International Marketing in Germany – From a cultural perspective

Table 1.2 Exports and Imports
 
Exports 
$1.354 trillion (2007 est.)
Exports- Commodities 
machinery, vehicles, chemicals, metals and manufactures, foodstuffs, 
textiles
Exports- Partners 
France 9.7%, United States 7.5%, United Kingdom 7.3%, Italy 6.7%, 
Netherlands 6.4%, Austria 5.4%, Belgium 5.3%, Spain 5% (2007) 
Imports 
$1.075 trillion (2007 est.)
Imports- Commodities machinery, vehicles, chemicals, foodstuffs, textiles, metals
Imports- Partners 
Netherlands 12%, France 8.6%, Belgium 7.8%, China 6.2%, Italy 
5.8%, United Kingdom 5.6%, United States 4.5%, Austria 4.4% (2007) 
Source:
Central Intelligence Agency- The World Fact Book (modified) 
1.4
 
Problem Discussion and Problem Definition 
1.4.1
 
Problem Discussion 
The marketing mix highly depends on culture. This area is very interesting and the knowledge 
of a foreign culture can be a determining factor of success when companies internationalize. 
Sweden is a small country with a long export tradition and the domestic market is in a 
stagnating phase for many products. This implies that many companies have to 
internationalize in order to secure business and improve profits. This makes it even more 
important for Swedish companies to have cultural knowledge of foreign target markets. The 
process of internationalization can be planned or unplanned. However, only the planned 
contains a marketing mix designed for the target market, implying that these companies have 
to occupy themselves with the question of standardization or adaptation.
Germany and Sweden have a deep tradition of trade, especially since Germany is the largest 
export market of Sweden.
13
Germany and Sweden are close geographically, yet, despite this 
12
Central Intelligence Agency - The World Fact Book 
13
Swedish Trade Council http://www.swedishtrade.se/tyskland/?objectid=1126&pageid=1070  

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fact they differ in their cultures. This implies that knowledge of the target market’s culture is 
significant. However, many companies still choose to standardize large parts of the marketing 
mix although it might be an advantage to adapt parts of it. Many companies have made 
mistakes in their marketing mix when internationalizing to Germany, and many have 
succeeded, which gave rise to an interest to study how companies adapt or standardize their 
marketing mix with regard to German culture.
To be able to deepen our knowledge in this subject we need to study and characterize the 
marketing mix and its specific factors, finding out which marketing mix tools are important in 
our case. We also need to study culture to find out which variables we should include, in order 
to make a definition of it. The subject of the thesis also includes the need to find out what 
characterizes German culture. Acquiring this information will enable us to draw conclusions 
about how the marketing mix gets affected by German culture. To find out the effects on the 
marketing mix we will interview manufacturing Swedish companies that have taken 
marketing mix actions in Germany regarding their marketing mix.
Important issues throughout the thesis are:
-
What adaptations and standardizations of the marketing mix are made regarding price, 
product, place and promotion when internationalizing to Germany?
-
Are the adaptations and standardizations of the marketing mix made due to German 
culture? 
-
Are there differences between industries, such as industrial products, food- and 
beverage industries and garment industry regarding their adaptations in price, product, 
place and promotion?
-
Is it important for Swedish companies to possess knowledge about German culture 
when having an active marketing mix in Germany?