INTERNATIONAL MARKETING 6e Chapter 3 The Cultural Environment Copyright © 2001 by Harcourt, Inc.. All rights reserved. Requests for permissions to make copies of any part of the work should be mailed to the following address: Permissions Department, Harcourt, Inc., 6277 Sea Harbor Drive, Orlando, Florida 32887-6777.

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 Copyright © 2001 by Harcourt, Inc. All rights reserved.

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.” Copyright © 2001 by Harcourt, Inc. All rights reserved.

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.” Copyright © 2001 by Harcourt, Inc. All rights reserved.

The Elements of Culture Language - verbal and non-verbal Religion Values and Attitudes Manners and Customs Material Elements Aesthetics Education Social Institutions Copyright © 2001 by Harcourt, Inc. 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 Copyright © 2001 by Harcourt, Inc. 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 Copyright © 2001 by Harcourt, Inc. All rights reserved.

The Major World Religions Christianity - 2.0 billion followers Islam - 1.2 billion followers Hinduism - 860 million followers Buddhism - 360 million followers Confucianism - 150 million followers Copyright © 2001 by Harcourt, Inc. All rights reserved.

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. Copyright © 2001 by Harcourt, Inc. 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. Copyright © 2001 by Harcourt, Inc. All rights reserved.

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. Copyright © 2001 by Harcourt, Inc. All rights reserved.

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. Copyright © 2001 by Harcourt, Inc. All rights reserved.

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 Copyright © 2001 by Harcourt, Inc. All rights reserved.

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 Copyright © 2001 by Harcourt, Inc. All rights reserved.

Sources of Cultural Knowledge Experiential knowledge Interpretive knowledge Copyright © 2001 by Harcourt, Inc. All rights reserved.

Cultural Analysis Strategic Opinion Leadership Change Agent Fig. 3.2 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. 373. Copyright 1977 by Elsevier Science Publishing Co., Inc. Copyright © 2001 by Harcourt, Inc. All rights reserved.

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 Copyright © 2001 by Harcourt, Inc. All rights reserved.

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” Copyright © 2001 by Harcourt, Inc. All rights reserved.

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 Copyright © 2001 by Harcourt, Inc. All rights reserved.