Multicultural Marketing       ICD – International Business School                        Prof: Baber MIRZA                ...
Before we begin…   About your professor    ◦ I like creativity with a touch of practicality    ◦ Rules   About the teach...
Marketing and ConsumerBehavior Marketing is about creating value for  the customer The customer is influenced by many  f...
Today’s topics   The Cultural Variable(Factor) in    International Marketing    ◦ The cultural process    ◦ Cultural dyna...
PART ONE  THE CULTURAL PROCESS
Definitions of culture   Linton (1945, p. 21): A culture is the configuration    of learned behaviour and results of beha...
Sources of Culture Language(s) Nationality Education Profession Group Religion Family Sex Social class Corporate...
Elements of culture   Biological Foundations Language and communication Institutions Material Productions Symbolic Pr...
Homogeneity                                   Potential   Linguistic                      ethnocentrism?   Religious  ...
StereotypesCooks - French       Cooks - BritishMechanics - German   Mechanics - FrenchPolice - British     Police - German...
What use is culture?   Provides a set of beliefs & standards    ◦ What to do and how to do it correctly      What is pal...
Interpreting symbols 7 bad luck in Kenya 7 good luck in the Czech Republic 7 magical in Benin, Africa 10 is bad luck i...
PART TWO  CULTURAL DYNAMICS         TIME AND SPACE
1. Culture is learned    2. Culture is forgottenHofstede’s analogy Your culture is like your nose:    ◦ you do not see it...
Same problems Kluckhohn & Strodtbeck (1961)- different solutionsCommon problems & orientations   Innate human nature: goo...
Evaluate Solutions Cognitive • People think it works that way Affective • People like it that way Directive • People wi...
Basic cultural assumptionsFigure 2.1 A model of cultural dynamics
Hall’s Silent Languages       Language of Time       Language of Space       Language of Things       Language of Friendsh...
TimeCommon problems:                  How does this affect   Is time tangible?              the marketing mix:    ◦ scarc...
Space and relationshipsCommon problems:                        How does this affect Belonging                            ...
Proxemics (Hall, 1966)   Size of space zones?   West    ◦ Intimate              Intimate 0-45 cm    ◦ Personal          ...
TASK                                            RELATIONSHIP                  Mediterranean  Northwestern     European    ...
Northwestern / Central EuropeanGermany, UK, Scandinavia, Austria   Task oriented    ◦   efficient and fast    ◦   little ...
Canada, USA, Australia       Similar task orientation        ◦ More casual, less formal          Greetings and small tal...
Mediterranean Europenon-Parisian French, Iberian, Italian,Greek   Can use task orientation    ◦ Extended tribe    ◦ Devel...
Latin American   Increased relationship emphasis    ◦ extended tribe include any Latin, Spanish country    ◦ Can be task ...
Traditional Cultures    Asian, developing, centrally-controlled◦   Similarities in orientation to sales◦   Clan - identity...
Middle Eastern Relationship first - blood Family relation part of the team    ◦ religious tenet    ◦ Not available to ou...
Traits of successful expatriate manager Ability to get along well with people awareness of cultural difference open-min...
PART THREE  CULTURAL DYNAMICS     INTERACTIONS, MINDSETS     AND BEHAVIOURS
The self-shock: being exposed to culturally     different people puts our self-image deeply into                         q...
Self and others                                   How does this affect                                    the marketing mi...
Characterizing Dimensions   Relation to authority      hierarchical relations (power distance)   Relation to self     ...
20 Statements I am _________ I am _________ I am _________
Collectivism vs. Individualism   Collectivism                    Individualism    ◦ emphasis ingroup needs &       ◦ emp...
Countries (1980)   Individualism          Collectivism    ◦   United States       ◦   Japan    ◦   Great Britain       ◦...
Application: (Nakata and Sivakumar 1996)Individualism – increases self-reliance Individualism promotes new product  devel...
MasculinityMasculinity:                  Femininity: Ambitious & need to excel    Quality of life - serving Tendency to...
Countries (1980)   Masculine            Feminine    ◦   Venezuela         ◦ Sweden    ◦   Italy             ◦ Thailand  ...
Application: (Nakata and Sivakumar 1996)Masculinity - increases self-reliance Femininity positively affects the  conceptu...
Power DistanceLarge                     Small High dependence needs    Low dependence needs Inequality accepted      I...
Countries (1980)   High power distance      Low power distance    ◦   Philippines           ◦   United States    ◦   Mex...
Application: (Nakata and Sivakumar 1996)Power Distance - promotes dependence   Low power distance           High power d...
Uncertainty AvoidanceStrong                      Weak Anxiety, higher stress     Relaxed, lower stress Inner urge to wo...
Countries (1980)   High uncertainty      Low uncertainty    avoidance              avoidance    ◦   France             ◦...
Application: (Nakata and Sivakumar 1996)Uncertainty Avoidance - promotes dependence? Low uncertainty avoidance facilitate...
Long/short term orientation or         Confucian DynamicHigh                        Low   Many truths                Abs...
   Long term orientation      Short term orientation    ◦   Hong Kong               ◦ West Africa    ◦   Taiwan         ...
Application: (Nakata and Sivakumar 1996) Long term orientation promotes new  product development Short term orientation ...
What correlates with Hofstede’sdimensions? (see Hofstede 2001)   Individualism                        Power Distance    ...
Internet use across Europe for business: -PD for education: -MAS for e-mail: -UA for leisure: -MAS, -UA   M. de Mooij...
Convergence of cultures sofar?   Evidence says NO    ◦ even if you only look at the rich countries   People use the new ...
Schwartz Values & IndividualismMore individualistsocieties & young,educated, urban                                  Self- ...
Attitude towards action                              How does this affect the                              marketing mix:C...
Cultural assumptions &           behaviourFigure 3.2 Basic and cultural assumptions and actual behaviour(Source: Derr and ...
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Multicultural marketing - 1st Session

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1st Session on Multicultural Marketing at the ICD-Ecoles

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  • Whorf defends the idea that the language we learn in the community where we are born and raised shapes and structures our world-view and our social behaviour. It influences the way in which we select issues, solve problems and finally, act.Institutional elements are the ‘spine’ of the cultural process. They link the individual to the group. Institutions may include family as well as political institutions, or any kind of social organization within which the individual has to comply with rules in exchange for various rewards (e.g. being fed, loved, paid, and so on). These rules are not static and an individual may also sometimes act as a proactive agent of change.the relationship between the purely biological needs of people and the way in which people are organized and regulated within the framework of the cultural community. ‘We have to base our theory of culture on the fact that all human beings belong to an animal species. . . . No culture can continue if the group is not replenished continually and normally.’ example of eating habits, which must be regarded as both biological and cultural
  • Homogeneity clearly favours the emergence of a coherent culture in a nation-state, perhaps leading to the possible confusion of culture and country and the treatment of country as a culturally unified, coherent segment.
  • Multicultural marketing - 1st Session

    1. 1. Multicultural Marketing ICD – International Business School Prof: Baber MIRZA First Session 6th March ‘13
    2. 2. Before we begin… About your professor ◦ I like creativity with a touch of practicality ◦ Rules About the teaching style ◦ Mostly French students ◦ English will be used with simple terms About the course ◦ Material (book that I am using) ◦ You don’t need to buy a book, you can use this PowerPoint and my lecture as your notes ◦ Quizzes and Final Project  Next class there will be a quiz  I will also give you details about your final project in your next class
    3. 3. Marketing and ConsumerBehavior Marketing is about creating value for the customer The customer is influenced by many factors such as culture, social group, personality Culture is complex and is the target for marketers for profitable associations
    4. 4. Today’s topics The Cultural Variable(Factor) in International Marketing ◦ The cultural process ◦ Cultural dynamics part I: Time and Space ◦ Cultural dynamics part II: Interactions, Mindsets, and Behaviors
    5. 5. PART ONE THE CULTURAL PROCESS
    6. 6. Definitions of culture Linton (1945, p. 21): A culture is the configuration of learned behaviour and results of behaviour whose component elements are shared and transmitted by the members of a particular society.’ Goodenough (1971): culture is a set of beliefs or standards, shared by a group of people, which help the individual decide what is, what can be, how to feel, what to do and how to go about doing it.
    7. 7. Sources of Culture Language(s) Nationality Education Profession Group Religion Family Sex Social class Corporate or organizational culture
    8. 8. Elements of culture Biological Foundations Language and communication Institutions Material Productions Symbolic Productions
    9. 9. Homogeneity  Potential Linguistic ethnocentrism? Religious Ethnic Climatic Geographical Institutional & political Social/income
    10. 10. StereotypesCooks - French Cooks - BritishMechanics - German Mechanics - FrenchPolice - British Police - GermansLovers - Italian Lovers - SwissOrganize - Swiss Organize - Italian
    11. 11. What use is culture? Provides a set of beliefs & standards ◦ What to do and how to do it correctly  What is palatable, admissible, ethical, magical, religious, hygienic, quality, etc.  When it is time to sleep, to eat, to work, etc.
    12. 12. Interpreting symbols 7 bad luck in Kenya 7 good luck in the Czech Republic 7 magical in Benin, Africa 10 is bad luck in Korea 4 is related to death in Japan Red represents witchcraft and death in many African countries, but is a positive in Denmark Avoid triangular shapes in Hong Kong, Korea & Taiwan ◦ It is a negative shape SOURCE: Business America, July 12, 1993
    13. 13. PART TWO CULTURAL DYNAMICS TIME AND SPACE
    14. 14. 1. Culture is learned 2. Culture is forgottenHofstede’s analogy Your culture is like your nose: ◦ you do not see it properly yourself, ◦ but everybody else does and thinks it is peculiar if it differs from theirs. In addition, ◦ you always go where it leads you, and ◦ it is always in the way.
    15. 15. Same problems Kluckhohn & Strodtbeck (1961)- different solutionsCommon problems & orientations Innate human nature: good, evil or mixed Nature: subjugation, harmony or mastery Time: past, present or future Activity: being, doing or do to be Relational: linearity, collaterality or individuality Space: private, public or mixed
    16. 16. Evaluate Solutions Cognitive • People think it works that way Affective • People like it that way Directive • People will do it that way
    17. 17. Basic cultural assumptionsFigure 2.1 A model of cultural dynamics
    18. 18. Hall’s Silent Languages Language of Time Language of Space Language of Things Language of Friendship Language of Agreements
    19. 19. TimeCommon problems: How does this affect Is time tangible? the marketing mix: ◦ scarce resource  Products & services? How to schedule tasks?  Promotions? ◦ one at a time or multiple  Distribution? Are lifetimes single or  Pricing? cyclical? ◦ Separable or seasonal What should we emphasize? ◦ past, present, future
    20. 20. Space and relationshipsCommon problems: How does this affect Belonging the marketing mix: ◦ Personalization (being) vs.  Products & services? depersonalization (doing) Ingroup orientation  Promotions? ◦ Rights & obligations  Distribution? Achieving membership  Pricing? ◦ Concrete vs. abstract territory Conditions of membership ◦ Group vs. individualistic
    21. 21. Proxemics (Hall, 1966) Size of space zones? West ◦ Intimate  Intimate 0-45 cm ◦ Personal  Personal 45 cm-1 m ◦ Social  Social 1-2 m Who can enter? Sensory exchange?  Marketing Mix?
    22. 22. TASK RELATIONSHIP Mediterranean Northwestern European Traditional Central European Latin North American American Middle Eastern Global Business Schuster & Copeland (1996)
    23. 23. Northwestern / Central EuropeanGermany, UK, Scandinavia, Austria Task oriented ◦ efficient and fast ◦ little time for irrelevant items ◦ like structured agenda ◦ start and finish times are set ◦ formality Foreigners, who don’t respect time orientation ◦ less professional or less sophisticated
    24. 24. Canada, USA, Australia  Similar task orientation ◦ More casual, less formal  Greetings and small talk, first name ◦ agendas are flexible ◦ Relationships are ‘business’
    25. 25. Mediterranean Europenon-Parisian French, Iberian, Italian,Greek Can use task orientation ◦ Extended tribe ◦ Develop a connection or personal bond  meet informality probe personal connection Task important but time is flexible ◦ late, delay delivery is OK ◦ Competed tasks measure success Foreigners ◦ disconnect if no relationship ◦ connect on similarities e.g. tour, language
    26. 26. Latin American Increased relationship emphasis ◦ extended tribe include any Latin, Spanish country ◦ Can be task oriented but not preferred ◦ Relationship important, even for foreigners  demonstrate trust, credibility or interest  Rules change with relationship  includes obligations and duties (multi-dimension) ◦ Task is important but so is trust, honour and compatibility
    27. 27. Traditional Cultures Asian, developing, centrally-controlled◦ Similarities in orientation to sales◦ Clan - identity, protection and preference◦ Part of group or product in demand◦ Relationships are the gateway  cold selling not usually effective◦ High context - words not so important◦ Low context - responsibility, date, penalty◦ Identify appropriate network◦ Unique product
    28. 28. Middle Eastern Relationship first - blood Family relation part of the team ◦ religious tenet ◦ Not available to outsiders  introductions ◦ persuasion least significant ◦ trust established and maintained ◦ conflict interests, nepotism ◦ time limits are rude and disrespectful
    29. 29. Traits of successful expatriate manager Ability to get along well with people awareness of cultural difference open-mindedness tolerance of foreign cultures adaptability interest previous experience ability to learn foreign languages
    30. 30. PART THREE CULTURAL DYNAMICS INTERACTIONS, MINDSETS AND BEHAVIOURS
    31. 31. The self-shock: being exposed to culturally different people puts our self-image deeply into questionOthers Behaviours Other Behaviours Others Identity Self Self Clash Home country Host country
    32. 32. Self and others How does this affect the marketing mix?Common problems:  Products & services? Treat strangers?  Promotions? ◦ Nature good or bad?  Distribution? Appraise others?  Pricing? ◦ Who do we trust? Appraise ourselves? ◦ What is valued? Relate to our group? ◦ Individualism-collectivism
    33. 33. Characterizing Dimensions Relation to authority  hierarchical relations (power distance) Relation to self  self-concept and personality (individualism) Relation to risk  tolerance for unknown and deviations (uncertainty avoidance, tightness) Propensity to change  receptivity of changes (Long term orientation) Clark (1990)
    34. 34. 20 Statements I am _________ I am _________ I am _________
    35. 35. Collectivism vs. Individualism Collectivism  Individualism ◦ emphasis ingroup needs & ◦ emphasis self needs & goals goals ◦ beliefs shared with in- ◦ beliefs distinguish from group others ◦ homogeneous ingroups ◦ homogeneous outgroups heterogeneous outgroups heterogeneous ingroups ◦ norms predict behaviour ◦ attitudes predict behaviour better than attitudes better than norms
    36. 36. Countries (1980) Individualism  Collectivism ◦ United States ◦ Japan ◦ Great Britain ◦ Iran ◦ Canada ◦ Taiwan ◦ Italy ◦ Colombia ◦ Australia
    37. 37. Application: (Nakata and Sivakumar 1996)Individualism – increases self-reliance Individualism promotes new product development during the initial or conceptualization phase - nonconformity Collectivism promotes new product development during the implementation phase - interdependence
    38. 38. MasculinityMasculinity: Femininity: Ambitious & need to excel  Quality of life - serving Tendency to polarize others Live in order to work  Striving for consensus Big & fast are beautiful  Work in order to live Admiration for the  Small and slow are beautiful achiever  Sympathy for the unfortunate Decisiveness  Intuition
    39. 39. Countries (1980) Masculine  Feminine ◦ Venezuela ◦ Sweden ◦ Italy ◦ Thailand ◦ Germany ◦ Spain ◦ Australia
    40. 40. Application: (Nakata and Sivakumar 1996)Masculinity - increases self-reliance Femininity positively affects the conceptualization stage of new product development - supportive climate Masculinity promotes the implementation stage - goal directedness and formalization
    41. 41. Power DistanceLarge Small High dependence needs  Low dependence needs Inequality accepted  Inequality minimized Hierarchy needed  Hierarchy for convenience Superiors often  Superiors accessible inaccessible Power-holders have  All have equal rights privileges Change by revolution  Change by evolution
    42. 42. Countries (1980) High power distance  Low power distance ◦ Philippines ◦ United States ◦ Mexico ◦ the Netherlands ◦ India ◦ Australia ◦ France ◦ Israel
    43. 43. Application: (Nakata and Sivakumar 1996)Power Distance - promotes dependence Low power distance  High power distance facilitates new product facilitates new product development during development at the the conceptualization implementation stage - stage - diverse ideas centralized command
    44. 44. Uncertainty AvoidanceStrong Weak Anxiety, higher stress  Relaxed, lower stress Inner urge to work hard  Hard work not a virtue per se Emotions accepted  Emotions not shown Conflict is threatening  Conflict & competition ok Need of consensus  Acceptance of dissent Need to avoid failure  Willingness to take risks Need for laws & rules  Few rules
    45. 45. Countries (1980) High uncertainty  Low uncertainty avoidance avoidance ◦ France ◦ United States ◦ Belgium ◦ Hong Kong ◦ Greece ◦ Canada ◦ Portugal ◦ Singapore
    46. 46. Application: (Nakata and Sivakumar 1996)Uncertainty Avoidance - promotes dependence? Low uncertainty avoidance facilitates the initiation phase - risk taking and minimal controls High uncertainty avoidance facilitates implementation stage - tight planning and controls
    47. 47. Long/short term orientation or Confucian DynamicHigh Low Many truths  Absolute truth ◦ (time, context) Pragmatic  Conventional/traditional Long-term orientation  Short term orientation Acceptance of change  Concern for stability Perseverance  Quick results expected Thrift for investment  Spending for today
    48. 48.  Long term orientation  Short term orientation ◦ Hong Kong ◦ West Africa ◦ Taiwan ◦ Canada ◦ Japan ◦ Pakistan ◦ South Korea ◦ Brazil
    49. 49. Application: (Nakata and Sivakumar 1996) Long term orientation promotes new product development Short term orientation impedes new product development
    50. 50. What correlates with Hofstede’sdimensions? (see Hofstede 2001) Individualism  Power Distance + purchase insurance, have + confidence in the press, lack of dogs, own a motor home for confidence in police, child leisure, read more books, obedience have an answering machine  Uncertainty Avoidance Masculinity + buying new (vs used) cars, + status purchases (watches, buying precious metals and jewellery), importance of car gems, use of mineral water engine power, business class – buying stocks, use of internet travel, confidence in and other media, eating ice- advertising cream, frozen food, – Partner involvement in car confectionary and snacks choice, women as main shoppers
    51. 51. Internet use across Europe for business: -PD for education: -MAS for e-mail: -UA for leisure: -MAS, -UA M. de Mooij "Global Marketing and Advertising, Understanding Cultural Paradoxes", 1998, Sage Publications
    52. 52. Convergence of cultures sofar? Evidence says NO ◦ even if you only look at the rich countries People use the new media to strengthen their cultural identity ◦ immigrants, researchers, family members, hobbyists, extremists... ◦ living together apart
    53. 53. Schwartz Values & IndividualismMore individualistsocieties & young,educated, urban Self- Direction Universalism Simulation Benevolence Hedonism Conformity Tradition Achievement Security More collectivist Power societies & religious
    54. 54. Attitude towards action How does this affect the marketing mix:Common problems:  Products & services? Why act?  Promotions? ◦ fatalism?  Distribution? What is action?  Pricing? ◦ Speech vs deeds? Thinking to action? ◦ Styles? Feelings to action? ◦ Separate or integrate Dealing with rules? ◦ Practical vs. ideal
    55. 55. Cultural assumptions & behaviourFigure 3.2 Basic and cultural assumptions and actual behaviour(Source: Derr and Laurent, 1989. Reproduced with permission)

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