Social and cultural environments
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  • 1. © 2005 Prentice Hall 4-1
  • 2. Task of Global Marketers Study and understand the country cultures in which they will be doing business Incorporate this understanding into the marketing planning process © 2005 Prentice Hall 4-2
  • 3. Marketing Implications  Environmental Sensitivity reflects the extent to which products must be adapted to the culture-specific needs of different national markets © 2005 Prentice Hall 4-3
  • 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 another  Culture is acted out in social institutions  Culture has both conscious and unconscious values, ideas and attitudes  Culture is both material and nonmaterial  Global consumer cultures are emerging  Persons who share meaningful sets of consumption-related symbols  Pop culture; coffee culture; fast-food culture © 2005 Prentice Hall 4-4
  • 5. Social Institutions  Family  Education  Religion  Government  Business  These institutions function to reinforce cultural norms © 2005 Prentice Hall 4-5
  • 6. Material and Nonmaterial  Physical components of culture  Objects  Artifacts  Clothing  Tools  Pictures  Homes  Subjective or abstract culture  Religion  Perceptions  Attitudes  Beliefs  Values © 2005 Prentice Hall 4-6
  • 7. Attitudes, Beliefs and Values  Attitudes - learned tendency to respond in a consistent way to a given object or entity  Belief - an organized pattern of knowledge that an individual holds to be true about the world  Value - enduring belief or feeling that a specific mode of conduct is personally or socially preferable to another mode of conduct © 2005 Prentice Hall 4-7
  • 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 4-8
  • 9. Aesthetics  The sense of what is beautiful and what is not beautiful  What represents good taste as opposed to tastelessness or even obscenity  Visual – embodied in the color or shape of a product, label, or package  Styles – various degrees of complexity, for example are perceived differently around the world © 2005 Prentice Hall 4-9
  • 10. 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 © 2005 Prentice Hall 4-10 Return
  • 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 4-11
  • 12. Language and Communication Linguistic 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 4-12
  • 13. Language and Communication  Verbal Cues  Nonverbal cues or body language © 2005 Prentice Hall 4-13
  • 14. Marketing’s Impact on Culture  Universal aspects of the cultural environment represent opportunities to standardize elements of a marketing program  Improved communications have contributed to a convergence of tastes and preferences in a number of product categories  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
  • 15. 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 4-15
  • 16. High- and Low-Context Cultures Factor/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 for Organizational 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 4-16
  • 17. Hofstede’s Cultural Typology Research studies of social values suggesting that the cultures of different nations can be compared in terms of five dimensions. Three of the dimensions refer to expected social behavior, the fourth dimension is concerned with “man’s search for Truth,” and a fifth reflects the importance of time.  Power Distance  Individualism / Collectivism  Masculinity  Uncertainty Avoidance  Long-term Orientation © 2005 Prentice Hall 4-17
  • 18. Self-Reference Criterion and Perception  Unconscious reference to one’s own cultural values; creates cultural myopia  How 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 4-18
  • 19. Environmental Sensitivity © 2005 Prentice Hall 4-19
  • 20. Diffusion Theory  The Adoption Process  Characteristics of Innovations  Categories of Adopters © 2005 Prentice Hall 4-20
  • 21. 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 © 2005 Prentice Hall 4-21
  • 22. 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 © 2005 Prentice Hall 4-22
  • 23. 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 4-23
  • 24. Categories of Adopters © 2005 Prentice Hall 4-24 Return
  • 25. THANK YOU! © 2005 Prentice Hall 4-25