Handbook of Cross‐Cultural Marketing

Citation

MacInnes, A. (1999), "Handbook of Cross‐Cultural Marketing", European Business Review, Vol. 99 No. 5, pp. 350-351. https://doi.org/10.1108/ebr.1999.99.5.350.1

Few firms doing business at home or overseas are unaware of today’s much‐talked‐about trend towards globalisation, resulting from improved communications and a convergence of consumer needs throughout the world. But how many managers are really taking advantage of the new business opportunities this globalisation presents?

Paul Herbig’s Handbook of Cross‐Cultural Marketing and Multicultural Management 2000 by Farid Elashmawi and Philip Harris help marketeers and managers do just that, and make ideal travelling companions for those hoping to avoid cultural clashes and faux‐pas. As well as offering practical advice, they are a most enlightening and entertaining read.

“Whether a company should standardise or adapt its marketing mix has become one of the most burning strategy issues for marketing managers around the world,” writes Herbig. US corporations like Levi’s, McDonald’s, Coca‐Cola and Burger King have a strong standardised and consistent American image, while other multinationals believe that each company should be approached separately as a different market. Obviously the standardised strategies of the US chains, favoured for savings through economies of scale, are by and large success stories, but there have been pitfalls along the way.

Coca‐Cola introduced the two‐litre bottle in Spain without realising that Spanish refrigerators are smaller than those elsewhere, for example. The bottles did not fit and Coca‐Cola had to design another bottle, losing sales in the meantime.

If opting for adaptation, language, time keeping and religion are some of the most important aspects to consider. Bata sandals caused a riot in Bangladesh, says Herbig, because the logo on the sandals, which was intended to be a stylish drawing of three bells, resembled the Arabic characters for Allah. As a result, the government banned the sale of the sandals. Herbig recounts a myriad of blunders, such as the US launch of “Super Piss” a Finnish product for unfreezing car locks, and Ford’s introduction in Latin America of a low‐cost truck called Feira, which in some areas of the region means ugly old woman.

The author also offers an insight into attitudes from different regions. “A culture’s attitude towards time determines the importance placed on the development of personal relationships in business,” he explains. Latins typically arrive later than the time stated, expect to discuss a great many items not on the agenda and keep the meeting going long beyond its stated end‐time. In contrast, the Chinese generally believe that a considerable amount of time should be invested in establishing a general climate of understanding, trust and willingness to help in matters quite apart from the issues brought to the table. To Indonesians time is elastic and qualitative – if something comes up that is more important than business, such as a festival or a wedding, business gets postponed.

Farid and Harris look at how business introductions, telephone calls, presentations and written communication can lead to an operation’s success or failure in an era of transborder exchanges.

They also examine the importance of understanding multicultural contributions within the domestic work environment. In order to use the competencies of well‐educated immigrants effectively and establish work relationships, try to comprehend their background and fathom their mindset, they advise, adding that “indigenous managers can learn much from the way foreigners view our own management practices”.

Although written for Americans, Multicultural Management 2000 is equally relevant to Europeans, because of its detailed analysis of all major cultural groupings and its practical tips to avoid misunderstandings.

Particularly useful is the authors’ advice on Central and Eastern European countries, where business with the West is increasing and is likely to continue to do so as these nations transform their societies – ten of them with a view to joining the European Union in the near future. However, while the emerging democracies of Central and Eastern Europe need Western capital and technology, their workforces will require massive re‐education to overcome 40 years behind the Iron curtain, say Farid and Harris. In Central and Eastern Europe, managers and workers are culturally conditioned to bureaucratic thinking and acting – for years they were influenced by a system that required every significant decision to be approved by a higher authority. They are unused to concepts like customer service, personal responsibility and profits.

These two books complement each other well and will undoubtedly prove a vital source of reference on my next business trip to Central and Eastern Europe or Latin America.