Friday 24 May 2013

Ethnic marketing and the different cultural dimensions


1. Introduction

The man in his desire to know, measure and control everything has develop remarkable capacity for the study of the phenomena that occur. The positive paradigm of approaching the discovery of reality has certainly shown multiple benefits, as their thoroughness, accuracy, statistical and control variables among many other factors allowed drawing conclusions valuable in different areas of knowledge and progress.

This way of studying sees appropriate precisely because of its benefits in controlling and monitoring. However, this puts to manifest that human beings should not be mere variables to be studied, rather, people with specific roles that need to be understood and measured in some respects but not in all. Reference to Geertz shows that the analysis of culture doesn't has to be an experimental science in search of laws, but an interpretative science is search of meanings.

The work of Lindridge & Dibb found that a new school of thought has emerged in marketing that sees marketing as a social process where culture plays a role as the backdrop for the development of consumption pattern of certain products and services. They have been gaining a symbolism not imagined before; in this new tendency, marketing is part of a given culture (Farmer, 1981).

2. Marketing to multicultural audiences

Marketing to multicultural audiences has relied on ethnicity as a historical construct from the principles that operate within each human group. According to Schein culture with all it symbolism its printed in human behavior and the ethnic marketing begins to unravel the unknowns behind the values and beliefs as well as the core or the cultural roots. This new approach of marketing which segments culture is breaking the traditional approach of marketing that tries to reduce it to an universal formula with superficial variations (Gronroos, 1997) without paying attention to the adjustments that need to be made to function in today's new hypercompetitive (Child, 2005) environment.
           
            2.1 Ethnicity
Despite the different approaches made in the social sciences to the issue of ethnicity. They continue to be vast and complex, professionals on marketing have preferred anthropological and sociological studies to explain the phenomenon of ethnicity. From a marketing perspective, the studies about ethnicity have been closely tied to consumer behavior but, the majority have involved with ethnic groups living in developed countries and often they don't evaluate anything that is not culturally relevant outside their own culture (Costa & Bamossy, 1995).
However, the popularity of ethnicity as a theoretical construct according to Banton (2011) is because the ethnicity concept arranges people separating them by their status, where groups are formed according to differences or attributes of common origin.
            2.2 Etnoconsumerism
Venkatesh gather consumer consumption data in cultural, social and individuals aspects in the same analytical effort and proposed "Ethnoconsumerism"(1995), as the study of consumption from the viewpoint of the social or cultural group to which one belongs. This new paradigm in consumer behavior uses theoretical categories within a given culture and studies the consumption utilizing their behavior and the way one thinks. Ethnos, nation or group is used in its classical sense as a group of cultural practices of a given culture. However, the notion of consumer not just evaluates their value system, beliefs, symbols, rituals and daily practices the Ethnoconsumerism forces researchers to look at the individual as a cultural being, as a part of culture of a subculture and other kind of group affiliations (Venkatesh, 1995). 

The opinion of Davies & Fitchett is that Ethnoconsumerism joint the study of the consumer value systems and their belief systems, rituals and daily practices, all interwoven in a holistic view of the consumer with several different levels.  These levels of study include symbolic systems of beliefs, norms, practices and rituals and, the study of the social organizations and institutions, and finally the study of the individual; this includes personality, knowledge, behavior and other mental constructs.

            2.3 Cultural dimensions in markets
The work of Gorobets & Nooteboom indicates that from accepting the fundamental idea of postmodernism in which the individual has no autonomous consciousness but he needs an interactive communication with others to develop their own identity. Meaning that the communication process does not occurred but rather arise from the interaction which hence that the context is dependent and there is no universal or permanent meaning but rather they are continuously changing.

It's vital to understand that the design and implementation of marketing must be based in the importance assigned to the communication process in addition under this approach according to Spillman the markets need to be seen as process in construction from the meaning assigned to the objects; subject to exchange of the parties involved and the rules governing these exchanges.
                        a. Cultural objectives for trading
Although many professionals assume that the products that are in the market had sufficient reason not matter what, to be there, leaving aside the process of symbolization that they have suffered since its conception (Kotler & Keller, 2009). This process of social legitimation differs between different cultures in the world, and unequivocally corresponds to the values, beliefs and dominant cultural assumptions Mead & Andrews, 2009). The significance that is assigned to a product, good, service or idea needs to keep a close relationship with the cultural patterns of the people who will use it.
                        b. Cultural meaning of the trading parties
Reference to Spillman shows that quite to the contrary to what is been thought in marketing, transactions are within groups and they can be nations, families, etc., or people who represent a specific group and not to individuals. Traditionally marketing has assigned counterparts what Spillman calls the social image of a market that is defined by geography, ethnic, racial, social class, etc., among others. However, the most used in marketing is social class in which potential partners of a group seek to acquire products that will symbolically make them part of a higher social class or further refinement within their group.
                        c.  Cultural trade standards
Typical the exchanges in markets are characterized by the competition among buyers and sellers, in which both sides look for profit for their organizations in the transaction, and is the market agents who will interpret and evaluate the transaction under such rules. This implies that through rewards and punishments the rules and the boundaries of each transaction can be establish for each transaction executed. This rituals associated with such standards of behaviors symbolize such regulations of behavior and human acts (Paramo, 2005).

            2.4 Market oriented organizational cultures
Among the modern forms of organizational cultures are those with a specific market orientation suggested that a business that enhances their understanding of market requirements can improve its overall performance. Establishing a market-oriented organizational culture is related with the implementation of the same market concept throughout the organization an example of this culture put into practice is TESCO according Bell & Feiner. In other words, they need to create and promote a market-oriented organizational culture that evolves efforts that every one of the functional units that make up the organization has it always present (Slater & Narver, 2000). This means that to become successfully a market-oriented organization needs to build relationships thinking in the long-term perspective, setting strategies that enables them to become potential customers into loyal customers (Kotler & Koller, 2009).

3. The proposition of cross-cultural marketing

Geertz states that the inductive nature of the cultural studies, which instead of following a rising curve of cumulative findings, the cultural analysis develops in a consistent coherent sequence and are, immersed deeply getting better information and conceptualization. However, he warns that cultural analysis is intrinsically incomplete, and what is worse is that the deeper that the analysis is the less complete it is.

In the context of uncertainties and the many paths open to meet to today's consumers managers have found that cross-cultural marketing combines two disciplines anthropology and ethnography as a new discipline of thought and action " Ethno-marketing" which is as mechanism that stimulates and responds to business relationships in each possible variable (Paramo, 2005). 

Furthermore, three main basic functions for managers can be summarized for achieving the objectives of organizations first, consumer understanding, second conquering buyers and third retain customers. However, the concept and practice of marketing depends of the conditions detected, analyzed and interpreted and these conditions are determined by the dominant cultural patterns and schemes.

4. Strategic model of cross-cultural marketing

Cross-cultural marketing uses culture as a launching pad in the process of understanding, conquering and retain customer by using different and more effective source of information bringing together the evidence needed to decide the strategic direction, plans and programs that need to be implemented. Let seen in detail each of this functions (Geng, 1997).

            4.1 Consumer understanding
The use of anthropology and ethnography helps to decipher the most hidden aspects of the consumer personality because human behavior is not always appreciated at first glance; humans tend to hide any behavior that can hurt them. Only from the analysis of the phenomenon of consumption, their expressions, context, rituals, it is possible to know, categorize, quantify and characterize consumers. Understand consumers should result in a clear and convincing explanation of the complexities that typify human beings from the act of consumption (Bergadaa, 1990).

            4.2 Conquering buyers
The conquest of buyers emerges as one of the key actions to be taken by any organization looking to hold onto market profitability. The pressing need to introduce to the market attractive offers, so that the consumers have true freedom at the decision level organizations must develop a package of actions to help you show as the best alternative for consumers to chose.  This offer, unlike what many believe is constituted the good, services or ideas by the whole organization therefore decisions must encompass the totality (Kotler & Keller, 2005).

                       
            4.3 Retain customers
Led by the financial provision that is cheaper to retain customers than reach new buyers, cross-cultural marketing has the ide of structuring a set of activities designed to retain and keep all those customers who in one way or another have ever been in contact with the organization. This suggest that organization resources are intended to create internal system to ensure access, classify, cultivate, but above all consolidate the relationship with customers. All of this with the philosophy of continuous feedback which will facilitate to correct or adjust the course of the policy of the organization (Geng, 1997(.

Implement this set of activities means, in some way to define the specifications of the function of cross-cultural marketing (Amaldoss & Jain, 2005).


5. Multicultural marketing, organizations and ethnography

Culture it's is seen in all areas life (markets, organizations and individuals). The beliefs, values and traditions of the participants are those that determine the behavior of individuals and organizations as cultural beings participating in cultural exchanges (Mowen & Minor, 2000) and since culture plays a strong role in the foundations of how one thinks, feels and behaves. Culture has become the central feature of the performance in organizations determining if the organization will be high or low performer (Bickerstaffe, 2002). An example of a company embracing this policy is Schlumberger conducting business in more than eighty countries, and their employees are from more than a hundred nationalities (Anon, 2011).

Ethnography not only establishes the context and subjective meaning of the experience of a group of people, but also seeks to carry on a comparative basis and interpreted the cultural significance of that experience. To fulfill their role ethnography uses different methods for collecting and interpreting data (Arnould & Wallendorf, 1994).

6. Multicultural marketing implication and strengths

In multicultural markets is worth to explore their complexity in one hand are the historical and social backgrounds of the consumer and organizations and in the other hand, emerge the traditions and customs of the market segment, in which everyone will be looking for the satisfaction of those that are taking part in the exchanges. The proposal of multicultural marketing changes drastically the traditional view of consumption and the strategic paths (Geng, 1997).

 In this new paradigm culture can no longer be seen as another environmental condition that influences the organization in its decision making process culture is the central issue need it to be investigated in each type of beneficial exchange that takes place between the organization and the markets it serves. This new paradigm Peñaloza points out that take advantages of an approach to marketing from the cultural perspective. This will allow first, a full exploration of the cultural dimensions in the activities of marketing. Second, to take all sectors as the unit of analysis. Third, use market research in a productively and applicable way to markets and finally takes into account the opinions of marketing professionals about the effects they have experienced during the development of marketing activities.

7. Bibliography

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