Culture and its influence on the promotion in international marketing
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INTRODUCTION 3 1. CULTURAL EFFECTS ON PROMOTION 4 1.1. PROMOTION 4 1.2. CULTURE 7 2. CULTURAL ANALYSIS 10 2.1. JAPAN 10 2.2. UNITED STATES OF AMERICA 12 2.3. AUSTRALIA 14 2.4. CONCLUSION 16 3. KITKAT 17 3.1. THE BEGINNINGS 17 3.2. JAPAN 18 3.3. UNITED STATES OF AMERICA 24 3.4. AUSTRALIA 30 3.5. GLOBAL PROMOTIONAL CAMPAIGNS 34 CONCLUSIONS 35 BIBLIOGRAPHY 37
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INTRODUCTION The multicultural feature of the international environment supposes the understanding of countries' particularities. Culture has a strong impact upon consumers' buying process, representing the main reason behind their behaviours. Despite the globalisation trend, which aims to suppress the contrast between nations, cultural aspects still represent an essential subject due to their importance for marketing and promotion, especially. This subject represents an interest for international marketers and for international business students. I chose to study the influence culture has on promotion in the international climate due to its relevance upon the marketing strategies' adaptation to each market. It is engaging to observe how cultural elements contribute to the promotion techniques and to the reason behind the customers' behaviour. Promotion has three main objectives, namely: informing, persuading and reminding the customers about the company's products. A country's culture influences the way in which these objectives can be achieved. Jaspreet Kaur and Roopkamal Chawla (2016) reached the same results and conclusions in the paper: "Impact of Culture on Marketing Strategies". The purpose of this paper is to highlight the cultural importance when creating a promotional plan. I wish to show different approaches to the diversity of the international environment. The thesis is structured in three chapters. In the first chapter, I studied the theoretical aspects of promotion and culture, with their elements, to better understand the base of these subjects. I provided examples of international companies and their approach to promoting their products on different markets, showing what happened when marketers did not appropriately research the culture of those markets before implementing the strategies. In the second chapter, I discussed the cultural features of three markets: Japan, United States of America and Australia, which I found very interesting and with divergences worth studying. I approached several cultural elements of each culture, showing the discrepancy and uniqueness between them. In the last chapter, I chose to present a case study of Nestle's brand, KitKat. This part is also focused on the three countries mentioned above, which represent important markets for KitKat. It starts with a short history of the KitKat chocolate bars, followed by the most relevant promotion strategies of Nestle in the three markets, showing how KitKat managed to adapt and succeed on all of them, despite the cultural discrepancy. Finally, I presented two global campaigns, to briefly show the standardised part of KitKat's promotion. 1. CULTURAL EFFECTS ON PROMOTION 1.1. PROMOTION Considering the thesis's topic, this chapter will focus on promotion and its relevance in international marketing. Promotion is one of the four elements of the marketing mix, along with product, price and place. Cultural aspects from a different market than the home market may influence the promotion strategy of a specific product or service, therefore a need for either adaptation or standardisation occurs. It is critical for international marketers to decide to which degree the product and its promotion are to be adapted in order to fit the consumers' needs and wants and to spike up their interest, but as well preserve the product's uniqueness and original features. According to J.E. McCarthy, promotion is "any type of marketing communication used to inform or persuade target audiences of the relative merits of a product, service, brand or issue". Its main purpose is to differentiate a product or a service from the competitors', offering information and incentives, which finally will attract the customers into buying it. Promotional goal can also represent an increase in the brand awareness; making the company's values well known. When the concept of promotional mix was first developed, marketers referred to 4 tools; according to Philip Kotler these are: - Advertising (through television, magazines, posters) - Personal selling (such as telemarketing or sales presentations) - Public relations (events, periodical reports, press releases or corporate image) - Sales promotions (samples, coupons, competitions) In the past years, due to technological improvements, the promotional mix includes new tools, which do not fit perfectly within these 4 categories. For example, direct marketing, which includes mail, e-mail, mobile applications and catalogues can be a 5th category of the promotion mix.
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