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International Marketing 15 th edition Philip R. Cateora, Mary C. Gilly, and John L. Graham.

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Presentation on theme: "International Marketing 15 th edition Philip R. Cateora, Mary C. Gilly, and John L. Graham."— Presentation transcript:

1 International Marketing 15 th edition Philip R. Cateora, Mary C. Gilly, and John L. Graham

2 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 Philip2

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) 3Roy Philip

4 Origins, Elements, and Consequences of Culture Roy Philip4 Exhibit 4.4

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 5Roy 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. 6Roy 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 7Roy 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 8Roy Philip

9 Elements of Culture (1 of 4) Values Rituals Symbols Beliefs Thought processes 9Roy 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 10Roy Philip

11 Hofstede’s Indexes Language, and Linguistic Distance Roy Philip11 Exhibit 4.6

12 Elements of Culture (3 of 4) Rituals – patterns of behavior and interaction that are learned and repeated – Marriages, funerals, baptisms, graduations Symbols – Language 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 12Roy 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 13Roy 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 14Roy Philip

15 Similarities – An Illusion A common language does not guarantee a similar interpretation of word or phrases – Difference between British and American English – http://www.woodlands- ritish/index.html http://www.woodlands- ritish/index.html 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 15Roy Philip

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