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© 2005 Prentice Hall 4-1
Chapter 4Social and Cultural
EnvironmentsPowerPoint
by Kristopher Blanchard
North Central University
© 2005 Prentice Hall 4-2
Task of Global Marketers
Study and understand the country cultures in which they will be doing businessIncorporate this understanding into the marketing planning process
© 2005 Prentice Hall 4-3
Introduction
“It is not just speaking a common language. It is sharing a culture and understanding
friendships in the same way”Juan Villanonga – Former Chairman of
Telefonica
© 2005 Prentice Hall 4-4
Society, Culture, and Global Consumer Culture
Culture – Ways of living, built up by a group of human beings, that are transmitted from one generation to anotherCulture is acted out in social institutionsCulture has both conscious and unconscious values, ideas and attitudesCulture is both material and nonmaterial
© 2005 Prentice Hall 4-5
Society, Culture, and Global Consumer Culture“Culture is the collective programming of the
mind that distinguishes the members of one category of people from those of another.”
- Geert Hofstede
© 2005 Prentice Hall 4-6
Society, Culture, and Global Consumer Culture
Global consumer cultures are emerging– Persons who share meaningful sets of
consumption-related symbols– Pop culture; coffee culture; fast-food culture
Primary the product of an interconnected world
© 2005 Prentice Hall 4-7
Attitudes, Beliefs and Values
Attitudes - learned tendency to respond in a consistent way to a given object or entityBelief - an organized pattern of knowledge that an individual holds to be true about the worldValue - enduring belief or feeling that a specific mode of conduct is personally or socially preferable to another mode of conduct
© 2005 Prentice Hall 4-8
Religion
Religion is one important source of society’s
beliefs, attitudes, and values. The world’s
major religions include: Buddhism, Hinduism, Islam,
Judaism, and Christianity.
© 2005 Prentice Hall 4-9
Religion
© 2005 Prentice Hall 4-10
Aesthetics
The sense of what is beautiful and what is not beautifulWhat represents good taste as opposed to tastelessness or even obscenity
Visual – embodied in the color or shape of a product, label, or packageStyles – various degrees of complexity, for example are perceived differently around the world
© 2005 Prentice Hall 4-11
Dietary Preferences
Would you eat…..– Reindeer (Finland)– Rabbit (France)– Rice, soup, and grilled fish for breakfast
(Japan)– Kimchi - Korea– Blood sausage (Germany)
© 2005 Prentice Hall 4-12
Language and CommunicationLinguistic Category Language Example
Syntax English has relatively fixed word order; Russian has relatively free word order
Semantics Japanese words convey nuances of feeling for which other languages lack exact correlations; ‘yes’ and ‘no’ can be interpreted differently than in other languages.
Phonology Japanese does not distinguish between the sounds ‘l’ and ‘r’; English and Russian both have ‘l’ and ‘r’ sounds.
Morphology Russian is a highly inflected language, with six different case endings for nouns and adjectives; English ahs fewer inflections.
© 2005 Prentice Hall 4-13
Language and Communication
Verbal CuesNonverbal cues or body language
© 2005 Prentice Hall 4-14
Marketing’s Impact on Culture
Universal aspects of the cultural environment represent opportunities to standardize elements of a marketing programImproved communications have contributed to a convergence of tastes and preferences in a number of product categories
© 2005 Prentice Hall 4-15
Marketing’s Impact on Culture
Movement has 70,000 members in 35 countries“Slow food is about the idea that things should not taste the same everywhere.”
© 2005 Prentice Hall 4-16
High- and Low-Context Cultures
High Context– Information resides in
context– Emphasis on background,
basic values– Less emphasis on legal
paperwork– Focus on personal
reputation
Saudi Arabia, Japan
Low Context– Messages are explicit and
specific– Words carry all information– Reliance on legal
paperwork– Focus on non-personal
documentation of credibility
Switzerland, US, Germany
© 2005 Prentice Hall 4-17
High- and Low-Context CulturesFactor/Dimension High Context Low Context
Lawyers Less Important Very Important
A person’s word Is his/her bond Not reliable – get it in writing
Responsibility forOrganizational error
Taken by highest level Pushed to the lowest level
Space People breathe on each other
Private space maintained
Time Polychronic Monochronic
Competitive Bidding
Infrequent Common
© 2005 Prentice Hall 4-18
Hofstede’s Cultural Typology
Power DistanceIndividualism / CollectivismMasculinityUncertainty AvoidanceLong-term Orientation
© 2005 Prentice Hall 4-19
Self-Reference Criterion and Perception
Unconscious reference to one’s own cultural values; creates cultural myopiaHow to Reduce Cultural Myopia:– Define the problem or goal in terms of home country
cultural traits– Define the problem in terms of host-country cultural
traits; make no value judgments– Isolate the SRC influence and examine it– Redefine the problem without the SRC influence and
solve
© 2005 Prentice Hall 4-20
Diffusion Theory
The Adoption ProcessCharacteristics of InnovationsCategories of Adopters
© 2005 Prentice Hall 4-21
Marketing Implications
The topics in this chapter must be considered when formulating a global marketing planEnvironmental Sensitivity reflects the extent to which products must be adapted to the culture-specific needs of different national markets
© 2005 Prentice Hall 4-22
Environmental Sensitivity
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Looking Ahead to Chapter 5
The Political, Legal, and Regulatory Environments of Global Marketing
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Social Institutions
FamilyEducationReligionGovernmentBusinessThese institutions function to reinforce cultural norms
Return
© 2005 Prentice Hall 4-25
Material and Nonmaterial
Physical components of culture– Objects– Artifacts
• Clothing• Tools• Pictures• Homes
Subjective or abstract culture– Religion– Perceptions– Attitudes– Beliefs– Values
Return
© 2005 Prentice Hall 4-26
Aesthetics and Color
What do you associate with Red?
– Active, hot, vibrant– Weddings in some
Asian cultures– Poorly received in
African countries
With white?
– Purity, cleanliness– Death in parts of Asia
Return
© 2005 Prentice Hall 4-27
Phonology in action
Colgate is a Spanish command that means ‘go hang yourself’Technology implications for Text messages– 8282 means ‘hurry up’ (Korea)– 7170 means ‘close friend’ (Korea)– 4 5683 968 means ‘I Love You’ (Korea)
Return
© 2005 Prentice Hall 4-28
The Adoption Process
The mental stages through which an individual passes from the time of his or her first knowledge of an innovation to the time of product adoption or purchase– Awareness– Interest– Evaluation– Trial– Adoption
Return
© 2005 Prentice Hall 4-29
Characteristics of Innovations
Innovation is something new, five factors that affect the rate at which innovations are adopted include– Relative advantage– Compatibility– Complexity– Divisibility– Communicability
Return
© 2005 Prentice Hall 4-30
Categories of Adopters
Classifications of individuals within a market on the basis of their innovativeness.Five categories– Innovators– Early Adopters– Early majority– Late majority– Laggards
© 2005 Prentice Hall 4-31
Categories of Adopters
Return
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