Introduction
With the introduction of global trade, modern companies and businesses have started to open their doors to markets found abroad. Through globalization, the goals and capabilities of most business industries had gone through significant transitions. In addition, other developments such as communication and transportation advancements have also contributed to globalization success. Though widening business reach through the globalization factor promises several advantages, business operators are aware that such strategic option involves a number of risks. Among the many significant concepts in globalization is international marketing; with this business principle, business organizations are able to distribute their products and services across borders. In this aspect however, the cultural factor must be taken into account. Considering that consumers abroad have different interests, preferences, beliefs, buying behaviors and cultural backgrounds, it is then imperative that business operators assess and study the cultures of their international market targets.
While this is already given, others still fail to see the real meaning behind this concept. Understanding individual cultures for successful international marketing is a known requirement; still other operators resort to applying a concept known as reductionist simplistic dualism. In this paper, focus will be centered on defining dualism, its relation to culture as well as how it is observed in actual business operations. This will then be compared to the international marketing theory. Finally, how business owners should appropriately apply the concepts stressed in the international marketing theory will also be discussed.
Reductionist Simplistic Dualism
Dualism is defined as the philosophical system that aims to explain all forms of phenomena through the development of two distinct concepts (The Columbia Encyclopedia 2004a). One of the famous examples of this principle is the mind-body or mind-matter dualism; the monistic and pluralism concepts are its counterparts (Blackburn 1996). Though dualism is often used to explain theological and philosophical factors, this also has some relation in business and marketing. Dualism is often observed in the field of international marketing and culture. Combining both factors, reductionist simplistic dualism is the tendency for business operators to limit their cultural understanding into two distinct concepts. Such practice however, is unacceptable considering the number of cultural variations.
In a more comprehensive definition, simplistic dualism in business and international marketing is synonymous to the development of cultural stereotypes. One good example is the development of too general characteristics to describe Western and Eastern cultures. In the article written by McCormack (2002), American and Asian cultural backgrounds had been compared using a few points of difference. Based on general descriptions, Americans were described as a group that is more verbal and direct whereas Asians have higher context cultures that use gestures more to communicate. In terms of behavior, Americans tend to strive to stand out from the rest, while Asians prefer to maintain a low profile. In addition, Americans were described as a group that values legalities, whereas Asians are more on reciprocal relationships.
Reductionist simplistic dualism in international marketing is also observed when defining white individuals from blacks as well as male from female. Various authors had explained this cultural tendency. Culture is developed through the interaction of attitudes, behaviors and values of the members of a particular group (Adler 1991). As people interact, apply similar practices and pass these values on future generations, a cultural theme that makes certain groups distinct is formed. This development is stressed further in the investigations of Hofstede (1994) where the researcher has concluded that groups of people belong to different cultural levels. The formation of cultural themes then led to the development of various common cultures that represent certain groups.
This however, partly led to certain drawbacks such as the development of cultural stereotypes. As emphasized in the research done by Kluckhohn and Strodtbeck (1961), previous analyses of culture had been significantly influenced by the groups’ dominant values; their variant values however had been disregarded. This clearly explains the application of dualism in international marketing where the study of the target markets’ cultural background is only limited to a few dominant values. Rather than recognize what makes China different from Taiwan or Singapore, businesses tend to analyse them as Chinese people in general. In the same way, Western culture is regarded as one when individual European nations has distinct cultural practices and values. Business then should not resort on reductionist simplistic dualism as it directly opposes the true concept of international marketing.
The experience of Kellogg’s in Indian marketing and product distribution is a good example of the effects of reductionist simplistic dualism. During the latter part of the 1990s, Kellogg, the American cereal giant, was attracted in extending its operations in India, primarily due to the country’s large population. Considering that its American business practices had succeeded in the United States and in other parts of Asia, the company then adapted the same practices for the Indian market. The production and distribution of the Western food product was also supported by advertisements patterned after western influences.
The strategy however failed to work. The Indian consumers do not find breakfast cereals as appetizing as their home-cooked meals or biscuits and tea sold at street stalls. Cereals were not recognized by the local market as a good breakfast food, resulting to Kellogg’s unimpressive sales and operations. Three years after the company has started to operate in India, total sales were not promising; the outcome was in fact far from what Kellogg’s was expecting. The advertisement did not cause any impact to the Indian market either (Arnold 2003). While other consumers find the breakfast food appealing, a more in depth consumer research done by the company revealed that most of them cannot afford the product. With these findings Kellogg’s was then able to form a more distinct characterization of the Indian market. This encouraged the manufacturer to reconsider its marketing strategies. New products sold at lesser prices were also developed; the use of street food stalls also became the company’s primary product retailer (Arnold 2003).
The initial failure of Kellog’s is brought about by its hasty and inappropriate presumption that a single strategy, which worked in most parts of Asia will also work for the Indian market. This example clearly suggests that reductionist simplistic dualism not only limits an operator’s market comprehension but could possibly contribute to international marketing failure as well.
International Marketing
The theory of international marketing provides a framework on how this business concept should be implemented and practiced. Marketing is defined as the process of developing long-term relationships with the consumers through effective planning and implementing proper pricing, distribution and promotional means (Carter 1988). The aim of marketing should not only to meet the goals of the business; operators should adapt marketing strategies and practices that satisfy the needs of the consumers. This definition of marketing suggests that this principle involves the establishment of a give-and-take relation between the business and the consumers. In order to do this, operators must then learn about their consumers as individuals and not just any general group. In the context of international marketing, the same principle is applied. This then suggest that though certain groups may be found within a general location, their cultural values make them distinct from others; hence, international business operators should exert effort in analyzing and learning them.
The theory of international marketing is also related to the local responsiveness theory. This theory explains that a balance between the global visions of the company and the interest of the local consumers must be established. Local responsiveness is often the term used to describe the international marketing concept. Bartlett (1986) once referred to this as the transnational solution. As discussed further by this author, the international efficiency among business firms in the 1990s can be achieved by means of meeting the different and specific demands of the local market and responding to their respective cultural frameworks.
With this, businesses should consider certain significant factors so as to apply the international marketing theory. In general, global companies should give due priority in learning the culture of the country where they intend to operate. Specifically, the language, education, religion, attitudes and values of a specific country should be learned by any international company. This local knowledge should serve as the basis of their major marketing approaches and strategies.
Theoretical Utilization
From the discussion, it becomes apparent that reductionist simplistic dualism is very much different from the principle of international marketing. While simplistic dualism in business and marketing limits the distinction of market concepts into two main principles, the theory of international marketing is patterned more on pluralism or multiculturalism. This term suits the international marketing concept as it stresses the principle that several cultures do co-exist within a single locality without any one culture dominating the region (The Columbia Encyclopedia 2004b).
This major difference emphasizes why business operators should utilize the theory of international marketing rather than dualism. The theory of local responsiveness and global integration suggests that the differences of cultures in various aspects should be taken seriously. Business operators should not underestimate the value of local knowledge in international business as this will help them fulfill their international objectives. Multinational firms should then tailor their approaches in accordance to their foreign markets’ multiple cultures. Doing this strategy is where the challenge begins. Nonetheless, there are several ways on how the international marketing theory in relation to cultural differences can be applied.
Sherman and Levine (2004) noted that applying the theory of international marketing can be done through the modification of products and services offered by business operators. If a European company for instance, intends to enter the Japanese market, products produced and distributed in a Japanese province may not be as successful when offered in the city. In the same way, a single noodle recipe or dish may not be applicable to Asian consumers in general. In an American culture, fast service is essential; this cultural feature however, may not be the same in other parts of the Western region. These examples show that international companies should have sufficient background about their markets’ cultures and how these are distinct from others.
Adapting the international marketing theory can also be done by means of modified promotion techniques. As exemplified by the effects of Western advertising to the Indian market, certain socio-cultural factors must also be considered when developing advertisements. The use of top celebrities for endorsements for example may result to different levels of impact depending on the culture type of the audience. Communication channels should also be selected in accordance to the locals’ educational background as well as their access to these media. Means of promotion should also be adapted based on community interest. In using coupons for example, while this may be effective in the American setting, other cultures may not understand its purpose or probably take it as unacceptable (Sherman & Levine 2004).
Arnold (2003) also stated that the utilization of the international marketing concept also involves the reconsideration of the businesses’ marketing strategies. Specifically, it is essential that a mass-marketing mindset should be developed. Here, focus of the operators should be on the identification of specific consumer needs and determination of price competitiveness. Tedlow (1999) developed an effective strategy in order to apply international marketing concepts effectively. Traditionally, business paradigm is concentrated on keeping prices and margins high. In addition, the conventional business pattern was made to suit the period of segmentation, where products or services are made for a specific target. This is the direct opposite of mass marketing that Tedlow had introduced. In this new alternative strategy, the focus is on the production of simple yet good products that are appealing to the general masses.
The application of the international marketing concept, rather than resorting to simplistic dualism, has allowed a number of companies to flourish in their respective industries. McDonald’s is among these successful companies; the company has in fact been recognized for its high level of flexibility for its international operations. Product differentiation is one of the important strategies of the fast food corporation, which clearly shows how the international marketing concept should be applied. In order to adapt to the multiple cultures observed in Asia, McDonald’s opted to produce menu items that suit the consumers’ food and cultural preferences. Some examples of these products include McSpaghetti in the Philippines, McTempeh and McPork Burgers in Indonesia and Teriyaki burgers for the Japanese customers. The company also applies different menu items even if the international business location is within the Western region; in Norway for instance, McLox Salmon sandwiches are offered for the consumers so as to satisfy local tastes (Singh et al. 2001).
The operation of the food company in India is also a clear exemplification of international marketing practice as it does not only involve cultural food preferences but religious beliefs as well. In the Indian setting, majority of the population are vegetarians and consider killing of cows as sacrilege. As McDonald’s typically serve beef burgers and non-spicy food items, the company would have to drastically change its menu for the Indian market. Hence, McDonald’s replace its beef menu items into mutton; spicier sauces and dressing were offered in place of mustard and ketchup. As majority of the population are Muslims, chicken kebabs and vegetable salads are served instead. In addition to product differentiation, regulation of the products’ prices is also a top priority. Considering that most of the country’s population still belongs to the poverty line, McDonald’s must ensure that its products are sold at affordable prices (Singh et al. 2001).
Coca-Cola is yet another major company that has utilized the international marketing theory through local responsiveness and innovativeness. In order to support the application of the international marketing theory, the company developed a Think Local, Act Local policy; this policy was developed so as to promote the importance of understanding individual cultures and consumers abroad. Similar to McDonald’s, Coca-Cola also tried to produce products that suit local tastes through constant experimentation. The company also applied the theoretical concept by employing local employees from its international sites. In this way, the company’s product developers have a strong background of the different cultural tastes of the population and apply them in the development of new products (Michaels 2004).
In addition to these strategies, the company also established multinational innovation centers where its product experimentation can be conducted. These innovation centers are actually made of international innovation teams in charge of gathering country-specific customer data. Aside from helping the company develop successful new products, this strategy is also helpful in preventing major company losses due to product launch failures. More importantly, these cross geographical innovation centers, market shifts that typically occur in international settings can easily be anticipated. This helped the company to transform its strategies based on these sudden market changes (Michaels 2004).
Conclusion
International marketing has been an important aspect of business mainly because it enables operators to achieve both profit and market growth. While business owners are aware that in-depth cultural studies and assessment must be done so as to successfully operate abroad, some still resort to reductionist simplistic dualism. This concept basically suggests that the application of international marketing can be limited to two basic principles. Thus, some marketing strategists analyze consumers and categorize them based on the gender, race or region. As some authors had explained, the presence of dominant cultural values appears to affect the effective analysis of individual cultures as less dominant values are often disregarded.
The use of cultural dualism in international marketing however, is not a good business practice due to several reasons. For one thing, the application of such practice inhibits international business success. With no well-established background on different cultures, products and services offered to foreign consumers may not always be successful. This in turn, will only lead to major company losses. The goal of achieving major profit and market growth is also hindered by simplistic dualism. Most importantly, as this involve less effort to obtain individual consumer group satisfaction, loyalty is not developed either; this makes it difficult for aspiring foreign companies to overcome major competitors abroad. While applying dualism in marketing would have made cultural analysis easier, companies achieve more disadvantages than benefits with this approach. Hence, it is important that the theory of international marketing, which is centered on achieving local responsiveness and customer satisfaction, should be employed in analyzing various cultures. Through the strategies utilized by actual companies, other businesses may be able to achieve international success.
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