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- International Marketi
ng 14th Edition
P h i l i p R. C a t e o r a
M a r y C. G i l l y
John L. Graham
Cultural Dynamics in
Assessing
Global Markets
Chapter 4
McGrawHill/Irwin
International Marketing 14/e Copyright © 2009 by The McGrawHill Companies, Inc. All rights reserved.
- Discussed questions
• What is the culture?
• How you think culture affect Marketing?
• Social institutions (family, school, church, government,
company) affect marketing in a variety of ways. Discuss,
give examples?
• What are some particularly troublesome problems caused
by language in foreign marketing? Discuss.
• Cultures are dynamic. How do they change?
• Suppose you were requested to prepare a cultural analysis
for a potential market, what would you do? Outline the
steps and comment briefly on each.
4-2
- Cultural analysis – guideline
• Material Culture
– Technology – the techniques and “know-how” of producing material goods.
– Economics – the employment of capabilities and the results.
• Social Institutions
– Social organizations – family life, status, age.
– Education – literacy and intelligence and how informed the public is.
– Political structures – control over business.
• Man and the Universe
– Belief systems – how do these affect product and promotional acceptance?
• Aesthetics
– Graphic and plastic arts – degree of modernization.
– Folklore – superstition, tradition, etc.
– Music, drama, and the dance – promotional possibilities.
4-3
- What Should You Learn?
• The importance of culture to an international
marketer
• The origins and elements of culture
• The impact of cultural borrowing
• The strategy of planned change and its
consequences
4-4
- Global Perspective Equities and eBay –
Culture Gets in the Way
• Culture deals with a group’s design for living
• The successful marketer clearly must be a
student of culture
• Markets are the result of the three-way
interaction of a marketer’s
– Economic conditions
– Efforts
– All other elements of culture
• The use of something new is the beginning of
cultural change
– The marketer becomes a change agent
4-5
- Definitions and Origins of Culture
• Traditional definition of culture
– Culture is the sum of the values, rituals, symbols, beliefs, and
thought processes that are learned, shared by a group of
people, and transmitted from generation to generation
• Humans make adaptations to changing
environments through innovation
• Individuals learn culture from social institutions
– Socialization (growing up)
– Acculturation (adjusting to a new culture)
– Application (decisions about consumption and production)
4-6
- Origins, Elements,
and Consequences of Culture
Exhibit 4.4
4-7
- Geography
• Exercises a profound control
– Includes climate, topography, flora, fauna, and microbiology
– Influenced history, technology, economics, social institutions and
way of thinking
• The ideas of Jared Diamond and Philip Parker
– Jared Diamond
► Historically innovations spread faster east to west than north to south
– Philip Parker
► Reports strong correlations between latitude (climate) and per capita GDP
► Empirical data supports climate’s apparent influence on workers’ wages
► Explain social phenomena using principles of physiology
4-8
- Social Institutions
• Family
• Religion
• School
• The media
• Government
• Corporations
4-9
- Social Institutions
• Family
– Nepotism
– Role of extended family
– Favoritism of boys in some cultures
• Religion
– First institution infants are exposed to outside the home
– Impact of values systems
– Misunderstanding of beliefs
• School
– Affects all aspects of the culture, from economic development to
consumer behavior
– No country has been successful economically with less than 50%
literacy
4-10
- Social Institutions
• The media
– Media time has replaced family time
► TV
► Internet
• Government
– Influences the thinking and behaviors of adult citizens
► Propaganda
► Passage, promulgation, promotion, and enforce of laws
• Corporations
– Most innovations are introduced to societies by companies
– Spread through media
– Change agents
4-11
- Elements of Culture
• Cultural values
– Individualism/Collectivism Index
– Power Distance Index
– Uncertainty Avoidance Index
– Cultural Values and Consumer Behavior
4-12
- Hofstede’s Indexes
Language, and Linguistic Distance
Exhibit 4.5
4-13
- Elements of Culture
• Rituals
– Marriage
– Funerals
• Symbols
– Language
► Linguistic distance
– Aesthetics as symbols
► Insensitivity to aesthetic values can offend, create a negative impression, and, in general, render
marketing efforts ineffective or even damaging
• Beliefs
– To make light of superstitions in other cultures can be an expensive
mistake
• Thought processes
– Difference in perception
► Focus vs. big-picture
4-14
- Metaphorical Journeys
through 23 Nations
Exhibit 4.6
4-15
- Cultural Knowledge
• Factual knowledge
– Has meaning as a straightforward fact about a culture
– Assumes additional significance when interpreted within the
context of the culture
► Needs to be learned
• Interpretive knowledge
– Requires a degree of insight that may best be described as a
feeling
► Most dependent of past experience for interpretation
► Most frequently prone to misinterpretation
► Requires consultation and cooperation with bilingual natives with marketing
backgrounds
4-16
- Cultural Sensitivity and Tolerance
• Being attuned to the nuances of culture so that a
new culture can be viewed objectively, evaluated
and appreciated
– Cultures are not right or wrong, better or worse, they are simply
different
– The more exotic the situation, the more sensitive, tolerant, and
flexible one needs to be
4-17
- Cultural Change
• Dynamic in nature – it is a living process
• Paradoxical because culture is conservative and
resists change
– Changes caused by war or natural disasters
– Society seeking ways to solve problems created by changes in
environment
– Culture is the means used in adjusting to the environmental and
historical components of human existence
4-18
- Cultural Borrowing
• Effort to learn from others’ cultural ways in the
quest for better solutions to a society’s particular
problems
– Imitating diversity of other makes cultures unique
– Contact can make cultures grow closer or further apart
• Habits, foods, and customs are adapted to fit
each society’s needs
4-19
- Similarities – An Illusion
• A common language does not guarantee a
similar interpretation of word or phrases
– May cause lack of understanding because of apparent and
assumed similarities
• Just because something sells in one country
doesn’t mean it will sell in another
– Cultural differences among member of European Union a
product of centuries of history
4-20
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