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Wal-Mart paper IntMark.doc
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1.2. Material culture and its influence on consumer behavior

Anyway culture includes every part of life. Different anthropologists have different ideas about what culture consists of. In this paper we will divide culture to material and nonmaterial. As for material culture, according to P.R. Cateora, it consists of technology and economics (1). It affects the level of demand, the quality and types of products demanded, their feathers, distribution. So economic characteristics represented by the level and distribution of income may limit the desirability of products as well. Some products or services are probably unwanted in some countries. Expansion of new technologies is important, for example, during the promotion. It is no reason to make a big Internet advertising and e-mail selling in countries, where world web is not spread.

Material culture was appreciated by Wal-Mart experts as well. Of course, they understood how financially attractive are Latin America countries as Mexico, Argentina and Brazil. Their population and growing economy made them one of the most appealing regions of international entry. Moreover, average income in these countries is not high and consumers prefer to buy low-cost products. Heaven for low-cost products retailer! The same situation is in Asia. Policy of low costs in these countries is always advantageous.

Other merits in this aspect have Europe and Canada. Their cultures are very developed. They prefer to find new information in Internet. You should pay attention to advertising in social networks and World Web at all. Their information environment is full of spam so you need to break through the «noise». Wal-Mart is well known by its guerilla marketing actions in the USA, they applied the same in these countries. It was a good way to draw «bored Europeans consumers» attention.

1.3. Language as a key to cultural differences in international marketing

Another problem in making your business international is language. Our language helps us to interpret the environment. As M. Kotabe claims that it is 2 facets of language which have a bearing on marketers:

  • the use of language as a communication tool within cultures;

  • the huge diversity of languages across and within national boundaries (4).

It is actually a huge problem for communication process during the promotion. Marketing managers should evaluate every word and phrase. Language blunders easily arise as a result of careless translations of advertising slogans or product labels. Mistranslations can convey the image that company does not care about its international consumers. In many markets, for example China, marketers should think if they want to save original brand name or to adopt a localized brand identity. Sometimes companies prefer to create equivalent names that sound positive in countries’ language.

In case of Wal-Mart language also played a big role. First of all, company began its international growth in English speaking country – Canada. After that it strived for success in Europe, and one of the first countries of entry was Great Britain. Company’s managers considered that it is the best way to make a first effort. Work in native-speaking countries does not need much adaptation. You should be caution, but feel yourself rather free.

Language is really important, it makes our culture. Wal-Mart managers understood this fact. Because of that we can see a strategy: first steps in English-speaking Canada and UK (in Europe); after Spanish-speaking countries – Mexico, Brazil, Argentina; after much more diverse languages – Chinese, Japanese, Hindi, Russian. Link between complexity of language and understanding of countries cultural differences is undisputed.

A for brand name Wal-Mart adopted its brand as well. In Mexico – Sam’s Club and Wal-Mex, China - Sam’s Club and Supercenter, Germany – Wertkauf and so on. It makes company closer to their consumers and their target audiences.

To sum up, Wal-Mart used the principal that if you want to make consumers to behave the way you need (means to make shopping in your supermarket) you should prove them that your company is the right choice, but you should tell them this fact using their language. It helps to show that company is close to the consumer and takes care about him; with this organization he/she will feel himself free and save. It gives a chance to acquire some degree of empathy as well.

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