Apr 21

In recent years the once ascending star of Asian cinema, Bollywood, is increasingly making its mark on foreign markets while Hollywood’s hit engine is losing traction in the East. Some of Hollywood’s biggest releases are missing in some Asian markets where home-grown cinema is on the rise. In Japan, for instance, an increasing number of successful movies which often stem from the global phenomena manga are locally developed and filmed. International film makers are increasingly seeing the challenges of making movies for a global market and selling across cultures.

Film Oleksiy Mark i Global Marketing – Making and Selling Movies across Cultures

© istockphoto.com/ Oleksiy Mark

In an effort to adjust to these dynamic cultural environments, Hollywood has started to produce Western-friendly versions of Asian films that they are now selling across cultures. For example, the Hong Kong film Infernal Affairs was remade into the western version called Departed a few years ago and was a huge success in the West. This adaptation of films from one culture to another works both ways, evident in the recent remake of classic Hollywood success film Ghost for an Asian audience called Gôsuto.

Another illustration of this East-West relation and effort to sell films across cultures is the growing trade that now exists between Hollywood and the writing talent of Korea which gives American cinema fresh perspectives and exciting new voices in cinema. Koreans can take advantage of useful funding models and some protection from piracy while the international market of an American funded film also extricates the Koreans from an unpromising domestic export market.

The usefulness of co-producing manifests itself by increasing the skill set of the Korean workforce and giving Hollywood low-cost original content. Other international collaborations like the strong partnership between Hollywood and China together with Japanese ownership (via Sony’s presence) of most Hollywood studios is helping to redefine the international film market.

In a global economy, building cross-cultural cooperation with domestic markets is one of the safest and successful moves that most companies take. Such cross-cultural collaborations can be riddled with difficulties, however, mainly caused by different working values and communication styles. In order to avoid frustrations and, ultimately failure, cross cultural training courses help people working with international counterparts to develop the sensitivity required to successfully communicate, work and sell across cultures. Cultural awareness training can also help your business have more insight into new market preferences and trends which can help any company selling across cultures.

As with movies, successfully adapting products for other markets has become necessary for both large and small businesses. The influence of expanding Asian markets has an increasing impact on marketing strategies and product design. Being aware of cross-cultural preferences and expectations is crucial for anyone selling across cultures, whether a major producer of international films or a small business vendor.

© Communicaid Group Ltd. 2011

Dec 06

According to the London Evening Standard, the renowned British grocer Fortnum & Mason, often branded as the “Grocer of the Royal Family”, is currently looking at opportunities to do business in China, India and the Middle East. This international development has come to light after Fortnum & Mason posted their first profits since 2005. According to Beverly Aspinall, Managing Director of Fortnum & Mason, doing business in Chinais part of a long term strategy to promote and sell the company’s luxury products on new markets.

Chinese tea CtPaul i Fortnum & Mason is Headed to China – The Risks and Benefits of Doing Business in China

© istockphoto.com/ Ct Paul

China is probably one the most attractive destinations for Fortnum & Mason, mainly because of the country’s tea-drinking culture and the interest in their luxury products. Fortnum & Mason is already selling its famous tea, jams and other delicacies in Japan and in the US, and it sells its products to the countless tourists visiting London from around the globe.

This move to China will be an important event as it will be the first time Fortnum & Mason tries to settle outside the UK since the short lived attempt to open a store in New York City in the early part of the 20th century. Some may wonder how this archetypal British institution will overcome the huge differences that exist between the two countries and adapt to the Chinese cultural and business environment.

Doing business in China can be challenging for unprepared organisations. The presence of really strong Chinese cultural values like the importance of relationships, the constant search for harmony, the obsession of keeping “face” and the predominance of the group over individuals can create cultural pitfalls and challenges for a western company doing business in China. Organisations like Fortnum & Mason doing business in China must understand and respect the unique cultural preferences and expectations of Chinese customers to avoid costly faux pas, poor customer service or cultural misunderstandings that would potentially harm the company’s brand image.

Despite the potentially challenging cultural differences a western company like Fortnum & Mason may face, China remains an attractive market with lots of potential. Cross cultural awareness training courses like Doing Business in China can help Fortnum & Mason harness the true potential of the Chinese market by giving them the knowledge and skills they need to adapt their products and customer service to the expectations of their Chinese customers.

Cross cultural awareness courses can help Fortnum & Mason take the right first step and make the best impression when doing business in China. With the right cross cultural training and support, Fortnum & Mason should find success in the Chinese market and the Chinese will be able to enjoy the authentic and fine taste of British culture through Fortnum & Mason luxury tea and products.

© Communicaid Group Ltd. 2010

Nov 25

Global marketing is now vital for international firms wishing to sell their products abroad. While most international companies conduct thorough research and market surveys, they often fail to consider the impact of culture on their global marketing strategy. This absence of cultural sensitivity can create huge financial and credibility losses even for world renowned brands. Companies starting to sell their products in a new market need to carefully consider the differing attitudes and expectations between their domestic and their international customers. Perceptions of key elements such as brand, colours, packaging, selling methods and slogans can vary widely from one culture to another. Failing to acknowledge and understand this carries significant risks.

Globes Mike Bentley i Is Cultural Sensitivity Training the Key to Successful Global Marketing?

© istockphoto.com/ Mike Bentley

There are several examples of famous brands that failed to show the appropriate cultural sensitivity and unwittingly created cultural faux pas which came with high costs. When McDonald’s opened in Saudi Arabia, the Saudi Flag was printed on the take-out bags. This created a massive scandal as a short extract of the Qur’an is written on the Saudi flag. Most Saudis were infuriated to see an excerpt from their holy book printed on an American burger bag! With greater cultural sensitivity, the people behind this marketing initiative would have been able to avoid costing millions of dollars to their company.

Such incidents can be caused by the belief that all cultures are “the same” and have the same expectations. This assumption of similarity is often the main reason behind poor judgment or initiatives. It takes great cultural sensitivity and knowledge to adapt a brand name or an entire marketing campaign to a new cultural environment.

Some companies have perfectly understood that displaying the appropriate level of cultural sensitivity is a shortcut to success. The example of Tesco selling methods in China immediately comes to mind. Tesco executives understood that Chinese customers have their own preferences when buying certain products and decided to adapt to their specific expectations. Fish, for instance, is not sold in plastic packaging like in most western countries but is displayed while still alive in water tanks enabling customers to choose their favourite fish and buy it. This kind of initiative has made Tesco one of the most successful western retailers in the Chinese market.

Cultural sensitivity training courses are an excellent way to learn and understand the cultural factors that come into play when selling across cultures. From language to humour to the use of symbols, a cultural sensitivity training programme will help you to create the best marketing strategy and to understand the expectations and purchasing motives of your new customers. It will allow you to penetrate specific markets more easily and provide you with the relevant marketing tools to make sure that your products are well received by the local population.

© Communicaid Group Ltd. 2010

Oct 21

“Numbers are the way we make decisions now” said Census Bureau Director Robert Grove in a recent interview with Guy Garcia, multicultural consumerism expert. The two speakers commented on the American census data in a conference at the ARF, an open forum for discussions on marketing and advertising. The outcome was an interesting new vision of the American social construct.

‘The New Mainstream’ A Multicultural Consumer Population ‘The New Mainstream’   A Multicultural Consumer Population

© istockimages.com/Sean Locke

If we are still thinking of Americans as loud, open and boastful people, perhaps it is time to reconsider our stereotypes. The census results are significant because they show major shifts in the cultural make-up of American citizens, from their age to their ethnical background. The record 14.6% of marriages between people of different ethnicities or race is just one example of how the population is changing a rapid pace.

The workplace is a mirror of such demographic change and will experience different approaches to meetings, negotiating, building trust and closing sales as a result, all of which will impact the success of doing business and selling across cultures. The ever changing lifestyle trends of an average American means that marketing and advertising initiatives also need to change. For instance, if Americans are increasingly marrying later in life, having pictures of a young couple advertising a home insurance policy might feel out of place.

International organisations are slowly beginning to recognise that a multicultural population like that of the US has a strong impact on marketing and business. A more diverse cultural background means that consumers’ preferences and habits are more varied and marketing campaigns must pay a lot of attention to the new social expectations and attitudes. However many organisations don’t realise that increasing immigration and the inevitable transformation of society means that cultural differences are present not only abroad but at home so they often fail to adapt their marketing campaigns accordingly.

Increased awareness of your potential clients’ requirements and expectations across cultures is the new way forward when doing business both abroad and at home. Adapting your sales and marketing techniques effectively to a multicultural consumer base requires a unique set of cultural skills and understanding.

Being culturally inclusive and aware is more than choosing a set of images that include a range of ethnically diverse people. Cultural awareness for marketing means being able to identify consumers’ unique cultural values, attitudes and preferences and being able to adapt the product or advert accordingly. Cross cultural awareness training courses such as Selling across Cultures will help you develop the cultural skills required for an effective marketing campaign aimed at a multicultural population.

The US is not the only country seeing such changes to the cultural composition of their population and workforce. Migration on a global scale affects most nations. Some countries such as the UK have a long history of dealing with multicultural differences with many waves of different nationalities migrating to the country over the years. Others, such as Italy, are new to the diverse and bulky flux of migrants and are facing new challenges in industries like clothing retail which is struggling against a strong Chinese competition.

These cultural differences can easily lead to miscommunication and tensions, ultimately causing loss of time, money and revenue to an organisation. An intercultural training course such as Developing Global Competencecan help you to reduce the dangers and pitfalls that a multicultural working environment presents. A global economy requires marketing initiatives to be informed by cultural awareness the world over. Ultimately, capitalism is driven by diversity so successful business will be led by the ability to effectively adapt to such changes and cultures.

© Communicaid Group Ltd. 2010

Sep 14

A recent survey showed that Chinese and American film reviewers had rather different responses to the same or similar films. Chinese comments were more subtle and kind towards mediocre productions, while American comments were more open and critical. Does this mean that Chinese audiences are more easily satisfied or is this simply a matter of different communication styles? Or perhaps Chinese audiences like different things than American audiences?

Chinese laterns 3 tom hall i1 Cross Cultural Differences – Chinese Audience Gives Two Thumbs Up

© istockphoto.com/ Tom Hall

 

Some argue that this finding could be linked to the distinction between collectivistic and individualistic societies. For example, in a collectivistic culture there is more importance placed on group cohesion and harmony than individual actions and competition. Asian countries in particular reflect this collectivist attitude so they tend to prefer constructing messages in an ambiguous way. This helps them to avoid causing conflict in the group or losing face in case a specific request is ignored or denied.

Conversely, many countries in northern Europe and North America are more individualistic and therefore tend to focus more on the individual and personal achievement. Individualistic cultures tend to value sincerity and openness when communicating, while veering from the subject can be seen as an effort to hide something.

People from individualistic cultures therefore tend to be more open and honest when communicating their preferences, while people from collectivistic countries are more reserved in expressing their views because they are more concerned with maintaining harmony rather than saying exactly what they think. This could explain the different film ratings and comments by Chinese and Americans.

Understanding that different cultures have preferences for different working styles and business values shows the importance of being able to adjust your style when doing business in an international environment. Differences in views and how they get expressed can have significant implications for any organisation that is launching a product in a new market, working on a cross-cultural M&A or implementing a global matrix structure.

Cultural awareness and flexibility should therefore inform not only the business side of your company, but also the marketing research and planning. Sometimes marketing tools like a simple survey might provide you with misleading data if used in a culture where people are not used to or comfortable with expressing their opinions openly.

For instance, when dealing with collectivistic cultures, basing market predictions and strategies on findings from an online poll might give you the wrong perspective and hinder your desired results. cross cultural training courses can provide you with a set of cultural knowledge and tools that will help you make the right decisions and adapt your approach effectively when marketing a service or product in another culture.

Many organisations have successfully adapted their product to suit another market. Kraft, for instance, modified their Oreo cookie recipe to a less sweet formula to accommodate the Chinese taste. Similarly, Tesco’s new CEO Philip Clarke adapted Tesco stores in China to include live fish in big tanks so Chinese customers could pick what they want and be assured of its freshness. These small changes adapted to the expectations and cultural preferences of the market and resulted in a successful product.

Other organisations have been less successful adapting their approach or product to the cultural preferences and expectations of customers in another country. PepsiCola is one example of an organisation who failed to do their research and adapt their product accordingly. When they changed the colour of its vending machines and coolers from deep “Regal” blue to light “Ice” blue in Southeast Asia PepsiCola lost its majority share in the market to Coca Cola. What they failed to realise was that light blue is a colour associated with death and mourning in Southeast Asia so the change did not create the desired effect and in fact hurt their profit.

Failure to understand the culture you operating in can have serious implications on any business. Anyone who wants to ensure that their marketing planning, strategies implementation and business as a whole gets a real thumbs up needs to pay extreme attention to what their international customers expect and want.

© Communicaid Group Ltd. 2010

Aug 16

Many people believe that intercultural training courses are only relevant for international assignees, high level global executives or members of multicultural teams wanting to work more effectively with foreign counterparts. Intercultural training courses are indeed relevant for these populations but they can also have real impact for people in other roles such as customer service or client relations.

Business is becoming increasingly global as organisations expand into other countries and employ individuals from multicultural backgrounds. Employees who support customers in or from other cultures need a high level of cultural awareness, understanding and adaptability skills to be effective, whether over the phone or face-to-face.

Handshake Chris Schmidt i1 Selling across Cultures – Increase Profit and Customer Loyalty

© istockphoto.com/ Chris Schmidt

This is especially true in the luxury industry where customers from newly developed and fast growing countries like China or India are becoming more and more present. The increasing population of customers from other countries is leading to an increased need and demand for intercultural training. Luxury brands such as Chanel, Harrods and Burberry who want to take advantage of this new customer market must understand the different cultural expectations, needs and shopping habits of their international customers.

Being prepared to deal with international customers can greatly increase the ability of sales personnel to provide a superior service and meet their sales targets. Intercultural training will enhance their performance by giving them the cultural knowledge they need to decipher customers’ behaviour and answer their unique needs. This in turn will increase the customers’ loyalty to the brand bringing the company profit for longer.

For example, an intercultural training course about Chinese culture will help customer facing employees develop strategies for welcoming and serving large groups of Chinese customers. In addition to helping them find ways to manage groups of Chinese customers, intercultural training also gives them an understanding of why many Chinese customers come as a group as opposed to individually. Intercultural training would also give them information about Chinese culture that they could use to build relationships with their Chinese customers which can only help the sale.

Understanding cross-cultural communication styles, either verbal or non-verbal is also crucial when selling across cultures. Using the right tone, adapting to the customer’s level of English or answering complaints in an appropriate way is as important as interpreting the meaning of a silence or a smile which can have completely different meanings from one culture to another.

Customer facing employees must have a high level of intercultural awareness as well as the ability to adapt to their international customers’ needs and expectations in order to be successful. Tailored intercultural training programmes provide a comprehensive overview of the intercultural practices and strategies they need to ensure they provide the best customer service to customers of any nationality. Communicaid’s intercultural training programme Selling across Cultures will give your sales team the competitive edge they need to take advantage of this interested and ever increasing international customer base.

© Communicaid Group Ltd. 2010

Jul 04

Tesco recently announced the promotion of Philip Clarke to take over as the next CEO of the Tesco Group. Clarke is a pure Tesco by-product; in fact his first job was part time assistant in a Tesco near Liverpool when he was still a student.

Clarke made his way to the top of the company and gradually took on more responsibilities from his roles as Store Manager to Supply Chain and IT Manager. According to an article in the Evening Standard, he was eventually designated as the next CEO of Tesco thanks to his brilliant and successful campaign in the South Korean and Chinese markets.

Meeting Neustockimages i Being Successful in International Markets – New CEO of Tesco is Model Example

© istockphoto.com/ Neustockimages

 

Many argue the main reason behind Clarke’s success is his adaptation policy. Instead of trying to force local customers to act like British, he adapted his retail methods and stores to the local market. One of the best examples of this is how Tesco sells fish and seafood in China. Fish does not come in a sealed plastic bag like in most western countries but is instead presented alive in a pool, waiting for the customer to catch it! Thanks to this philosophy and innovative approach, Tesco did not encounter difficulties like some of its rivals like French Carrefour or American Wal-Mart who also attempted to harness the benefits of the market in South East Asia.

Clarke is also responsible for developing successful partnerships with local suppliers when entering new international markets. For example, Tesco signed a partnership agreement with Tata in order to facilitate the opening of new cash and carry stores in India. Thanks to this alliance, Tesco will be able to benefit from the experience and knowledge of Tata (which already own its own retail stores line) to enter this new and promising market and be successful in India.

This philosophy of adapting to the local habits of other cultures and building relationships with local suppliers has made a huge difference in the retail sector. Adaptability is also a valuable skill when it comes to working in other cultures or managing multicultural teams while learning from local partners is also a shortcut to success.

Communicaid’s cross cultural awareness training courses can help you to gain the skills and insights necessary to ensure good working relationships and communication with your international counterparts. The cross-cultural understanding and knowledge you develop on an intercultural training course such as Selling across Cultures will also help you to adapt your business strategies to the local market and better understand what customers in other cultures expect, need and want from you as a global supplier.

Tesco has taken the right steps in this direction and provides its employees with a number of cultural awareness training solutions. By doing the same you may see a significant increase in international sales and be able to develop the adaptability skills of key individuals like Philip Clarke who can make a real difference to your organisation.

© Communicaid Group Ltd. 2010

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