Brand image strategies for Canadian companies in the US, China, and India

International Marketing and Culture

Globalization has increased opportunities for international marketing and business for many companies that could not afford to do so in the past. Many researchers consider international marketing to be synonymous with exporting. However, they are not the same and international marketing is much more complex than simple exporting. When a company exports its goods, they already have a buyer. Many timesm this buyer is the local distributor for the goods and has to market to local clientele. The end distributor is immersed in the culture and already has an established business in the area. They already understand their market and the exporter is simply someone on the their supply chain. International marketing involves taking the place of the end distributor. This is a much more complex issue than simply being a step in someone else's supply chain. This research will support the thesis that establishing brand image in the United States will involve a different strategy than establishing brand image of in China and India for Canadian companies.

International Marketing Basics

International marketing involves more than simply placing goods in packages and preparing them for transportation. International marketing involves understanding the target culture and developing a marketing plan that will reach the target market. A lack of understanding of the local culture can mean disaster. Marketing techniques that work in one culture often do not work in a different culture. The international marketer must understand the language, the religion, values, attitudes, educational resources, social organizations, technology, laws, politics, and sense of aesthetics of the culture in which they wish to establish a market.

Language is often the greatest barrier that international marketers must overcome. Learning a new language goes beyond simply understanding the words. Every language has cultural elements that require an understanding of the contextual elements. High context languages do not always carry the extent of what is said in the words that are spoken. Some examples of high context languages include Japanese and Arabic. Applying the contextual rules of one's home culture to that of someone from a different culture can lead to the wrong message being conveyed. This can mean disaster for the international marketer. Making certain that the message is understood goes beyond interpreting the languages word for word. The following will explore contextual considerations for a business in Canada that wishes to establish markets in the United States, China, and India.

Chinese and Indian Market Entry Considerations

Underlying cultural differences are more evident between Canadians and Asian countries. Language difficulties are much more pronounced than with the United States. Cultural norms and customs may seem exotic to the marketer. Establishing a business in China or India may pose more difficulties from a social and political standpoint than establishing trade with the United States.

Runkel (2007) China and India pose lucrative opportunities for foreign direct investment. Both of these countries suffer from several conditions that may represent difficulties, such as a poor state of infrastructure, traffic problems, corruption, and a bureaucracy that makes it difficult to get things accomplished efficiently. From a technical standpoint, understanding the taxing regimes and issues involved in obtaining permits can represent difficulties. Yet, their expanding economies present many opportunities for those who wish to work to overcome the differences between these two worlds.

Language poses a more difficult problem with India and China than it does with the United States for Canadian businesses. Mandarin is still the most common language in China, but native English speakers find it difficult to learn. In India, English has become the accepted language for conducting business. In China, this is not the case (Runkel, 2007). From a marketing perspective, this is important because marketing to India would allow Canadians to use English, which is the native language for many Canadians. However, marketing to China would require that that firms hire someone who has more than a basic understanding of mandarin. Attempting to force the Chinese to accept commercial advertising in English would be to violate their cultural norms and could result in losing the market entirely. If the customer is insulted, they are not likely to make purchases. A feeble attempt at understanding a context-intensive language such as mandarin would be seen as an insincere attempt to take their money. The Chinese value of strong relationships and it can be difficult for an outsider to enter into their world.

Currently, over 90% of all businesses in Canada see China and India as an essential key to continued market growth (Nguyen, 2011). Yet, the same poll indicates that they do not feel that that relationships that are currently as strong as they need to be in order to accomplish these goals. Cultural differences are at the heart of difficulties in establishing relationships between Canadians and the Chinese. Klein (2010) found that in addition to product, price, place, and promotion, businesses marketing to countries such as India and China need to add a fifth P. To the mix. They need to consider social purpose and exhibit good corporate citizenship. These characteristics are important in Asian countries, regardless of how desirable the product might be. It is not all about the money India and China. The company must add some type of value to the local and national economy if they wish to do business in India and China.

The role of government in China and India must be understood. In China, the government may be the customer or the owner of the enterprise. The government in India is rather inefficient (Khanna, 2008). Interactions with the government are part of that country's culture and must be understood before the business can even begin to build a following in that country. A second cultural difference between the two countries is their openness to outside influence and the foreign direct investment. India has embraced foreign direct investment largely as a result of China's influence in this regard (Khanna, 2008). China followed an extreme path of in the allowance of foreign direct investment in order to boost its own economy. India was not as extreme in embracing higher foreign direct investment levels (Khanna, 2008).

Rural and class divides play a more important role in marketing to Asian countries than to the United States. This is especially true in India, where although the cast system has been abolished officially, it still exists as a social and cultural construct (Khanna, 2008). Understanding the caste system is essential for marketers wishing to pursue to target market in India. Social norms in China still divide the population. Strict social norms in India and China dictate purchasing habits of the citizens.

Culture has several important characteristics. The first, is that culture is comprehensive, which means that its parts fit together in a logical fashion. The second characteristic is that culture is learned rather than innate. The third is that culture is manifested by the boundaries that society sets (Perner, n.d.). Another characteristic that a marketer must understand about culture is that it is often not conscious. For instance, most do not pay attention to the way they hold their fork, until someone from a country such as the United States of travels to Europe. Then these differences become apparent. Cultures also fall on a continuum as to how rapidly they accept changes (Perner, n.d.). Culture is a difficult concept for international marketers to understand because it is often difficult to put into terms that are tangible.

Hofstede (2001) characterized the cultures according to the five traits. These traits are useful in characterizing cultures and making generalizations, but they are not enough to understand the intricacies of marketing to a different culture. Marketing to a different culture requires the same type of market research that one would conduct in their own culture. It is important to make certain that the research is conducted in a manner that is culturally relevant, so that the meaning of the research translates directly into the intended marketing campaign. Conducting market research remains the background of marketing, whether of the target market is from one's own culture, or whether they are from a different culture.

Customer relationship management has been restricted to studies conducted in the United States. Little exists for businesses that wish to do business in developing markets. Understanding cultural differences will play a key role in the development of extended customer relationships (Kumar, Sunder, & Ramaseschan, 2011). The value of customer relationships differs among customers with diverse cultures. For service providers of with past relationship with customers, service failures are stronger among consumers that have had a prior relationship due to established trust (Hui, Ho, & Wan, 2011). A service failure has a greater impact on destroying customer trust than for new customers that do not have a preconceived idea of the service provider. Customer relationships play an important role in establishing a market base in China and India as compared to the United States. (Kumar, Sunder, & Ramaseschan, 2011).

The purpose of this study was to determine differences in the establishment of a market base in the United States and in India and China for Canadian companies. There are many factors to take into consideration when establishing a business in a foreign country. This essay explored cultural factors that will influence the ability of to obtain and retain a market base. From a cultural perspective, it is easier to establish a market base in a country that has similar ideals to one's own cultural background. From this perspective, it would be the easier to establish a market in the United States, as the countries have similar of characteristics according to Hofstede.

The cultures of China and India differ significantly from the Canadian culture. Not only are there significant language barriers, but there are differences in class structure which must be understood the in order to decide upon a target market. In the markets in India and China are highly segmented, more so than in the United States. Although the cultures of India and China are more homogeneous than that of the United States, a lack of infrastructure and existing communication barriers make it more difficult to access a larger geographic segment. Communication technologies, such as the Internet, are available in major urban centers, but rural ability to conduct the sections of India and China remain inaccessible for marketing purposes. Vast differences exist demographically between various sections of China and India. Cultural understanding of these areas is essential in the ability to conduct a successful marketing campaign.

Cultural differences play an important role in marketing campaigns that involve foreign direct investment. Canada wishes to expand marketing relations with the United States, India, and China. The question that Canadian businesses will face in the near future is which of these prospects will be the best choice. There are many other factors to consider other than culture, such as the legal framework, political environment, and tax structure, but culture will be one of the biggest factors in the ability to develop a successful target market. It does little good to overcome all of the legal and bureaucratic hurdles only to find that their marketing plan demonstrated a lack of understanding of the cultural elements involved. The importance of understanding of cultural dimensions cannot be over stressed in the field of marketing.