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Session 5 6


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Session 5 6

  1. 1. Session 5 & 6 Dr. Bikramjit Rishi The Cultural Environment
  2. 2. Key Learning's <ul><li>How the cultural environment will affect the international marketing. </li></ul><ul><li>Define culture and name some of its elements. </li></ul><ul><li>What cultural adaptation is and its relevance in international marketing. </li></ul><ul><li>Role religion plays in formation of culture and how it affects international marketing. </li></ul>
  3. 3. Think………. <ul><li>Govt. of India raised permitted levels of the flavour Monosodium Glutamate in Dec. 1995. The decision came after a Bangalore court closed a Kentucky Fried Chicken outlet because its food exceeded legal limits for the additive. </li></ul><ul><li>Saudi Arabia has the world’s highest per capita consumption of Fragrance. Guy Laroche (French Brand) toned down the sensuality its ads in S.A. market. The European Ad shown a man’s hand clutching the perfume bottle and a woman hand seizing his forearm. In the S.A. version the man’s arm is clothed in a dark jacket sleeve and the woman is touching the man’s hand only with fingertip. </li></ul>
  4. 4. <ul><li>During the past 30 years Polaroid’s instant photography has been largely responsible for breaking down taboos against picture taking in Muslim countries. </li></ul><ul><li>P & G launched Biomat laundry detergent in Israel, it found orthodox Jews (15% of the population) a challenge since they do not have TV. Focused on the segment’s core belief that they should aid those less fortunate. </li></ul><ul><li>Chinese Believe that one should build the relationship first and if that is successful, transactions will follow. The GUANXI is a set of exchanges of favours to establish trust. </li></ul>
  5. 5. Success and Culture <ul><li>An understanding of cultural differences allows marketers to determine when adaptation may be necessary and when products allow for regional or global approaches. </li></ul>
  6. 6. Defining Culture <ul><li>An integrated system of learned behavior patterns that are distinguishing characteristics of the members of any given society. </li></ul><ul><li>The definition encompasses a wide variety of elements, from materialistic to the spiritual. </li></ul>
  7. 7. Acculturation <ul><li>Adjusting or adapting to a specific culture other than one’s own … and “one of the keys to success in international marketing. </li></ul>
  8. 8. Context Cultures <ul><li>High-context culture </li></ul><ul><ul><li>is where the social context in which what is said strongly affects the meaning of the message. (what is not said carry more meaning) </li></ul></ul><ul><ul><li>Examples: Japan and Saudi Arabia </li></ul></ul><ul><li>Low-context culture </li></ul><ul><ul><li>is where the meaning of the message is explicitly expressed by the words and is less affected by the social context. </li></ul></ul><ul><ul><li>Example: North America </li></ul></ul>
  9. 9. Elements of Culture Elements <ul><li>Language </li></ul><ul><li>verbal </li></ul><ul><li>non-verbal </li></ul><ul><li>Religion </li></ul><ul><li>Values and Attitudes </li></ul>Manners and Customs Material Elements Aesthetics Education Social Institutions
  10. 10. Language <ul><li>Non Verbal </li></ul><ul><ul><li>How words are spoken. </li></ul></ul><ul><ul><li>Gestures made. </li></ul></ul><ul><ul><li>Body position assumed. </li></ul></ul><ul><ul><li>Degree of eye contact. </li></ul></ul><ul><li>Local language capability’s important role in international marketing </li></ul><ul><ul><li>Aids in information gathering and evaluation. </li></ul></ul><ul><ul><li>Provides access to local society. </li></ul></ul><ul><ul><li>Important to company communications. </li></ul></ul><ul><ul><li>Allows for interpretation of contexts. </li></ul></ul>
  11. 11. Nonverbal Language <ul><li>Hidden language of cultures </li></ul><ul><ul><li>Time flexibility and sensibility. </li></ul></ul><ul><ul><li>Social acquaintance and rapport. </li></ul></ul><ul><ul><li>Personal physical space and personal touching. </li></ul></ul><ul><ul><li>Non-verbal gestures and signaling. </li></ul></ul>
  12. 12. The Imperative To Be Multinational <ul><li>Today the issue is generally not whether to market a brand in other countries but rather how to do it (e.g., the same product, the same “global” advertising campaign, or “tailored” products and localized ads for each country). </li></ul><ul><li>This challenge has been given special meaning by the efforts of the European Union (EU) to forming a single market. </li></ul><ul><ul><li>It is unclear whether this diverse market will be transformed into a single market of homogeneous “Euro-consumers” with the same or very similar wants and needs. </li></ul></ul><ul><ul><li>Many people hope that the introduction of the “euro” as a common currency among a number of EU members will help shape Europe into a huge, powerful, single market. </li></ul></ul>
  13. 13. Cross-Cultural Consumer Analysis <ul><li>Time Effects </li></ul><ul><li>The pace of life differs from one nation to another. </li></ul><ul><ul><li>The average children’s birthday party in the United States lasts approximately two hours. </li></ul></ul><ul><ul><li>Brazilians are willing to wait a little more than two hours for a late arriver to show up at a birthday party. </li></ul></ul><ul><li>How time is spent on the job is also an issue that varies from country to country. </li></ul><ul><ul><li>In the United States., about 80 percent of work time is spent on the task, and perhaps 20 percent is used for social activities. </li></ul></ul><ul><ul><li>But in countries like India and Nepal, the balance is closer to 50 percent on each; and in Japan, social time, such as having tea with peers in the middle of the day, is considered to be a part of work. </li></ul></ul><ul><li>Research on pace of life in 31 countries (basing overall pace on how long pedestrians take to walk 60 feet, the minutes it takes a postal clerk to complete a stamp-purchase transaction, and the accuracy of public clocks) reveals substantial cross-cultural differences. Switzerland has the fastest pace of life; Mexico has the slowest pace of life. </li></ul>
  14. 14. Table: Basic Research Issues in Cross-Cultural Analysis <ul><ul><li>FACTORS </li></ul></ul><ul><ul><li>Differences in language and meaning </li></ul></ul><ul><ul><li>Differences in market segmentation opportunities </li></ul></ul><ul><ul><li>Differences in consumption patterns </li></ul></ul><ul><ul><li>Differences in the perceived benefits of products and services </li></ul></ul><ul><ul><li>EXAMPLES </li></ul></ul><ul><ul><li>Words or concepts may not mean the same in two different countries. </li></ul></ul><ul><ul><li>The income, social class, age, and sex of target customers may differ dramatically in two different countries. </li></ul></ul><ul><ul><li>Two countries may differ substantially in the level of consumption or use of products or services. </li></ul></ul><ul><ul><li>Two nations may use or consume the same product in very different ways. </li></ul></ul>
  15. 15. Table: continued <ul><ul><li>FACTORS </li></ul></ul><ul><ul><li>Differences in the criteria for evaluating products and services </li></ul></ul><ul><ul><li>Differences in economic and social conditions and family structure </li></ul></ul><ul><ul><li>Differences in marketing research and conditions </li></ul></ul><ul><ul><li>Differences in marketing research possibilities </li></ul></ul><ul><ul><li>EXAMPLES </li></ul></ul><ul><ul><li>The benefits sought from a service may differ from country to country. </li></ul></ul><ul><ul><li>The “style” of family decision making may vary significantly from country to country. </li></ul></ul><ul><ul><li>The types and quality of retail outlets and direct-mail lists may vary greatly among countries. </li></ul></ul><ul><ul><li>The availability of professional consumer researchers may vary considerably from country to country. </li></ul></ul>
  16. 17. Leading Wrist-Watch Manufacturer Uses Global Advertising Strategy
  17. 19. Dominant Religions of The World <ul><li>Christianity - 2.0 billion followers </li></ul><ul><li>Islam - 1.2 billion followers </li></ul><ul><li>Hinduism - 860 million followers </li></ul><ul><li>Buddhism - 360 million followers </li></ul><ul><li>Confucianism - 150 million followers </li></ul>
  18. 20. Manners and Customs <ul><li>Potential problem areas for marketers arise from an insufficient understanding of: </li></ul><ul><ul><li>different ways of thinking. </li></ul></ul><ul><ul><li>the necessity of saving face. </li></ul></ul><ul><ul><li>knowledge and understanding of the host country. </li></ul></ul><ul><ul><li>the decision-making process and personal relations. </li></ul></ul><ul><ul><li>the allocation of time for negotiations. </li></ul></ul>
  19. 21. To Give or Not To Give
  20. 22. Social Institutions <ul><li>Kinship relationships </li></ul><ul><ul><li>immediate and extended family </li></ul></ul><ul><li>Social stratification </li></ul><ul><li>Reference groups </li></ul><ul><ul><li>Primary reference groups </li></ul></ul><ul><ul><ul><li>family, coworkers </li></ul></ul></ul><ul><ul><li>Secondary reference groups </li></ul></ul><ul><ul><ul><li>professional associations, trade organizations </li></ul></ul></ul>
  21. 23. Sources of Cultural Knowledge
  22. 24. Making Culture Work <ul><li>Embrace local culture. </li></ul><ul><li>Build relationships. </li></ul><ul><li>Employ locals to gain cultural knowledge. </li></ul><ul><li>Help employees understand you. </li></ul><ul><li>Adapt products and processes to local markets. </li></ul><ul><li>Coordinate by region. </li></ul>
  23. 25. <ul><li>You are on your first business visit to Germany. You feel confident about your ability to speak the language (you studied German in school and have taken a refresher course), and you decide to use it. During introductions, you want to break the ice by asking &quot;Wie geht's?&quot; and insisting that everyone call you by the first name. Speculate as to the reaction. </li></ul>
  24. 26. <ul><li>In many cultures, formal and informal rules exist for human interaction. Quite often rules in a given culture do not become evident to an international business person until they realize something is wrong. In the situation described, the person's request is probably as overly friendly and offensive. In many cultures calling a business associate by the first name or using the second person singular (for example, the French &quot;tu&quot;) is unheard of. Whereas the French reserve the informal only for childhood friends, the Swedes, for example, tend to be informal with everyone. </li></ul><ul><li>Sharon Ruhly, in her book Orientation to Intercultural Communication (Chicago, Science Research, Inc., 1976), provides a system for analyzing different levels of culture. The technical level can be learnt from factual materials. The formal level of culture is learnt by trial and error. Rules for particular behavior exist, as indicated in the situation described. The informal level of culture is learnt through modeling; for example, the roles men and women have in a certain culture. Calling a person by the first name (at all or too soon) is a violation of the informal levels of culture. </li></ul><ul><li>In some cultures, different degrees of &quot;acceptance&quot; exist. For example, in the Soviet Union, a business person may follow his or her own progress by observing what business partners call him or her. </li></ul>