Niche Markets - Cultural and Social considerations for businesses - 4.3.2
Cultural/social factors - are the lifestyle, customs and values of a group of people.
It is important for a business to recognise these factors when targeting markets. Without an insight and understanding it is likely that a business will fail to establish a significant presence in the market. It is essential that a business understand the requirements of the target market, whilst at the same time ensuring that it does not use inappropriate marketing, very likely innocently, to upset them.
Cultural and social factors include the following;
Cultural differences occur because different types of people have different lifestyles, customs and values. For example, in India a handshake for a business meeting is considered critical, though Indian women are not supposed to shake hands with men. Any drink such as tea must be accepted as a sign of a willingness to do business. Therefore their perception of situations is different. Language, behaviour and gestures are interpreted differently. This means that businesses must employ people that have an awareness of the cultures of the markets in which they are operating. This becomes more complex when dealing with a variety of cultures at the same time e.g. often seen in cosmopolitan centres such as London. Understanding other people's behaviour, whilst being able to put forward ones own views in respectful way, are clearly important.
Different tastes means that a business must ensure its product or service reflects local preferences. Taste is subjetive and is dependent on the individual. However, upbringing and the environment in which one lives have had a significant impact on this. This means that businesses can use their understanding of culture to help market their products. Promoting products based on ethnicity, for example, will ensure that a marketing budget is more likely to be spent effectively. Again, having self-awareness and an understanding or where other people are coming from, ensures that the business is likely to be more successful. Primary and secondary research can help to ensure products meet the needs of the local population. In India, many of the population do not eat meat, so McDonald's has created a unique menu including the Maharaja Mac, a vegetarian burger.
Language barriers can cause significant issues when doing business. Often, English is seen as the business language and it is clear that many business people are happy to negotiate using English. However, with vast new markets, such as the BRICS countries, having opened up in the past two decades, being able to market products in other languages effectively is increasingly important as well as having access to professional translators. It looks unprofessional and can compromise a deal if the marketing of a product is letdown by poor language. a poor letter of application might mean not getting an interview. In the same way, poor advertising based on language can lose customers. In China, variants of the language are spoken across the country, so different translators are needed to ensure marketing materials are accurate and convey the correct meaning. Unintended meanings need to be avoided at all costs as this will risk damaging the product and the brand in the new market.
Unintended meanings occur when the message being portrayed by the business is taken to mean something else by the potential market. Often this is based on factors such as gestures and hidden conotations. Without appropriate insight into different cultrues and societies this can cause significant problems for a business, even destroying its reputation. This means that the business would have to readdress the situation by increasing the marketing budget to restore its brand image.
Inappropriate/inaccurate translations occur when the language being used to promote a product is not converted accurately. This could include the wrong words being used, brand names sounding like something else in the local langauge, and a brand name being associated with local slang. This can cause significant embarassment for a business and will imapct on the brand name in the short term. There are numerous examples of businesses advertising their products through offensive terminology as the business hasn't undertaken adequate research. For example, when Coca-Cola entered the Chinese market, it named its product something what when pronounced sound like Coca-Cola. The only problem was that the characters used meant "bite the wax tadpole". When the company learnt of its blunder, it changed to a set of characters than mean "happiness in the mouth".
Inappropriate branding and promotion occur when a business has not thought through the consequences of a marketing campaign, using unsuitable messages aimed at the target audience. This can be very upsetting for some members of the society being targeted and can lead to numerous complaints and even campaigns leading to a backlash against the business. Once again, reputation suffers and the business will have to readdress the situation by apologising and rebranding the product. For example, Colgate, the dental product manufacturer, introduced toothpaste in France called "Cue", the name of a notorious pornography magazine.
It is important for a business to recognise these factors when targeting markets. Without an insight and understanding it is likely that a business will fail to establish a significant presence in the market. It is essential that a business understand the requirements of the target market, whilst at the same time ensuring that it does not use inappropriate marketing, very likely innocently, to upset them.
Cultural and social factors include the following;
- Cultural differences
- Different tastes
- Language
- Unintended meanings
- Inappropriate/inaccurate translations
- Innappropriate branding and promotion.
Cultural differences occur because different types of people have different lifestyles, customs and values. For example, in India a handshake for a business meeting is considered critical, though Indian women are not supposed to shake hands with men. Any drink such as tea must be accepted as a sign of a willingness to do business. Therefore their perception of situations is different. Language, behaviour and gestures are interpreted differently. This means that businesses must employ people that have an awareness of the cultures of the markets in which they are operating. This becomes more complex when dealing with a variety of cultures at the same time e.g. often seen in cosmopolitan centres such as London. Understanding other people's behaviour, whilst being able to put forward ones own views in respectful way, are clearly important.
Different tastes means that a business must ensure its product or service reflects local preferences. Taste is subjetive and is dependent on the individual. However, upbringing and the environment in which one lives have had a significant impact on this. This means that businesses can use their understanding of culture to help market their products. Promoting products based on ethnicity, for example, will ensure that a marketing budget is more likely to be spent effectively. Again, having self-awareness and an understanding or where other people are coming from, ensures that the business is likely to be more successful. Primary and secondary research can help to ensure products meet the needs of the local population. In India, many of the population do not eat meat, so McDonald's has created a unique menu including the Maharaja Mac, a vegetarian burger.
Language barriers can cause significant issues when doing business. Often, English is seen as the business language and it is clear that many business people are happy to negotiate using English. However, with vast new markets, such as the BRICS countries, having opened up in the past two decades, being able to market products in other languages effectively is increasingly important as well as having access to professional translators. It looks unprofessional and can compromise a deal if the marketing of a product is letdown by poor language. a poor letter of application might mean not getting an interview. In the same way, poor advertising based on language can lose customers. In China, variants of the language are spoken across the country, so different translators are needed to ensure marketing materials are accurate and convey the correct meaning. Unintended meanings need to be avoided at all costs as this will risk damaging the product and the brand in the new market.
Unintended meanings occur when the message being portrayed by the business is taken to mean something else by the potential market. Often this is based on factors such as gestures and hidden conotations. Without appropriate insight into different cultrues and societies this can cause significant problems for a business, even destroying its reputation. This means that the business would have to readdress the situation by increasing the marketing budget to restore its brand image.
Inappropriate/inaccurate translations occur when the language being used to promote a product is not converted accurately. This could include the wrong words being used, brand names sounding like something else in the local langauge, and a brand name being associated with local slang. This can cause significant embarassment for a business and will imapct on the brand name in the short term. There are numerous examples of businesses advertising their products through offensive terminology as the business hasn't undertaken adequate research. For example, when Coca-Cola entered the Chinese market, it named its product something what when pronounced sound like Coca-Cola. The only problem was that the characters used meant "bite the wax tadpole". When the company learnt of its blunder, it changed to a set of characters than mean "happiness in the mouth".
Inappropriate branding and promotion occur when a business has not thought through the consequences of a marketing campaign, using unsuitable messages aimed at the target audience. This can be very upsetting for some members of the society being targeted and can lead to numerous complaints and even campaigns leading to a backlash against the business. Once again, reputation suffers and the business will have to readdress the situation by apologising and rebranding the product. For example, Colgate, the dental product manufacturer, introduced toothpaste in France called "Cue", the name of a notorious pornography magazine.
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