chapter 4copyright (c) 2007 john wiley & sons, inc.1 global marketing management, 4e chapter 4...

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Chapter 4 Chapter 4 Copyright (c) 2007 John Wiley & Copyright (c) 2007 John Wiley & Sons, Inc. Sons, Inc. 1 Global Marketing Global Marketing Management, 4e Management, 4e Chapter 4 & 6 Chapter 4 & 6 Global Cultural Global Cultural Environment and Environment and Buying Behavior Buying Behavior (pp. 122(2)-140(1)) (pp. 122(2)-140(1)) & & Global Marketing Global Marketing Research Research (pp.196(1)-198(3)) (pp.196(1)-198(3))

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Chapter 4Chapter 4 Copyright (c) 2007 John Wiley & Sons, Inc.Copyright (c) 2007 John Wiley & Sons, Inc. 11

Global Marketing Management, 4eGlobal Marketing Management, 4e

Chapter 4 & 6Chapter 4 & 6

Global Cultural Global Cultural Environment and Buying Environment and Buying

BehaviorBehavior

(pp. 122(2)-140(1)) (pp. 122(2)-140(1))

& &

Global Marketing Global Marketing ResearchResearch

(pp.196(1)-198(3))(pp.196(1)-198(3))

Chapter 4Chapter 4 Copyright (c) 2007 John Wiley & Sons, Inc.Copyright (c) 2007 John Wiley & Sons, Inc. 22

OverviewOverview1. Defining Culture(1. Defining Culture( 문화의 정의문화의 정의 ))2. Elements of Culture(2. Elements of Culture( 문화의 요소문화의 요소 ))3. Cross-Cultural Comparisons(3. Cross-Cultural Comparisons( 문화간 문화간

비교비교 ))4. Adapting to Cultures(4. Adapting to Cultures( 문화에 적응문화에 적응 ))5. Cultures and the Marketing Mix(5. Cultures and the Marketing Mix(

문화와 마케팅 믹스문화와 마케팅 믹스 ))6.6. Organizational Cultures(Organizational Cultures( 조직문화조직문화 ))7.7. Introduction of Global Marketing Introduction of Global Marketing

Research(Research( 글로벌 마케팅조사 개요글로벌 마케팅조사 개요 ))

Chapter 4Chapter 4 Copyright (c) 2007 John Wiley & Sons, Inc.Copyright (c) 2007 John Wiley & Sons, Inc. 33

IntroductionIntroduction Buyer behavior and consumer needs are largely driven by Buyer behavior and consumer needs are largely driven by

cultural norms(cultural norms( 구매자행동 및 소비자 니즈는 상당부분 문화적 구매자행동 및 소비자 니즈는 상당부분 문화적 행동 양식에 의해 결정행동 양식에 의해 결정 ).).

Global business means dealing with consumers, strategic Global business means dealing with consumers, strategic partners, distributors, and competitors with different cultural partners, distributors, and competitors with different cultural mindsets(mindsets( 글로벌 비즈니스는 다른 문화적 사고방식을 갖고 있는 글로벌 비즈니스는 다른 문화적 사고방식을 갖고 있는 소비자소비자 , , 전략적 파트너전략적 파트너 , , 유통업자 및 경쟁자와의 관계를 의미유통업자 및 경쟁자와의 관계를 의미 ).).

Within a given culture, consumption processes can include four Within a given culture, consumption processes can include four stages: access, buying behavior, consumption characteristics, stages: access, buying behavior, consumption characteristics, and disposal (and disposal ( 한 문화 내에서 소비과정은 네 단계로 구성한 문화 내에서 소비과정은 네 단계로 구성 : : 접접근근 , , 구매행동구매행동 , , 소비특성소비특성 , , 처분처분 ) (see Exhibit 4-1).) (see Exhibit 4-1).

Each of these stages is heavily influenced by the culture in Each of these stages is heavily influenced by the culture in which the consumer thrives(which the consumer thrives( 소비과정의 각 단계는 소비자가 소비과정의 각 단계는 소비자가 성장한 그 문화에 의해서 엄청난 영향을 받음성장한 그 문화에 의해서 엄청난 영향을 받음 ).).

Chapter 4Chapter 4 Copyright (c) 2007 John Wiley & Sons, Inc.Copyright (c) 2007 John Wiley & Sons, Inc. 44

IntroductionIntroduction

Chapter 4Chapter 4 Copyright (c) 2007 John Wiley & Sons, Inc.Copyright (c) 2007 John Wiley & Sons, Inc. 55

1. Definition of Culture1. Definition of Culture There are numerous definitions of culture. In this text, There are numerous definitions of culture. In this text,

culture (in a business setting) is defined as being a culture (in a business setting) is defined as being a learned, shared, compelling, interrelated set of symbols learned, shared, compelling, interrelated set of symbols whose meanings provide a set of orientations for whose meanings provide a set of orientations for members of society(members of society( 사회구성원의 일련의 행동양식에 사회구성원의 일련의 행동양식에 의미를 제공하는의미를 제공하는 , , 학습되고학습되고 , , 공유되고공유되고 , , 따르지 않을 수 따르지 않을 수 없고없고 , , 서로 연관된 상징들의 체계서로 연관된 상징들의 체계 ). ).

Cultures may be defined by national borders, especially Cultures may be defined by national borders, especially when countries are isolated by natural barriers(when countries are isolated by natural barriers( 국가가 국가가 특히 자연적 장벽에 의해서 고립된 경우에는 문화는 특히 자연적 장벽에 의해서 고립된 경우에는 문화는 국경에 의해서 완전히 달리 정의될 수 있음국경에 의해서 완전히 달리 정의될 수 있음 ). ).

Cultures contain subcultures that have little in common Cultures contain subcultures that have little in common with one another(with one another( 문화는 공통성이 없는 하위문화를 함문화는 공통성이 없는 하위문화를 함유유 ).).

Chapter 4Chapter 4 Copyright (c) 2007 John Wiley & Sons, Inc.Copyright (c) 2007 John Wiley & Sons, Inc. 66

2. Elements of Culture2. Elements of Culture

Culture consists of many interrelated components(Culture consists of many interrelated components( 상호 상호 연관된 여러 요소들연관된 여러 요소들 ). Knowledge of a culture requires a ). Knowledge of a culture requires a deep understanding of its different parts. Following are deep understanding of its different parts. Following are the elements of culture:the elements of culture:– Material life(Material life( 물질적인 삶물질적인 삶 )) (technologies that are used (technologies that are used

to produce, distribute, and consume goods and to produce, distribute, and consume goods and services: services: 재화와 서비스의 생산재화와 서비스의 생산 , , 유통 및 소비에 유통 및 소비에 사용되는 기술사용되는 기술 ))

– Language(Language( 언어언어 )) (language has two parts: the (language has two parts: the spoken and the silent language: spoken and the silent language: 명시적 언어와 명시적 언어와 묵시적 언어묵시적 언어 ))

– Social Interaction(Social Interaction( 사회적 상호작용사회적 상호작용 )) (social (social interactions among people; nuclear family, extended interactions among people; nuclear family, extended family; reference groups: family; reference groups: 준거집단준거집단 ))

Chapter 4Chapter 4 Copyright (c) 2007 John Wiley & Sons, Inc.Copyright (c) 2007 John Wiley & Sons, Inc. 77

2. Elements of Culture2. Elements of Culture– Aesthetics(Aesthetics( 미학미학 )) (ideas and perceptions that a culture (ideas and perceptions that a culture

upholds in terms of beauty and good taste: upholds in terms of beauty and good taste: 아름다움과 아름다움과 고상함에 대해서 갖고 있는 사고나 인식고상함에 대해서 갖고 있는 사고나 인식 ))

– Religion(Religion( 종교종교 )) (community’s set of beliefs that relate to (community’s set of beliefs that relate to a reality that cannot be verified empirically; a reality that cannot be verified empirically; 실증적으로 실증적으로 확인될 수 없는 존재와 관련된확인될 수 없는 존재와 관련된 , , 집단의 신념체계집단의 신념체계 ))

– Education(Education( 교육교육 )) (One of the major vehicles to channel (One of the major vehicles to channel from one generation to the next; from one generation to the next; 한 세대에서 다음 한 세대에서 다음 세대로 이어지는 소통의 주요 수단세대로 이어지는 소통의 주요 수단 ))

– Value System(Value System( 가치체계가치체계 )) (values shape people’s norms (values shape people’s norms and standards; and standards; 사람들의 행동 양식과 기준을 형성하는 사람들의 행동 양식과 기준을 형성하는 가치들가치들 ))

Chapter 4Chapter 4 Copyright (c) 2007 John Wiley & Sons, Inc.Copyright (c) 2007 John Wiley & Sons, Inc. 88

3. Cross-Cultural Comparisons3. Cross-Cultural Comparisons(( 문화간 비교문화간 비교 ))

Cultures differ from one another, but usually share certain Cultures differ from one another, but usually share certain aspects(aspects( 각국의 문화는 다르지만 공통된 측면도 있음각국의 문화는 다르지만 공통된 측면도 있음 ). ). Recent social psychology research reveal key cultural Recent social psychology research reveal key cultural differences between East (high) and West (low) context differences between East (high) and West (low) context cultures in how people perceive reality and reasoning(cultures in how people perceive reality and reasoning( 최근 최근 사회심리학 연구는 사람들의 현실 인식과 사고 방식에서 사회심리학 연구는 사람들의 현실 인식과 사고 방식에서 핵심적인 문화차이를 발견핵심적인 문화차이를 발견 ) (see below).) (see below).

High-context cultures(High-context cultures( 암시적 문화암시적 문화 )): Interpretation of : Interpretation of messages rests on contextual cues(messages rests on contextual cues( 문맥상 단서들에 문맥상 단서들에 의존하여 메시지를 해석의존하여 메시지를 해석 ); e.g., China, Korea, Japan.); e.g., China, Korea, Japan.

Low-context cultures(Low-context cultures( 명시적 문화명시적 문화 )): Put the most : Put the most emphasis on written or spoken words(emphasis on written or spoken words( 써 있거나 말해진 그 써 있거나 말해진 그 단어들을 가장 중시단어들을 가장 중시 ); e.g., USA, Scandinavia, Germany.); e.g., USA, Scandinavia, Germany.

Chapter 4Chapter 4 Copyright (c) 2007 John Wiley & Sons, Inc.Copyright (c) 2007 John Wiley & Sons, Inc. 99

Low context

High context

Contextual Background of Various Countries

Japanese

Arabian

Latin American

Spanish

Italian

English (UK)

French

English (US)

Scandinavian

German

Swiss EXPLICIT

IMPLICIT

Chapter 4Chapter 4 Copyright (c) 2007 John Wiley & Sons, Inc.Copyright (c) 2007 John Wiley & Sons, Inc. 1010

3. Cross-Cultural Comparisons3. Cross-Cultural Comparisons(( 문화간 비교문화간 비교 ))

Geert Hofstede’s Cultural Classification Scheme(Geert Hofstede’s Cultural Classification Scheme(홉스테드의 분화분류체계홉스테드의 분화분류체계 ) ) (see Exhibits 4-7A & 4-(see Exhibits 4-7A & 4-7B):7B):– Power distance(Power distance( 권력의 거리권력의 거리 )): The degree of : The degree of

inequality among people that is viewed as being inequality among people that is viewed as being equitable(equitable( 권력분포의 불평등관계를 수용하는 권력분포의 불평등관계를 수용하는 정도정도 ))

– Uncertainty avoidance(Uncertainty avoidance( 불확실성 회피성향불확실성 회피성향 )): The : The extent to which people in a given culture prefer extent to which people in a given culture prefer structured situations with clear rules over structured situations with clear rules over unstructured ones(unstructured ones( 불확실한 상황에 비해서 불확실한 상황에 비해서 확실한 상황을 선호하려는 정도확실한 상황을 선호하려는 정도 ))

Chapter 4Chapter 4 Copyright (c) 2007 John Wiley & Sons, Inc.Copyright (c) 2007 John Wiley & Sons, Inc. 1111

3. Cross-Cultural Comparisons3. Cross-Cultural Comparisons

Chapter 4Chapter 4 Copyright (c) 2007 John Wiley & Sons, Inc.Copyright (c) 2007 John Wiley & Sons, Inc. 1212

3. Cross-Cultural Comparisons3. Cross-Cultural Comparisons

– Individualism(Individualism( 개인주의 성향개인주의 성향 )): The degree to which : The degree to which people prefer to act as individuals rather than group people prefer to act as individuals rather than group members(members( 집단의 구성원보다는 개인으로서 활동하는 집단의 구성원보다는 개인으로서 활동하는 것을 선호하는 정도것을 선호하는 정도 ).).

– Masculinity(Masculinity( 남성성 정도남성성 정도 )): The importance of “male” : The importance of “male” values (assertiveness, success, competitive drive, values (assertiveness, success, competitive drive, achievement) versus “female” values (solidarity, quality achievement) versus “female” values (solidarity, quality of life) (of life) ( 여성성 가치에 비해서 남성성 가치의 중요성여성성 가치에 비해서 남성성 가치의 중요성 ).).

– Long-term orientation versus short-term focus(Long-term orientation versus short-term focus(장기지향성장기지향성 )): Future versus past and present : Future versus past and present orientationsorientations

Chapter 4Chapter 4 Copyright (c) 2007 John Wiley & Sons, Inc.Copyright (c) 2007 John Wiley & Sons, Inc. 1313

3. Cross-Cultural Comparisons3. Cross-Cultural Comparisons

Project GLOBE (Global Leadership and Project GLOBE (Global Leadership and Organizational Behavior Effectiveness)Organizational Behavior Effectiveness) – Project GLOBE is a large-scale ongoing Project GLOBE is a large-scale ongoing

research project that explores cultural values research project that explores cultural values and their impact on organizational leadershipand their impact on organizational leadership(( 문화적 가치와 조직 리더쉽에 대한 영향문화적 가치와 조직 리더쉽에 대한 영향 ) in ) in 62 62 countriescountries (see Exhibit 4-8). (see Exhibit 4-8).

– The first three dimensions (uncertainty The first three dimensions (uncertainty avoidance, power distance, and collectivism) avoidance, power distance, and collectivism) are the same as Hofstede’s constructs. are the same as Hofstede’s constructs.

Chapter 4Chapter 4 Copyright (c) 2007 John Wiley & Sons, Inc.Copyright (c) 2007 John Wiley & Sons, Inc. 1414

3. Cross-Cultural Comparisons3. Cross-Cultural Comparisons

– The remaining six dimensions include: collectivism The remaining six dimensions include: collectivism II(II( 집단내 결속집단내 결속 ), gender egalitarianism(), gender egalitarianism( 양성평양성평등등 ), assertiveness(), assertiveness( 대립성대립성 ), future orientation(), future orientation(미래지향성미래지향성 ), performance orientation(), performance orientation( 성과지향성과지향성성 ), and humane orientation(), and humane orientation( 인간지향성인간지향성 ).).

World Value Survey:World Value Survey: – The WVS is organized by the University of The WVS is organized by the University of

Michigan.Michigan.– The WVS has been conducted multiple times and The WVS has been conducted multiple times and

the population covered is much broader than in the population covered is much broader than in other similar studies.other similar studies.

Chapter 4Chapter 4 Copyright (c) 2007 John Wiley & Sons, Inc.Copyright (c) 2007 John Wiley & Sons, Inc. 1515

3. Cross-Cultural Comparisons3. Cross-Cultural Comparisons

Chapter 4Chapter 4 Copyright (c) 2007 John Wiley & Sons, Inc.Copyright (c) 2007 John Wiley & Sons, Inc. 1616

3. Cross-Cultural Comparisons3. Cross-Cultural Comparisons The WVS encompasses two broad categories: The WVS encompasses two broad categories:

traditional versus secular values, and the quality of traditional versus secular values, and the quality of life (see Exhibit 4-9).life (see Exhibit 4-9).

Chapter 4Chapter 4 Copyright (c) 2007 John Wiley & Sons, Inc.Copyright (c) 2007 John Wiley & Sons, Inc. 1717

4. Adaptation to Cultures4. Adaptation to Cultures

Global marketers need to become sensitive to Global marketers need to become sensitive to cultural biases that influence their thinking, cultural biases that influence their thinking, behavior, and decision making.behavior, and decision making.

Self-reference criterion (SRC: Self-reference criterion (SRC: 자기중심적 선입자기중심적 선입견견 ):): Refers to the people’s unconscious tendency Refers to the people’s unconscious tendency to resort to their own cultural experience and value to resort to their own cultural experience and value systems to interpret a given business situation.systems to interpret a given business situation.

Ethnocentrism(Ethnocentrism( 자민족중심주의자민족중심주의 ) refers to the ) refers to the feeling of one’s own cultural superiority.feeling of one’s own cultural superiority.

Chapter 4Chapter 4 Copyright (c) 2007 John Wiley & Sons, Inc.Copyright (c) 2007 John Wiley & Sons, Inc. 1818

5. Culture and the Marketing Mix5. Culture and the Marketing Mix

Culture is a key pillar of the marketplace.Culture is a key pillar of the marketplace. Product PolicyProduct Policy: Certain products are more culture-bound: Certain products are more culture-bound

(( 문화결합적문화결합적 ) than other products. Food, beverages, and ) than other products. Food, beverages, and clothing products tend to be very culture-bound.clothing products tend to be very culture-bound.

PricingPricing: Pricing policies are driven by four Cs:: Pricing policies are driven by four Cs:– Customers(Customers( 고객고객 ))– Company (costs, objectives, strategy)(Company (costs, objectives, strategy)( 기업기업 ))– Competition (Competition ( 경쟁경쟁 ))– Collaborators (e.g., distributors)(Collaborators (e.g., distributors)( 협력기업협력기업 ))

Chapter 4Chapter 4 Copyright (c) 2007 John Wiley & Sons, Inc.Copyright (c) 2007 John Wiley & Sons, Inc. 1919

5. Culture and the Marketing Mix5. Culture and the Marketing Mix

Distribution(Distribution( 유통유통 )): Cultural variables may also : Cultural variables may also dictate distribution strategies.dictate distribution strategies.

Promotion(Promotion( 촉진촉진 )): Promotion is the most visible : Promotion is the most visible marketing mix(marketing mix( 가장 두드러진 마케팅믹스가장 두드러진 마케팅믹스 ). ). Culture will typically have a major influence on a Culture will typically have a major influence on a firm’s communication strategy. Local cultural firm’s communication strategy. Local cultural taboos and norms(taboos and norms( 문화적 금기사항 및 행동양문화적 금기사항 및 행동양식식 ) also influence advertising styles.) also influence advertising styles.

Chapter 4Chapter 4 Copyright (c) 2007 John Wiley & Sons, Inc.Copyright (c) 2007 John Wiley & Sons, Inc. 2020

6. Organizational Cultures6. Organizational Cultures

Organizational Culture(Organizational Culture( 조직문화조직문화 ): Most ): Most companies are characterized by their companies are characterized by their organizational (corporate) culture.organizational (corporate) culture.

A model of organizational culture types includes A model of organizational culture types includes the following four cultures (see Exhibit 4-11):the following four cultures (see Exhibit 4-11):– Clan culture(Clan culture( 관계지향문화관계지향문화 ))– Adhocracy culture(Adhocracy culture( 혁신지향문화혁신지향문화 ))– Hierarchy culture(Hierarchy culture( 위계지향문화위계지향문화 ))– Market culture(Market culture( 과업지향문화과업지향문화 ))

Chapter 4Chapter 4 Copyright (c) 2007 John Wiley & Sons, Inc.Copyright (c) 2007 John Wiley & Sons, Inc. 2121

6. Organizational Cultures6. Organizational Cultures

Chapter 6Chapter 6 Copyright (c) John Wiley & Sons, Inc.Copyright (c) John Wiley & Sons, Inc. 2222

7. Introduction of Global Marketing Research7. Introduction of Global Marketing Research글로벌 시장조사글로벌 시장조사

Given the complexity of the global marketplace, solid Given the complexity of the global marketplace, solid marketing research is critical for a host of global marketing research is critical for a host of global marketing decisions.marketing decisions.

Most of the cultural blunders(Most of the cultural blunders( 문화적 실수문화적 실수 ) in global ) in global marketing stem from inadequate marketing research.marketing stem from inadequate marketing research.

Six steps in conducting global market researchSix steps in conducting global market research::1. Define the research problem(s)(1. Define the research problem(s)( 문제의 정의문제의 정의 ))2. Develop a research design(2. Develop a research design( 조사의 설계조사의 설계 ))3. Determine information needs(3. Determine information needs( 필요정보결정필요정보결정 ))4. Collect the Data (secondary and primary)(4. Collect the Data (secondary and primary)( 자료의 수집자료의 수집 ))5. Analyze the data and interpret the results(5. Analyze the data and interpret the results( 자료분석 및 자료분석 및

결과해석결과해석 ))6. Report and present the findings of the study(6. Report and present the findings of the study(

연구결과의 보고 및 발표연구결과의 보고 및 발표 ))

Chapter 6Chapter 6 Copyright (c) John Wiley & Sons, Inc.Copyright (c) John Wiley & Sons, Inc. 2323

7. Introduction of Global Marketing Research7. Introduction of Global Marketing Research

Major challenges faced by global marketing Major challenges faced by global marketing researchersresearchers::1. Complexity of research design due to environmental 1. Complexity of research design due to environmental

differences(differences( 환경차이에 따른 시장조사설계상 어려움환경차이에 따른 시장조사설계상 어려움 ))

2. Lack and inaccuracy of secondary data(22. Lack and inaccuracy of secondary data(2 차자료의 부족 차자료의 부족 및 부정확성및 부정확성 ))

3. Time and cost requirements to collect primary data3. Time and cost requirements to collect primary data

4. Coordination of multicountry research efforts4. Coordination of multicountry research efforts

5. Difficulty in establishing comparability(5. Difficulty in establishing comparability( 비교가능성비교가능성 ) ) across multi-country studiesacross multi-country studies

See you next week!See you next week!