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Aug 31, 2023

Local culture in the "4Ps" of the Marketing Mix

culture

If a company decides to internationalize, it must be able to deal with the cultural identity of the countries with which it intends to establish business relations.

The concept of "culture" brings to mind aspects such as language, different customs and traditions, religion, the political and legal system and the business culture of a community. It is therefore clear that cultural identity is not a characteristic related to the individual, but a set of values, ideas and symbols shared by the members of the same society. Thus, local culture becomes an important element of differentiation in international markets.

Given that cultural differences emerge strongly in business environments, understanding how to adapt the Marketing Mix to different markets is as necessary a task as it is complex for an exporting company. Each of its four pillars - Product, Price, Placement e Promotion - undergoes a radical change in the cultural adaptation phase.

Product

Product decisions are quite diverse and range from packaging to branding issues and product specifications. Companies need to consider the impact of culture, especially in the area of positioning, presentation and packaging of their products.

With regard to the specific elements of culture that influence these strategies, the symbolic representation of objects is a key factor. This expression of customs and traditions prevalent in a given cultural environment can lead to different symbolic interpretations of a product, particularly with regard to its physical appearance and packaging. If a symbolic attribute of the product is perceived in a somewhat distorted way by consumers in a foreign market, the company will have to recalibrate its offer, possibly trying to adapt appropriately to the context in which it operates.

Price

When defining a pricing policy, the cultural factors that influence a company's decision are the legal system and the rules governing the relationship between consumers and sales intermediaries. The legal system is responsible for the adoption of a state-controlled pricing system or, alternatively, a pricing system based exclusively on a competitive regime. As far as regulation is concerned, it affects the behavior of consumers in their approach to the price/quality relationship, as well as influencing the propensity of commercial intermediaries to declare "price wars" on their competitors.

Placement

Decisions on the most appropriate distribution channel must take into account various factors, such as consumer needs, the type of channels available, the possible presence of intermediaries and the management of relationships within the channel. All of these are influenced by the elements that shape the cultural dimension of each market.

While the customs and traditions of the country play an important role in the structure of the distribution channel and the management of relationships within it, the political order will have a greater effect on the extent of the channel and the choice between inviting or excluding sales intermediaries throughout the sales process.

Promotion

Although the impact of culture on communication decisions is more clearly identifiable than any other variable in the Marketing Mix, the extent to which the two are linked needs to be properly clarified. Cultural identity undoubtedly influences promotion strategies, along with the choice of content. The budget and structure of communication will depend on the habits and consumption style of buyers, as well as the concrete availability of media and interactive platforms in a given market.

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