1. INTERNATIONAL MARKETING 6e
Chapter 3
The Cultural Environment
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2. Making Culture Work For Your Success
Embrace local culture
Employ locals to gain cultural knowledge
Build relationships
Adapt products to local markets
Help employees understand you
Coordinate by region
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3. What is Culture? “Culture” defined Acculturation
“… an integrated system of learned behavior patterns that are distinguishing characteristics of the members of any given society...”
Acculturation
“… adjusting or adapting to a specific culture other than one’s own” … and “one of the keys to success in international operations.”
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4. Key Concepts High-context culture Low-context culture Change agent
is where the social context in which what is said strongly affects the meaning of the message.
Examples: Japan and Saudi Arabia
Low-context culture
is where the meaning of the message is explicitly expressed by the words and is less affected by the social context.
Example: North America
Change agent
“An entity that introduces new products or ideas or practices.”
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5. The Elements of Culture
Language - verbal and non-verbal
Religion
Values and Attitudes
Manners and Customs
Material Elements
Aesthetics
Education
Social Institutions
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6. Language
Verbal
How words are spoken
Gestures made
Body position assumed
Degree of eye contact
Local language capability’s important role in international marketing
Aids in information gathering and evaluation
Provides access to local society
Important to company communications
Allows for interpretation of contexts
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7. Nonverbal Language Hidden language of cultures
Time flexibility and sensibility
Social acquaintance and rapport
Personal physical space and personal touching
Non-verbal gestures and signaling
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8. The Major World Religions
Christianity billion followers
Islam billion followers
Hinduism million followers
Buddhism million followers
Confucianism million followers
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9. Values and Attitudes Values Attitudes
are shared beliefs or group norms that have been internalized by individuals.
Attitudes
are evaluations of alternatives based on these values.
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10. Manners and Customs
Potential problem areas for marketers arise from an insufficient understanding of:
different ways of thinking.
the necessity of saving face.
knowledge and understanding of the host country.
the decision-making process and personal relations.
the allocation of time for negotiations.
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11. Material Elements Material culture
Results from technology and is directly related to how a society organizes its economic activity.
Material culture is manifested in
Economic infrastructure
Social infrastructure
Financial infrastructure
Marketing infrastructure
Cultural convergence
The degree of industrialization can provide a marketing segmentation variable.
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12. Aesthetics
What is or is not acceptable as good taste varies widely in cultures.
The symbolism of colors, forms, and music carries different meanings in different cultures.
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13. Education Assessing the educational level of a culture
formal and informal education
literacy rates
enrollment in secondary or higher education
qualitative aspects of emphasizing science
Education affects
employee training
competition for labor
product characteristics
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14. Social Institutions Kinship relationships Social stratification
immediate and extended family
Social stratification
Reference groups
Primary reference groups
family, coworkers
Secondary reference groups
professional associations, trade organizations
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15. Sources of Cultural Knowledge
Experiential knowledge
Interpretive knowledge
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16. Cultural Analysis Strategic Opinion Leadership Change Agent
Fig A Model of Cross-Cultural Behavior
Adoption Tendency
Adoption
Communica-tion about Innovation
Cognitive Search
Propensity to Change
Cognitive Distortion
Evaluation of Innovation
Cultural Lifestyle
Consequences
Source: Adapted by permission of the publisher from “A Theory of Cross-Cultural Buying Behavior,” by Jagdish N. Seth and S. Prakash Sethi, in Consumer and Industrial Buying Behavior, eds. Arch G. Woodside, Jagdish N. Seth, and Peter D. Bennett, 1977, p Copyright 1977 by Elsevier Science Publishing Co., Inc.
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17. Dimensions of Culture Individualism Power distance
“I” consciousness versus “we “ consciousness
Power distance
Level of equality in a society
Uncertainty avoidance
The need for formal rules and regulations
Masculinity
Attitudes toward achievement
The roles of men and women
Orientation
Long-term versus short-term results approach
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18. Adjusting to Cultural Differences
Recognition of differences
The Self-reference Criterion
is the basis of most international business problems.
Ethnocentrism
“…regarding one’s culture as superior to others”
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19. The Training Challenge - Global Managers
Internal education programs that increase cultural sensitivity
Culture-specific information
Culture-general information
Self-specific information
Specialized training for global managers
Area studies
Environmental briefings
Cultural orientation programs
Cultural assimilator
Sensitivity training
Field experience
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