Ch 04 social and cultural environments
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  • 1. Social and Cultural EnvironmentsKrizelle A. DinlasanMBA6Mrs. Priscilla Mendoza
  • 2. Why study social and culturalenvironments?The task of global marketer is twofold:1. Marketers must study and understand the country cultures in which they will bedoing business.2. This understanding must be incorporated into the marketing planning process.People must overcome the prejudices that are a natural result of humantendency toward ethnocentricity. Although “culture shock” is normal human reaction tothe new and unknown, successful global marketers strive to comprehend humanexperience from the local point of view.
  • 3. Culture - ways of living, built up by a group of human beings, that are transmitted by onegeneration to another.A culture acts out it ways of living in the context of social institutions:Social, Culture, and GlobalConsumer CultureCulture includes both conscious and unconscious values, ideas, attitudes, and symbols thatshape human behavior and that are transmitted from one generation to the next.Organizational anthropologist Geert Hofstede defines culture as “the collectiveprogramming of the mind that distinguishes the members of one category of people fromthose of another.”
  • 4. Social, culture, and global conSumer culture, cont…- physical component or physical culture andincludes physical objects and artifactscreated by humans such as clothing andtools.- also known as subjective or abstractculture includes tangibles such as religion,perception, attitudes, beliefs, and values.Interrelated and interactiveCultural anthropologist George P. Murdock identified “culture universals”:athletic sports, body adornment, cooking, courtship, dancing, decorative art,education, ethics, etiquette, family feasting, food taboos, language, marriage, mealtime,medicine, mourning, music, property rights, religious rituals, residence rules, statusdifferentiation, etc.Persons who identify with cultures share meaningful sets of consumption-related symbols,some of these associated with specific product categories: fast-food culture, credit cardculture and coffee culture, and so on.
  • 5. - a learned tendency to respond in a consistent way to a given object or entity and areclusters of interrelated beliefs- an organized pattern of knowledge that an individual hold to be true about the world.- an enduring belief or feeling that a specific mode of conduct is personally or sociallypreferable to another ode of conduct.- represent the deepest level of a culture and are present in the majority of themembers of a particular culture.
  • 6. - favors Western fashion (e.g. American brands)- unique in the world- strive to achieve, cooperation, consensus, self-denial, and harmony
  • 7. With any large, dominant cultural group, there are likely to be subcultures, that is, smallergroups of people with their own shared subset of attitudes, beliefs, and values. They oftenrepresent attractive niche marketing opportunities.Globalization can result in situations that challenge BAV:attitudeS, beliefS, and valueS, cont…A case in point is the 1998 merger ofGermany’s Daimler-Benz and American ChryslerCorporation. Many American Jews shunproducts from German company in an effort tohonor the memory of Holocaust victims. Youngpeople were taught by their parents not to byGerman products.There is a sense of betrayal among thisgroup that Chrysler joined forces with a Germancompany.Volkswagen, the “people’s car” wasdesigned on Hitler’s orders.
  • 8. Within every culture, there is shared sense of what is beautiful as opposed to ugly andwhat represents good taste as opposed to tastelessness.Embodied in the color or shape of a product, label or packageVarious degrees of complexityThere is nothing inherently “good” or “bad” about any color ofthe spectrum; all associations and perceptions regarding colorarise from culture.
  • 9. -besides being color of blood, tied to centuries-old viticulture and winemaking-associated with active, hot, vibrant, emotional, sharp-with positive connotation in many societies but poorly received in someAfrican countriesaeStheticS, cont…-connotes purity and cleanliness in the West but is associated with deathin parts of Asia-connotes inexpensive in China and Japan, while associated with highquality and expensive in the United StatesAssociations for soft drinks and good tasting:Chinese South Korean and Japanese American
  • 10. aeStheticS, cont…- an aesthetic component of cultures, accepted as form of artistic expression and source ofentertainment.Bossa nova rhythms = ArgentinaSamba = BrazilSalsa = CubaReggae = JamaicaBlues, rock, hip hop, rap = AmericaNational identity derives in part from a country’s indigenous or popular music; a uniquestyle that can “represent the uniqueness of the cultural entity and of the community”.Music provides an interesting example of “think global, act local”.Because music plays an important role in advertising, marketers must understand whatstyle is appropriate in a given national market.
  • 11. Cultural influences are also quite apparent in food preparation and consumption patternsand habits.Russians eat caviar from sturgeon harvested in the Caspian Sea. In Finland, reindeer is on the menu.French considers rabbit to be a delicacy. Rice and grilled fish are regularly eaten for breakfast in Japan.Hindus in India serve themselves with the right hand rather than use utensils; they prepare food withspices that create a level of hotness that many Westerners would find unpalatable.A solid understanding of food-related cultural preferences is important for any companythat markets food or beverage products globally. Companies that lack sensitivity arebound to make marketing mistakes.Attempted to market corn in Europe where theprevailing attitude that corn is a grain fed to hogs andnot to people.
  • 12. Notwithstanding these facts, there is plenty of evidence that global dietary preferencesare converging.dietary preferenceS, cont…Fast food cultureLe Big MacVs.
  • 13. The diversity of cultures around the world is also reflected in language. A person can learna great deal about another culture without leaving home by studying its language andliterature; such study is the next big thing to actually living in another country.1. SYNTAX (rules of sentence formation)- English has relatively fixed word order; Russians have fee word order.2. SEMANTICS (system of meaning)- Japanese words convey nuances of feeling for which other language lack exact correlation;“yes “ or “no” can be interpreted differently than in other languages3. PHONOLOGY (system of sound patterns)- Japanese does not distinguish between the sounds “l” and “r”. English and Russian bothhave “l” and “r” sounds.4. MORPHOLOGY (word formation)- Russian is a highly inflected language, with six different case endings for nouns andadjectives; English has fewer inflections.
  • 14. language and communication, cont…Unspoken or nonverbal communication (also called as silent language) includes gestures,touching, and other forms of body language that supplement spoken language.Both the spoken and unspoken aspects of language are included in the broader linguisticfield of semiotics, which is the study of signs and their meanings.In global marketing, language is a crucial tool for communicating with customers, channelintermediaries, and others. The marketing literature is full of anecdotal references tocostly blunders caused by incorrect or inept translations of product names and advertisingcopy.Marketers must also be aware of subcultures created by intranational language or dialectdifferences.In Switzerland, in addition to Swiss German dialects, there are communities of French,Italian, and Romansch speakers. In addition, Swiss German and standard German iffer in significantways.American English and British English provides another illustration of how the samelanguage in different countries can be characterized by linguistic differences.
  • 15. language and communication, cont…Means “go hang yourself” in SpanishFormer name was factory outletConsumers from Italy, France, andGermany had trouble pronouncingcompany’s nameWord chosen by Renzo Rosso since it ispronounced the same in every languageThe closest word in Japanese “kaji” denotes“domestic duties” not appealing to housewives
  • 16. language and communication, cont…Technology is providing interesting new opportunities for exploiting linguistics in the nameof marketing.In Korea, the phonetic pronunciation of numerical sequence 8282 means “hurry up” and 7170 soundslike “close friend”; also, on most keypads, 4 5683 968 can be interpreted as “I love you”.One impact of globalization on culture is the diffusion of English language around theglobe.For Americans in particular, Language can help individuals develop rapport with personswho speak English as a second language. Rather than belittling or mocking persons whomispronounce English words, those who have studied another language have insights tothe underlying linguistic sources of those mistakes.
  • 17. language and communication, cont…In Japan many consumer packaged goods - including some that are not imported – haveEnglish, French or German on the labels to suggest a stylish image and Western look.Product Written message Intended messageCoffeeEase Your Bosoms. This coffee hascarefully selected high quality beansand roasted by our all experience.Drinking the coffee provides arelaxing break and “takes a loadof your chest”Jacket Vigorous throw up. Go on a journey.Sports bagA drop of sweat is the precious giftfor your guts.NotebookBe a man I recommend it withconfidence as like a most intelligentstationary of basic design.Many Western languages lack exact equivalents for the rich variety of Japanese wordsthat convey feelings.
  • 18. language and communication, cont…The challenges presented by nonverbalcommunication are perhaps even more formidable.West tends to beverbal, while Easttends to exhibitnon verbal.Communication issues – sequencing or phasing
  • 19. language and communication, cont…Verbal Cues Underlying Reality Adaptation Required1. “I can go italone.”Americans are typically outnumbered innegotiations. Reflects culture of individualism.Greater reliance on teamwork and divisionof negotiating labor, especially in collectivistculture.2. “Just call me‘John’.”Americans place a high value on informality andequality of participants in negotiations. This mayconflict with customs and class structures offoreign cultures.Respect the cultures, hierarchies, and classstructure of other cultures. Learn more viaself study; ask country nationals to explainlocal attitudes and values.3. “Pardon myFrench.”Americans are culturally monolingual.Ignore the conventional wisdom about howdifficult it is o learn a foreign language; if youhave ongoing business in a country, makethe effort to study their language. At aminimum develop a good workingrelationship with an interpreter.4. “Get to thepoint.”Americans’ short term orientation manifests itselfas a tendency to be blunt and impatient.Understand that people from other culturesneed to develop a sense of connection andpersonal trust in order to feel comfortableabout doing business. This takes time.5. “Lay your cardon the table.”Americans like to state the case up front, and arenot accustomed to “feeling out” prospectivepartners.Slow down, and recognize the need torephrase the question, several times, ifnecessary. Prepare to spend double thetime you think is need to get the informationyou seek.
  • 20. Language and Communication, American CommunicationStyleS cont…Verbal Cues Underlying Reality Adaptation Required6. “why doesn’tsomebody saysomething?”Americans are uncomfortable with silence duringnegotiations and often deal with their discomfortby continuing to speak.Recognize that silence is golden in manycultures. It can be detrimental – to keep aconstant stream of chatter. If there is silence,let it be. Reflect. Take in nonverbalinformation. Value the silence. Takeadvantage of it.7. “Don’t take ‘no’for an answer.”Tenacity and the hard sell are highly valued in theUnited States.If the answer is “no,” stop selling and findout why. Respond for the reasons for theanswer “no.”8. “One thing at atime.”Many Americans favor the linear, organized, “leftbrain” negotiation style. “Point One, Point Two”– style sequencing is not a universal approach.Recognize your own right brain capability.Embrace a more holistic approach towardsnegotiations. Be patient if the discussionseems to proceed in loops and spirals.9. “A deal is adeal.”Expectations and perceptions may not be sharedby all parties. Have you agreed on all points inthe contract, or have you agreed to worktogether?Accept a more gradual, supplemental viewof negotiations and joint effort.10. “I am what Iam.”Americans have a tendency to see things in black-and-white terms.Adopt a more flexible standpoint. Be willingto change your mind and manner and toadapt to your opposite.
  • 21. Universal aspects of the cultural environment represents opportunities for globalmarketers to standardize some or all elements of a marketing program.Widespread share preference for convenience foods, disposable products, popular music,and movies in US, Europe and Asia suggests that many consumer products have broad,even universal, appeal.Slow Food is about the idea that thingsshould not taste the same everywhere.McDonaldization of culture“Eating is the heart of most cultures and for many it issomething on which much time, attention, and money arelavished. In attempting to alter the way people eat,McDonaldization poses a profound threat to the entire culturalcomplex of many societies.” – George Ritzer, sociologist
  • 22. Edward T. Hall, has suggested that the concept of high and low context as a way ofunderstanding different cultural orientations.High-and Low-ContextCultures• Information resides in context• Emphasis on background, basicvalues, societal status• Less emphasis on legal paperwork• Focus on personal reputationCountries: Saudi Arabia, Japan• Messages are explicit and specific• Words carry all information• Reliance on legal paperwork• Focus on non-personaldocumentation of credibilityCountries: Switzerland, UnitedStates, Germany
  • 23. High-and low context cultureS, cont…Factors/Dimensions High-Context Low-ContextLawyers Less important Very importantA person’s word Is his/her bond Is not reliable—get it in writingResponsibility fororganizational errorTaken by highest level Pushed to the lowest levelSpace People breathe on one another Private space maintainedTimePolychronic – everything in life mustbe dealt with in terms of its owntimeMonochronic – time is money.Linear- one thing at a time.NegotiationsAre lengthy – a major purpose is toallow to the parties to get to knoweach otherProceed quicklyCompetitive bidding Infrequent Common
  • 24. Cultures of different nations can be compared in terms of five dimensions. Hofstede notesthat the three of the dimensions refer to the expected social behavior, the fourthdimension is concerned with “man’s search for truth,” and a fifth reflects the importanceof time.hofStede’S CulturalTypology1. Power Distance – extent to which the less powerful members of the society accept –even expect – power to be distributed unequally.To paraphrase Orwell, all societies are unequal, but some are more unequal than others. HongKong and France are both high-power distance cultures; low-power distance characterizesGermany, Austria, the Netherlands, and Scandinavia.2. –Reflection of the degree to which individuals in a society are integrated into groups.Individualist – each member of society is primarily concerned with his or her own interest andthose of the immediate family. (US and Europe)Collectivist – all society’s members are integrated into cohesive in-groups. (Japan and other Asiancountries)
  • 25. 3. Masculinity - describes the society in which men are expected to be assertive,competitive, and concerned with material success, and women fulfill the role of anurturer and are concerned with issues such as welfare of children. (Japan andAustria)Femininity - describes the society in which social roles of men and women overlap,with neither gender exhibiting overly ambitious or competitive behavior.4. Uncertainty avoidance - extent to which the members of a society are uncomfortablewith unclear, ambiguous, or unstructured situations.Members of some cultures express strong uncertainty avoidance by resorting toaggressive, emotional and intolerant behavior; they are characterized by belief inabsolute truth.Hofstede’s research convinced him that, although these four dimensions yieldedinteresting and useful interpretations, they did not provide sufficient insight into possiblecultural bases for economic growth.hoSftede’S Cultural Typology, five dimensions of culture,cont…
  • 26. These problem was remedied by a Chinese Value Survey (CVS) developed by Chinese socialscientists in Hong Kong and Taiwan.5. Long-term Orientation (LTO) vs. short-term orientation – concerning the society’ssearch for virtue, rather than search for truth. It assesses the sense of immediacywithin a culture, whether gratification should be immediate or deferred.Long term values include:a. Persistence (perseverance) – general tenacity in pursuit of a goal.b. Ordering relationships – reflects the presence of societal hierarchies.c. Observing this order – indicates the acceptance of complementary relations.d. Thrift – manifests itself in high savings rate.e. Sense of shame – leads to sensitivity in social contacts.Because of this 5-D, researcher Martin Ross described three types of brand images:functional, social, and sensory.Functional brand image – orientation toward problem solving and problem prevention.Social brand image – fufill consumers’ needs for group membership and affiliation.Sensory appeal – provides novelty, variety, and sensory gratification.hoSftede’S Cultural Typology, five dimensions of culture,cont…
  • 27. hoSftede’S Cultural Typology, five dimensions of culture,cont…hierarchical societycollectivistic societymasculine societylow preferenceshort term
  • 28. As previously shown, a person’s perception of market needs is framed by his or her owncultural experience. Unconscious reference to one’s own cultural values is termed byJames Lee as self-reference criterion (SRC). To reduce cultural myopia, Lee proposed asystematic four-step framework.The Self-ReferenceCriterion and Perception1. Define the problem or goal in terms of home country cultural traits, habits, and norms.2. Define the problem in terms of host-country cultural traits, , habits, and norms. Makeno value judgments.3. Isolate the SRC influence and examine it carefully to see how it complicates problem.4. Redefine the problem without the SRC influence and solve for the host-countrymarket situation.
  • 29. Three concepts: The adoption process, characteristics of innovation, and adoptercategories (Everett Rogers)Diffusion TheoryThe mental stages through which anindividual passes from the time ofhis/her first knowledge of an innovationto the time of product adoption orpurchase. Different stages:a. Awarenessb. Interestc. Evaluationd. Triale. Adoption
  • 30. Five major factors affecting the rate at which innovations are adopted:a. Relative advantage. How a new product compares with existing products or methodsin the eyes of customers.b. Compatibility. The extent to which a product is consistent with existing values and pastexperiences of adoptersc. Complexity. The degree to which an innovation or new product is difficult tounderstand and use.d. Divisibility. The ability of a product to be tried and used on a limited basis withoutgreat expense.e. Communicability. The degree to which benefits of an innovation or the value of aproduct may be communicated to a potential market.diffuSion theory, cont…
  • 31. - Classifications of individuals within a market on the basis of their innovativeness.diffuSion theory, cont…
  • 32. Environmental sensitivity reflects the extent to which products must be adapted to theculture-specific needs of different national markets.Marketing Implications of Social andCultural Environments
  • 33. Personal relationships are an essential ingredient for international business person.Managers must learn to question their own beliefs, overcome SRC, an to adapt the waythey communicate, solve problems and even make decisions.Multicultural managers must learn to question and reevaluate their feelings concerningsuch rudimentary management issues such as leadership, motivation and teamwork; thismeans an examination of some extremely fundamental and personal systems of belief.Lastly, managers must learn to overcome stereotypes they hold regarding individuals ofvarious races and religion from other countries; managers must also diplomatically dealwith stereotypes others may have about them.Training in Cross-CulturalCompetency
  • 34. THANK YOU!!!End of Presentation...