Biljana Lukic_Triglav International Business Akademy_Understanding cultural paradoxes specifics in global branding_Presentation

Triglav International Business Academy

UNDERSTANDING CULTURAL UNDERSTANDING CULTURAL PARADOXES/SPECIFICS IN GLOBAL BRANDINGPARADOXES/SPECIFICS IN GLOBAL BRANDING


Main objectiveMain objectivess

To find out how culture influences consumer behavior and advertising.

To find out cultural similarities and differences between former YU countries where Triglav Group is currently present.

To present recommendations based on resarch results useful for process of making brand strategy for Triglav Group.


Values and cultureValues and culture

National culture is a shared system of meanings that dictates what people pay attention to, how they act, and what they value.


Values influence consumer behavior, brand images, and the way advertising is made and perceived across countries.


Classification of culture is necessary to understand differences in cross-cultural consumer behavior and to differentiate marketing and advertising strategies across countries.


Values and cultureValues and culture

Most frequently used model for understanding differences across markets is Hofstede`s model of five dimensions:

Power distance (PDI) Individualism/Collectivism (IDV-COL) Masculinity/Femininity (MAS-FEM) Uncertainty Avoidance (UAI) Long/Short-Term Orientation (LTO)


Culture and global brandingCulture and global branding

In order to be relevant to consumers, brand must operate much like a culture which means that it has to align with consumers most deeply held beliefs and sense of identity.

When brand enters different cultures it has to adopt the brand elements to local tastes and preference of customers.


Culture and consumer behaviorCulture and consumer behavior

What people buy and why they buy certain product is influenced by their culture values.

Each product category has its own cultural relationship which means that culture also influences consumer behavior when they purchase insurance products.


Culture and advertisingCulture and advertising

Advertising is shaped by the culture in which it is practiced, so logically, it reflects the values of that culture.

When the values of consumers are congruent with the values reflected in advertising the link to liking the ad, will be more effective.


ResearchResearch

The research was conducted in Bosnia and Herzegovina, Croatia, Macedonia, Montenegro, Serbia and Slovenia.

Questionnaire contained from three parts: Measuring three dimensions IDV/COL, UAI and LTO/STO, Measuring preferences regarding different IMT channels and Measuring attitude to different social responsible actions of

companies.

Sample: Participants aged 25 – 45, With not less than high education, Employees from Triglav Group and their family and friends.


ResearchResearch

Number of respondents:

Slovenia 200

BiH , Croatia 50

Macedonia, Serbia, Montenegro 50


FindingsFindings

Even though all these countries were a part of Yugoslavia, values and cultural characteristics differed among them.

Cultural dimensions in all six countries still have similarities.

We can divide cultural characteristics for all six countries into two groups:

First group: Croatia, Macedonia and Slovenia, which are more individual, short term oriented and have weaker uncertainty avoidance;

Second group: Bosnia and Herzegovina, Montenegro and Serbia which are more collectivistic, more long term oriented and have stronger uncertainty avoidance.


ConclusionConclusion

Marketing strategy should be focused on emphasizing good quality of services and long tradition of the company.

Advertising should be based on: Commercials with humorous and unique content. TV as a primar marketing channel. Famous sportiests as promoters. Music festivals as a place of advertising.

Donations are most recognized actions of Corporate Social Responsibility.

Insurance company should primarily finance preventive measures.


THANK YOU !THANK YOU !

Q & AQ & A