socio cultural enviroment
TRANSCRIPT
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1
Social andCultural
Environments
Global Marketing
Chapter 4
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Introduction
This chapter includes:
Society, Culture, andConsumer Culture
Ethnocentricity andSelf-Reference Criterion
Halls Theory
HofstedesCulturalTypology
Diffusion Theory
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Task of Global Marketers
Study and understand the cultures ofcountries in which they will be doing business
Understand how an unconscious reference totheir own cultural values, or self-referencecriterion, may influence their perception ofthe market
Incorporate this understanding into themarketing planning process
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Culture
A basic definition -- Culture is the totalaccumulation of an identifiable group's
beliefs, norms, activities, institutions,and communication patterns.
Values, attitudes, standards and beliefs
are all embedded in culture
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Society, Culture, and
Global Consumer Culture
Culture is acted out insocial institutions
Culture is both physical
(clothingand tools) andnonphysical (religion,attitudes, beliefs, andvalues)
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Social Institutions
Family
Education
Religion
Government
BusinessThese institutions function to reinforce
cultural norms
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Material and
Nonmaterial Culture
Physicalcomponent orphysical culture
Clothing Tools
Decorative art
Bodyadornment
Homes
Subjective orabstract
culture Religion
Perceptions
Attitudes Beliefs
Values
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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
A nation, an ethic group, a gender group, anorganization, or a family may be consideredas a category.
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Society, Culture, and
Global Consumer Culture
Global consumer cultures are emerging Persons who share meaningful sets of consumption-
related symbols
Pub culture, coffee culture, fast-food culture, creditcard culture
Primarily the product of a technologicallyinterconnected world
Internet Satellite TV
Cell phones
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Attitudes, Beliefs, and Values
Attitudelearned tendency to respond in aconsistent way to a given object or entity
Beliefan organized pattern of knowledge thatan individual holds to be true about the world
Valueenduring belief or feeling that a specificmode of conduct is personally or socially
preferable to another mode of conduct
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Religion
The worlds major religionsinclude Buddhism, Hinduism,
Islam, Judaism, andChristianity and are animportant source of beliefs,attitudes, and values.
Religious tenets, practices,holidays, and history impactglobal marketing activities.
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Aesthetics
The sense of what isbeautiful and what is not
beautiful What represents good
taste as opposed totastelessness or even
obscenity
Visualembodied inthe color or shape ofa product, label, orpackage
Stylesvariousdegrees ofcomplexity, forexample, areperceived differentlyaround the world
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Aesthetics and Color
Redassociated with blood, wine-making,activity, heat, and vibrancy in many countriesbut is poorly received in some African
countries.
Whiteidentified with purity and cleanliness in the West,with death in parts of Asia.
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The Meaning of Color
Red signifies
good luck and
celebration in
China
Red is associated with
active, hot and
vibrant
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Dietary Preferences
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Language and Communication
Speaking Englisharound the Globe
There are more
people who speakEnglish as a foreignlanguage than nativespeakers
85% of Europeanteens study English
Sony, Nokia,Matsushita requiremanagers to speak
English
Nonverbal Communication Westerners tend to be
verbal; Asians valuenonverbal communication
In Japan, bowing has manynuances
In the Mideast, Westernersshould not show the soles of
shoes or pass documentswith the left hand
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Marketings Impact on Culture
Universal aspects of the culturalenvironment represent opportunities to
standardize elements of a marketingprogram
Increasing travel and improved
communications have contributed to aconvergence of tastes and preferencesin a number of product categories
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Controversy Surrounding
Marketings Impact on Culture
McDonaldization ofcultureEating is at the heart of mostcultures and for many it issomething on which much time,attention, and money are lavished.In attempting to alter the way peopleeat, McDonaldization poses aprofound threat to the entire culturalcomplex of many societies.
-George Ritzer
Protest against the openingof McDonalds in Rome ledto the establishment of theSlow Food movement
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Theoretical perspectives
Halls High- Low contextculture
Hofstedes Cultural Typology
Diffusion Theory
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Low vs. High ContextTreat everyone the same vs.
cater to backgroundcharacteristics
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High- and Low-Context
Cultures
High Context
Information residesin context
Emphasis onbackground, basicvalues, societalstatus
Less emphasis onlegal paperwork
Focus on personalreputation
Saudi Arabia, Japan
Low Context
Messages are explicitand specific
Words carry all
information Reliance on legal
paperwork
Focus on non-
personaldocumentation ofcredibility
Switzerland, U.S.,Germany
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High- and
Low-Context Cultures
Factor/Dimension High Context Low Context
Lawyers Less Important Very Important
A persons word Is his/her bond Is not reliableget it in writing
Responsibility for
Organizational error
Taken by highest level Pushed to the lowest level
Space People breathe on eachother
Private space maintained
Negotiations Lengthy- major purposeis to allow the parties toget to know each other
Proceed quickly
Competitive Bidding Infrequent Common
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Hofstedes Cultural Typology
Power Distance
Individualism/
Collectivism Masculinity
UncertaintyAvoidance
Long-term
Orientation
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Low vs. High power distance(shared power vs. power elites)
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1. Low power distance culturesdecentralize power into many differentorganizations & job positions. Powerful
people are not that much different fromeveryone else.
2. High power distance cultures centralize
power into a small group of power eliteswho are treated with great deference.
Power Distance
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Power Distance
Extent to which the lesspowerful members of asociety accept power to
be distributed unequally Hong Kong, France etc.
are high power distancecountries
Austria, Denmark,Sweden etc. are lowerpower distance
countries 4-27
I di id li ti lt e I defi e
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Individualistic culture: I definemyself (not society)
United States,
Europe arehaving highindividualism
Japan,Hong kong,
Taiwan arehaving highcollectivism
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Masculinity/Femininity
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Japan, Austria are ranked highest
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Uncertainty Avoidance
Preparedness of the people to face anyuncertainties in society.
Members of the uncertainty avoidingcultures may be more aggressive,emotional and have intolerant behavior.
Greece, Portugal etc. are outrank others Denmark, Sweden, Ireland, US are
uncertainty accepting countries.
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Long term orientation
The extent to which a societyencourages and rewards future oriented
behaviors such as planning, investing inthe future etc.
Most of the Asian countries such as
Japan, Hong Kong, Taiwan areexamples.
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S f f C i i
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Self-Reference Criterion
and Perception
Unconscious reference to ones own culturalvalues; creates cultural myopia
How to Reduce Cultural Myopia:
Define the problem or goal in terms of home countrycultural traits
Define the problem in terms of host-country culturaltraits; make no value judgments
Isolate the SRC influence and examine it
Redefine the problem without the SRC influence andsolve for the host country situation
Diff i Th
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Diffusion Theory:
The Adoption Process
The mental stages through which an individualpasses from the time of his or her first knowledge ofan innovation to the time of product adoption or
purchase Awareness
Interest
Evaluation
Trial Adoption
Diff i Th
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Diffusion Theory:
Characteristics of Innovations
Innovation is something new; fivefactors that affect the rate at which
innovations are adopted include: Relative advantage Compatibility
Complexity
Divisibility
Communicability
Diff i Th
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Diffusion Theory:
Adopter Categories
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Marketing Implications
Cultural factors must be consideredwhen marketing consumer and
industrial products Environmental sensitivity reflects the
extent to which products must be
adapted to the culture-specific needs ofdifferent national markets
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Looking Ahead to Chapter 5
The Political, Legal, and RegulatoryEnvironments of Marketing
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Copyright 2011 Pearson Education, Inc.Publishing as Prentice Hall