1. Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. The Cultural Environment Chapter 3

2. Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Success and Culture An understanding of cultural differences allows marketers to determine when adaptation may be necessary and when commonalities allow for regional or global approaches

3. Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Defining Culture An integrated system of learned behavior patterns that are distinguishing characteristics of the members of any given society. The definition encompasses a wide variety of elements, from materialistic to the spiritual.

4. Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Acculturation Adjusting or adapting to a specific culture other than one’s own … and “one of the keys to success in international operations.

5. Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Context Cultures High-context culture –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

6. Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Elements of Culture Elements Language verbal non-verbal Religion Values and Attitudes Manners and Customs Material Elements Aesthetics Education Social Institutions

7. Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. 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.

8. Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. 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.

9. Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Dominant Religions of The World Christianity - 2.0 billion followers Islam - 1.2 billion followers Hinduism - 860 million followers Buddhism - 360 million followers Confucianism - 150 million followers

10. Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. 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.

11. Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. To Give or Not To Give

12. Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Social Institutions Kinship relationships –immediate and extended family Social stratification Reference groups –Primary reference groups family, coworkers –Secondary reference groups professional associations, trade organizations

13. Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Sources of Cultural Knowledge

14. Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. A Model

15. Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Cross Cultural Training Methods

16. Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Making Culture Work Embrace local culture. Build relationships. Employ locals to gain cultural knowledge. Help employees understand you. Adapt products and processes to local markets. Coordinate by region.