ACKNOWLEDGEMENTS

When the wave of storm of life is up-roaring and ragging, and when the burden of life
become so unbearable I would rejoice in the mercies of God Almighty knowing very well
that with God there is hope tomorrow. Habakkuk says Though the fig tree may not
blossom, nor fruit be on the vines; though the labour of the olive may fail, and the fields
yield no food; though the flock may be cut off from the fold, and there be no herd in the
stalls yet I will rejoice in the LORD, the God of my salvation. I would therefore shout in
the praise of the Lord for His countenance of blessings, grace and mercies shown me. I
say, Ebenezer, of how far the Lord has brought me.
My next thanks goes to Mr. and Mrs. Bossman Manso for their contributions to my
education and general welfare.
Mr. Charles Nkrumah remains indeed a greatest friend I have ever had in my life;
Aristotle, you are really a true friend. Mr. George Nipa and all my siblings I cannot forget
you. I Big thanks goes to Madam Vida, Adasa, Mr. Albert Segbawu, Amy Luxford, Dr.
Beljeet Daffur and Dr. Samuel Osei-Nimo; all of Birmingham in the United Kingdom.

DEDICATION
I am glad to dedicate this piece of work to the glory of God and the following
people; Madam Rose Sobre, Vivian Bandoh, the late Martha Gyapong, and my
future wife and children.

Table of Contents
ACKNOWLEDGEMENTS ......................................................................................................................... 1
DEDICATION ............................................................................................................................................ 1
1.0 INTRODUCTION ....................................................................................................................................... 3
2.0 LITERATURE REVIEW ............................................................................................................................... 4
3.0 CULTURAL THEMES ............................................................................................................................... 10
3.1 Language ........................................................................................................................................... 10
3.2 Belief system ..................................................................................................................................... 10
3.3 Aesthetic ........................................................................................................................................... 10
3.4 Cultural dynamism ............................................................................................................................ 11
4.0 CONFIRMATION OF THE LITERATURE BY PRACTICE ............................................................................. 12
5.1 RECOMMENDATIONS............................................................................................................................ 14
5.2 CONCLUSIONS ....................................................................................................................................... 14
REFERENCES ................................................................................................................................................ 15

1.0 INTRODUCTION
The last few decades have seen globalization process creating better opportunities for
global businesses in trade and investment. Several multinational firms are expanding
their businesses internationally, and or market their products or services abroadglobalization of trade. This emergence of globalization of trade and the rise of newly
industrialized economies have led to an increasing issues of cultural backgrounds and
how they impact on international marketing (Tan 1997).
With globalization in full swing many argue that marketing especially international
marketing faces numerous challenges among which are different cultural influences due
to people and products or services continually traveling abroad or moving across
borders. These cultural influences, some people believe translate to successes or
failures of international marketing of global products or services.
This report therefore tries to review the literature on whether or not culture has any role
in international marketing.

2.0 LITERATURE REVIEW

The subject of culture in international marketing is now forming an agenda in many
countries of the world. Culture is defined as set of values and norms and of the way a
group of people live, behave and act. Hofstede (1991) defines culture as the behaviours
and attitudes of a group of people in a society; distinguishing one group from another.
Thus, one culture is different from another culture.
Culture is part and parcel of everyones day-to-day live activities and, ones decision is
basically influenced by the culture that he or she is brought up in.
Gary (1994) states, culture is made up of beliefs, values, knowledge, art, morals, laws,
customs and traditions, and habits acquired by people as members of society. Culture is
part of the human environment and it is everything around us as people; the way we
think and behave as members of the society.
Culture is often defined as ethical habit, made up of values and ideas. Ethical systems
give birth to moral communities because shared languages of good and evil give
members in the society a common moral life (Fukuyama, 1996).
According to Hofstede (1991), culture is a collective occurrence, for it is shared with
people who live or have lived within the same environment. It is the collective mindset
that differentiates the members of one society from another.
However, these definitions appear to be limited as it does not include other elements
such as the marketing mix-price, promotion and place.
In defining international marketing, Czinkota and Ronkainen (2002) state, it involves
planning and conducting transactions across countries to create exchange that satisfy
individual and organizational objectives. Culture in international marketing therefore
looks at how an international business can be promoted considering the cultural
environment where the business is located.
Because culture makes up the total composition of ones beliefs, values, and language
for living it is worthy to study of marketing, especially international marketing. The
premise that the customer is king and that the customer is always right and, this
4

customer is also engulfed with cultural values. It is therefore an imperative that the
successful marketer must be a student of culture.
A marketer is always in constant interaction with the culture of the people (the market)promotional message is crafted within local setting with recognizable symbols which is
meaningful to the market-the culture (Ghauri and Cateora, 2010). Hence product
design, package, functions and other related marketing activities must be made
culturally acceptable. In essence, culture is visible in all activities of marketing; from
promotion through pricing to channels of distribution, product, and packaging- the
marketers job actually become a part of the cultural fabric. The foreign marketers
efforts are evaluated in a cultural context for acceptance, resistance or rejection. The
extent of success or failures of the marketing effort depends on how such efforts
interact with a culture (Guillaumin, 1979). But, Matthews and Thakkar (2012) believe
leadership is the key in modern global market. The international business environment
is continually changing and global leaders must always develop, map out and diversify
marketing strategies to meet global challenges.
Markets and market behaviour are part of a societys culture. Just as human society is
dynamic markets are also dynamic; it expands and contracts not only in response to
economic change, but also in response to changes in other aspects of the culture. Thus,
markets are a result of culture. As a result marketers are constantly adjusting their
efforts to the cultural demands of the market, coupled with the fact they are also act as
agents of change whenever the product or service being marketed is innovative
(Holden, 2002). Nonetheless, Decenzo & Robbins (1999) suggest multinational
companies now consider the international human resource management and
development crucial factors which could be competitive advantage for companys long
term development and reputation in international competitive environment but not
necessarily culture.
Guillaumin (1979) argues that culture encompasses everything around us as people;
from dress to mass media and politeness because it has influence on whatever we
consume; be it food, dress or knowledge. According to him, the neglect of this by the
5

international marketer has damn consequences on the firm. Meanwhile, Schramm and
Roberts (1971) suggest, for international marketers to succeed they need to be effective
and efficient communicators, able to handle customers issues and attempt to
understand foreign expectations. Also, Zeithaml and Bitner (1996), state that marketing
in the international context include differences in thinking processes and decisionmaking processes which are non-cultural related. So it behooves on the international
marketer to have efficient and effective communication skills.
According to Ghauri and Cateora (2010) material culture affects demand levels-product
types and functional features. For instance, Coca-Cola in 2010 had to withdraw its twolitre bottle in Spain after discovering that few Spaniards had refrigerators with large
compartments to accommodate it (Coy, 2010); a clear indication that culture has impact
on international marketing. Ironically, Wal-Mart succeeded in Japan with 38% market
share without the contribution of Japans culture to this but rather efficient management
and strategy (Rawley, 2004).
Ghauri and Cateora (2010) write, it is important for the international marketer to assess
cultural education level in a particular market since such has influence on the marketing
strategy and techniques in areas of advertisement and communication. A remarkable
example is Hallmark Cards failing in France because French dislike syrupy sentiment
and prefer writing their own cards (Miller, 2007). A condition which clearly depicts
cultural impacts on the international marketing. Conversely, Wal-Mart, US biggest
retailer, failed in Germany not because of disregard to Germans culture but rather
disregard of the structure of distribution in German food retailing. This led to late
deliveries, out-of-stock rates were 20% as against 7% average for industry which forced
Wal-Mart to leave German market with the loss of $1 billion (Benoit, 2000). Although,
Wal-Mart did nothing against Germans cultural beliefs but still could not succeed.
Cultural impacts are also seen in areas of taste and preferences of marketing products.
Not respecting and without appropriately interpreting the cultural aesthetic values of
culture can create a negative impression and thus render marketing efforts futile (Ghauri
and Cateora, 2010)). This is the more reason why Nestle Corporation adapts its
products to suite local cultures, tastes and traditions (Robbins and Coulter, 2012).
6

Again, Frito Lay, a PepsiCo sells Derito chip in the British market that differs in both
taste and texture from Canada and US (Robbins and Coulter, 2012). All these
undoubtedly stress the fact that culture has influence on the international marketing.
However, Maxham & Netemeyer (2002) maintain that cultural impact on international
marketing is insignificant but rather the firms competence on the international markets.
Thus, they assume that a firm's performance depends on the qualities of it personnel
rather than a firm's social, cultural and environmental influences.
Culture not only influences peoples behaviours, but also affects the rationalization
process of the behavior (Patterson & Mattila, 2008). To this extent, each culture is seen
to influence the development of peoples perception. For this reason, Sullivan et al.
(2004) state, a Saudi importer of children name Pokemon was ceased by Saudi
authorities because they considered it to be affront to Islamic religion for it is likely
encourage gambling- an immoral acts in Islam. Again, a Starbucks franchisor was also
compelled to remove the face under the crown in Starbucks logo because again Saudis
felt public display of a womans face was religiously offensive and immoral (Sullivan et
al., 2004). However, Hamel (2009) argues that global leadership is the key in unlocking
international marketing potentials and to survive since it is critical in setting clear
organizational vision which provides way-forward for employees by defining what the
organization hopes to achieve in international market.

Additionally, insufficient

marketing, poor management, and lack of ability to compete with other similar
businesses combined with the improper personality traits of the manager or marketer,
and external factors cause business failure but not necessary culture (Berryman, 1983).
In the international business environment, organizations survival depends on the
adoption of the holistic approach of technology in fashioning its products or services.
This holistic approach helps prudent firms to obtain a wider perspective of how to
survive the global competition but not relying on either organization or national culture
(Porter, 2004). For instance, Microsoft is using this holistic approach to innovation in its
quest to compete with Yahoo and Google in the making of search engines (Byron,
2006). Meanwhile, Sitkin et al. (1992) posit that, there is strong evidence that cultural
values and beliefs influence the use of communication and information technology.
7

Again, Ming-Tung et al. (1994) reckon that culture influences the acceptance of
technology in industrial marketing contexts.
Hyundai Motor Company (2008) states that it is strengthening its position as a global
brand by encouraging employees to expand their cultural awareness by providing
products that meet the needs and tastes of customers in each specific region. This goes
to suggest that to Hyundai, culture has an impact in international marketing. For this
reason, the company sent employees to study the culture in Alabama when building a
site. But, Gaskill et al. (1993) maintain that the success or failure of any international
marketing strategy is not dependent on culture but rather management and marketing
strategy, finance and information. For example, Key to Hyundais success is its strategy
that considers customers needs as topmost priority in all spheres of businesses. This
customer-oriented management style requires leaders in organizations to be receptive
to new ideas and to think outside the box. And it is this that keeps Hyundai going but not
its beliefs in national culture (Thorpe, 2005).
A research conducted on the expatriate failure rates in the U.S., European, and
Japanese multinational companies, has shown that about 76% U.S. Multinational
companies have a 10% to 40% failure rate, and the rates of European and Japanese
multinational firms are 5% more than the U.S. (Hill, 2005). The major reason accounted
for this according to Neuliep (2003) is cultural shock since these expatriates become
confused and anxious in new country because of the unfamiliar cultural situations and
different cultural norms and values. Thus, had it not been cultural influences these
expatriates and their firms could have succeeded more in the international environment.
But, according to Barnett and Storey (2001:83), Tensators, UK Company, success is
their growth strategy that centers on grow-your-own. Thus,

the organization keeps,

train and develop the line of its skilled labours which makes the employees always
remain at the top of their game.
Dooley and O'Sullivan (2001) point out that as global competition continues to upsurge,
successful organizations think outside the box by providing innovative products and
services which guarantee successful marketing internationally, but not necessary
8

cultural issues. This suggests that international marketing is not likely to succeed even if
they pay the highest of respect to cultural issues but fail to innovate their products or
service to meet the changing needs of consumers. On the contrast, Matthews and
Thakkar (2012) maintain that it is easier to implement innovation and technology when
the culture of the organization and the nature are considered during the marketing
process. That is, no matter how superb a product or service may look if such does not
conform to the international local culture failure of the marketing is imminent. This fact is
furthermore impacted by the complexity of competition in global environment.
Samsung has become a global leader because of its zeal to the development of
technological capabilities. It believes that development of technology capabilities for
value creation in varied business contexts is ultimately the panacea for growth in global
competition (Park and Gil, 2006). This means that Samsung places premium in
advancing technology in its operations to beat global competition rather than relying on
national culture. However, taking into cognizance the impact of culture in the global
market Samsung engages small percentage of non-Koreans inside Korea but employs
higher percentage of non-Koreans outside of Korea (Ku-Hyun, 2009).

3.0 CULTURAL THEMES

3.1 Language
Ricks (1994) asserts that the most importance means of cultural identity is language;
hence its role in international marketing cannot be under-estimated. Marketing involving
communication so to guarantee this the marketer should have a well-grasp of the
language of the people where the marketing activity is taken place. This will help the
customers identify with the products or services as their own. Ricks (1994) further
stated, all other means of communication about the marketing products must be
understood by the people in their own language.

3.2 Belief system

Religious belief system is up for discussion since it is directly linked with culture, hence
has impact on the international marketing. For example a Starbucks franchisor in Saudi
Arabia was forced to remove the face under the crown in Starbucks logo because again
Saudi felt public display of a womans face was religiously immoral (Sullivan et al.,
2004). Again, financial institutions in Islamic countries are obliged not take interest on
advances made to customers due to their belief in the Quran teachings.

3.3 Aesthetic
Aesthetic theme of culture looks at folklore, arts, drama, music and dance of group of
people in a particular culture (Guillaumin, 1979). It is of particular importance to the
international marketer for it helps the marketer to adequately interpret signs and
symbols of artistic expression such as colour, numbers, and designs. For instance, in
most part of non-Islamic Africa black, red or brown colours represent death or danger
hence usually worn on funeral days. But the same colours represent happiness and joy
is Islamic world (Ghauri and Cateora, 2010). The understanding of the aesthetic aspect
of culture will inform the marketer about product packaging and advertisement
strategies.
For instance, Coca-Cola in 2010 had to withdraw its two-litre bottle in Spain after
discovering that few Spaniards owned refrigerators with large compartments to

10

accommodate it (Coy, 2010); a clear indication that culture impacts on international

marketing.

3.4 Cultural dynamism

One thing the marketer must understand is that markets do not occur or exist naturallythey become, they evolve, change, expand and contract in response to marketing effort,
economic conditions and other cultural influences (Ghauri and Cateora, 2010). It is
therefore expected that every prudent foreign marketer should view culture objectively,
evaluate and appreciate that cultures are not right or wrong, better or worse but they are
simply different. Marketers must understand their own culture and appreciate and
tolerate the culture of other people in other to improve communication, and build
relationships with the people to buy into their products or services (Czinkota and
Ronkainen, 2002).

11

4.0 CONFIRMATION OF THE LITERATURE BY PRACTICE

Despite the counter argument push forward by renowned writers, it is believed without
any shred of doubt that culture indeed impact on international marketing positively or
negatively depending on how it is handled and treated in international marketing
contexts.
Sullivan et al. (2004) maintain that the charging of interest and the purchase of accident
insurance are strictly disallowed under Islamic laws. This cultural belief definitely
impacts negatively on any financial institutions marketing strategy in particular and
profit in general.
Ghauri and Cateora (2010) state that in some countries especially Africa when an
advert of a product is done by a female exposing her sensitive body parts, it is
considered immoral or improper hence the product is likely to be rejected.
In the 1990s, Hyundai experienced problems when trying to expand production to
Canada primarily due to the failure of the company to adapt the design of the Sonata for
North American customers taste, a clear indication of cultural influence (Hyundai Motor
Company, 2008).
Language which forms important aspect of culture must be viewed from different
cultural settings since a common language cannot automatically set the seal on a
common culture when the geographical, political and economic determinants of the
culture are no longer the same throughout its area. For instance, the culture of the
English and the Irish in United Kingdom are quite different although they fall into same
geographic region (Corder,1989). A classic example is the withdrawal of Marks and
Spencers St Michael brand name from the Canadian market in 1999. The company
failed to recognize the fact that the St Michael image and product, so loved by its
domestic consumers, was not appealing to the Canadians-a clear case of cultural
issues (Robinson and Clarke-Hill, 199).
Many firms make the mistake of putting nationals from the parent companies in charge
of key positions within their foreign subsidiaries, often on the basis that fluency in the
language is sufficient without considering the cultural differences (Robinson and Clarke12

Hill, 199). A research conducted on the expatriate failure rates in the U.S., European
and Japanese multinational companies, has shown that about 76% U.S. Multinational
companies have a 10% to 40% failure rate, and the rates of European and Japanese
multinational companies are 5% more than the U.S. (Hill, 2005). The major reason
accounted for this according to Neuliep (2003) is cultural shock since these expatriates
become lost, confused and anxious in new country because of the unfamiliar situations
and different cultural norms and values.

13

5.1 RECOMMENDATIONS
From the discussions above, the following recommendations are made.
Foreign marketers are entreated to pay particular attention to the culture of the
environment within which they operate.
They must always abreast themselves with the cultural tunes in their area of operation
in other to adjust to the changing needs of the people.
Although technology enhance their operation and even serve as the driving force such
technology should be suitable to the culture they find themselves.
Leadership must also be seen as necessary push, hence must take centre stage for
international marketing to succeed.
It is envisage from the literature that it is technology that is driving the force of
international marketing in all spheres (Slowikowski and Jarratt, 1997). Therefore,
corporations marketing abroad should endeavour to adopt modern technology to ensure
efficiency.
Skilled marketer is an indispensable asset in the marketing of a companys product or
service internationally. No matter the technology and leadership influence, efficient and
effective marketer pushes the agenda. Therefore, marketers should be continuing
students of marketing and culture.

5.2 CONCLUSIONS
It is concluded that culture indeed impacts on international marketing.
Technology and leadership are also issues that are likely to impact on the international
marketing.
It is also concluded that the skills of the foreign marketer is also paramount in the
international marketing.
14

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