ch. 9 - cultural environment

7/28/2019 Ch. 9 - Cultural Environment

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The Cultural Environment


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International marketing requires constant

concern for different cultures and thereforerequires adaptation.

Self-reference criterion - a tendency to rely

on one own cultural values, personalexperience and knowledge as the primary

basis for making decisions.

The SRC must be effectively overcome in

order to adapt marketing programs to foreign

countries.


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1) Language

Context

2) Religion

3) Values and Attitudes

4) Manners/Customs5) Material Elements

Infrastructure

Convergence

Elements of Culture:


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6) Aesthetics

7) Education

8) Social Institutions

Learning about other cultures experiential knowledge

factual knowledge


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Key Concepts

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


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Contextual Background of

Various CountriesHighContext

Implicit

Japanese

Arabian

Latin American

Spanish

Italian

English (UK)

French

North American (US)

Scandinavian

German

SwissLow

Context

Explicit


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Language

Verbal

How words are spoken

Gestures made

Body position assumed

Degree of eye contact

Local language capabilitys

important role in international marketing

Aids in information gathering and evaluationProvides access to local society

Important to company communications

Allows for interpretation of contexts


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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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Fractured Translations

Product English Translation

Equivalent to Japanese Spam Liver Putty

Toilet Paper My Fanny Brand

Ready to Eat Pancakes Strawberry Crap Dessert

Antifreeze Spray Hot Piss Brand

Pediatricians Slogan Specialist in Deceased

Children

SOURCE: Some Strawberry Crap Dessert, dear South China Morning Post,

December 9, 1996 p. 12.

English Translations made by Japanese firm added to labelsto increase prestige for their products being sold in China.


10/35Irwin/McGraw-Hill

Whose English?

United States United Kingdom

Trunk Boot

Hood Bonnet

Convertible Top Hood

Elevator Lift

Toilet W.C.

Bathroom Tub or Shower

Vacuum Hoover

??? Shag

Bloody ???

4-8


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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


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ReligionMarketing in an Islamic Framework

Elements Implications for Marketing

A. Unity. (Concept of Centrality,

oneness of God, harmony in

life.)

Product standardization, mass media techniques, central

balance, unity in advertising copy and layout, strong brand

loyalties, a smaller evoked set size, loyalty to company,

opportunities for brand extension strategies.B. Legitimacy. (Fair dealings,

reasonable level of profits.)

Less formal product warranties, need for institutional

advertising and/or advocacy advertising, especially by

foreign firms, and a switch from profit-maximizing to a

profit-satisficing strategy.

C. Zakat. (2.5% per annumcompulsory tax binding on all

classified as not poor.

Use of excessive profits, if any, for charitable acts;corporate donations for charity, institutional advertising.

Source: Mushtaq Luqmani, Zahir A Quraeshi, and Linda Delene, Marketing in Islamic Countries:

A Viewpoint, MSU Business Topics, Summer 1980, pp. 20-21. Reprinted by permission.


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Values and Attitudes

Values

are shared beliefs or

group norms that have

been internalized by

individuals.

Attitudes

are evaluations

of alternativesbased on these

values.


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Work and Leisure

Attitudes Toward Work:

Have a Substantial Impact on Economic

Performance

Vary Greatly Among Countries


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Work Hrs. = Averagenumber of working hours

per year.

Work/Fun = Young peoples

desire to work/learn vs.

have fun. (0 for fun - 10 forwork/learn).

Comp. Sup. = Societys

support of competitiveness

(0 for least support - 10 for

most support).

Source: The World

Competitiveness Yearbook

1996, (Lausanne: IMD,

1996), pp. 556, 579, 581.

Values of SelectedCountries*Country Work Hrs. Work/Fun Comp. Sup.

Austria 1,744 5.72 5.50Australia 1,847 5.44 5.93

Canada 1,892 6.59 7.06

Chile 2,400 6.23 7.19

Germany 1,704 5.2 5.87

Greece 1,775 4.6 4.38France 1,790 6.33 5.74

Hungary 1,756 5.14 4.11

Ireland 1,727 6.37 6.46

Italy 1,721 5.32 5.12

Japan 1,893 5.4 7.37

Mexico 2,094 5.51 4.83

S. Africa 1,999 4.65 3.71

Spain 1,721 5.41 4.68

U.K. 1,880 4.5 5.53

U.S.A. 1,946 5.37 6.54

Work and Leisure

*See text for complete listing of

countries and statistics.


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Cultural Analysis for

International Marketing

*Source of this entire list: Philip R. Harris and Robert T. Moran: Managing Cultural

Differences, 2nd ed. (Houston: Gulf, 1987) pp. 212-215.

Cultural Dimensions

Individualism vs. Collectivism Small vs. Large Power Distance

Masculine vs. Feminine

Weak vs. Strong Uncertainty Avoidance


17/35Power Distance Index

0

112

10 110

Small Power

Distance

Collectivist

Large Power

Distance Collectivist

Small

Power

Distance

Individualist

Large Power

Distance

Individualist

4

1

2

3

5

6

IndividualismI

ndex

ExampleCountries:

1. Costa Rica2. Korea and

Mexico3. Brazil & India4. Israel and

Ireland5. Australia and

U.S.A.6. France and

Italy

Source: Geert

Hofstede, Cultures and

Organizations,

McGraw-Hill, 1991, pp.

23, 51, 83 & 111.

Reprinted with

permission of the

McGraw-Hill

Companies.

Power Distance and Individualism-Collectivism


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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 processand personal relations.

the allocation of time

for negotiations.


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A house should be dusted and

polished three times a week Italy 89%

United Kingdom 59

France 55

Spain 53

Germany 45

Australia 33

United States 25


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I attend church regularly

Spain 77%

Italy 75

Germany 70

United States 65

United Kingdom 36

France 23

Australia 16


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My children are the most

important thing in my life

Germany 86%

Italy 84

France 73

United States 71 Spain 67

Australia 48


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There is too much emphasis on

sex nowadays

United Kingdom 82%

Italy 79 United States 66

France 52

Australia 31

Germany 24


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Everyone Should Use a Deodorant

United States 89%

Canada 79 United Kingdom 71

Italy 69

France 59 Australia 53


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Cultural Factors

Never touch the head of a Thai or pass an object over

it. The head is considered scared in Thailand.

Avoid using triangular shapes in Hong Kong, Korea,

and Taiwan. It is considered a negative shape.

The number 7 is considered bad luck in Kenya, good

luck in Czech Republic and has a magical connotation

in Benin, Africa.

The number 10 is bad luck in Korea.

The number 4 means death in Japan.

Red represents witchcraft and death in many African

countries.

Red is a positive color in Denmark.

SOURCE: Business America, July 12, 1993


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Irwin/McGraw-Hill

Its Not the Gift That Counts, but How Your Present It

Japan Do not open a gift in front of a Japanese

counterpart unless asked, and do not expect the

Japanese to open your gift.

Avoid ribbons and bows as part of the gift wrapping.

Bows as we know them are considered unattractive,and ribbon colors can have different meanings.

Do not offer a gift depicting a fox or badger. The fox

is the symbol of fertility; the badger, cunning.

Europe Avoid red roses and white flowers, even numbers,

and the number 13. Do not wrap flowers in paper.

Do not risk the impression of bribery by spending

too much on a gift.

Copyright2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Irwin/McGraw-Hill

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Its Not the Gift That Counts, but How Your Present It

Arab World Do not give a gift when you first meet someone. It

may be interpreted as a bribe.

Do not let it appear that you contrived to present the

gift when the recipient is alone. It looks bad unless

you know the person well. Give the gift in front of

others in less

personal relationships.

Latin America Do not give a gift until after a somewhat personal

relationship has developed unless it is given to

express appreciation for hospitality.

Gift should be given during social encounters, not in

the course of business.

China Never make an issue of a gift presentationpublicly

or private.

Gifts should be presented privately, with the

exception of collective ceremonial gifts at banquets.

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Material Elements

Material culture

Results from technology and is directly related tohow 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.

A h i


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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.

Ed i


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Education

Assessing the educational level of a culture

formal and informal education

literacy rates

enrollment in secondary

or higher educationqualitative aspects of

emphasizing science

Education affectsemployee training

competition for labor

product characteristics

Ed ti


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Country Secondary University Literacy

Austria 104 37 98

Australia 82 40 99

Canada 104 99 98

Chile 72 23 95

Germany 97 36 99

France 101 46 99

India 44 6 52Ireland 101 38 99

Italy 76 34 97

Japan 97 32 100

Mexico 55 14 87

South Africa 69 14 82Spain 108 40 95

United Kingdom 86 28 99

United States 90 46 100

Secondary = Percentage of relevant

age group receiving full time

secondary education. Scores in

excess of 100% indicate adults also

participating in that education.

University = Percentage ofpopulation 20 - 24 years old enrolled

in higher education

Literacy = Percentage of Population

over 15 years old

Source: The World CompetitivenessReport1996(Lausanne: IMD, 1996),

pp. 560, 561, 567.

Education

*See text for complete listing of countries and

statistics.

Educational Statistics of Selected Countries (in %)*

S i l I i i


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Social Institutions

Kinship relationships

immediate and extended family

Social stratification

Reference groupsPrimary reference groups family, coworkers

Secondary reference groups

professional associations,

trade organizations


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Family Statistics of SelectedCountries (in %)*

Pop. Growth = Population Growth:

percentage per year, 1985-1995.Fem. Work = Female participation in the

labor force as a percentage of the total

labor force, 1995.

Source: 1997 World Bank Atlas,

Washington, DC: World Bank, 1997, pp.16-17.

Country Pop. Growth Fem. Work

Austria 0.6 41

Australia 1.4 43Canada 1.3 45

Chile 1.6 32

Germany 0.5 42

Greece 0.5 36

France 0.5 44Ireland 0.1 33

Italy 0.1 38

Japan 0.4 41

Mexico 2.1 31

S. Africa 2.3 37

Spain 0.2 36

U.K. 0.3 43

U.S.A. 0.9 46

The Family

*See text for complete listing of countries andstatistics.

Th T i i Ch ll Gl b l M


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The Training Challenge - Global Managers

Internal education programs that increase cultural

sensitivityCulture-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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Business Customs

Cultural Imperatives

Cultural Adiaphora

Cultural Exclusives

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ch. 9 - cultural environment

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