4.3.3 Cultural/social factors Theme 4 Global business Describe your own culture. What are the defining characteristics? How do these differ from other cultures you may be familiar with? Have you visited any countries where the culture is different? 4.3.3 Cultural/social factors

4.3.3 Cultural/social factors In this topic you will learn about Considerations for businesses: cultural differences different tastes language unintended meanings inappropriate/inaccurate translations inappropriate branding and promotion

Cultural/social factors Cultural/social factors are the lifestyle, customs and values of a group of people. Why did Tesco fail in the USA? https://www.theguardian.com/business/2012/dec/09/fresh-not-easy-tesco-british-failure-america

In small groups choose a country and read up on business etiquette. Cultural differences Cultural differences occur because different types of people have different lifestyles, customs and values. 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. In small groups choose a country and read up on business etiquette. Explain to the rest of the class what are the key requirements of doing business in the country of your choice. http://www.worldbusinessculture.com/

Is this the end of the special relationship? Different tastes Taste is subjective and is dependent on the individual. However, upbringing and the environment in which one lives have had a significant impact on this. Is this the end of the special relationship? https://www.youtube.com/watch?v=q_BxxyhPFNs

Language Language barriers can cause significant issues when doing business. 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. It looks unprofessional and can compromise a deal if the marketing of a product is let down by poor language. Wife cake and evil water: The perils of auto-translation. http://www.bbc.co.uk/news/business-36638929

Unintended meanings 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 connotations. Without appropriate insight into different cultures and societies this can cause significant problems for a business, even destroying its reputation. This means that the business would have to redress the situation by increasing the marketing budget to restore its brand image. HSBC https://www.youtube.com/watch?v=mUCODUvKbzE&index=7&list=PLAEKUX2eV4jJEqwQnxJjXjlz09G7GGk7f

Inappropriate branding and promotion 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 redress the situation by apologising and rebranding the product. Cultural blunders! http://www.campaignasia.com/article/cultural-blunders-brands-gone-wrong/426043

Discussions To what extent are cultural clashes likely to be the biggest problem when one business takes over or merges with another business? To what extent should cultural factors be the biggest consideration when developing global marketing campaigns?

4.3.3 Cultural/social factors In this topic you have learnt about Considerations for businesses: cultural differences different tastes language unintended meanings inappropriate/inaccurate translations inappropriate branding and promotion