by using the real motivating factors that prompt them to accept or reject products. The customer's purchasing decisions are the outcome of the complex interplay of environmental factors like culture, social class, personal influences, family and situations and of individual differences in resources, involvement levels, knowledge, attitudes, personality and values. Today's customers are willing to try more products and brands. But the international marketers have to select products to meet local customs and tastes. This is more valid for consumer products such as food products, soft drinks, cosmetics and personal care items, since acceptability of these products depend on cultural characteristics. For example, the Kellogg of the U.S., a veteran of the global breakfast cereals market has realized that its initial reading of would be customers in India was incorrect. The firm needed to reanalyze how to drive the Indian consumer to accept readymade breakfast cereals in place of his hot, Under the fast changing socio economic environment, bringing with it its fresh, cereal based, fat free rice idli.

Similarly, when the Ford Escort car, a product of the joint venture between Ford Motors and Mahindra & Mahindra, during an experiment which involved draping the interiors of the Escort - as well as competitor cars in the Indian market had asked potential drivers to give their feedback on the size of the car. At that time the firm learnt that many potential users wanted the height of the roof in the rear compartment to be higher. This was because, unlike in the West where the Escort is perceived as an owner driven car - in India, there is a hign likelihood of the Escort being chauffeur driven. Due to the cultural diversity existing between various countries, the international marketer will have to examine the various cultural and environmental factors existing in a particular country. There could be differences in terms of food habits, dressing style, languages spoken, differences in interpretation of various features, product constituents, colour, etc. For example, the same colour may have a different meaning in various countries. The colour 'blue', in Holland conveys a feeling of warmth, in Iran 'blue' colour is associated with death, whereas in India 'blue' colour signifies purity.

Pizza Hut has positioned its product service offerings as an international brand with an Indian heart. It had to change its menu to suit the Indian customer's palate. Pizza Hut's menu includes Pizzas with added toppings such as barbecue, chicken and roasted cottage cheese, appetizers like garlic bread, soups, fresh salads, oven baked pastas and choices of ice cream sunders.

T.V. manufacturers or brands Sony, L.G, Samsung, Sansui among others were able to penetrate the Indian markets with their product offerings which had excellent quality, was innovative and premium in the particular market segment, with the ability to provide very good services in the field of high-tech entertainment.

Names such as Nike, Benetton and Smirnoff and Reebok are Global brands and the same international creativity has also gained consumer acceptance in India too. There are also other brands which though global had to adapt different positioning in the Indian market. For instance, the Ford Escort is at best, a mid-market brand internationally. However, in India it enjoys an extremely premium positioning status. Then there are certain other brands which are global and also positioned accordingly here. For instance, premium brands like Piagot and Cartier, which appeal to high class consumers who are aware of and aspire for a global high flying lifestyle. So marketers must not make the mistake of attempting to localize them.

So, it is the responsibility of the international marketer to develop products depending on fae market conditions and ensure that these matched with the needs of the specific overseas market.

3. Problems Related to Promotion/Marketing Communication

In cross cultural marketing, the marketer has to interact and tackle unfamiliar target audience, who speak a different language and communicate through an unfamiliar media. He has to acquire a sound understanding of the demands made on him by the cultural dynamics of that market. Thus, the marketing communication and message have to be adapted such that it will be consistent to the language and customs of the particular society.

Media selection also requires international adaption because media availability varies from country so country. Moreover, apart from availability, cost and coverage of numerous ad media are some of the considerations while taking decisions related to advertising.

Usually, firms going for global marketing adopt a market oriented pricing policy. For instance, Sony of Japan while launching portable stereo Walkman priced it very low so that it is affordable to the youth world over. Komatsu, a Japanese earthmover equipment manufacturer had proved to be a formidable global competitor by using price, alongwith other marketing mix elements while taking on US mighty firm Carterpillar Tractor.

Established MNCs have realized that while entering a new market like India, quite contrary to their assessment, their high priced, high image brands may not sell in the same price bracket here. For instance, brands like Nike, and Reebok had to introduce products to suit the mid- price segment initially rather than focussing on the high priced product it sells globally. Even Afwa & Hitachi had priced its HiFi systems and colour T.V using a low price strategy, when it had ventured in a joint venture with Baran Electronics in India.

Companies either adopt the same promotion strategy they used in the home market or change it for each local market. Because of the diversity in cultural dynamics, socio-economic setting and language, devising a suitable promotional strategy is an intricate job. The same colour, the same symbol, the same metaphor and the same brand name may convey different meanings to different cultures and their impact too may differ widely. So, not understanding the peculiarities of a particular country, and its customs and its language, could result in making a communication blunder. To cite a typical case, as narrated by David A. Ricks in his book 'Big Business Blunders'. A large MNC once made an attempt to sell its baby food in an African country. On the package of the baby food, it used the same copy used in the home market, the picture of a baby and a caption explaining the nature of the baby food inside the package. African consumers were horrified at the picture and the message. They thought the food inside was made of powdered babies. This shows that cultural dynamics and the specific buying motives of the target customers must be kept in mind while forming the promotional tool for a specific country.

4. Problems Related to Pricing

Basically, the techniques and principles used for pricing are more or less the same in domestic and cross cultural marketing. Firms interested in foreign markets have to take a long term view and adopt a market oriented pricing policy. They have to take into account the market conditions and each distinct market segment and formulate pricing policies suitable for each segment. Each country has its own method of deciding on the price front for foreign products. In some countries, the state administers the price for selected commodities, in some other countries, government agencies act as the sole buying and distributing agents and so on. So the marketer going for cross cultural marketing has to adjust his pricing policies according to the local economic conditions and customs.

Sometimes, marketers price their products lower in. the foreign market because, they feel incomes are low so a low price is necessary to sell the products. Or the marketer may want to dump the goods i.e., he may charge a lesser price in the foreign market than in the home market, since he feels that these goods have no market at home. This dumping of goods is not acceptable, and the country adopting this can also be levied a dumping tariff by the host country. The Zenith company had accused Japanese television manufacturers of dumping their T.V sets on the U.S. market.

Thus, it is always preferable for firms interested in cross cultural marketing to adopt a market oriented pricing policy suitable to the local economic environment.

5. Problems Related to Selection of Distribution Channels

In cross cultural marketing, the marketer is also required to cope with problems related to selecting a suitable channel and also maintaining and motivating the consumers. Here as the distance between the producer and foreign consumer is very wide, efficiency of distribution channel becomes all the more necessary. An efficient distribution network can make up for the geographical separation.

Within a country, channels of distribution vary considerably. There are striking differences in the number and type of middlemen serving each foreign market. For example, to sell soap in Japan, longago Procter & Gamble had to work out a complicated distribution network.

P&G → General wholesaler Regional wholesaler wholesaler Basic product speciality wholesaler Speciality Local wholesaler → Retailers.

Having such a long distribution network may result in doubling or tripling of the consumers price over the importer's price.

Another difference lies in the size and character of retail units abroad. This difference is prominently seen in the developed markets and developing countries markets. In the U.S., most chains dominate the market. Whereas, in India there are many retailers who operate small shops or sell in the open market. Here the mark ups are high, but the real price is brought down through price haggling. However, with the liberalization policy of the government and opening up of the markets, many cultural and economic barriers have been broken, giving way to the concept of supermarkets, malls and large retail chains, especially in the major cities and metros of the country. Today, in the competitive and complex market place, the new crop of multi level marketing companies like Tupperware Amway & Oriflame are opting for an expensive but effective route of enlisting sales distributors (agents) from its customer base (direct marketing method).

Thus, companies interested in cross cultural marketing have to develop an effective organization and design a marketing programme by deciding the extent to which their products, promotion, price and distribution should be adapted to an individual foreign market.