The Importance of Understanding Culture in Marketing

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The Importance of Understanding Culture in Marketing

Nestlé S.A. is a conglomerate corporation whose headquarters are located in Switzerland. Being the largest food company in the world, Nestlé oversees a number of subsidiaries. Tombstone and DiGiorno are two brands of frozen pizza that originally belonged to the American company Kraft Foods. However, after being bought by Nestlé S.A., they became its subsidiaries and are, therefore, the property of the conglomerate residing in Switzerland.

It is important to understand the national cultures where the items are being sold. In the era of globalization, when products are being exported across countries borders, managers should know the needs of the customers, which are often dictated by the cultures where the consumers reside. Distinct societies have different norms and ways of life, and these should be taken into consideration by companies to avoid incorrect marketing strategies. According to Ocansey (2017), culture affects such important marketing elements as advertising, free trade policies, brand effectiveness, localization and standardization strategy decisions, and consumer behavior (p. 151). For example, when promoting Tombstone and DiGiorno brands, Nestlé S.A. managers should incorporate specific processes to effectively appeal to American consumers.

The choice of the marketing strategies for each specific product depends on the values of the cultures where these items are being promoted. Many researchers have found the importance of considering the concepts outlined by Hofstedes theory on culture when proposing marketing communication strategies (Ocansey, 2017). For instance, such concepts as collectivism and individualism should be understood in the context of each country (Ocansey, 2017). Marketing to collectivist cultures, where people desire to be a part of a group, will be inherently different from countries where individualism matters. Advertising campaigns in collectivist countries should propose messages of belongingness to society, whereas in individualist countries promotion should highlight the use of a product for personal needs.

Reference

Ocansey, E. (2017). The influence of culture on global marketing strategies: A confirmatory study. The International Journal of Business Management, 5(10), 150-155.

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