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Assessing global Markets

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1 Assessing global Markets
International Marketing 15th edition Chapter 4 Cultural Dynamics in Assessing global Markets Philip R. Cateora, Mary C. Gilly, and John L. Graham

2 Overview The importance of culture to an international marketer
Opening Side Overview The importance of culture to an international marketer Definition and origins of culture The elements of culture The impact of cultural change and cultural borrowing Strategies of planned and unplanned change Roy Philip

3 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. Individuals learn culture in three ways Socialization (growing up) Acculturation (adjusting to a new culture) Application (decisions about consumption and production) Roy Philip

4 Origins, Elements, and Consequences of Culture
Exhibit 4.4 Roy Philip

5 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 Roy Philip

6 History History - Impact of specific events can be seen reflected in technology, social institutions, cultural values, and even consumer behavior Tobacco was the original source of the Virginia colony’s economic survival in the 1600s American values and institutions influenced by Adam Smith’s book The Wealth of Nations Military conflicts in the Middle East brought about new cola alternatives such as Mecca Cola, Muslim Up, and Arab Cola. Roy Philip

7 Social Institutions School – the most important social institution
Direct link between a nation’s literacy rate and its economic development Difficult to communicate with a market when a company must depend on symbols and pictures The media – it has replaced family time TV and the Internet American educational system produces a lower percentage of college graduates than 12 other countries including Russia, Japan, and France Roy Philip

8 Social Institutions Government - influences the thinking and behaviors of adult citizens Propaganda through media Passage, promulgation, promotion, and enforcement of laws Corporations - most innovations are introduced to societies by companies Spread through media Change agents Roy Philip

9 Elements of Culture (1 of 4)
Values Rituals Symbols Beliefs Thought processes Roy Philip

10 Elements of Culture (2 of 4)
Cultural values – Geert Hofstede Individualism/Collectivism Index Reflects the preference of behavior that promotes one’s self interest Power Distance Index Measures the tolerance of social inequality Uncertainty Avoidance Index Measures the tolerance of uncertainty and ambiguity Cultural Values and Consumer Behavior Roy Philip

11 Hofstede’s Indexes Language, and Linguistic Distance
Exhibit 4.6 Roy Philip

12 Elements of Culture (3 of 4)
Rituals – patterns of behavior and interaction that are learned and repeated Marriages , funerals, baptisms, graduations Symbols Language Linguistic distance – relationship between language and international marketing Aesthetics as symbols Insensitivity to aesthetic values can offend, create a negative impression, and, in general, render marketing efforts ineffective or even damaging Next Roy Philip

13 Language According to
A total of 7,413 known living languages exist in the world 311 being spoken in the U.S.; 297 in Mexico, 13 in Finland, and 241 in China EU has 20 official languages India alone has 452 known languages! Back Roy Philip

14 Elements of Culture (4 of 4)
Beliefs Superstitions play a large role in a society’s belief system and therefore, to make light of superstitions in other cultures can be an expensive mistake The number 13 in the western hemisphere is considered unlucky, where as the number 8 in China connotes “prosperity” The practice of “Feng Shui” Thought processes Difference in perception between the East and the West Focus vs. big-picture Roy Philip

15 Similarities – An Illusion
A common language does not guarantee a similar interpretation of word or phrases Difference between British and American English 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 Roy Philip

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