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Cultural Dynamics in Assessing Global Markets

Chapter 4

McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights resere!.

PowerPoint presentation prepared by:Professor Rai! Mehta

Associate Professor of Marketing

"ew #ersey $nstitute of %echnology

"ewark& "'#'

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Chapter (earning )becti!es

1. The importance of culture to an internationalmarketer

1. The importance of culture to an internationalmarketer

2. The origins and elements of culture

2. The origins and elements of culture

3. The impact of cultural borrowing

3. The impact of cultural borrowing

4. The strategy of planned change and itsconsequences

4. The strategy of planned change and itsconsequences

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$ntroduction

Culture refers to the humanmade part of human en!ironment"

the sum total of knowledge# beliefs# art# morals# laws# customs# andany other capabilities and habits acquired by humans as membersof society$

Culture refers to the humanmade part of human en!ironment"the sum total of knowledge# beliefs# art# morals# laws# customs# andany other capabilities and habits acquired by humans as membersof society$

% successful marketer must be a student ofculture

% successful marketer must be a student ofculture

Culture is per!asi!e in all marketing acti!ities"

in pricing# promotion# channels of distribution#product# packaging# and styling

Culture is per!asi!e in all marketing acti!ities"

in pricing# promotion# channels of distribution#product# packaging# and styling

&mportance of culture in international marketing

&mportance of culture in international marketing

'nderstanding culture can determine success or failure ininternational marketing

'nderstanding culture can determine success or failure ininternational marketing

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Culture*s Per!asi!e $mpact

( Culture influences e!ery part of

our li!es( Cultures impact on birth rates in

Taiwan# )apan# and *ingapore

( Culture influences e!ery part of

our li!es( Cultures impact on birth rates inTaiwan# )apan# and *ingapore

( +irthrates ha!e implications for sellers of diapers# toys#schools# and colleges

( +irthrates ha!e implications for sellers of diapers# toys#schools# and colleges

( Consumption of different types of food influence is culture,

Chocolate by *wiss# seafood by )apanese preference# beef by+ritish# wines by -rance and &taly( !en diseases are influenced by culture, stomach cancer in

)apan# and lung cancer in *pain

( Consumption of different types of food influence is culture,

Chocolate by *wiss# seafood by )apanese preference# beef by+ritish# wines by -rance and &taly( !en diseases are influenced by culture, stomach cancer in

)apan# and lung cancer in *pain

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Definitions and )rigins of Culture

Culture has been conceptuali/ed as,

1. *oftware of the mind$ culture is a guide forhumans on how to think and beha!e0 it is aproblemsol!ing tool ofstede

2. %n in!isible barrier a completely different wayof organi/ing life# of thinking# and of concei!ing

the underlying assumptions about the family andthe state# the economic system# and e!en 5anhimself$ all

3. % thicket$ '.*. %mbassador odgson

Culture is the sum of the !alues# rituals# symbols# beliefs# and thought processesthat are learned# shared by a group of people# and transmitted from generation togeneration$

Culture is the sum of the !alues# rituals# symbols# beliefs# and thought processes

that are learned# shared by a group of people# and transmitted from generation togeneration$

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)rigins of Culture: Geography

1. 6eography# which includes climate# topography# flora# fauna#

and microbiology# influences our social institutions

1. 6eography# which includes climate# topography# flora# fauna#

and microbiology# influences our social institutions

2. Two researcherssuggest that

geographyinfluencese!erything fromhistory to

presentdaycultural !alues

2. Two researcherssuggest that

geographyinfluencese!erything fromhistory to

presentdaycultural !alues

3. -irst# )ared7iamond statesthat historicallyinno!ationsspread fastereasttowest thannorthtosouth

3. -irst# )ared7iamond states

that historicallyinno!ationsspread fastereasttowest thannorthtosouth

4. *econd# 8hilip 8arker reports strong correlations between thelatitude climate and the per capita 678 of countries

4. *econd# 8hilip 8arker reports strong correlations between thelatitude climate and the per capita 678 of countries

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)rigins of Culture: +istory

1. The impact of specific e!ents in history can be seen reflected intechnology# social institutions# cultural !alues# and e!enconsumer beha!ior

1. The impact of specific e!ents in history can be seen reflected intechnology# social institutions# cultural !alues# and e!enconsumer beha!ior

2. The military conflicts in the 5iddle ast in 2993 bred new colabrands# 5ecca Cola# 5uslim 'p# and %rab Cola

2. The military conflicts in the 5iddle ast in 2993 bred new colabrands# 5ecca Cola# 5uslim 'p# and %rab Cola

( -or e.g.# %merican tradepolicy depended on tobaccobeing the original source ofthe :irginia colony;seconomic sur!i!al in the1

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)rigins of Culture: %he Political ,conomy

1. -or most of the 29th Century three approaches to go!ernance

competed for world dominance, fascism# communism# anddemocracy=free enterprise

1. -or most of the 29th Century three approaches to go!ernance

competed for world dominance, fascism# communism# anddemocracy=free enterprise

3. >ecessary to appreciate the influence of the political economyon social institutions and cultural !alues and ways of thinking

3. >ecessary to appreciate the influence of the political economyon social institutions and cultural !alues and ways of thinking

2. -ascism fell in 1?4@0 Communismcrumbled in the 1??9s

2. -ascism fell in 1?4@0 Communismcrumbled in the 1??9s

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)rigins of Culture: %echnology

1. Technological inno!ations also impact institutions and cultural1. Technological inno!ations also impact institutions and cultural

2. )et aircraft# air conditioning#tele!isions# computers# and the

internet ha!e all influenced culture

2. )et aircraft# air conditioning#tele!isions# computers# and theinternet ha!e all influenced culture

3. %rguably the greatest impact isthe pill that has allowed womento ha!e careers and freed men tospend more time with kids

3. %rguably the greatest impact isthe pill that has allowed womento ha!e careers and freed men tospend more time with kids

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)rigins of Culture: -ocial $nstitutions

( *ocial institutions including family# religion# school# the media#

go!ernment# and corporations all affect culture

( *ocial institutions including family# religion# school# the media#

go!ernment# and corporations all affect culture

( The family# social classes# group beha!ior#age groups# and how societies define decencyand ci!ility are interpreted differently within

e!ery culture./0 -amily beha!ior!aries across the world#

e.g.# eAtended families li!ing together to 7adwashing dishes

.10 Religious !alue systems differ across theworld#e.g.# 5uslims not allowed to eat porkto indus not allowed to consume beef

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)rigins of Culture: -ocial $nstitutions

.20 -chool andeducation# and literacy rates

affect culture and economic growth.40Mediamaga/ines# T:# the &nternet

influences culture and beha!ior

.30 Go!ernment policies influence the

thinking and beha!iors citi/ens of adultciti/ens# e.g.# the -rench go!ernmentoffers new birth bonuses$ of B99 gi!ento women as an incenti!e to increasefamily si/e

.0 Corporations influence culture !ia theproducts they market# e.g.# 5T:

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,lements of Culture

&nternational marketers must design products# distribution systems#

and promotional programs with due consideration to culture# whichwas defined as including fi!e elements,

&nternational marketers must design products# distribution systems#

and promotional programs with due consideration to culture# whichwas defined as including fi!e elements,

/' Cultural !alues

1' Rituals

2' -ymbols

4' 5eliefs& and

3' %hought processes

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,lements of Culture: Cultural 6alues

( 7ifferences in cultural !alues# which is found to eAist among

countries# affects consumer beha!ior

( ofstede# who studied o!er ?9#999 people in

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$ndi!idualism7Collecti!ism $nde8

( &ndi!idualism=Collecti!ism &ndeA,( &ndi!idualism=Collecti!ism &ndeA,

/' %he $ndi!idualism7Collecti!e $nde8 refers to the preferencefor beha!ior that promotes one*s self9interest

1' +igh $D6 cultures reflect an =$> mentality and tend toreward and accept indi!idual initiati!e

2' (ow $D6 cultures reflect a =we> mentality and generallysubugate the indi!idual to the group

4' Collecti!ism pertains to societies in which people frombirth onward are integrated into strong& cohesi!e groups&which protect them in e8change for un?uestioning loyalty

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Power Distance $nde8

( 8ower 7istance &ndeA,( 8ower 7istance &ndeA,

/' %he Power Distance $nde8 measures power ine?ualitybetween superiors and subordinates within a social system

1' Cultures with high PD$ scores tend to be hierarchical and!alue power and social status

2' +igh PD$ cultures the those who hold power are entitled topri!ileges

4' Cultures with low PD$ scores !alue e?uality and reflectegalitarian !iews

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ncertainty A!oidance $nde8

( 'ncertainty %!oidance &ndeA,( 'ncertainty %!oidance &ndeA,

/' %he ncertainty A!oidance $nde8 measures the toleranceof uncertainty and ambiguity among members of a society

1' +igh A$ cultures are highly intolerant of ambiguity&e8perience an8iety and stress& accord a high le!el ofauthority to rules as a means of a!oiding risk

2' (ow A$ cultures are associated with a low le!el of an8ietyand stress& a tolerance of de!iance and dissent& and awillingness to take risks

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,lements of Culture: Rituals& and -ymbols

( Dituals are patterns of beha!ior and interaction that are learned

and repeated !ary from country to country# e.g.# eAtended lunchhours in *pain and 6reece

( Dituals are patterns of beha!ior and interaction that are learned

and repeated !ary from country to country# e.g.# eAtended lunchhours in *pain and 6reece

( -rench attempting to preser!e thepurity of their language

( -rench attempting to preser!e thepurity of their language

( Eanguage as *ymbols, thelanguages$ of time# space# things#friendships# and agreements

( Eanguage as *ymbols, the

languages$ of time# space# things#friendships# and agreements

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,lements of Culture: Rituals& and -ymbols

( &n Canada# language has been the focus of political disputesincluding secession

( &n Canada# language has been the focus of political disputes

including secession

( %esthetics as *ymbols, the arts#folklore# music# drama# and dance

of a culture influences marketing

( %esthetics as *ymbols, the arts#folklore# music# drama# and dance

of a culture influences marketing

( 7ifferences in language !ocabulary!aries widely

( 7ifferences in language !ocabulary!aries widely

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,lements of Culture:

5eliefs and %hought Processes

+eliefs# which stem from religious training# !ary from culture to

culture

+eliefs# which stem from religious training# !ary from culture toculture

&n summary# marketers must consider larger cultural consequencesof marketing actions&n summary# marketers must consider larger cultural consequencesof marketing actions

Thought processes also !ary across culturesThought processes also !ary across cultures

,8amples:,8amples:

( The western a!ersion to the number 13 or refusingto walk under a ladder

( )apanese concern about Hear of the -ire orse

( The Chinese practice of -eng *hui in designingbuildings

,8amples:,8amples: %sian and Iestern$ thinking%sian and Iestern$ thinking

< t l $ t ti

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Cultural Change and Cultural 5orrowing

( &nternational marketers should appreciate how cultureschange and accept or reJect new ideas

( ow cultures change# e.g.# war changes in )apan afterIorld Iar && or by natural disaster

( ofstede has shown that consumers; acceptance of

inno!ations !aries across cultures K inno!ation wasassociated with higher indi!idualism &7:# and lowerpower distance 87& and uncertainty a!oidance '%&

( &nternational marketers should be aware the eAtent towhich cultures borrow ideas and learn from other

cultures

( elps in the marketing of products from one culture to adifferent culture

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hose ,nglishB

'nited *tates

1. Trunk

2. ood3. Con!ertible Top

4. le!ator

@. Toilet

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Resistance to Change

%cceptance of genetically modified foods

or -rankenfood$ in urope

%cceptance of genetically modified foods

or -rankenfood$ in urope

Iorking women in 5asculine societies like

*audi %rabia

Iorking women in 5asculine societies like

*audi %rabia

%lthough some cultures embrace change#others are resistant to it%lthough some cultures embrace change#others are resistant to it

Aamples of cultures that resist change,Aamples of cultures that resist change,

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Planned and nplanned Cultural Change

( Cultures that are resistant to change represent a maJor hurdle inmarketing products

Cultural change can be accomplished by:

( -irst# determine which cultural factors conflict with aninno!ation# thus creating resistance to its acceptance

( *econd# change those factors from obstacles to acceptance intostimulants for change( Third# marketers can cause change by introducing an idea or

product and deliberately setting about to o!ercome resistance andto cause change that accelerates the rate of acceptance

( -irms can use a strategy of planned change by deliberatelychanging those aspects of the culture offering resistance to

predetermined marketing goals# e.g.# introducing western foodsand baseball into )apan