ABSTRACT
The purpose of this paper is to examine on the one hand, the importance of the effect of cultural negotiating in an international marketing strategy. This side covers cultural elements such as language, religion, social factors, and how these impact on an international marketing strategy. On the other hand it covers on (Bangladesh side), how culture influences of marketing strategy, what is the main cultural business organization of Bangladesh, how they are doing their business following the cultural strategy and also Bangladesh business environment. The main purpose of this research paper is how culture impacts on an international marketing strategy. In addition, the study also provided insights
into the process, as well as direction for progression of the research stream dealing with the behavioral aspect of the international marketing of any organization. The methodology demonstrates that a systematic approach was used in planning the investigation. Various key cultural factors are considered in international business strategy negotiation, with example and suggestions as how to these can be used to achieve success. The findings and analysis chapter presents the qualitative results of the research as outlined in the methodology. The conclusion presents a summary of the work and the conclusions drawn from it. It outlines the strengths and limitations of the study, together with suggested areas for further research.
INTRODUCTION
International marketing concerned with marketing across national boundaries. International marketing is also of concern to organisations of all types and sizes (Brassington & Pettitt, 2006). It is complex, not only because it potentially involves greater administrative and operational marketing effort, but also because it involves an understanding of marketing environments that might be very different from the domestic market. Hence the word ‘environment’ consists of awide variety of factors and influences, such as cultural, technological, economic and competitive and political and legal influences. As the global business emerges, international marketers tend to enter new market, new culture, new people which eventually brings new opportunities and challenges. According to Wolf (2000), the business environment has evolved in response to the continued globalization of world markets as there appears to be an increasing speed, frequency and magnitude of competitors entering a broader and more diverse set of markets. In this situation, Steenkamp et al. (1999) mentioned that firms are ever more dependent on new products to generate revenues and market share as they search for a competitive advantage and a profitable return. Moreover, firms must enter a broader and more diverse set of markets in order to maintain momentum and relative position. In addition, the success of a new product introduction in a foreign market is dependent on a series of factors, where some are controllable and some are uncontrollable. Hence, as an intrinsic variable specific to the market, culture remains a significant factor in international marketing research (Dunning, 1997). Culture is a distinctive element of international marketing. Culture means different things to different people. It does not only denote civilization, but also customs, tradition and codes. Cultures are just different, not right or wrong, better or worse as cited by Cateora & Graham (2002). Besides, from the tremendous
exposure to globalization, it has been found that consumers from different cultures have different attitudes, perceptions, tastes, preferences and values, and remain reluctant to purchase foreign products (Suh & Kwon, 2002). Moreover, along with Kotler (1986), consumer behaviour remains diverse, consumers are not always rational and they are not willing to change their consumption habits in favour of cheaper products that are increasingly available on the world market. Therefore, culture and its impact on international marketing practice is a major theme in various strands of research in marketing (e.g. buying behaviour, branding, segmentation, communications, and product adoption). It has been explored in both international and intra-national marketing and in both business and consumer marketing (Blackwell et al. 2006). More precisely, international marketer needs to pay attention to cultural factors; issues of cultural difference because these could be affect not only the way in which a product is marketed to customers, but also the way in which business negotiations are handled. Cultural differences might be seen in terms of language, social structures and mores (including class structure, gender roles and the effect of religion) and prevalent values and attitudes (Brassington & Pettitt, 2006). Besides, as Ricks (1993) pointed out that a failure to take cultural differences between countries into account has been behind many international
OBJECTIVE OF THE STUDY
According to Triandis (1989), Markus & Kitayama (1991) and Yaveroglu & Donthu (2002) cultural differences still remains an important aspect of international marketing research because cultural norms and beliefs are powerful forces shaping people's perceptions, dispositions and behaviours. In addition, Hewett et al. (2006) found that national culture did influence buyer-seller relationship strength in industrial marketing contexts, and corporate culture, a byproduct of national culture, moderated the link between relationship strength and repurchase intentions. In similar fashion, Briley & Aaker (2006) also showed that culture-based differences did matter in consumer persuasion and information processing. In order to understand the impact of these variables on consumers’ product choice decisions or decision making processes, cultural differences have been considered from a range of different perspectives, including their impact on attitudes and persuasion, as well as their role in the diffusion of new products (Aaker, 2000; Takada & Jain, 1991; Steenkamp et al., 1999). Therefore, the main aim of this piece of research is to describe the international Marketing strategy, to explain the elements of culture which have impact on
international market and also to scrutinize how Bangladeshi market is affected by culture. In particular this study seeks:
To determine the main elements of culture in International marketing.
To examine how a culture influences on planning international marketing strategies.
To evaluate how the Bangladeshi market is affected by the culture and its elements.
LITERATURE REVIEW
International marketing takes place all around us every day. It has a major effect on our lives, and is crucial to the survival and success of organizations. International marketing is necessary in this globalized world because, from a national standpoint, economic isolationism has become impossible. Failure to participate in the global marketplace assures a nation of declining economic influence and its citizens of a decrease in the standard of living. According to Czinkota & Ronkainen (1993, p.6), “International marketing is concerned with planning and conducting transactions across national borders to satisfy the objectives of individuals and organizations”. Moreover, consistent with Bradly(1995, p.5), “International marketing means recognize needs and wants for customers, provided that products and services to give the firm a degree of difference selling advantage, communicate information about these products and services and distribute and exchange them worldwide through one or a combination of foreign market entrance modes”. Therefore, International marketing is the tool used to obtain the goal of improvement of one’s present positions. In the international marketing field, one can observe most closely, the role of marketing as a key agent of societal change and as a key instrument for the development of societal responsive business strategy. International marketing enables consumers all over the world to find greater varieties of products at lower prices and to improve their life-styles and comfort (Czinkota & Ronkainen, 1993). Besides, along with Doole & Lowe (2008), the world is seen as a market segmented by political, economic, technological, social, cultural and legal groupings. The key to successful international marketing is therefore that of being able to identify and understand the complexities of each of these dimensions and how they affect the marketing strategies of organizations. Thus, as in domestic marketing, the successful marketing company will be the one that is best able to manipulate the controllable tools of the marketing mix within the uncontrollable environment. It follows that the key problem faced by the international marketer is that of coming to terms with the details and complexities of the international environment. So, in many instances, the international marketing environment by its very nature is of a highly complex structure (Phillips et al., 1994). Thus a fundamental knowledge and understanding of the international marketing environment is the foundation of any study of international marketing.
RESEARCH METHODOLOGY
As the aim of this study is to investigate the cultural impact on international marketing strategy and how culture affects in Bangladesh perspectives, so the type of the study is exploratory in nature. In addition, inductive approach has been chosen for this study. Furthermore, among various diverse analyses (such as qualitative, quantitative and triangulation), qualitative analysis has been used in this study to investigate the cultural impact on international marketing and how does it affect in Bangladesh context. More precisely, the primary data of this study has been collected from Bangladeshi multinational organizations such as Grameen phone Bangladesh, Robi Axiata Limited, Banglalink Limited, Coats Bangladesh Limited, Unilever Bangladesh, and GlaxoSmithKline Bangladesh Limited etcby conducting semi-structured interviews.Hence, from the organization, six (6) interviewees have been selected by using convenience sampling technique from the top management levels. Eight open-ended questions are used because the answer ranges can vary and broad or respondents might not have detailed knowledge about the topic to give probable answers.
FINDINGS AND ANALYSIS
The main objective of this research study is to describe the elements of culture which have impact on international market and also to scrutinize how Bangladeshi market is affected by these cultural elements such as language, education, religion, political situation, socio-economic conditions etc. Thesummery of the answer of each interview question given by respondents are described following:
In the first question, respondents were asked to express their opinion about the cultural impact on international marketers to operate their business in overseasmarket. Majority respondents were agreed that culture is a one of the key factor for international marketers. They think international marketers should be acquainted with vast knowledge before launch the overseas market. Because culture is one of the most sensitive elements in international market, which is vital factor for international marketers to doing the operation in overseas market. Only one respondent was disagreed that culture does not impact in national market. Hence, in relation with respondents’ opinions, many authors and researchers such as Brassington & Pettitt, (2006), Markus & Kitayama (1991), Yaveroglu & Donthu (2002) and Hewett et al. (2006) also mentioned in their study that culture is one of the most sensitive elements in international market. According to their view, cultural differences still remains an important aspect of international marketing environment because cultural norms and beliefs arepowerful forces shaping people's perceptions, dispositions and behaviours.
In the second question, respondents were asked regarding the cultural sensitivity of Bangladeshi business environment. More precisely, participants were asked that is there any impact of culture in Bangladeshi market for foreign investors. Majority respondents demonstrated their opinion that though Bangladesh is a highly recognised Muslim country in the world, however its environment is completely suitable for foreign investment and there is no obstacle for international marketer’s to operation their business in Bangladesh as well. But as most of the people of this country are Muslim so, alcohol or any “haram” product is not suitable for sale these market places because these type of product are completely prohibited for Muslim nations. In this context, all the
international firms must be sensitive to religious differences in its foreign markets and willing to make adaptations which are consistent with Pervez et al, (2003), Terpstra & Sarathy, (1997); Jeannet & Hennessey, (1998).
In third question, participants were requested to express their opinions about the political circumstances of Bangladesh and also its impact on business. Out of six, four respondents (Interviewee 1, 3, 4 and 5) were agreed that political stability is the foremost influencing factor in international market as well as Bangladeshi market. They thought that business, in any country, is largely affected by political domination. In addition, politics has come to be recognised as the major factors in many international business decisions, especially in terms of whether to invest and how to develop markets. So, cultural sensitivity to political issues in international markets is of the extreme importance. But couple of years before Bangladesh political situation was considered to be risky for foreign investors because of political instability but now a day’s political stability is very relatively stable for foreign investors. Nevertheless, interviewee 2 and 6 were disagreed with the opinions of other participants.
Finally, in the last question interviewees were asked to express their view about the business environment of Bangladesh for international marketers. All six respondents were agreed that Bangladesh business environment is suitable for foreign investor because Bangladesh is now a believer place for foreign investors to invest. There is no political crisis at this moment. The government provided plentiful facilities for foreign investors even though foreign investment is not hundred percent yet. Still government need to develop economy condition, reduce unemployment problem, increase rate of literacy and control birth rate which will provide a fertile business environment for the foreign investors.
CONCLUSION
First of all, in the literature review, the present situation of international environment was focused and then this study also tried to explain culture and its impact on international market. Besides, on the basis of previous research, this study also tried to highlight the components of culture, which have vast impacton international marketing environment. In this context, it was found that language, religion, aesthetics, education, social organisations, law & politics, technology & material cultures and values & attitudes are the main elements culture. International marketers have to consider all these elements before entering to any new market to operate their business. Besides, culture is a distinctive element of international marketing and it means different things different people. It does not only denote civilization, but also customs, tradition and codes as cited by Cateora & Graham (2002). Furthermore, it was found from the findings of interview that culture has
significant impact on Bangladeshi market as well. Cultural components such education, language, religion, political stability, socio-economic conditions etc. are the most influencing factors in Bangladeshi market. They used to live their life according to their religion, educational level and socio-economical conditions. They also revealed that as Bangladesh is a highly recognised Muslim country in the world, however its environment is completely suitable for foreign investment and there is no obstacle for international marketers to operation their business in Bangladesh. But as a Muslim community, alcohol or any “haram” product is not suitable to be sold in market places because these type of product are completely prohibited for Muslim nations. In this context, all the international firms must be sensitive to religious differences in its foreign markets and willing to make adaptations. Besides, all the respondents also expressed their opinions regarding present educational levels in Bangladesh. According to their opinions, education affects all aspects of culture, from economic development to consumer behaviour. But still in some rural areas, most of the people are uneducated, which might be affects in Bangladeshi market in future. Thus international firms need to know about the level of education of a county before investing because an education system of a country represents the countries culture and custom and nations viewpoints, aspirations, enthusiasms etc. Moreover, according to the respondents, Bangladeshi political state is also another important element for international marketers. They thought that business, in any country, is largely affected by political domination. However, Bangladesh is a culturally sensitive country but all the interviewee agreed that Bangladeshi business environment is suitable for foreign investor because Bangladesh is now a believer place for foreign investors to invest. There is no political crisis at this moment. The government provided abundant facilities for foreign investors. To get hundred percent foreign investment still government needs to develop economy condition, reduce unemployment problem, increase rate of literacy and control birth rate which will provide a fertile business environment for the foreign investors. Finally, international marketer needs to pay attention to cultural factors, issues of cultural difference which might be seen in terms of language, social structures and mores (including class structure, gender roles and the effect of religion) and prevalent values and attitudes. Because these could be affect not only the way in which a product is marketed to customers, but also the way in which business negotiations are handled. Eventually, consistent with Ricks (1993), a failure to take cultural differences between countries into account has been behind many international business failures.
LIMITATION OF THE STUDY
There are few limitations attached to the research approach and design of this study:
This study had to face constrains with regards to time and fund availability, which restricted to take the study only in the Chittagong city (Business Capital) of Bangladesh.
Limited access to the top management of the respective company as well as it was very difficult to get an appointment of them within the limited time span.
It was a long process to find a right person for the interview.
The sample size was too small for this study.
The convenience sampling is used in this study for data collection which might not represent the total population.
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