Introduction
Cross-cultural Marketing
• Domestic and international
companies are confronted with the
task of marketing products and
services to diverse cultural groups
• Understanding  local culture
around the world is becoming one
of the most profitable ways of
marketing products and services
Cultural Analysis
• Successful implementation of a marketing plan in
  one country does not mean it will be successful in
  another
• Cultural analysis is the study and classification of
  non-economic factors
• Being able to operate in a multi cultural environment
  it is important to know and be aware of the cultural
  differences
• The Self Reference Criteria enables firms to identify
  customer needs in foreign markets and not transfer
  the domestic ones
Criticisms of Hofstede’s Five
       Cultural dimensions
• Used because of its popularity not it’s
  accuracy
• Considered superior as it can be easily
  replicated
• Leads to laziness, as most research in the
  field is an extension
Cultural Orientation Variables
1) Time – perceptions vary in different cultures, high value
    of time (Germany, China), acceptable to be late
    (France)
2) Space – boundary during conversation, in the “West”
    men avoid touching, while in Asia & Latin America
    people get close.
3) Friendship – inter-personal relations is a product of
    culture, has a role in building international business
    relations
4) Status – material possessions mean different things in
    different cultures, and influence business attitudes
    (USA, Middle East)
Business Agreements
• Rules for negotiation vary from country to
  country – 3 categories
1) Rules that are spelled out technically as law
2) Moral practices mutually agreed upon and
  taught to young as a set of principles
3) Informal customs to which all conform without
  being able to state the exact rule
Ethical Issues
• Bribery- the payment of money, typically to a foreign
  official in exchange for him/her violating some official
  duty.
• Pricing – includes unfair differential pricing, questionable
  invoicing
• Products/Technology –banned for use in the home
  country but permitted in the host
• Tax Evasion Practices - used specifically to evade tax
  such as transfer pricing
• Illegal/Immoral Activities in the Host Country –
    practices such as: polluting the environment, maintaining
    unsafe working conditions; copying where protection of
    patents, trademarks or copyrights has not been enforced
• Cultural Differences – between cultures involving
    potential misunderstandings related to the traditional
    requirements of the exchange process (e.g.,
    transactions) may be regarded by one culture as bribes
    but be acceptable business practices in another culture.
Strategies for resolving ethical
             conflict
• Avoiding: Strategy for the stronger of two parties.
• Forcing: One party forces its will on the other.
• Education and Persuasion: communicating the
  benefits of employee safety and human resources
  management policy.
• Infiltration: The spread of an idea or principle in a
  society. Another strategy
• Accommodation: when one party adapts to the ethic of
  the other.
• Collaboration & problem-solving: focus is on
  uncovering problems in the ethical relationship and
  solving those problems to mutual satisfaction.
•International marketers must be aware of cultural differences when
   conducting international business


•Must be able to adapt business strategies to cultural requirements
of the country



                           Than
                                k          Y ou!
Questions:
1)What is the role of MNCs in the production of gender
identities at global level?

2)How would you go about establishing a global business
in a multi-cultural country, such as South Africa?

Socio cultural factors affecting global marketing

  • 2.
  • 3.
    Cross-cultural Marketing • Domesticand international companies are confronted with the task of marketing products and services to diverse cultural groups • Understanding local culture around the world is becoming one of the most profitable ways of marketing products and services
  • 4.
    Cultural Analysis • Successfulimplementation of a marketing plan in one country does not mean it will be successful in another • Cultural analysis is the study and classification of non-economic factors • Being able to operate in a multi cultural environment it is important to know and be aware of the cultural differences • The Self Reference Criteria enables firms to identify customer needs in foreign markets and not transfer the domestic ones
  • 5.
    Criticisms of Hofstede’sFive Cultural dimensions • Used because of its popularity not it’s accuracy • Considered superior as it can be easily replicated • Leads to laziness, as most research in the field is an extension
  • 6.
    Cultural Orientation Variables 1)Time – perceptions vary in different cultures, high value of time (Germany, China), acceptable to be late (France) 2) Space – boundary during conversation, in the “West” men avoid touching, while in Asia & Latin America people get close. 3) Friendship – inter-personal relations is a product of culture, has a role in building international business relations 4) Status – material possessions mean different things in different cultures, and influence business attitudes (USA, Middle East)
  • 7.
    Business Agreements • Rulesfor negotiation vary from country to country – 3 categories 1) Rules that are spelled out technically as law 2) Moral practices mutually agreed upon and taught to young as a set of principles 3) Informal customs to which all conform without being able to state the exact rule
  • 8.
    Ethical Issues • Bribery-the payment of money, typically to a foreign official in exchange for him/her violating some official duty. • Pricing – includes unfair differential pricing, questionable invoicing • Products/Technology –banned for use in the home country but permitted in the host • Tax Evasion Practices - used specifically to evade tax such as transfer pricing
  • 9.
    • Illegal/Immoral Activitiesin the Host Country – practices such as: polluting the environment, maintaining unsafe working conditions; copying where protection of patents, trademarks or copyrights has not been enforced • Cultural Differences – between cultures involving potential misunderstandings related to the traditional requirements of the exchange process (e.g., transactions) may be regarded by one culture as bribes but be acceptable business practices in another culture.
  • 10.
    Strategies for resolvingethical conflict • Avoiding: Strategy for the stronger of two parties. • Forcing: One party forces its will on the other. • Education and Persuasion: communicating the benefits of employee safety and human resources management policy. • Infiltration: The spread of an idea or principle in a society. Another strategy • Accommodation: when one party adapts to the ethic of the other. • Collaboration & problem-solving: focus is on uncovering problems in the ethical relationship and solving those problems to mutual satisfaction.
  • 11.
    •International marketers mustbe aware of cultural differences when conducting international business •Must be able to adapt business strategies to cultural requirements of the country Than k Y ou!
  • 12.
    Questions: 1)What is therole of MNCs in the production of gender identities at global level? 2)How would you go about establishing a global business in a multi-cultural country, such as South Africa?