course material

1. 7BSP1271 Marketing Across Cultures
Answers:
Introduction
There are many challenges facing businesses in a culturally diverse market. Customers act
differently when they have different cultures. As competition in the local market increases,
it allows organisations to enter new markets, and the market has many new traits from that
market where organisations are served. At that point, organisations develop new ways to
serve diverse markets with new cultural goals and values. Customer expectations are
influenced by culture as well as affect customer needs, reactions, and appraisal. Several
companies successfully use cultural differences as a prospect, whereas some organisations
later feel it is wrong to start a business in another culture (Aksoy 2017). The report
identifies and critically analyses the potential impact of culture on the marketing strategies
and techniques of the selected SME. Hence, the report covers a detailed discussion of the
marketing mix strategies of Axis Electronic Ltd in different cultures.
Axis Electronics Ltd was established in 1995 as an independent organisation in the UK as a
contract electronics manufacturing service provider with an exclusive blend of service and
technical capabilities. In addition, the organisation has grown significantly over the years
and is now trusted by many market leaders as the preferred manufacturing partner. Its
headquarters is situated in Bedfordshire, Bedford, England. Currently, the organisation has
203 employees. The company has a turnover of £29.5M by 2020 (Global Database. 2021).
Axis Electronics now supports consumers in challenging market areas, such as aerospace,
defence, security, oil/gas, industrial, and automotive. The organisation is a electronics
manufacturing service provider that specialises in complex, high-reliability PCB assembly.
In addition, with expertise from prototype to volume production, the organisation can
deliver guaranteed turnkey solutions according to the customer's exact specifications. In
addition to many quality certifications, the organisation is a winner of multiple SC21 Silver
Awards and a member of JOSCAR (Axis Electronics. 2021).
On the other hand, Axis Electronics Ltd sells its product online through websites like
www.axis-electronics.com. The organisation is the only leading manufacturing organisation
offering full wire bond facilities. Its traditional electronic system manufacturing allows the
UK sites to assemble and complete these complex products under one roof, thereby

2. minimising time to cost and market (Axis Electronics. 2021).
Main Content
Theoretical Approaches For Cross-Cultural Marketing
The marketing activity of the organisation relies on business culture and includes different
cultural theories to overcome cultural barriers. Several changes are needed to meet the
expectations of the new culture, such as company, product, or brand, change in Pricing
Strategies And Advertising Language. The challenges associated with the most relevant
global strategy for globally marketing an organisation's products are widely discussed.
Because of the diversity of cultures and the rapidly changing needs of customers, the
organisation's marketing mix has a significant cultural impact. According to Hofstede
cultural model, culture is the combined programming of the intellect that differentiates one
representative from another (Assadinia et al. 2019). Cross-cultural marketing is the
marketing practice to one or more consumers of a specific ethnicity beyond the country's
majority culture, generally known as the general market. In this regard, Hofstede's cultural
dimensions theory helps in predicting and explaining the host of the market as well as
marketing behaviours across and within countries, such as brand credibility, global
advertising effectiveness and customer innovativeness. There is a lot of support for the view
that for a successful Global Marketing Strategy cultural differences need to be considered,
evaluated, and recognised to develop the global marketing strategies for the organisation
(Hunt 2019).
Fig: Variable influencing cross-cultural marketing strategies
Source Bruin 2017
Marketing Mix : Product
Axis Electronics Limited is a UK-based contract electronics manufacturing service provider
that specialises in reliable, complex PCB assembly. Besides that, skilled in manufacturing
prototype volumes, the company can provide customers with personalised turnkey
solutions that match their needs. The company uses the most advanced electronic
manufacturing methods to assemble products and ensure the highest quality testing,
making it a minimum maintenance provider for its customers (Chang, Wang, and Arnett
2018).
Eteokleous, Leonidou and Katsikeas (2016) explained that product marketing is a challenge
for the organisation across multiple cultures. For this reason, the organisation can
implement product fitting strategies. Product fit refers to the product is good enough for
that marketplace and can meet the requirements of people in the market. Since the world

3. uses online media in each arena, Axis's electronics products can be used in each market.
Also, customer satisfaction is an indicator that the product is fit for a specific marketplace.
Generally, the product refers to products and services that exist and are available to
customers at a fixed cost. Packaging, quality, brand, labelling, and attributes are
characteristics that the culture of a particular place may influence. When the product
conflicts with the values and norms ??of a particular culture, it will regulate the number of
customers from that culture. The product of the same organisation can be adopted under
different names in different cultures. In addition, the brand name should be adopted
according to the particular culture and market of the company. Otherwise, individuals may
reject the product or suggest the product to other persons. The exact reason is that brand
names may have offensive meanings in some markets. As a result, the organisation needs to
select a name determined by the local market to create a digital product that requires some
incredible marketing ideas. If an organisation wants to market a product in another culture,
it must be sure at some stage (Bruin 2017).
Favaretto et al. (2016) stated that the cultural theory is relevant to the product because it
delivers information about the specific product to customers and its relationship to the
product. This is significant from a cultural standpoint that the price of a product meets the
desires and needs of customers. Customers of Axis Electronics Ltd generally have a product
mix that is a high-volume production group, with low to medium production group, often
requiring complex manufacturing processes, testing and testing development support, high-
level communication is expected, and the complete material supply chain management is
required. By co-operating on innovative solutions to address multifaceted challenges,
improve quality, reduce lead time, remove costs, etc., the organisation wants to be "true
partners" for each consumer who builds a culture of trust in each other.
Price
Axis Electronics Ltd implements a premium pricing strategy to improve its profitability. In
this strategy, the price of the electronic product is comparatively higher than competitors,
like Varitron Technologies. Axis Electronics has guaranteed its clients that it is the
industry's best-printed circuit board (PCB) manufacturer. Therefore, it has not been
challenged for the product pricing strategies for many years. Product prices are determined
based on production costs, demand, etc. The margins and pricing of Axis Electronics differ
across market sections and its products (Gordon 2021).
The price of a PCB relies on certain aspects of any culture, such as product complexity, time
duration, the worth of the team who manufactured the PCB, as well as level of control to
consumers. In different countries, the price may vary in line with the currency rate of the
specific country. Sreen, Purbey and Sadarangani (2018) reported that the pricing strategy
varies based on the economic conditions of different nations. In emerging nations, the price
needs to be done by comparing the price of a new product with the price of a similar
existing product to simply choose it. In emerging nations, individuals do not have accurate

4. knowledge about the product's price, so they purchase the product based on the evaluation.
If a company wants to bring a product to market at a higher price, it must consider that the
price must be higher for potential clients to purchase. In emerging countries, the pricing
tactic may change as people purchase the product and pay based on the price and
convenience (Kienzler and Kowalkowski 2017).
It is a vision to move towards long term goals and find a place in the market while attracting
more clients for the organisation. In this country, the organisation uses the strategy with a
fixed price to attract buyers. There is no doubt that the organisation is doing well as it does
not have many competitors, so the entire stock of the organisation can achieve its short-
term profit target and gain the reputation among the clients to manufacture an innovative
and high-quality product. This strategy should change from a fixed price to an affordable
price. Additionally, the price of Axis's PCB is higher than other reasonable products (Song,
Swaminathan and Anderson 2015). Axis Electronics uses the fixed pricing strategy in a
diverse culture. The organisation's products include IT and hardware products, so it needs
to fix the price. Axis Electronics implements the fixed pricing strategy in all cultures as it
produces products at main factories and headquarters so that the organisation cannot
change the price of the product with the cultural change. Additionally, the product is
different from the general market products. Therefore, the organisation has to create a
pricing strategy which is a value-based pricing tactic. This can be effective because the
organisation sells products that are not readily accessible.
Li et al. (2016) argued that this is a reasonable pricing strategy as customers understand
the product's price and how the product meets the requirements of every client. The
company can benefit from competitors. In addition, the value-based pricing strategy allows
a company to be more profitable as it provides the organisation with the opportunity for
more growth and resources. In a culture where a high price cannot be used effectively, it not
only reduces the price but also determines whether the lower price matches the value of
consumers. In addition, the pricing needs to match the market demand. The organisation
should consider the pricing strategies as an essential factor for the target market
(Weisstein, Kukar-Kinney and Monroe 2016).
Place
Axis Electronics Limited sell products directly to enterprises and individual clients. The
product is sold online and using physical channels. Then again, the organisation has
arrangements with IT retailers, for example, accessories and parts retailers. This
location/space combination helps the organisation reach the maximum in the global market
to sell and distribute its products. The organisation engages with many industry groups and
companies to help create strategic initiatives and enhance more value to consumers. The
organisation's focus is on urban areas due to the high demand for its products in certain
areas (Huggins et al. 2020).

5. Therefore, it is suitable and important for the organisation to target clients who use the
internet daily. Thus, the main place of a company's online store is the internet, where the
website is accessible to deliver products to middle- and upper-class clients. It is important
to use online platforms to deliver products to customers in globalisation.
In addition, it is good and viable for the organisation to inhibition with the high-quality
product. The cultural theory says that individuals come from different practices and
customs. In the case of such concerns, the organisation needs to evaluate different religions
and customers to produce relevant products. The company has over 40 Six Sigma Yellow
Belt members within its workforce to promote a quality culture that empowers and enables
local decision-making with the industry-recognised continuous improvement (CI) tools,
such as SC21 CSIP, DMAIC, and 8D. Additionally, the organisation uses the latest technology
on the internet using its website platform for products through courier services around the
world. Axis Electronics is also working to build strong relationships with clients.
Furthermore, the organisation helps entrepreneurs through its process to achieve
excellence by using their true potential to do incredible things (Brodowsky and Schuster
2020).
Promotion
Promotion is defined as how various organisations communicate with their clients about a
product. The organisation can use different promotion tools for promotional purposes
according to the culture of the target markets. Promotional tools include advertising,
personal sales, and sales promotion. The effective use of every promotional tool relies on
the culture of the community and its beliefs and value that what the organisation is serving
the community. Furthermore, promotion is an instrument that belongs to non-personal
communication. Advertising aims to provide information about the product to the audience
and what the company offers to its clients. Ads can reach a large audience simultaneously
through magazines, newspapers, television and other social media (De Mooij 2021). In this
case, Axis Electronics uses digital and traditional marketing channels to promote and
market its products and create demand. The organisation raises brand awareness and
develops demand through co-marketing and direct marketing programs. However, some of
the company's products have gained high recognition. Axis Electronics can also use social
media, television promotions, and digital advertising for marketing the product and
engaging more customers (Bruin 2017).
The organisation implements standardised advertising, including the same general notice
for each market. Sometimes it becomes unethical to follow local market rules and
regulations as it can have different meanings in different cultures and societies. In some
cultures, advertising is considered a language of communication between different groups.
Thus, the organisation needs to be cautious when designing advertising for promotional
purposes. In addition, diverse cultures respond differently to advertising. Some
organisations use non-verbal means of communication to send messages due to language

6. barriers between different nations. Other promotional and marketing strategies, such as
sales promotion, personal selling, and direct marketing, may culturally influence the culture
as it includes marketers' direct involvement with clients (Song et al. 2018).
Valaei et al. (2016) explained that consumer behaviour is also a vital aspect of promotion.
Consumer knowledge is essential for good communication and interaction. In the business
world, globalisation requires a changed approach to promotion to attract clients worldwide.
Axis Electronics need to use promotional strategies that can be applied worldwide. At
present, globalisation offers many benefits, and there is likewise a requirement to be aware
of the cultural barriers in different countries. The organization uses diverse methods to
promote their products. In a real sense, marketing brings a competitive advantage for a
company. Liobikien? et al. (2016) argue that modern promotional ideas bring rational,
behavioural, and emotional values ??to diverse cultures. Now, it is considered a promotional
activity associated with networking across businesses.
Axis Electronics Limited promotes the product through personalised customer transactions,
reducing IT costs and building stronger relationships with sellers and buyers. The
organisation can use various online platforms for promotional purposes, such as social
media promotions, with the contest as promotional gifts, promotional strategies, and
customer referral promotional programs. Kristjánsdóttir et al. (2017) explained that
organisations strive to understand the needs of their clients and provide quick solutions.
Furthermore, this activity is also effective in the promotion process of the organisation. The
organisation can add new promotional activities such as selling the product to cultured
clients and then asking them to review the product on social media sites and the official
website of the organisation. Effective promotional activities can impress clients and make
them feel a quick product. A business that is not properly promoted will not reach the
desired consumer market. Successful publicity depends on many factors, such as
communicating with buyers and convincing them that these people are vital to the
organisation, convincing them that the product is worth buying and attracting customers to
a particular product. Axis Electronics operates in almost all countries, such as developing,
developed, non-religious, religious, agricultural, and industrial. Thus, the organisation needs
to implement new promotional strategies to promote its business across different cultures
(Kristjánsdóttir et al. 2017).
Analysis Of The Potential Impact Of Culture On Marketing Strategy
Before making a recommendation for Axis Electronics, it is important to understand how
the business is now working to achieve its goals. The present analysis of the company's
marketing mix highlights that the organisation is trying to set short-term targets that it will
achieve. However, Axis Electronics is not concerned with the long-term goal of retaining
clients. This is because the fixed price is attractive to higher-class consumers. It has been
noted that the organisation has chosen to neglect the concept of cultural theory to
communicate with a wider clientele across different cultures and global markets

7. (Beugelsdijk et al. 2018).
Nokia, for example, had a similar situation with high-end phones in the early stages of
technology. This was a high time for an organisation when the organisation was making
high profits in the short term. The organisation had a fixed price for offering mobile phones
to different clients. As a result, the market was getting high orders from consumers
worldwide and made high profits. All at once, competitors entered the global market and
the technology advanced. After that, Nokia's strategy was ineffective because it had not
developed a strategy to achieve long-term goals in the face of impending market
competition. In this age of technology, there is no guarantee that the organisation will face
intense competition in the future (Dadzie et al. 2017).
In this regard, the main drawback of Nokia is that it does not understand the needs of the
upper class and produces the products accordingly. Competitors have entered the market
and reached out to each consumer worldwide to deliver products according to diverse price
and quality ranges. Thus, if an organisation achieves high profits and has a good reputation
within the marketplace, then the organisation should implement a long-term plan of 10
to15 years and retain loyal clients based on an efficient management strategy. The
management of Axis Electronics should look at its recommendations with long-term
performance in mind and not get bogged down in short-term reputation and profitability
(Thabit and Raewf 2018).
Conclusion
It is clear that businesses may face many challenges due to cultural differences. The
challenges that the organisation is faced are inevitable as the organisation is going for the
new business at a new location due to the pressure of competitors. Many theories based on
goal attainment have been developed in diverse cultures. In this report, there are four
points in the marketing mix, such as the product, promotion, price, and place were given to
senior managers to learn about marketing and business operations in diverse cultures.
Different cultures seek out strategies to align strong cultural beliefs and organisational
values. The culture of the society can influence different factors associated with global
marketing.
Furthermore, the culture can influence the products that consumers can use. Cultural
factors can also influence promotional tools. The culture also influences direct marketing,
sales promotion, and personal selling. To know the local market, the organisation must
create a collaborative tactic with other organisations. This process takes time to learn about
customers' needs, behaviour, and cultural feelings. Thus, it is necessary to collaborate with
local businesses as consumers who feel aggrieved in the UK are different from consumers in
the UAE or UAE. Therefore, it is important to hire one local manager to communicate and
coordinate with local consumers.

8. Recommendation
The organisation should follow the below suggestion for the next three years to achieve
long-term achievement:
The Management Of Axis Electronic Ltd Should Focus On Strategies To Work For LongTerm
Plan Achievement Rather Than ShortTerm Benefits In Terms Of Reputation and profitability
within the market. There is a strong need to consider cultural theory. At present, the
organisation does not consider the cultural theory, religious practices, and cultural norms of
different markets and produce the product. A reasonable price will attract different classes
of customers to trust the organisation and be loyal clients in the long run. Axis Electronics
needs to change its stocking strategy on online platforms and reach out to buyers while
having physical stores in various countries.
To grow the business, the company needs to rely on local experts to learn about local users
and customers. In this regard, the organisation must appoint locals to coordinate and
communicate with clients in local culture.
Language barrier can lead to serious problems as it will lead to misunderstandings between
employees and managers. Thus, the marketing across the culture should be adjusted and on
target in real-time settings. There is a requirement to do business in other markets.
Therefore, Axis Electronics needs to become well-organised in terms of tracking results. The
organisation should set goals to know what it will go through in the next three years.
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2. Secondary Resources
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