What is culture
and why you'll need it in export
Cultural insights
Navigating Cultural Understanding in International Sales and Marketing
Did you ever had the experience a deal slipped through your fingers, leaving you scratching your head, wondering what just happened? If you’re involved in international sales and negotiations, understanding the role of culture could be the missing piece in your strategy. In this blog post, we delve into the intricacies of cultural understanding in international business and why it’s more important than you think.
Building Trust in an International Setting
At the heart of any transaction—be it a product, a service, or even an idea—is trust. Trust is especially critical when crossing borders because of varying norms and practices. Gone are the days when a handshake or a word was enough. Today, building trust requires an understanding of the context from which your clients come, including the culture they were raised in.
What is Culture, Really?
Many people think of culture as the ‘iceberg model,’ where visible elements like food, dress code, and language are above the surface. However, the most critical aspects of culture lie beneath the surface, often unnoticed but powerfully influential.
- Core Culture: This consists of deeply ingrained beliefs, values, and norms that people may not even be aware they possess. Core culture can influence fundamental worldviews, decision-making processes, and the way people interact with trust and authority.
- Layers of Culture: These are the aspects of culture that are more readily apparent—things like language, attire, rituals, and symbols. While these are easier to identify and adapt to, they are often manifestations of deeper cultural elements.
Case Studies: Trust and Cultural Mishaps
Let’s look at some real-world examples where ignoring cultural factors led to failures in business negotiations:
US vs. Japan: In the United States, being direct and getting straight to the point is often valued. However, in Japan, this approach can come off as rude and disrespectful, as they value relationship-building and indirect communication. This indirect approach is called “reading the air”.
Middle East: The concept of time can differ dramatically in cultures. In the Middle East, building relationships often precedes talk about products, services and business deals. This might be considered time-wasting for the American delegations, but is essential to learn to know each other from a Middle eastern point of view.
Why Culture is Pivotal in International Business
In our interconnected global economy, understanding the role of culture in international business is not an option; it’s a necessity. A nuanced cultural approach can:
- Build stronger relationships with stakeholders.
- Enhance the company’s reputation in new markets.
- Reduce conflicts and misunderstandings.
- Improve negotiation outcomes.
How to Gain Cultural Intelligence
Understanding culture isn’t just about avoiding faux pas; it’s about gaining a competitive advantage. Here are some methods to enhance your cultural intelligence:
- Training: Investing in cultural training for your team can have high returns.
- Consultation: Engage with cultural experts who can guide you through the intricacies of doing business in a particular region.
- Local Partnerships: Partnering with local businesses can provide invaluable insights into local customs and practices.
- Analytics data and Insights: Using your website data to gain insights on online behaviour of different cultures and culture groups.
Closing Thoughts
As international markets become increasingly accessible, understanding and leveraging the cultural aspects of these markets have transitioned from being a ‘nice-to-have’ to an essential asset. Stay tuned for our next blog, where we’ll delve deeper into the practical applications of cultural understanding in global marketing strategies.