This document presents an overview of cultural dynamics and their impact on global markets. It discusses definitions of culture, the origins and elements of culture including social organization, customs, language, religion, government and economics. It also addresses cultural knowledge, change, and the illusion of similarities between cultures despite borrowing. Culture profoundly shapes consumption and production, and understanding these dynamics is important for international marketers.

1. " In The Name of Allah, The Most Beneficent, The Most
Merciful, The Most Kind. "

2. CULTURAL DYNAMICS IN
ASSESSING GLOBAL
MARKETS
A Presentation By,
Fahmeed Hanif
To,
Sir Faheem Ali.

3. OVERVIEW
 The importance of Culture to an International Marketer,
 Definition and Origins of Culture.
 The Elements of Culture.
 Cultural knowledge and Cultural change.

4. CULTUR E ’ S P E RVA S I V E
IMPACT
 Culture affects every part of our lives, every day, from birth to
death, and everything in between.
 As countries move from agricultural to industrial to services
economies’ birthrates decline.
 Consequences of consumption
 Culture not only affects consumption, it also affects production

5. DEFINITIONS AND
ORIGINS OF CULTURE
 Most traditional definitions of culture state that culture is the sum of the
values, rituals, symbols, beliefs, and thought processes that are learned, shared
by a group of people, and transmitted from generation to generation.
 Humans make adaptations to changing environments through innovation.
 Individuals learn culture from social institutions through:
• Socialization (growing up)
• Acculturation (adjusting to a new culture)

6. DEFINITIONS AND
ORIGINS OF CULTURE
 Geography
 History
 Technology
 The political and economic systems
• Three approaches to governance competed for world dominance:
• Fascism
• Communism
• Democracy/Free Enterprise
• Islamic Law

7. DEFINITIONS AND
ORIGINS OF CULTURE
 Social institutions
• Family
• Favoritism of boys in some cultures
• Religion
• Misunderstanding of beliefs
• School
• No country has been successful economically with less than
50% literacy.
• Corporations
• Most innovations are introduced to societies by companies

8. DEFINITIONS AND
ORIGINS OF CULTURE
 The media
• Media time has replaced family time
 Government
• Governments try to influence the thinking and behaviors of adult
citizens.
 Cultural values
• Individualism/Collectivism Index
• Power Distance Index
• Uncertainty Avoidance Index
• Cultural Values and Consumer Behavior
 Rituals
• Marriage
• Funerals

9. ELEMENTS OF CULTURE
 Social Organization
 When a culture organizes its members into smaller groups
 What might some smaller groups be in a culture?
• Families
• Friends
• Religious groups
• Social classes
• Occupation
• Interest groups

10. ELEMENTS OF CULTURE
 Social Organization, cont.
 - family: the most important unit of social organization
• Nuclear family- husband, wife, children
• Extended family- several generations in one household
 - respect for elders is usually strong in extended fams.
social classes: a way to rank people in order of status
• What can social class be based on?
• Money
• Occupation
• Education
• Race
• Etc.

11. ELEMENTS OF CULTURE
 Customs and Traditions
• Rules of behavior (written and unwritten)
 Language
• Important for communication and passing on traditions and beliefs
 Arts and Literature
• Teach about a culture’s values
• Promote cultural pride and unity
• Could include technology and entertainment

12. ELEMENTS OF CULTURE
 Religion
• Monotheism: belief in one god
• Polytheism: belief in more than one god
 Major World Religions
• Judaism, Christianity, Islam, Hinduism, Buddhism
 Forms of Government
• People form governments to provide for their common needs ; Types
• Democracy: people have supreme power
• Republic: people choose leaders to represent them
• Dictatorship: a ruler or group holds power by force

13. ELEMENTS OF CULTURE
 Economic Systems
• Resources a community has
• Four types
 1. Traditional: people produce most of what they need to survive
 2. Market: basic economic questions are answered by buying/selling goods
and services
 3. Command: government controls answers to economic questions
 4. Mixed: individuals make some economic decisions, the government
makes others

14. CULTURAL KNOWLEDGE
 Factual knowledge vs. interpretive knowledge
• Has meaning as a straightforward fact about a culture but assumes
additional significance when interpreted within the context of the
culture.
 Cultural sensitivity and tolerance
• Being attuned to the nuances of culture so that a new culture can be
viewed objectively and appreciated.
• Cultures are not right or wrong, better or worse, they are simply
different.
• The more exotic the situation, the more sensitive, tolerant, and
flexible one needs to be.

15. CULTURAL CHANGE
 Cultural borrowing:
• Effort to learn from other cultures for better solutions to a
society’s particular problems.
 Similarities: an illusion
• A common language does not guarantee a similar
interpretation of word or phrases.
 Resistance to change:
• Cultural growth does not occur without some resistance.
• Resistance to genetically modified (GM) foods