Aspects of the Global Marketing Environment :

Cultural Dynamics, Management Style, and Business Systems

Chapter 4

Matakuliah : J0474 International MarketingTahun : 2009

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Learning Outcome

• Definitions and Origins of Culture.• Elements of Culture• Cultural Knowledge.• Cultural Change.• Management Styles around the World.• Gender Bias in International Business.• Business Ethics.• Culture’s Influence on Strategic Thinking.

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Definitions and Origins of Culture

Dutch management Professor Geert Hofstede argues that culture provides a guide for humans on how to think and behave, Culture is a problem solving tool.

Anthropologist and business consultant Edward Hall comments that cultural differences are often invisible, and that marketers who ignore them

often hurt both their companies and careers

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.

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Definitions and Origins of Culture

The best international marketers will not only appreciate the cultural differences pertinent to their business, they will

also understand the origins of these

differences.

Deeper knowledge will help marketers notice cultural

differences in new markets and forecast change in

current markets of operation.

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Origins, Elements and Consequences of Culture

Geography( climate, topography, flora, fauna, microbiology)

History

Technology and political economy

Social institutions(family, religion, school, media, government, corporations)

PeersElement of culture

(values, rituals, symbols, beliefs)

ADAPTATION

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Origins, Elements and Consequences of Culturecontinue….

Peers

Element of culture(values, rituals, symbols, beliefs,

Thought processes)

Consumption decisions and behaviors

Management style

consequences

imitationAPPLICATION

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Cultural Knowledge

Factual versus Interpretive Knowledge

There are two kinds of knowledge about cultures, One is factual knowledge about a culture; it is usually obvious and must be learned.

The other is interpretive knowledge- an ability to understand and to appreciate fully the nuances of different cultural traits and patterns.

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Cultural Change

The change is a result of a society seeking ways to solve the

problems created by changes in its environment.

In other words, culture is the means used in

adjusting to the environmental and

historical components of human existence.

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Cultural Change

1. Cultural Borrowing2. Similarities : an Illusion3. Resistance to change

4. Planned and Unplanned Cultural Change5. Consequences of Innovation

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Management Styles Around the World

Knowledge of the management style- that is, the business culture, management values, and business methods and behaviors-

existing in a country and a willingness to accommodate the different are important to success in an international market.

1. Authority and decision Making2. Management Objectives and Aspirations3. Communication Styles4. Formality and Tempo5. P-Time versus M-Time6. Negotiations Emphasis

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Gender Bias in International Business

Tells one American executive,

It is one thing to see a woman at the negotiation table, but to see a woman who happens to be blonde, young…. leading the discussions was more than most of the Japanese men could handle.

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Summary

• A complete and thorough appreciation of the origins (geography, history, political economy, technology and social institutions) and elements ( cultural values, rituals, symbols, beliefs) of culture may well be the single most important gain to a foreign marketers in the preparation of marketing plans and strategies

• Management styles differ around the World. Some cultures appear to emphasize the importance of information and competition while others focus more on relationships and transaction cost reductions. Understanding the culture you are entering is the only sound basis for planning.