Cultural dynamics play an important role in assessing global markets. Culture permeates all marketing activities from pricing and promotion to distribution channels and products. Geography and a country's economic, historical, and demographic factors also influence cultural dynamics. Hofstede's model of cultural dimensions provides a framework for quantifying cultural differences between countries in terms of power distance, individualism versus collectivism, uncertainty avoidance, and masculinity versus femininity. Understanding these cultural dynamics is essential for international marketers when developing global strategies.

1. Cultural Dynamics in Assessing
Global Markets
INTERNATIONAL MARKETING

2. Importance of culture
“Culture is pervasive in all marketing activities—in pricing,
promotion, channels of distribution, product, packaging.”
Cateora, P., & Gilly, M. (2011). International marketing (15th ed.).New York, NY: McGraw-Hill/Irwin.
Source: http://www.123rf.com/clipart-vector/cultural_diversity.html

3. Geography and global markets
Climate &
Topography
• Adaptation of
strategies.
• Extreme temperatures
• Distribution channels
Economic
growth
• Natural barriers
• Differences on lifestyles
• Physical distances
Sources: http://www.newfoodconcepts.nl/kernbegrippen/, http://www.eurotunnelfreight.com/fr/a-propos/Frequence-et-rapidite/, http://www.news24.com/Multimedia/World/Week-
in-pictures-20131018 , http://www.cbc.ca/news, https://sustainabilityatspu.wordpress.com/2014/01/15/urban-vs-rural-living/
Evenwithinacountry

4. Historical perspective in global business
SRC &
Ethnocentrism
History is subjective
History helps in
understanding why a
country behaves as it does
(Cateora, 2011).

5. CSR and Shared value creation
“Environmental protection is not an optional extra, it’s an essential part of doing business”
Society
success
Company
success
Cateora, P., & Gilly, M. (2011). International marketing (15th ed.).New York, NY: McGraw-Hill/Irwin.
Source: http://cliverich.com/blog/7-reasons-to-be-
good-at-negotiation-part-7b-resource-shortages-a-
mixture-of-oil-and-water/
http://retailgumboreviews.com/eco-friendly-products/

6. Global population trends
Birth rates
Migration
Source: http://theindependent.sg/birth-rate-and-national-service/
Source: http://blogs.swa-jkt.com/swa/10674/2013/03/03/academic-
investigation-rural-urban-migration/
Population growth
Source: http://www.conceptdraw.com/examples/image-chart
Unemployment
Source: http://www.mycity-web.com/tips-for-people-
struggling-with-unemployment/

7. What is culture?
Cateora, P., & Gilly, M. (2011). International marketing (15th ed.).New York, NY: McGraw-Hill/Irwin.
“Culture is the sum of the values, rituals,
symbols, beliefs, and thought processes
that are learned and shared by a group of
people, then transmitted from generation
to generation.”
“Culture is the collective mental
programming of the people in an
environment. Culture is not a
characteristic of individuals; it
encompasses a number of people who
were conditioned by the same
education and life experience.”
Society’s heritage transmitted from generation to generation.

8. Culture vs Personality
Personality is the individual’s unique personal set
of mental programs that he/she does not share
with any other human being.
Culture is what members of a group have in
common. “It is the glue that binds groups
together” (De Mooij)
Source: http://blog.usabilla.com/how-to-
create-brand-personality-for-your-website/

9. Origins of the culture
Culture
Social
institutions
Political &
Economy
Technology

10. Cateora, P., & Gilly, M. (2011). International marketing (15th ed.).New York, NY: McGraw-Hill/Irwin.

11. Elements of culture
Rituals
Symbols
Beliefs
Thought
process
Values
Cateora, P., & Gilly, M. (2011). International marketing (15th ed.).New York, NY: McGraw-Hill/Irwin.
Definition of culture
Manifestations
These elements of culture are interrelated and interactive

12. Cultural values and beliefs
Values are stable
beliefs regarding
desired behavior
or end states.
They often have a
religious,
ideological or
humanistic
background.
One of the first
things we learn.
Related with
superstition.

13. Rituals
Patterns of behavior and interaction that are learned and repeated.
Major events in life
https://www.youtube.com/watch?v=FtSQJqIOj08
Sources: https://www.pinterest.com/angel2stamp/christmas-around-the-world/, http://oddstuffmagazine.com/10-strange-wedding-traditions-around-the-world.html , http://www.magforwomen.com/5-easter-traditions-from-around-the-world/.
https://www.youtube.com/watch?v=UTE0G9amZNk

14. Symbols
• Different languages within a
country and between countries.
• The official language and the one
in use.
• Meaning differs from one country
to another one.
• Non verbal language
Language
• Colors
• Shapes and images
• Arts, folklore, music
• Dietary preferences
Aesthetics
https://www.youtube.com/watch?v=ry1E1uzPSU0 https://www.youtube.com/watch?v=xRryl8YNHx8

15. Cultural sensitivity and tolerance
Sensitive
Tolerant
Flexible
It’s not about judging but being…

16. Cultural borrowing
Responsible effort to learn from
others’ cultures for better
solutions to a society’s
particular problems.
Similarities
Illusion

17. Hofstede’s cultural model
Quantitative study of cultural differences
between countries based on four
dimensions.
Why some concepts of motivation do not
work in all countries in the same way.
PDI IDV
UAI MAShttps://www.youtube.com/watch?v=6gJzRS0I7tA

18. 1. Power distance (PDI)
High PDI
Hierarchical cultures
Superior and subordinate
Low PDI
Reflects egalitarian views.
Influences the way people
accept and give authority
Index that measures the tolerance of social inequality.

19. 2. Individualism (IDV)
Individualism or collective index
Distinguishes between societies where the group
and being a member is important (collectiveness)
and societies where the group is less important
(individualism)
High
Low
Refers to the preference for behavior that
promotes one’s self interest.

20. 3. Uncertainty avoidance (UAI)
High UAI
Distrustful of new ideas
Anxiety and stress
Stick to rules
Low UAI
Willingness to take risks
How people avoid situations
related with uncertainty and
ambiguity.

21. 4. Masculinity (MAS)
Indicates the degree of
gender differentiation
and the importance of
masculine values
Assertiveness, money,
material goods, success
Caring for others and
quality of life