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Multicultural marketing - 1st Session
This document provides an overview of a lecture on multicultural marketing and cultural dynamics. It discusses key concepts like the cultural process, sources and elements of culture, cultural stereotypes, and how culture influences time, space, interactions, and behaviors. It also examines cultural dimensions like individualism vs collectivism, masculinity vs femininity, power distance, uncertainty avoidance, and long vs short term orientation. The professor outlines how understanding these cultural factors is important for effective multicultural marketing.
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Multicultural marketing - 1st Session
- 1. Multicultural Marketing ICD – International Business School Prof: Baber MIRZA First Session 6th March ‘13
- 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. Marketing and Consumer Behavior 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. 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. PART ONE THE CULTURAL PROCESS
- 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. Sources of Culture Language(s) Nationality Education Profession Group Religion Family Sex Social class Corporate or organizational culture
- 8. Elements of culture Biological Foundations Language and communication Institutions Material Productions Symbolic Productions
- 9. Homogeneity Potential Linguistic ethnocentrism? Religious Ethnic Climatic Geographical Institutional & political Social/income
- 10. Stereotypes Cooks - French Cooks - British Mechanics - German Mechanics - French Police - British Police - Germans Lovers - Italian Lovers - Swiss Organize - Swiss Organize - Italian
- 11. What use isculture? 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. Interpreting symbols 7bad 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. PART TWO CULTURAL DYNAMICS TIME AND SPACE
- 14. 1. Culture islearned 2. Culture is forgotten Hofstede’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. Same problems Kluckhohn& Strodtbeck (1961) - different solutions Common 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. Evaluate Solutions Cognitive • People think it works that way Affective • People like it that way Directive • People will do it that way
- 17. Basic cultural assumptions Figure2.1 A model of cultural dynamics
- 18. Hall’s Silent Languages Language of Time Language of Space Language of Things Language of Friendship Language of Agreements
- 19. Time Common 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. Space and relationships Commonproblems: 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. 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. TASK RELATIONSHIP Mediterranean Northwestern European Traditional Central European Latin North American American Middle Eastern Global Business Schuster & Copeland (1996)
- 23. Northwestern / CentralEuropean Germany, 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. Canada, USA, Australia Similar task orientation ◦ More casual, less formal Greetings and small talk, first name ◦ agendas are flexible ◦ Relationships are ‘business’
- 25. Mediterranean Europe non-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. 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. 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. Middle Eastern Relationshipfirst - 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. Traits of successfulexpatriate 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. PART THREE CULTURAL DYNAMICS INTERACTIONS, MINDSETS AND BEHAVIOURS
- 31. The self-shock: beingexposed to culturally different people puts our self-image deeply into question Others Behaviours Other Behaviours Others Identity Self Self Clash Home country Host country
- 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. 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. 20 Statements Iam _________ I am _________ I am _________
- 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. Countries (1980) Individualism Collectivism ◦ United States ◦ Japan ◦ Great Britain ◦ Iran ◦ Canada ◦ Taiwan ◦ Italy ◦ Colombia ◦ Australia
- 37. Application: (Nakata andSivakumar 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. Masculinity Masculinity: 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. Countries (1980) Masculine Feminine ◦ Venezuela ◦ Sweden ◦ Italy ◦ Thailand ◦ Germany ◦ Spain ◦ Australia
- 40. Application: (Nakata andSivakumar 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. Power Distance Large 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. Countries (1980) High power distance Low power distance ◦ Philippines ◦ United States ◦ Mexico ◦ the Netherlands ◦ India ◦ Australia ◦ France ◦ Israel
- 43. Application: (Nakata andSivakumar 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. Uncertainty Avoidance Strong 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. Countries (1980) High uncertainty Low uncertainty avoidance avoidance ◦ France ◦ United States ◦ Belgium ◦ Hong Kong ◦ Greece ◦ Canada ◦ Portugal ◦ Singapore
- 46. Application: (Nakata andSivakumar 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. Long/short term orientationor Confucian Dynamic High 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. Long term orientation Short term orientation ◦ Hong Kong ◦ West Africa ◦ Taiwan ◦ Canada ◦ Japan ◦ Pakistan ◦ South Korea ◦ Brazil
- 49. Application: (Nakata andSivakumar 1996) Long term orientation promotes new product development Short term orientation impedes new product development
- 50. What correlates withHofstede’s dimensions? (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. Internet use acrossEurope 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. Convergence of culturesso far? 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. Schwartz Values &Individualism More individualist societies & young, educated, urban Self- Direction Universalism Simulation Benevolence Hedonism Conformity Tradition Achievement Security More collectivist Power societies & religious
- 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. Cultural assumptions & behaviour Figure 3.2 Basic and cultural assumptions and actual behaviour (Source: Derr and Laurent, 1989. Reproduced with permission)
Editor's Notes
- #9 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
- #10 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.