Introduction
Coulson Marketing Agency will conduct an analysis to advise the global mobile phone manufacturer based in Denmark about the best strategies to use in launching its newly manufactured mobile phone. The purpose of this analysis is to determine whether it is important for the company to change its advertising strategy once it ventures in China or not.
Cultural considerations
As much as the cultural part is concerned, the truth is that Coulson Marketing Agency will have the potential of outdoing its competitors in the same industry. The reason for that is just because of diverse marketing niche as well as the existence of multiple customers who desires to utilize their product. As much as the company advertising strategy is concerned, what makes the enterprise to be perceived as having a low market orientation might be as a result of diverse cultural differences. This also will have to take into account the manner in which each individual utilizes spoken or written language to facilitate what he or she desires to speak.
According to hosfeds dimensions, the cultural differences of each person or society at large are what determine the response of a person. Therefore, what this implies is the fact that the senders of the message can have the potential of encoding the message while anticipating that the receiver will have the opportunity of accurately decoding the words used. Consequently, so as to be in the position of understanding the cultural differences that exists, it is paramount to take into account the essence of interpreting some of the elements that surrounds the message being sent or delivered.
It is this scenario that will enable a person to understand the social dynamics that exists as well as the potential of adding extra information to the received message. It is this strategy that enables a person to understand the meaning of the information being received. Likewise, the cultural differences that exist in each state are the one that that highlights the communication or the language usage that people are fond of. Food, and dressing code is concerned, self-determinations and valuing the perspectives of youth is something that is paramount.
Comparing the characteristics of both cultures
Characteristic |
In Denmark, we have an individualistic or low-context cultural characteristics |
In China, we have a collective or high-context cultural characteristics |
Language and communication |
In Denmark, we have both explicit and direct usage of language and other communication norms |
We have implicit and indirect use of language and other communication norms |
Sense of self belonging, freedom, and space |
Official handshakes |
Official handshakes, bows, and hugs |
Dressing code and appearance |
Dressing code to enhance individual appearance and success varies greatly
|
The individual dressing code is perceived to be on the means of indicating the position a person holds in their community as well as the existing religious rule. |
Meals and consumption habits |
Although in Denmark food consumption is a necessity, the majority of the meal that are consumed are fast foods |
The consumption of fast foods mainly occurs in social events |
Time-consciousness |
Precise, swift, and linear utilization of work is greatly valued because the majority belief that time is money. |
Expandable, comparative, as well as time utilized by a person to enjoy themselves is particularly based on the fact that time has the potential of developing better or successful societal associations.
|
Family and close acquaintances |
As much as a nuclear family is concerned, self-determinations and valuing the perspectives of youth is something that is paramount. |
The presence of the extended family as well as other family orientations is aimed at installing loyalty, responsibility, and respect for the aged. |
Norms and values |
Individual self-government and confrontation exists for the purpose of assisting solving any conflict that might evolve at the end of the day. |
The dependence on group conformity is the one that is perceived to have the potential of instilling harmony. |
Beliefs and other associated or perceived individual attitudes |
Democratic and challenging existing power is what enables a person to control his or her gender equity and destiny. |
Respect for societal authority and hierarchical division of power is what is used as the main basis for enabling a person to control his or her gender equity and destiny. |
Mental process and other related individual learning strategies
|
In Denmark, the majority depend on imaginative, holistic, and immediate mental learning processes as means of acknowledging and accepting the prevailing life difficulties |
In Denmark, the majority depend on linear, rational, and chronological mental learning processes as means of solving the prevailing problems. |
Company or working traits |
The majority of the Danes ate business oriented, rewarding those who have achieved their goals just within the stipulated time as well as working as a means of changing their value they bring to the company.
|
In China, the majority of people belief in developing a good relationship with each other before making any business deal. Although the reward or rewards a person receives is ultimately based on seniority, work is paramount. |
Hofstede's 6 dimensions
Legal considerations
Although China is perceived to rise steadily economically, the state has had the potential of attracting various business organizations of various scales into its market. Despite that, it should be realized that perceived opportunities in Chinese market has the likelihood of changing with time. As a result of that, it is important for those potential investors wishing to invest in China to be informed about the laws and regulations that control business in such a state. The reason for that is because it has been realized that the majority of companies end up underestimating the role of the Chinese government. For such companies, it becomes impossible to do well in China without the government’s back-up (Hollesen, 2011) There are also several countermeasures and risks of venturing a business in China that is divided into various categories, for instance, market risks, which is the risk of losing as a result of changes in market conditions or demands.
On the other hand, one of the main market risks that are faced by global trade business organizations is ultimately the exchange rates as well as product risk risks. Consequentially, other than market and policy risks, there might be other issues relating to things like default risks and commercial risks. Moreover, some of the commercial risks that a business might end up include credit or insolvency credit, intellectual asset infringement risks, transit risks, sellers’ performance risk, and buyers’ acceptance risk.
Product uses
The same product might be used in different ways by different consumers in different countries or markets due to the cultural differences and other geographical factors. For example, in China, the general popularity of the modern samrtphones is what has ended up changing consumer demands. One of the contributing factors is the need of changing acquiring fundamental functions to obtaining stylish mobile phones with attractive appearances and premium qualities. Nonetheless, in Denmark, the penetration as well as the continued usage of smartphones for the majority of the senior Danes is something that is relatively low as compared to young population. The reason for that is because research indicates that the majority of the consumers who are at the age of 65 and above have been found to be insecure or not well informed about the significance of the modern technology.
By the end of the year 2018, it was found out that the average unit cost of each smartphones had somehow rose hence making them to be regarded as being high-end or just mid-range commodities. The selling points of new smartphones were no longer low prices and as a result, the prices of new models increased which resulted in a more competitive environment (Portal.euromonitor.com, 2019). On the other hand, what this indicates is the fact that some of the youthful product marketing strategies that were utilized in China is dedicated at targeting young potential customers. For examples, advertising and creative marketing strategies that are applicable are aimed at raising the general performances of smartphones (Portal.euromonitor.com, 2019).
In Denmark, however, research indicates that age Dunes have started becoming more and more adapted to using smartphiones hence making penetration to grow at an alarming rate. Therefore, there is a growth opportunity for smartphone manufacturers seeking to cater to older Danes. Indeed, the brand Doro launched the new smartphone Doro 8035 in 2018 (Portal.euromonitor.com, 2019). It is designed for consumers with poor hearing and sight and offers a simpler navigation system to better fit this demographic group. In Denmark, senior phones tend to have larger texts and other feature that aid in adjusting sound. The reason for that is because many older Danes suffer from hearing impairment and declining eyesight (Portal.euromonitor.com, 2019).
Standardization
The goal of standardization is to minimize costs either by passing the costs through the customer or maximizing profit through acquiring a competitive advantage depending on the competitive environment. Factors influencing the decision of standardizing are economical/political integration and internet economy. In order for the company to standardize their marketing, pricing, and product strategy, first, they must meet the requirements of the various standardization forces that enhanced effective product marketing strategy. The most commonly used market strategies taken into account include regional marketing agreements, customer requirements, establishment of international clients, specifying time for accessing markets, and means of realizing the economies of scale.
Taking into account the analysis displayed in the products uses and cultural consideration section, it is evident that the five forces to standardize the product strategy will not be advised as an advertising strategy to enter China market. This is because there is a high cost of failure caused by varied customer behaviors and needs that are significantly different from those of the consumers in Denmark. It would also be very costly and time consuming to venture in the same.
Adaptation
Factors influencing adoption is (Cross cultural diversity and Tariffs/non- tariff barriers)
Based on the evidence and analysis conducted, it is recommended that if the company was to enter China, it management authority should have the potential of changing its advertising strategy to suit the cultural diversity and appeal more to the target consumers of China.
Conclusion
The evidence and research don indicate that culture and product uses has a great influence on the choice the customers has prior to using the new mobile phone to be launched. It is, therefore, recommended that if the company desire to venture in China, its management authority should consider the significance of changing their product advertising strategy. The reason for that is because it is the one that will give them the propensity of suiting the cultural diversity existing as well as be more appealing to the target consumers. Additionally, some of the China’s legal considerations, product uses, standardization, adaption, and the final decision or advice to be taken into account is the one that can aid consumers to adopt the recommended advertising strategy.
Appendices
- General comparative characteristics of cultures
Characteristic |
In Denmark, we have an individualistic or low-context cultural characteristics |
In China, we have a collective or high-context cultural characteristics |
Language and communication |
In Denmark, we have both explicit and direct use of language and other communication norms |
We have implicit and indirect use of language and other communication norms |
Sense of self belonging, freedom, and space |
Official handshakes |
Official handshakes, bows, and hugs |
Dressing code and appearance |
Dressing code to enhance individual appearance and success varies greatly
|
The individual dressing code is perceived to be on the means of indicating the position a person holds in their community as well as the existing religious rule. |
Meals and consumption habits |
Although in Denmark food consumption is a necessity, the majority of the meal that are consumed are fast foods |
The consumption of fast foods mainly occurs in social events |
Time consciousness |
Precise, swift, and linear utilization of work is greatly valued because the majority belief that time is money.
|
Expandable, comparative, as well as time utilized by a person to enjoy themselves is particularly based on the fact that time has the potential of developing better or successful societal associations. |
Family and close acquaintances |
As much as a nuclear family is concerned, self-determinations and valuing the perspectives of youth is something that is paramount. |
The presence of the extended family as well as other family orientations is aimed at installing loyalty, responsibility, and respect for the aged |
Norms and values |
Individual self-government and confrontation exists for the purpose of assisting solving any conflict that might evolve at the end of the day. |
The dependence on group conformity is the one that is perceived to have the potential of instilling harmony. |
Beliefs and other associated or perceived individual attitudes |
Democratic and challenging existing power is what enables a person to control his or her gender equity and destiny. |
Respect for societal authority and hierarchical division of power is what is used as the main basis for enabling a person to control his or her gender equity and destiny. |
Mental process and other related individual learning strategies
|
In Denmark, the majority depend on imaginative, holistic, and immediate mental learning processes as means of acknowledging and accepting the prevailing life difficulties |
In Denmark, the majority depend on linear, rational, and chronological mental learning processes as means of solving the prevailing problems. |
Company or working traits |
The majority of the Danes ate business oriented, rewarding those who have achieved their goals just within the stipulated time as well as working as a means of changing their value they bring to the company.
|
In China, the majority of people belief in developing a good relationship with each other before making any business deal. Although the reward or rewards a person receives is ultimately based on seniority, work is paramount. |
- Use of Mobile Phones in China by population% to access the Internet (Euromonitor International).
- hofstede cultural dimensions (China, Denmark).
- Pros and Cons of both Standardization and adaptation
- Hofstede’s Culture Dimensions Definitions
Bibliography
Jain, S.C. (1989). Standardisation of international marketing strategy: some research hypotheses. Journal of Marketing, Vol. 53, pp. 70-9.
https://journals.sagepub.com/doi/full/10.1509/jimk.11.1.97.20141
https://successfulglobalmarketing.weebly.com/untitled/global-marketing-strategy-standardization-vs-adaptation
http://www.readyto.be/legal-aspects-of-doing-business-with-china/