Assignment no – 4

Cross Culture Relationship Marketing

Cross Cultural Issues in

International Marketing
(Negotiation &
Communication)

Name - Akshay R. Tapkir

Roll no – 115
Specialisation – Marketing
Introduction
 With faster communication, transportation and financial
flows, the world is rapidly shrinking.
 Brands & products originating from one country –are finding
enthusiastic acceptance in others.
 International trade is booming. Since 1969, the number of
multinational corporations in the world‘s 14 richest countries
has more than tripled from 7,000 to 24,000.
 Imports of goods and services now account for 24% of gross
domestic product world wide, double that of 40 years ago.
 World trade now accounts for 29% of world GDP, a 10%
increase since 1990.
Culture
 Culture is defined simply as the learned distinctive
way of life of a society.
 The dimensions of culture include:
 The social organization of society,
 Religion,
 Customs and rituals
 Values and attitudes towards domestic and
international life,
 Education provision and literacy levels,
 Political system,
 Aesthetic systems (e.g. folklore, music, arts,
literature) and language.
 Each country has its own traditions, cultural norms
and taboos.
Impact of culture
The pace of business;
Business protocol—how to physically and verbally meet and interact;

Decision making and negotiating;

Managing employees and projects;

Propensity for risk taking; and

Marketing, sales, and distribution.

Japanese colour TVs dominating Chinese market in 1980s

China banned a Nike television commercial showing U.S.
basketball star LeBron James in a battle with animated cartoon kung
fu masters and two dragons, because it was argued that the ad insults
Chinese national dignity.
In 2005 France’s Catholic Church won a court injunction to ban a
clothing advertisement based on Leonardo da Vinci’s Christ’s Last
Supper.
Cross Cultural Communication
All communication is cultural -- it draws on ways we
have learned to speak and give nonverbal messages
Any cultural ignorance or carelessness on the part of the executive
might lead to
communication blunder
Verbal & Non-verbal communication both are inter-related and
decide the fate of a country/ region specific company business
portfolio.
Many cultural communication variables that decides the
course of successful business communication :
- Greetings
- Negotiation styles
- Attitudes to time
- Meaning of numbers
- Gift giving customs
 Cross Cultural Communication
The most important reason to understand cross cultural
communication is to improve relations with the diverse groups of
people we encounter. If left ignored, communication differences will
inevitably lead to various types of miscommunication which may
lead, in turn, to conflicts and cause uncertainty.
In some cultures, particularly those in East Asia, silence is
acceptable and indeed desirable.
Examples
 In Japan, Diet Coke‘ was renamed Coke Light‘ after the firm
learned that the term diet‘ carried an embarrassing connotation
 North American companies have a long history of marketing
blunders in the international marketplace. The most famous
example is GM‘s attempt to sell the Chevy Nova in Mexico
despite the fact that ―no va is Spanish for ―no go.
Cross cultural Negotiation
 Negotiation is simply a process where two or more parties attempt
to resolve perceived incompatible goals.
There are two types of negotiation: it may be transactional
which deals with buying and selling of goods, or it may be
geared towards conflict resolution.
There are four cultural dimensions which are most likely to affect the
negotiation process
• Individualism versus Collectivism
• Hierarchical versus Egalitarianism
• Indirect communication versus Direct communication
• Monochromic or polychromic
 Cross cultural Negotiation
The written contact expresses the relationship,
the essence of the deal is the relationship itself.
For example in a survey of over 400 persons
from twelve nationalities, reported fully in The
Global Negotiator, It was found that 74 % of
the Spanish respondents claimed their goal in a
negotiation was a contract, only 33 % of the
Indian executives had a similar view.
The difference in approach may explain why
certain Asian negotiators, whose negotiating
goal is often the creation of a relationship, tend
to give more time and effort to negotiation
preliminaries, while North Americans often
want to rush through this first phase of deal
making
How to deal with cross cultural issues
 Negotiating across cultures poses a
great challenge to any negotiator.

The best approaches to deal such

situations are through :
Preparation
Avoid Stereotypes
Discover new ways to bridge
cultural gaps
Participate in active listening
Promote healthy dialogue – Use
agent/ interpreter for
communication clarity
 Conclusion

In cross cultural negotiation, one should always try to apply the method of
principled negotiation.