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Write about the impact of the Culture in UAE on the Promotion Strategy of Firms
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Impact of the Culture in UAE on Promotion Strategy of Firms
Promotion is a way of marketing that is used my many firms in the market in order to advertise their goods and services to the consumers. It is very important for firms to conduct promotions on their products regardless of the kind of market that they are operating in. in this case, firms in a monopolistic kind of market are expected to advertise in order to ensure that new entrants are scared away hence retaining the loyalty of their customers. On the other hand, it is more critical and essential to advertise in the competitive market due to the stiff competition that arises from the many firms that exists in the market competing to sell their goods. However, there are a number of strategies that are used in the promotional strategies and hence firms may prefer to choose the most suitable strategy that will enable them achieve the optimal output. This argument is based on the impact posed by the culture on the promotion strategy that is used by firms.
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UAE is one market areas that have shown potential benefits that arise from the benefits operating in the market. The cultures among the consumers and also in the market have posed a great and potential impact to the firms operating in the market. In addition, the consumers in the UAE market are characterized by a number of features. In this regard, the culture that exists in the UAE poses an impact on the firms that are in operation in the same market (Harris, 2003). To begin with, it is important to analyze on the UAE consumer who is also part of the existing culture. In this case, consumers are collective in nature and the family goals takes precedence over the individual goals. In this regard, the consumers will ensure that the family interests are given the highest priorities over any other individual goals that might arise. On the other hand, power distance dominates in the UAE whereby there is no equality hence the hierarchy process is common. In this case, this may pose a challenge to promotion in business (Boone & Kurtz, 2005). This is because, hierarchy might lead to poor performances as anyone is allowed to manage their businesses hence this might lead to loses due to poor management from those in the hierarchy. In this case, the kind of impact created by such a culture is negative since it decreases on the output due to poor management and underutilization of resources (Ranchhod & Gura?u, 2007).
The culture of avoiding uncertainties especially in business is also rampant in the Middle East hence this posses a great impact on the promotion of businesses. In this case, most of those in business highly avoid risks and hence prefer not taking part in doubtful activities. In this context, there are both advantages and disadvantages in relation to the promotion strategy (Kerin, 2006). Avoiding risks at times in business is always considered to be the best move since it ensures that the business has an assurance of performing well in the period of business hence its likely to have a high turnover which increases the sales of the business as well. On the other hand, it has been considered that the best performance of big businesses across the world is as a result of taking of risks by the top management of the businesses. Risks are a way of promotion strategies used by a number of business entities. Therefore, it is also important to take risks by speculation on the possibilities of the success and failure of the risks undertaken. However, the impact created by the issue of risk can be on equal basis since some of the businesses are making high profits while other are recording losses due to the risks that involve themselves in. therefore, this kind of culture can be beneficial if those in business decide to be very keen in making decision on certain risks that they may take.
The culture of achieving high standards has a great impact in the promotional strategies. In this case, when people are very ambitious on particular issues like business, they are able to perform well due to the inner desire that they may have. In addition, such individuals are able to work hard in order to achieve the set goals of the business. In any kind of business, there is need for participation which contributes a lot to the success of the business. In UAE, there is increased dedication by individuals to their business and hence this ensures that there businesses always remain at par (Salzman, 2008). Additionally, when an individual is dedicated to his or her business, there are possibilities of expansions hence creating a strong foundation for the operation of the business. In terms of decision making, men are mostly the ones that make decisions in businesses while women are entitled in making household decisions.
When promoting a business in the UAE, it is important to conduct advertisements which are not offensive. This is because most of the individuals in the Middle East are Muslims who are keen on ethical issues hence any kind of negative issue that may be portrayed in the adverts might lead to poor performance of a business since the consumers might decide not to completely buy your products. In addition, the different beliefs and superstitions that are common in countries across the region are likely to build or bring down a business. For instance, there might be a negative impact on a certain company that might start its operation in the UA E region but focuses on production of a good the is negatively viewed by the people. In this case, there is a high likelihood that such a product may not get a chance to sell in the market hence this might lead to closure of such a business. On the other hand, a business may prosper if the cultures and norms in this case favor the kind of business that he or she establishes. Below is a SWOT analysis.
Strengths
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Better prices on commodities
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Good system of governance in business
Weakness
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Cultural constraints that limit promotions
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stiffness in some businesses
Opportunities
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Availability of market gaps in many sectors
Threats
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competition from home firms already established
Stringent laws on adverts especially if they may turn offending
From the above context, it is evident culture is an important factor in promotional strategies of businesses. Therefore, it is important for the management of a business to study the culture of the market in such region in order to establish the best ways in which they can conduct their business in order to ensure that there is a positive impact. Additionally, it is also important to use diplomatic ways of businesses in dealing with such cases in the line of business. In this way, businesses will be able to operate well in the market.
Literature Review
Promotional strategies are molded according to the orientation of the customers towards certain product or services (Raverty, 2002). The culture of a country compels the companies to decide the possible marketing techniques to attract the customers.
Culture is everywhere and it is complex enough that it can prevent companies from tapping into the market potential successfully. Culture has been defined in various perspectives and from the organization’s point of view, the culture is a complex net that needs to breached to directly reach the customers with the product offerings. Culture combines various elements such as the way people behave, the festival they enjoy or the dances they perform for entertainment. According to Hawkins et al (1983), the culture is the mixture of various other things, beginning from knowledge and mixing with various understanding and perceptions. Umoren (1996) suggests that the language is considered as the vehicle that carries the culture around and getting closer look to the language of any society or country can help the organizations in getting better understanding of the culture. Language in some way or the other impacts the way people behave within the society. Therefore, the language is considered as one of the tools to promote the services to the people of any country and the society. It is very important for the companies those are entering into the new country and have no understanding of the market. Any company can begin with the language of that country to break into the net of culture. Moreover, the other important element that helps build culture is the religion that exists in the society. There are religions that prevent married women from roaming outside without the consent of the husband or family. Such factors dictate how the companies strategies their promotional techniques. It has been found that as the time moves ahead, culture sees various changes in the tradition and adaptation of the surroundings. This change reflects in the products and services people use and adaptation they show for the new products and services.
A study conducted by P.P.Ekerete (2001) tried to look into the extent to which the factors of culture impact the operation of the big organizations and the way the culture challenges their marketing strategies. The paper selected various companies ranging from daily use products to costly drinks and with the use of structured and unstructured questions, the researcher came to the conclusion that the culture impacts the way the companies offer the products, choose price alternatives, and promote their products. The author recommends that the companies should focus on adapting their promotion strategies according to the market preferences. Moreover, the customers accept only those products or services those fit their culture and perspective. The same goes with the promotional techniques. The researcher suggests that the study shows positive correlation between the culturally fit promotional activities and customers’ response. Therefore, moving ahead with the marketing or promotional techniques that fits the culture of a country has emerged more successful than others.
Another study conducted by the two researchers Kaur and Chawla (2016) on the impact of culture on the promotional strategies suggest that the promotional activities related to a product is greatly impacted by cultural patterns. The paper tried to analyze the various promotional techniques of the products of the companies and came to the conclusion that the customs and traditions of a country dictate the demand of those products and the way it is perceived. The paper tried to understand the procedures that lead to the changes in the promotional techniques and how the changes are impacted. The authors state that diversified cultures of a country bring various uncertainty in itself and which poses challenges to the marketing department in coming up with strategies that can work well. It has been suggested that framing of promotional activities should come up after thorough understanding of the culture of the country, the income level of the target consumers, their customs and traditions. In scenarios such as this, it is important that companies should analyze the factors of promotional strategies and the way it might impact the perception level of the customers. This analysis will help the company in understanding the customers from their point of perception and might make the promotional techniques easier and convenient.
At this point, both the researches state that promotional actions should be the reflection of the culture. That is, companies should understand the perception level and the perspective of the customers and then move ahead with any strategies.
A research conducted by few researchers (Barbara et al, 2008) on the role of culture of a nation, the way companies take advertising decisions and the impact of both on the business cycles comes to the conclusion that the advertising that were in accordance with the existing culture of the countries, fared well in comparison to others. Moreover, it was also found that the advertisement in most of the countries go less in cyclical pattern and thus requires regular induction of fresh ideas and inputs that conforms to the local culture and thinking pattern. However, the paper cannot be stated as a thorough research on the topic and opens up more doors for further studies. The paper considered various hypotheses and with the use of surveys and studies of past research work came to the conclusion that instead of considering promotional strategies as short term oriented, it should be considered as long term investment. Based on the business cycle pattern and finances of the company, the paper suggests that the organizations should go with the promotional strategies that are inelastic In order to maintain the voice of the firm in the various markets, such strategies becomes imperative for the companies to implement.
A study conducted by Fahy et al (2000) mainly focuses on the emergence and impact of the capability of marketing in the European countries, but the discussion related to promotional strategies are found to be important for this paper. The paper suggests that organization should draw upon the local cultures. The companies those are multinationals, building a strategic partnerships with the local companies help them utilize the intellectual capability and market understanding which is used in promotional strategies to attract the customers. It can be realized from the paper that instead of investing time on trial and error, the company can directly conjugate with other existing local companies to get the benefit of the market. The strategic partnerships with foreign companies can help the organization to gain the share rapidly and more customer loyalty in less time.
A study conducted by Denise et al (2004) on exploration of the impact of culture on the way consumer decides on their purchase gives good insights to the topic that is being researched through this paper. The paper of Denise et al tries to understand the relationship between the culture and the impact of the same on the decisions made by the customers of relating to that culture. The paper suggested that the consumers are more oriented towards their cultural preferences and mostly prefer products and services those conform to their idea and perspectives. The people of any country develop through adopting the culture of the surrounding and always try to stick with the same throughout their life unless some external elements bring any significant change. For instance, the promotional strategies those are employed to change the perspective of the people might be effective if it catches the eyes of the customers affirmatively and if they approves the same as acceptable in the society. The companies need to understand the same and then move develop their strategies.
Another study conducted by Dana et al (1999) on the positioning of the brand in American and the European market and the way the different cultures impact the promotional decisions of the local and international companies. The paper moved ahead in the research with the development of a model for brand positioning in the market and undertook various theoretical and practical research methods to understand the justification of the model developed in the earlier phase. The paper suggests that the most of the companies employ culture specific advertising techniques to promote their brand. Moreover, the paper suggests global consumer culture positioning as a tool that states that the companies should utilize the same model to position their brand on the global scene. This gives the company benefit in terms of positioning itself as per the local market is concerned. The local market, in general, accepts the big brands if they are aware about the huge size of the same. Such substantial size also works in the favor of the organization in influencing the customers very effectively. However, one of the studies conducted by the same researchers reflects doubt in the success of brand in the local culture impact if the brand is of global level. It might be possible that the brand value of the company has failed to diffuse on the local level and the customers are not readily accepting the product of the company.
The aforementioned discussed papers suggest that the presence of culture at the local or national level dictates the way the companies promote or advertise their product. The companies need to adopt according to the culture of the market and develop promotional strategies that go along with the culture. The promotions should conform to the ideology and perception of the customers to allow them to accept the products and services being advertised. The language and religion have been defined as the two most important elements that should be considered while developing promotional activities for the new market. The language is the carrier of the culture which takes culture from one place to another and also allows the same to diffuse in other culture. The companies are suggested to utilize the language of the local community to improve the promotional strategies. The other element is the religion that clearly shows what people are accepting and what are the things they are likely to reject if presented. Understanding their religion will help the companies advertise and promote in a better light with higher rate of success rate.
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