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Dr. Chhavi Jain
Unit 2
What is Culture
• “The knowledge, beliefs, art law, morals,
customs and other capabilities of one group
distinguishing it from other groups.”
• Main features of culture:
– Culture is shared
– Culture is intangible
– Culture is confirmed by others
Chhavi
What is Culture?
• Culture is the sum total of beliefs, rules,
techniques, institutions, and artifacts that
characterize human populations
– Culture is learned ( not innate)
– Its aspects are interrelated
– Culture is shared (as opposed to individual
traits)
– It defines the boundaries of different groups
Chhavi
Culture and International Business
• Culture
– Impacts the way strategic moves are presented.
– Influences decisions.
– The lens through which motivation occurs.
• Management, decision making, and negotiations are
all influenced through culture.
• Culture influences nearly all business functions from
accounting to finance to production to service.
Chhavi
Culture and Global Marketing
• Culture is what makes international business
practice difficult or easy, depending on how
similar or different cultures are.
• Culture is both divisive and unifying.
Chhavi
Culture Does Not Explain Everything
• Culture is not a residual variable; it is useful to
know that it is not a primary variable either. It
is one of many.
Chhavi
Basic Elements of culture
• Knowledge and beliefs- prevailing notions of
reality. Includes myths, metaphysical beliefs
and scientific realities.
• Ideals – what is expected in a given situation.
Norms enforced by rewards/punishments.
• Preferences- society’s definition of attractive
or unattractive things in life. Italy –corn-
pigfood.
Chhavi
• Culture deals with a group’s design for living.
It is pertinent to the study of marketing,
especially international marketing.
• When a promotional message is written,
symbols, recognizable and meaningful to the
market/ culture must be used. When
designing a product, the style, uses and other
related marketing activities must be made
culturally acceptable.
• The amount and the manner in which people
consume, the priority of needs and wants they
attempt to satisfy and the manner in which they
satisfy them are functions of their culture that
temper, mold and dictate their style of living.
• Culture is the human-made part of human
environment – the sum total of knowledge,
beliefs, art, morals, laws, customs and other
capabilities and habits acquired by humans as
members of society.
• Marketers constantly adjust their efforts to
cultural demands of market, but they also act
as agents of change whenever the product or
idea being marketed is innovative.
• Culture affects every part of our lives, every
day, from birth to death, and everything in
between.
• It affects how we spend money and how we
consume in general.
• Cosleeping-
• In much of southern
Europe, Asia, Africa and
Central and South
America, mothers and
babies routinely share
sleep.
Flower shop of the world
• The Dutch are the champion
consumers of cut flowers.
• The rivers and the bays make the
Netherlands a great trading
country, but the miserable
weather, rain and snow more than
200 days a year make it a
colourless place, gray nearly year
around.
• The Flying Dutchman went to
Spice Islands for spice for the
palate, they also went to the
eastern Mediterranean for spice
of the eyes.
• The British love their
chocolate.
• In Europe, Spaniards are
the most likely to feast
on fish. But behind
Japanese preference for
seafood.
• The flat geography in
England and Scotland
allows for the efficient
production of Beer.
• Pasta was actually
invented in China but
consumed more in Italy.
• Grapes grow best in
France and Italy, a
combination of soil and
climatic conditions
explains pattern of wine
consumption.
• Culture also influences
the laws, age limit and
other things related to
alcohol.
• Japan has extremely high
incidences of stomach cancer.
• The culprits are salty foods as soy
sauce and bacterium Helicobacter
pylori.
• Japanese have developed the
most advance treatment of the
disease, both procedures and
instruments.
• Even thought the death rate is
highest, the treatment success
rate is likewise the highest in
Japan.
Culture
• 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.
• Humans make ADAPTATIONS to changing environments
through INNOVATION.
• Individuals learn culture from social institutions through
SOCIALISATION (growing up) and ACCULTURATION
(adjusting to a new culture).
• Individuals also absorb culture through role modelling or
imitation of their peers. Finally, people make decisions
about consumption and production through APPLICATION
of their culture based knowledge.
• https://www.youtube.com/watch?v=jJEuZrvN
Yg0
Geography-
*Climate
*GDP
*Worker’s wages
History-
Middle East Conflicts
bred new cola brands:
*Mecca Cola
*Muslim Up
*Arab Cola
*Cola Turka
Technology-
*Jet Aircraft
*ACs
*PCs
*Health Care Systems
Political-
*Colonialism
*Fascism
*Communism
*Democracy
Social Institutions-
*Position of men and women
in society, the family, the social
classes
•Group Behaviour
•Age groups
•Decency
•Ad battery
Cultural Forces
• Religion
• History
• Family
• Language
• Arts/
Entertainmen
t
• Education
Cultural
Messages
• Symbols
• Morals
• Behavioural
Rules
• Knowledge
Consumer
Decision Process
• Selecting and
Prioritizing
Wants for
Goods and
Services
• Eastern world refers to nations
in the Asia and Middle East
whereas Western world refers
to North and South America,
Europe, Australia and New
Zealand. East and West may
have myriad differences based
on culture and education.
These differences can be noted
for the most part in people’s
behavior and attitudes.
The major difference between
eastern and western culture is
that people in the east are
more conservative and
traditional than the general
population in the west.
Eastern Culture
• Eastern world - nations in Asia and Middle East.
• Hinduism, Buddhism, Jainism, Shenism, Taoism,
and Islam are some common religions.
• The population in Eastern countries are more
customary than people in the West when we
consider their traditions, clothings, rituals, etc.
For example, Indians pay regard to their elders or
parents by touching their feet; East Asians bows
as welcome, apologizing and expressing thanks.
• People here are inflexible in their beliefs and
ideologies; they were unwilling to challenge and
question the long practiced customs and
traditions.
• Here, elders are considered as the leader of the
home and children regard and obey them in all
choices. Important decisions related to children’s
future are normally taken by elders. And, when
parents grow old, the kids are likely to take care
of them.
• Arranged marriages are common in the Eastern
countries. They are normally arranged by parents
or elders. They believe in a concept that love
comes after marriage.
Western Culture
• Western culture - Europe and North America.
• Judaism, Christianity, and Islam are some
common religions.
• The population in Western countries are more
liberal than those in the East. The Westerns are
more open and blunt. For example, topics like
sex or birth of a child are openly discussed
in Western culture, whereas in the East, these
topics are still a taboo.
• People here are more open to express their
feelings. If they are angry, they may express.
But, people in the east may cover it for tact
and good manners.
• A person is given preference over family, so a
person is more flexible and free to take
decisions on his own, unlike those in the East.
• Concepts like arranged marriages are not at all
common in the West. They go for love
marriages as they believe in a concept that
love comes before marriage.
• 1996 …the first McDonald’s restaurant opened
on Oct. 13, at Basant Lok, Vasant Vihar, New
Delhi. It was also the first McDonald’s
restaurant in the world not serving beef on its
menu.
• Grand Opening; McDonald's opened its doors in
India, the 95th country, in 1996 and was the first
country to serve non-beef and non-pork items. Its
authority on non-beef and non-pork products still
remains unchallenged, through a joint venture
• McDonald’s spent more than 5 years (from 1990
onwards) on developing the first beef-less and pork-
less menu in McDonald’s history.
• Every McDonald’s burger has nine different
ingredients, which are sourced, from 35 suppliers
across the country before it reaches the consumer
• McDonald’s practices Vegetarian and Non-Vegetarian
Segregation right from processing to serving and uses
100 per cent vegetable cooking oil
• McAlo Tikki, Veg Surprise and Pizza McPuff
developed in India are now being exported to the
countries in the Middle East
• McDonald’s introduced Coke’s Georgia Gold range
of hot beverages which was developed especially for
the Indian market in 2002
• THAILAND- Burgers with Thai
Basil
• JAPAN- Teriyaki Burger
• INDONESIA- Rice Dishes
• INDIA- Mc Aloo Burger, Veg
Salad Sandwich, Mc Masala,
Mc Imli Sauces
• Garlic free sauces, Eggless
sandwich sauces, Veg Pizza
Mcpuff,
• India 75% localised menu,
33% in Asian Countries, other
countries less than 5%
Elements of culture-
1. Language
2. Values and attitudes
3. Customs and manners
4. Material goods
5. Religion
6. Education
7. Aesthetics
8. Family
Chhavi
1. LANGUAGE
Widely spoken languages in World
1
• Chinese/ Mandarin
• 848 million
2
• Spanish
• 399 million speakers
3
• English
• 355 million
4
• Hindi
• 260 million
Language
• The successful international marketer must
achieve expert communication, which
requires a thorough understanding of the
language as well as the ability to speak it.
• Advertising copywriters should be concerned
less with obvious differences between
languages and more with the idiomatic and
symbolic meanings expressed.
Language
• India has 22 officially recognised languages
• 1652 mother tongues listed by Census of
India.
• One of the competitive strengths of India –
capability of citizens to use ENGLISH.
• 6912 known living languages exist in the
world.
Chhavi
Language
• It is the primary mean used to transmit and
interpret information and ideas.
• Knowledge of local language helps-
• Understand the situation
• Direct access to localities
• Helps in getting information which is implied and not
stated outright.
Chhavi
Language
• Consists of patterns of written symbols,
audible sounds and gestures that convey
meanings.
• Pepsi – come alive with pepsi
• NOVA
• Same symbols and gestures may mean
different things in different countries.
Chhavi
Spoken Language
• Language is the key to culture, and without it,
people find themselves locked out of all but a
culture’s perimeter
Chhavi
Language
• Must speak the local language
– Still need translators
– Use back translations to avoid errors
– Technical words do not exist in all languages
• Usually resort to English
– Many cultures avoid saying anything disagreeable
Unspoken Language
• Nonverbal communication, such as gestures
and body language.
– Gestures vary tremendously from one region to
another
– Conversational distance small in East
– Gift giving has specific etiquette in each culture
• Gift or bribe?
Chhavi
Language
• The artifacts that surround language:
– Linguistics – or the meanings of words
– Proxemics – or the distance that speakers stand from one another
– Pragmatics – the cultural interpretations of words, gestures, and
nonverbals
– Nonverbals – The gestures and body language that accompanies
spoken words
• English has become the business world’s lingua franca, and the number
one foreign language taught in other countries
Chhavi
Tabling a proposal
UK
Immediate action to
be taken
US
Delay a decision
Example Language
• When Parker Pen marketed a ball-point pen in
Mexico, its ads were supposed to have read,
"it won't leak in your pocket and embarrass
you". Instead, the company thought that the
word "embarazar" (to impregnate) meant to
embarrass, so the ad read: "It won't leak in
your pocket and make you pregnant".
Chhavi
Example Language
• Pepsi's "Come alive with the Pepsi
Generation" translated into "Pepsi brings your
ancestors back from the grave", in Chinese.
Chhavi
Example Language
• Chevrolet had problems marketing the Chevy
Nova automobile in Latin America. Since no va
means "it doesn't go" in Spanish, the oft-
repeated story goes, Latin American car
buyers shunned the car, forcing Chevrolet to
embarrassedly pull the car out of the market.
Chhavi
Example Language
• In Chinese, the Kentucky Fried Chicken slogan
"finger-lickin' good" came out as "eat your
fingers off"
Chhavi
Language
• Linguistic Distance is how different one language or dialect is
from another.
• Poland has directed that all companies selling
or advertising foreign products use Polish in
their advertisements.
I’m good to share
• The ad featured the controversial tagline: "I'm
good. I'm tempting. I'm too good to share. What
am I? Cadbury's Temptations or Kashmir?"
• It was timed to coincide with India's
Independence Day on August 15, but has caused
the chocolate maker to rethink its campaign and
apologise after it angered members of prime
minister Atal Behari Vajpayee's BJP party.
2. VALUES AND ATTITUDES
Value system
Value systems vary among managers across
different countries :
Eg. US managers : high achievement
orientation
Japanese managers: how have a growth and
size orientation
Indian Managers: who have moralistic
orientation.
Value
• Japanese feel that buying foreign products is
unpatriotic.
• The resistance is therefore not so much
against buying foreign products as it is against
those who produce and market them. Thus
difficulty is in hiring personnel because of bias
against foreign employers.
Value
• Dealing in China and with Chinese, the
international marketing managers have to
realize that marketing has more to do with
cooperation than competition.
• Chinese believe that one should build the
relationship first and if it is successful,
transactions will follow.
• The relationship is a set of exchanges of
favours to establish trust.
Values
• The more rooted values and attitudes are in
central beliefs, the more cautiously the
international marketing manager has to move.
• Attitude towards change is basically positive in
industrialized countries, whereas in more
tradition-bound societies, change is viewed
with great suspicion, especially when it comes
from a foreign entity.
Iran
Values and Attitudes
• Attitude of people towards business
is largely determined by their
culture.
• Muslims and interests
Chhavi
Values and Attitudes
• GOODYEAR
Britain – stresses safety
US – mileage and durability
Chhavi
Values and Attitudes
• VALUE – basic convictions that
people have regarding what’s right /
wrong, good / bad, important /
unimportant.
Chhavi
Values and Attitudes
• ATTITUDE is a persistent tendency to feel and
behave in a particular way towards some
object.
• Americans more receptive to change and are
risk takers.
• Negative attitude towards foreign made
goods.
Chhavi
Norms
Guidelines or social rules that prescribe
appropriate behaviour in a given situation.
Norms
 For eg. In Japan, aggressive selling is not perceived in the positive spirit.
 Eg. Indian use hands or different types of spoons for eating. Chinese and
Japanese use chopsticks.
 Europeans and American use forks and knives to cut the food before
eating.
 International managers need to know what is acceptable , unacceptable in
foreign culture. They also need to know cultural tolerance to business
customs that may be grouped as :
 Cultural Imperatives; Cultural Exclusives; Cultural Electives/Adiaphora
Cultural Imperatives
 Culture Imperatives are the business customs and expectations that must
be met and conformed to or avoided if relationships are to be successful.
 It refers to norms that must be followed / avoided in a foreign country.
 For Eg. Too much eye contact in Japan is considered to completely
offensive.
 On the other hand in the Gulf , strong eye contact necessary with an Arab,
to establish trustworthiness.
 Establishing friendship
Cultural Electives/ Adiaphora
• Cultural Electives relate to areas of behviour or to customs that
cultural aliens may wish to conform to or participate in but are not
required.
• Japanese do not expect a Westerner to bow and to understand the
ritual of bowing among Japanese yet a symbolic bow indicates
interest and some sensitivity to Japanese culture that is
acknowledged as a gesture of goodwill.
• Arabs will offer coffee as a way to signal friendship, so you should
also accept it even if you don’t intend to drink it.
• It may help pave the way to strong trusting relationship
Chhavi
Cultural Exclusives:
 Cultural exclusives are customs that are only for locals.
 Social patterns which are considered appropriate for locals
and in which foreigners are expected not to participate.
 Eg. Foreigners should stay away from discussions on local
country politics, social customs and practices.
 Eg. If you are a Christian, don’t go to the Middle East and
attempt to act like a Muslim because that is insulting their
religion.
Attitudes and Beliefs
• Attitude Toward Time
– Problem for Americans
• Americans always prompt
– Directness and drive
• Perceived to be rudeness
– Deadlines
• Liability in Asian cultures
• Attitudes toward Achievement
and Work
– “American live to work,
Germans and Mexicans work to
live.”
Chhavi
3. CUSTOMS AND MANNERS
Customs and Manners
• CUSTOMS – common or established
practices
• MANNERS- behaviour regarded as
appropriate in a particular society.
Chhavi
Traditions and Customs
 International managers need to know the customs and traditions of the
culture being dealt with:
 Eg. Food Habits eg. Chocolate flavors preferred are different in different
cultures : Eg. Americans and Germans prefer blends, French- Dark, Dutch –
White.
 Coffee brews: Nescafe manufactures 200 different varieties of coffee to
suit local tastes.
 The concept of Indian vegetarianism is very complex for foreigners to
understand. Vessels used for cooking both should be different. KFC offers
vegetarian dishes in its Indian outlets. Pizza Hut offers Jain Pizza in India
alone.
 Companies need to modify products/services to suit the local customs and
traditions.
Manners and Customs...
 Manners in gift giving:
 A lot of preparation and sensitivity required while giving gifts. What and when
is important.
 China : occasion : New Year
Preferred Gifts: Modest gifts such as coffee table, books, ties, pens.
 Japan: Oseibo( January 1)
Preferred Gifts : Brandy. Scotch, round fruits such as melons
 Manners and Customs in the Way Products are used should also be considered
 Example Orange juice:
 Breakfast item in US, Refreshment in France
 Moisturizers : After bath lotion in one, beauty product in another.
76
4. MATERIAL CULTURE
Material Culture
• It results from the technology and is directly
related to the way a society organizes its
economic activity.
• It is manifested in the availability and
adequacy of the basic economic, social,
financial and marketing infrastructures.
Material Culture
Economic
Infrastructure
• Transportation
• Energy
• Communcation
systems
Social Infrastructure
• Housing
• Health
• Educational
systems
Financial and
Marketing
Infrastructures
• Facilitating
agencies for
international firm’s
operations in a
given market;
banks, research
firms, etc.
Material Culture
• Material culture refers to the physical objects,
resources, and spaces that people use to
define their culture.
• These include homes, neighborhoods, cities,
schools, churches, synagogues, temples,
mosques, offices, factories and plants, tools,
means of production, goods and products,
stores, and so forth.
Chhavi
Material Culture
• All these physical aspects of a culture help to
define its members' behaviors and perceptions.
• For example, technology is a vital aspect of
material culture in today's United States.
American students must learn to use computers
to survive in college and business, in contrast to
young adults in the Yanomamo society in the
Amazon who must learn to build weapons and
hunt.
Chhavi
Non-Material Culture
• Non‐material culture refers to the nonphysical
ideas that people have about their culture,
including beliefs, values, rules, norms, morals,
language, organizations, and institutions.
• For instance, the non‐material cultural concept
of religion consists of a set of ideas and beliefs
about God, worship, morals, and ethics. These
beliefs, then, determine how the culture
responds to its religious topics, issues, and
events.
Chhavi
Technologically advanced
• If a country is technologically advanced their
values are more likely to be materialistic
because they have a higher standard of living.
• Up-to-date products, less expensive or provide
more benefits.
Chhavi
Less technologically advanced
• Less technologically advanced countries
infrastructure may not support too advanced
products or need of those products may not
exist.
• Laptop, dishwashers
Chhavi
5. RELIGION
1. Christianity
2. Islam
3. Hinduism
4. Korean Shamanism
5. Buddhism
Religion
• Influences life style, beliefs, values and
attitudes.
• Knowledge of religions existing in target
market helps in understanding work habits,
underlying motivation and consumption
behaviour.
Chhavi
Religion
• Knowledge helpful in deciding
• Weekly holidays, working/ lunch hours.
• Festive season for promotion, discounts, incentive,
special offers
• Work culture of employees
• Boss subordinate relations
• Attitude towards business
• Dress code
• Gender of workers
Chhavi
Religion
• Many business decisions are based on
astrological advice.
• Time of launch
• Name, Brand, Location of organisation
Chhavi
Religion
• Marriage customs, naming ceremony of child,
festivals vary between religions.
• Affect businesses like textiles, jewellery,
catering, consumer durables, etc.
Chhavi
Religion
• A US Firm blundered in Saudi Arabia by
sending a meticulously prepared proposal
bound with an expensive pigskin leather cover
hoping to impress the clients.
Chhavi
Religion
• 1857- India- bullets were encased in pig wax,
and tops had to be bitten off before firing the
bullets. When Muslims soldiers discovered the
fact they revolted against British officers.
Chhavi
Religion
• Global fast food major McDonald's says it
survived and expanded in India by developing
innovative menus to cater to the Indian taste
bud, something it has not done anywhere else
in the world.
• "In India we have been extra careful not to
offer beef or pork items keeping in view the
country's cultural sensitivity."
Chhavi
Religion
• The biggest challenge the American franchise
faced in India was how to reach the large
vegetarian population of India for which it had
to reengineer its products and yet maintain
international brand value.
• So in 1999 it came up with 'McAloo Tikki
Burger' - a burger unheard of anywhere else.
Chhavi
Religion
• Considerable influences international business decisions.
• Location of commerical buildings and office interiors need to
be as per Feng shui in China and Vastu Shastra in India.
• Advertisements and corporate communications must keep
religious sentiments in mind. Example - Islam does not permit
shaving. So Shaving equipment makers like Gillette need to be
sensitive while advertising their product in Islamic countries.
ETHNODOMINATION
• ETHNODOMINATION in distribution is defined
as a situation where an ethnic group occupies
a majority position in a channel of distribution
with respect to the ownership and control of
physical and financial resources or through
the manipulation of social environment.
• Beneficial for international marketer to co-opt
rather than compete with dominant ethnic
group.
Chhavi
ETHNODOMINATION
• Automobile spare products- sikhs
• Banking and money lending- chettiars in TN
and vysyas in Karnataka
• Ethnic population staying abroad is target for
indian currry, spices, pickles, papad exporters.
Chhavi
Ethnodomination
• Chinese dominate the trade of rice and
pineapples in the Philippines,
• Hindu Sikhs dominate the trade of cloth in
Afghanistan,
• The Otavalo Indians dominate the trade of
handwoven textiles in Ecuador
Chhavi
6. EDUCATION
Education
• When Gerber started selling baby food in
Africa, they used the same packaging as in the
US, with the beautiful Caucasian baby on the
label. Later they learned that in Africa,
companies routinely put pictures on the label
of what's inside, since most people can't read
English.
Chhavi
Education
• Educational levels will have an impact on
various business functions.
• Training programs for a production facility will
have to take care of educational backgrounds
of trainees into account.
• If technology is marketed , the level of
sophistication of the product will depend on
the educational level of future users.
Education
• Brain Drain
– The emigration of highly
educated professionals to
industrialized nations
• Reverse Brain Drain
– The return of highly
educated professionals to
their home countries.
– Korea and Taiwan are luring
home engineers and
scientists
• Women’s Education
– Fall in illiteracy rate
– Most governments now provide
education for both genders
– Educated women have fewer,
healthier, and better educated
children
– Educated women achieve higher
labor force participation and
wages
Chhavi
7. AESTHETICS
Aesthetics
• Each culture makes a clear statement
concerning good taste, as expressed in the
arts and in the particular symbolism of
colours, form and music.
• Colour is often used as a mechanism for brand
identification, feature reinforcement and
differentiation.
• In international markets, colours have more
symbolic value than in domestic markets.
Aesthetics
Ideas and perceptions that a cultural group
upholds in terms of beauty and good taste. It
includes areas related to music, dance, painting,
drama, architecture, etc.
Aesthetics
 Colours have different aesthetic value in different cultures:
 Africa : bright colours are favourites
 Japan : pastel colours preferred as they express harmony.
 China : red is lucky colour but associated with witchcraft in
Africa.
 America : blues and greys are perfect for official
environments. But blue is evil in Africa
 Death colours : Black signifies death in America, Europe; In
India, Japan & other Asian countries it is white, For Latin
Americans Purple means death; Dark red is the mourning
colour in the Ivory Coast.
Aesthetics
• Relates to the artistic taste of culture.
• Influences behaviour.
• It pertains to a culture’s sense of beauty and
good taste and is expressed in arts, drama,
music, folklores, dance, etc.
Chhavi
Aesthetics
• Its knowledge is helpful in interpreting
meanings of various methods of artistic
expressions, colour, shapes, forms and
symbols in a particular culture.
Chhavi
Aesthetics
• Sensitivity to the Aesthetics of a society and
their symbolic expressions can greatly help in
avoiding socially embarrassing situations and
correctly designing the products and
messages.
Chhavi
Aesthetics
• Art
– Colors, symbols, numbers convey meaning
• Nike air symbol
– Architectural styles different
• Feng shui
• Music and Folklore
– Musical tastes vary
– Folklore discloses way of life
• Cowboys in Chile or Argentina
• Mexican singing cricket
Chhavi
• Japan gifts
• Europe Red roses and
white flowers
SOCIAL INSTITUTIONS
Social Institutions
• It includes family, religion, school, media,
government and corporations all affect the
ways in which people relate to one another,
organize their activities to live in harmony
with one another, teach acceptable behaviour
to succeeding generations and govern
themselves.
• The cultures in which the social organisations
result in close-knit family units, a promotion
campaign aimed at the family unit is usually
more effective than one aimed at individual
family members.
Making culture work for marketing
success
• Embrace local culture
• Build relationships
• Employ locals to gain cultural knowledge
• Help employees understand you
• Adapt products and processes to local markets
• Coordinate by region
Self Reference Criterion
• The key to successful global marketing is
adaptation to environmental differences from
one market to another. Adaptation is a
conscious effort on the part of the global
marketing manager to anticipate the
influences of both the domestic and foreign or
global uncontrollable factors on a marketing
mix and then to adjust the marketing mix to
minimize the effects.
Self Reference Criterion
• The primary obstacles to success in global
marketing are a person’s SRC and an
associated ethnocentrism.
• It is an unconscious reference to one’s own
cultural values, experiences and knowledge as
a basis for decisions.
Stalled Car in Japanese
France- PET means
Flatulence
Japan
•Priced three times higher
than in UK
•Wrapped individually
•Packed in presentation
cardboard boxes
•Cookies are used as gifts
in Japan
Self Reference Criterion
• Undetected similarities do not cause
problems, however, the one difference that
goes undetected can create a marketing
failure.
• To avoid errors in business decisions, the
knowledgeable marketer will conduct a cross
cultural analysis that isolates the SRC
influences and maintain vigilance regarding
ethnocentrism.
Self Reference Criterion
• The following steps can be suggested as a framework
for such an analysis:
1. Define the business problem or goal in home-country
traits, habits or norms.
2. Define the business problem or goal in foreign
country cultural traits, habits or norms through
consultation with natives of the target country. No
value judgments should be made.
3. Isolate the SRC influence in the problem and examine
it carefully to see how it complicate s the problem.
4. Redefine the problem without SRC influence and
solve for the optimum business goal situation.
Self Reference Criterion (SRC)
• In France, Kellogg’s commercials
are aimed as much at providing
nutrition lessons as they are at
promoting the product.
• In Brazil, the company advertised
on a soap opera to gain entry into
the market, because Brazilians
often emulate shows.
Socio Cultural Environment in Global Marketing

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Socio Cultural Environment in Global Marketing

  • 2.
  • 3. What is Culture • “The knowledge, beliefs, art law, morals, customs and other capabilities of one group distinguishing it from other groups.” • Main features of culture: – Culture is shared – Culture is intangible – Culture is confirmed by others Chhavi
  • 4. What is Culture? • Culture is the sum total of beliefs, rules, techniques, institutions, and artifacts that characterize human populations – Culture is learned ( not innate) – Its aspects are interrelated – Culture is shared (as opposed to individual traits) – It defines the boundaries of different groups Chhavi
  • 5. Culture and International Business • Culture – Impacts the way strategic moves are presented. – Influences decisions. – The lens through which motivation occurs. • Management, decision making, and negotiations are all influenced through culture. • Culture influences nearly all business functions from accounting to finance to production to service. Chhavi
  • 6. Culture and Global Marketing • Culture is what makes international business practice difficult or easy, depending on how similar or different cultures are. • Culture is both divisive and unifying. Chhavi
  • 7. Culture Does Not Explain Everything • Culture is not a residual variable; it is useful to know that it is not a primary variable either. It is one of many. Chhavi
  • 8. Basic Elements of culture • Knowledge and beliefs- prevailing notions of reality. Includes myths, metaphysical beliefs and scientific realities. • Ideals – what is expected in a given situation. Norms enforced by rewards/punishments. • Preferences- society’s definition of attractive or unattractive things in life. Italy –corn- pigfood. Chhavi
  • 9. • Culture deals with a group’s design for living. It is pertinent to the study of marketing, especially international marketing. • When a promotional message is written, symbols, recognizable and meaningful to the market/ culture must be used. When designing a product, the style, uses and other related marketing activities must be made culturally acceptable.
  • 10. • The amount and the manner in which people consume, the priority of needs and wants they attempt to satisfy and the manner in which they satisfy them are functions of their culture that temper, mold and dictate their style of living. • Culture is the human-made part of human environment – the sum total of knowledge, beliefs, art, morals, laws, customs and other capabilities and habits acquired by humans as members of society.
  • 11. • Marketers constantly adjust their efforts to cultural demands of market, but they also act as agents of change whenever the product or idea being marketed is innovative. • Culture affects every part of our lives, every day, from birth to death, and everything in between. • It affects how we spend money and how we consume in general.
  • 12. • Cosleeping- • In much of southern Europe, Asia, Africa and Central and South America, mothers and babies routinely share sleep.
  • 13.
  • 14. Flower shop of the world • The Dutch are the champion consumers of cut flowers. • The rivers and the bays make the Netherlands a great trading country, but the miserable weather, rain and snow more than 200 days a year make it a colourless place, gray nearly year around. • The Flying Dutchman went to Spice Islands for spice for the palate, they also went to the eastern Mediterranean for spice of the eyes.
  • 15. • The British love their chocolate.
  • 16. • In Europe, Spaniards are the most likely to feast on fish. But behind Japanese preference for seafood. • The flat geography in England and Scotland allows for the efficient production of Beer. • Pasta was actually invented in China but consumed more in Italy.
  • 17. • Grapes grow best in France and Italy, a combination of soil and climatic conditions explains pattern of wine consumption. • Culture also influences the laws, age limit and other things related to alcohol.
  • 18. • Japan has extremely high incidences of stomach cancer. • The culprits are salty foods as soy sauce and bacterium Helicobacter pylori. • Japanese have developed the most advance treatment of the disease, both procedures and instruments. • Even thought the death rate is highest, the treatment success rate is likewise the highest in Japan.
  • 19.
  • 20. Culture • 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. • Humans make ADAPTATIONS to changing environments through INNOVATION. • Individuals learn culture from social institutions through SOCIALISATION (growing up) and ACCULTURATION (adjusting to a new culture). • Individuals also absorb culture through role modelling or imitation of their peers. Finally, people make decisions about consumption and production through APPLICATION of their culture based knowledge.
  • 22. Geography- *Climate *GDP *Worker’s wages History- Middle East Conflicts bred new cola brands: *Mecca Cola *Muslim Up *Arab Cola *Cola Turka Technology- *Jet Aircraft *ACs *PCs *Health Care Systems Political- *Colonialism *Fascism *Communism *Democracy
  • 23. Social Institutions- *Position of men and women in society, the family, the social classes •Group Behaviour •Age groups •Decency •Ad battery
  • 24. Cultural Forces • Religion • History • Family • Language • Arts/ Entertainmen t • Education Cultural Messages • Symbols • Morals • Behavioural Rules • Knowledge Consumer Decision Process • Selecting and Prioritizing Wants for Goods and Services
  • 25. • Eastern world refers to nations in the Asia and Middle East whereas Western world refers to North and South America, Europe, Australia and New Zealand. East and West may have myriad differences based on culture and education. These differences can be noted for the most part in people’s behavior and attitudes. The major difference between eastern and western culture is that people in the east are more conservative and traditional than the general population in the west.
  • 26. Eastern Culture • Eastern world - nations in Asia and Middle East. • Hinduism, Buddhism, Jainism, Shenism, Taoism, and Islam are some common religions. • The population in Eastern countries are more customary than people in the West when we consider their traditions, clothings, rituals, etc. For example, Indians pay regard to their elders or parents by touching their feet; East Asians bows as welcome, apologizing and expressing thanks. • People here are inflexible in their beliefs and ideologies; they were unwilling to challenge and question the long practiced customs and traditions. • Here, elders are considered as the leader of the home and children regard and obey them in all choices. Important decisions related to children’s future are normally taken by elders. And, when parents grow old, the kids are likely to take care of them. • Arranged marriages are common in the Eastern countries. They are normally arranged by parents or elders. They believe in a concept that love comes after marriage. Western Culture • Western culture - Europe and North America. • Judaism, Christianity, and Islam are some common religions. • The population in Western countries are more liberal than those in the East. The Westerns are more open and blunt. For example, topics like sex or birth of a child are openly discussed in Western culture, whereas in the East, these topics are still a taboo. • People here are more open to express their feelings. If they are angry, they may express. But, people in the east may cover it for tact and good manners. • A person is given preference over family, so a person is more flexible and free to take decisions on his own, unlike those in the East. • Concepts like arranged marriages are not at all common in the West. They go for love marriages as they believe in a concept that love comes before marriage.
  • 27. • 1996 …the first McDonald’s restaurant opened on Oct. 13, at Basant Lok, Vasant Vihar, New Delhi. It was also the first McDonald’s restaurant in the world not serving beef on its menu.
  • 28. • Grand Opening; McDonald's opened its doors in India, the 95th country, in 1996 and was the first country to serve non-beef and non-pork items. Its authority on non-beef and non-pork products still remains unchallenged, through a joint venture • McDonald’s spent more than 5 years (from 1990 onwards) on developing the first beef-less and pork- less menu in McDonald’s history. • Every McDonald’s burger has nine different ingredients, which are sourced, from 35 suppliers across the country before it reaches the consumer
  • 29. • McDonald’s practices Vegetarian and Non-Vegetarian Segregation right from processing to serving and uses 100 per cent vegetable cooking oil • McAlo Tikki, Veg Surprise and Pizza McPuff developed in India are now being exported to the countries in the Middle East • McDonald’s introduced Coke’s Georgia Gold range of hot beverages which was developed especially for the Indian market in 2002
  • 30. • THAILAND- Burgers with Thai Basil • JAPAN- Teriyaki Burger • INDONESIA- Rice Dishes • INDIA- Mc Aloo Burger, Veg Salad Sandwich, Mc Masala, Mc Imli Sauces • Garlic free sauces, Eggless sandwich sauces, Veg Pizza Mcpuff, • India 75% localised menu, 33% in Asian Countries, other countries less than 5%
  • 31. Elements of culture- 1. Language 2. Values and attitudes 3. Customs and manners 4. Material goods 5. Religion 6. Education 7. Aesthetics 8. Family Chhavi
  • 33.
  • 34.
  • 35. Widely spoken languages in World 1 • Chinese/ Mandarin • 848 million 2 • Spanish • 399 million speakers 3 • English • 355 million 4 • Hindi • 260 million
  • 36. Language • The successful international marketer must achieve expert communication, which requires a thorough understanding of the language as well as the ability to speak it. • Advertising copywriters should be concerned less with obvious differences between languages and more with the idiomatic and symbolic meanings expressed.
  • 37. Language • India has 22 officially recognised languages • 1652 mother tongues listed by Census of India. • One of the competitive strengths of India – capability of citizens to use ENGLISH. • 6912 known living languages exist in the world. Chhavi
  • 38. Language • It is the primary mean used to transmit and interpret information and ideas. • Knowledge of local language helps- • Understand the situation • Direct access to localities • Helps in getting information which is implied and not stated outright. Chhavi
  • 39. Language • Consists of patterns of written symbols, audible sounds and gestures that convey meanings. • Pepsi – come alive with pepsi • NOVA • Same symbols and gestures may mean different things in different countries. Chhavi
  • 40. Spoken Language • Language is the key to culture, and without it, people find themselves locked out of all but a culture’s perimeter Chhavi
  • 41. Language • Must speak the local language – Still need translators – Use back translations to avoid errors – Technical words do not exist in all languages • Usually resort to English – Many cultures avoid saying anything disagreeable
  • 42.
  • 43.
  • 44. Unspoken Language • Nonverbal communication, such as gestures and body language. – Gestures vary tremendously from one region to another – Conversational distance small in East – Gift giving has specific etiquette in each culture • Gift or bribe? Chhavi
  • 45. Language • The artifacts that surround language: – Linguistics – or the meanings of words – Proxemics – or the distance that speakers stand from one another – Pragmatics – the cultural interpretations of words, gestures, and nonverbals – Nonverbals – The gestures and body language that accompanies spoken words • English has become the business world’s lingua franca, and the number one foreign language taught in other countries Chhavi
  • 46. Tabling a proposal UK Immediate action to be taken US Delay a decision
  • 47. Example Language • When Parker Pen marketed a ball-point pen in Mexico, its ads were supposed to have read, "it won't leak in your pocket and embarrass you". Instead, the company thought that the word "embarazar" (to impregnate) meant to embarrass, so the ad read: "It won't leak in your pocket and make you pregnant". Chhavi
  • 48. Example Language • Pepsi's "Come alive with the Pepsi Generation" translated into "Pepsi brings your ancestors back from the grave", in Chinese. Chhavi
  • 49. Example Language • Chevrolet had problems marketing the Chevy Nova automobile in Latin America. Since no va means "it doesn't go" in Spanish, the oft- repeated story goes, Latin American car buyers shunned the car, forcing Chevrolet to embarrassedly pull the car out of the market. Chhavi
  • 50. Example Language • In Chinese, the Kentucky Fried Chicken slogan "finger-lickin' good" came out as "eat your fingers off" Chhavi
  • 51.
  • 52. Language • Linguistic Distance is how different one language or dialect is from another.
  • 53. • Poland has directed that all companies selling or advertising foreign products use Polish in their advertisements.
  • 54. I’m good to share
  • 55. • The ad featured the controversial tagline: "I'm good. I'm tempting. I'm too good to share. What am I? Cadbury's Temptations or Kashmir?" • It was timed to coincide with India's Independence Day on August 15, but has caused the chocolate maker to rethink its campaign and apologise after it angered members of prime minister Atal Behari Vajpayee's BJP party.
  • 56. 2. VALUES AND ATTITUDES
  • 57. Value system Value systems vary among managers across different countries : Eg. US managers : high achievement orientation Japanese managers: how have a growth and size orientation Indian Managers: who have moralistic orientation.
  • 58. Value • Japanese feel that buying foreign products is unpatriotic. • The resistance is therefore not so much against buying foreign products as it is against those who produce and market them. Thus difficulty is in hiring personnel because of bias against foreign employers.
  • 59. Value • Dealing in China and with Chinese, the international marketing managers have to realize that marketing has more to do with cooperation than competition. • Chinese believe that one should build the relationship first and if it is successful, transactions will follow. • The relationship is a set of exchanges of favours to establish trust.
  • 60. Values • The more rooted values and attitudes are in central beliefs, the more cautiously the international marketing manager has to move. • Attitude towards change is basically positive in industrialized countries, whereas in more tradition-bound societies, change is viewed with great suspicion, especially when it comes from a foreign entity.
  • 61. Iran
  • 62.
  • 63. Values and Attitudes • Attitude of people towards business is largely determined by their culture. • Muslims and interests Chhavi
  • 64. Values and Attitudes • GOODYEAR Britain – stresses safety US – mileage and durability Chhavi
  • 65. Values and Attitudes • VALUE – basic convictions that people have regarding what’s right / wrong, good / bad, important / unimportant. Chhavi
  • 66. Values and Attitudes • ATTITUDE is a persistent tendency to feel and behave in a particular way towards some object. • Americans more receptive to change and are risk takers. • Negative attitude towards foreign made goods. Chhavi
  • 67. Norms Guidelines or social rules that prescribe appropriate behaviour in a given situation.
  • 68. Norms  For eg. In Japan, aggressive selling is not perceived in the positive spirit.  Eg. Indian use hands or different types of spoons for eating. Chinese and Japanese use chopsticks.  Europeans and American use forks and knives to cut the food before eating.  International managers need to know what is acceptable , unacceptable in foreign culture. They also need to know cultural tolerance to business customs that may be grouped as :  Cultural Imperatives; Cultural Exclusives; Cultural Electives/Adiaphora
  • 69. Cultural Imperatives  Culture Imperatives are the business customs and expectations that must be met and conformed to or avoided if relationships are to be successful.  It refers to norms that must be followed / avoided in a foreign country.  For Eg. Too much eye contact in Japan is considered to completely offensive.  On the other hand in the Gulf , strong eye contact necessary with an Arab, to establish trustworthiness.  Establishing friendship
  • 70. Cultural Electives/ Adiaphora • Cultural Electives relate to areas of behviour or to customs that cultural aliens may wish to conform to or participate in but are not required. • Japanese do not expect a Westerner to bow and to understand the ritual of bowing among Japanese yet a symbolic bow indicates interest and some sensitivity to Japanese culture that is acknowledged as a gesture of goodwill. • Arabs will offer coffee as a way to signal friendship, so you should also accept it even if you don’t intend to drink it. • It may help pave the way to strong trusting relationship Chhavi
  • 71. Cultural Exclusives:  Cultural exclusives are customs that are only for locals.  Social patterns which are considered appropriate for locals and in which foreigners are expected not to participate.  Eg. Foreigners should stay away from discussions on local country politics, social customs and practices.  Eg. If you are a Christian, don’t go to the Middle East and attempt to act like a Muslim because that is insulting their religion.
  • 72. Attitudes and Beliefs • Attitude Toward Time – Problem for Americans • Americans always prompt – Directness and drive • Perceived to be rudeness – Deadlines • Liability in Asian cultures • Attitudes toward Achievement and Work – “American live to work, Germans and Mexicans work to live.” Chhavi
  • 73. 3. CUSTOMS AND MANNERS
  • 74. Customs and Manners • CUSTOMS – common or established practices • MANNERS- behaviour regarded as appropriate in a particular society. Chhavi
  • 75. Traditions and Customs  International managers need to know the customs and traditions of the culture being dealt with:  Eg. Food Habits eg. Chocolate flavors preferred are different in different cultures : Eg. Americans and Germans prefer blends, French- Dark, Dutch – White.  Coffee brews: Nescafe manufactures 200 different varieties of coffee to suit local tastes.  The concept of Indian vegetarianism is very complex for foreigners to understand. Vessels used for cooking both should be different. KFC offers vegetarian dishes in its Indian outlets. Pizza Hut offers Jain Pizza in India alone.  Companies need to modify products/services to suit the local customs and traditions.
  • 76. Manners and Customs...  Manners in gift giving:  A lot of preparation and sensitivity required while giving gifts. What and when is important.  China : occasion : New Year Preferred Gifts: Modest gifts such as coffee table, books, ties, pens.  Japan: Oseibo( January 1) Preferred Gifts : Brandy. Scotch, round fruits such as melons  Manners and Customs in the Way Products are used should also be considered  Example Orange juice:  Breakfast item in US, Refreshment in France  Moisturizers : After bath lotion in one, beauty product in another. 76
  • 78. Material Culture • It results from the technology and is directly related to the way a society organizes its economic activity. • It is manifested in the availability and adequacy of the basic economic, social, financial and marketing infrastructures.
  • 79. Material Culture Economic Infrastructure • Transportation • Energy • Communcation systems Social Infrastructure • Housing • Health • Educational systems Financial and Marketing Infrastructures • Facilitating agencies for international firm’s operations in a given market; banks, research firms, etc.
  • 80. Material Culture • Material culture refers to the physical objects, resources, and spaces that people use to define their culture. • These include homes, neighborhoods, cities, schools, churches, synagogues, temples, mosques, offices, factories and plants, tools, means of production, goods and products, stores, and so forth. Chhavi
  • 81. Material Culture • All these physical aspects of a culture help to define its members' behaviors and perceptions. • For example, technology is a vital aspect of material culture in today's United States. American students must learn to use computers to survive in college and business, in contrast to young adults in the Yanomamo society in the Amazon who must learn to build weapons and hunt. Chhavi
  • 82. Non-Material Culture • Non‐material culture refers to the nonphysical ideas that people have about their culture, including beliefs, values, rules, norms, morals, language, organizations, and institutions. • For instance, the non‐material cultural concept of religion consists of a set of ideas and beliefs about God, worship, morals, and ethics. These beliefs, then, determine how the culture responds to its religious topics, issues, and events. Chhavi
  • 83. Technologically advanced • If a country is technologically advanced their values are more likely to be materialistic because they have a higher standard of living. • Up-to-date products, less expensive or provide more benefits. Chhavi
  • 84. Less technologically advanced • Less technologically advanced countries infrastructure may not support too advanced products or need of those products may not exist. • Laptop, dishwashers Chhavi
  • 86.
  • 87. 1. Christianity 2. Islam 3. Hinduism 4. Korean Shamanism 5. Buddhism
  • 88. Religion • Influences life style, beliefs, values and attitudes. • Knowledge of religions existing in target market helps in understanding work habits, underlying motivation and consumption behaviour. Chhavi
  • 89. Religion • Knowledge helpful in deciding • Weekly holidays, working/ lunch hours. • Festive season for promotion, discounts, incentive, special offers • Work culture of employees • Boss subordinate relations • Attitude towards business • Dress code • Gender of workers Chhavi
  • 90. Religion • Many business decisions are based on astrological advice. • Time of launch • Name, Brand, Location of organisation Chhavi
  • 91. Religion • Marriage customs, naming ceremony of child, festivals vary between religions. • Affect businesses like textiles, jewellery, catering, consumer durables, etc. Chhavi
  • 92. Religion • A US Firm blundered in Saudi Arabia by sending a meticulously prepared proposal bound with an expensive pigskin leather cover hoping to impress the clients. Chhavi
  • 93. Religion • 1857- India- bullets were encased in pig wax, and tops had to be bitten off before firing the bullets. When Muslims soldiers discovered the fact they revolted against British officers. Chhavi
  • 94. Religion • Global fast food major McDonald's says it survived and expanded in India by developing innovative menus to cater to the Indian taste bud, something it has not done anywhere else in the world. • "In India we have been extra careful not to offer beef or pork items keeping in view the country's cultural sensitivity." Chhavi
  • 95. Religion • The biggest challenge the American franchise faced in India was how to reach the large vegetarian population of India for which it had to reengineer its products and yet maintain international brand value. • So in 1999 it came up with 'McAloo Tikki Burger' - a burger unheard of anywhere else. Chhavi
  • 96. Religion • Considerable influences international business decisions. • Location of commerical buildings and office interiors need to be as per Feng shui in China and Vastu Shastra in India. • Advertisements and corporate communications must keep religious sentiments in mind. Example - Islam does not permit shaving. So Shaving equipment makers like Gillette need to be sensitive while advertising their product in Islamic countries.
  • 97. ETHNODOMINATION • ETHNODOMINATION in distribution is defined as a situation where an ethnic group occupies a majority position in a channel of distribution with respect to the ownership and control of physical and financial resources or through the manipulation of social environment. • Beneficial for international marketer to co-opt rather than compete with dominant ethnic group. Chhavi
  • 98. ETHNODOMINATION • Automobile spare products- sikhs • Banking and money lending- chettiars in TN and vysyas in Karnataka • Ethnic population staying abroad is target for indian currry, spices, pickles, papad exporters. Chhavi
  • 99. Ethnodomination • Chinese dominate the trade of rice and pineapples in the Philippines, • Hindu Sikhs dominate the trade of cloth in Afghanistan, • The Otavalo Indians dominate the trade of handwoven textiles in Ecuador Chhavi
  • 101. Education • When Gerber started selling baby food in Africa, they used the same packaging as in the US, with the beautiful Caucasian baby on the label. Later they learned that in Africa, companies routinely put pictures on the label of what's inside, since most people can't read English. Chhavi
  • 102. Education • Educational levels will have an impact on various business functions. • Training programs for a production facility will have to take care of educational backgrounds of trainees into account. • If technology is marketed , the level of sophistication of the product will depend on the educational level of future users.
  • 103. Education • Brain Drain – The emigration of highly educated professionals to industrialized nations • Reverse Brain Drain – The return of highly educated professionals to their home countries. – Korea and Taiwan are luring home engineers and scientists • Women’s Education – Fall in illiteracy rate – Most governments now provide education for both genders – Educated women have fewer, healthier, and better educated children – Educated women achieve higher labor force participation and wages Chhavi
  • 105. Aesthetics • Each culture makes a clear statement concerning good taste, as expressed in the arts and in the particular symbolism of colours, form and music.
  • 106. • Colour is often used as a mechanism for brand identification, feature reinforcement and differentiation. • In international markets, colours have more symbolic value than in domestic markets.
  • 107. Aesthetics Ideas and perceptions that a cultural group upholds in terms of beauty and good taste. It includes areas related to music, dance, painting, drama, architecture, etc.
  • 108. Aesthetics  Colours have different aesthetic value in different cultures:  Africa : bright colours are favourites  Japan : pastel colours preferred as they express harmony.  China : red is lucky colour but associated with witchcraft in Africa.  America : blues and greys are perfect for official environments. But blue is evil in Africa  Death colours : Black signifies death in America, Europe; In India, Japan & other Asian countries it is white, For Latin Americans Purple means death; Dark red is the mourning colour in the Ivory Coast.
  • 109. Aesthetics • Relates to the artistic taste of culture. • Influences behaviour. • It pertains to a culture’s sense of beauty and good taste and is expressed in arts, drama, music, folklores, dance, etc. Chhavi
  • 110. Aesthetics • Its knowledge is helpful in interpreting meanings of various methods of artistic expressions, colour, shapes, forms and symbols in a particular culture. Chhavi
  • 111. Aesthetics • Sensitivity to the Aesthetics of a society and their symbolic expressions can greatly help in avoiding socially embarrassing situations and correctly designing the products and messages. Chhavi
  • 112. Aesthetics • Art – Colors, symbols, numbers convey meaning • Nike air symbol – Architectural styles different • Feng shui • Music and Folklore – Musical tastes vary – Folklore discloses way of life • Cowboys in Chile or Argentina • Mexican singing cricket Chhavi
  • 113. • Japan gifts • Europe Red roses and white flowers
  • 115. Social Institutions • It includes family, religion, school, media, government and corporations all affect the ways in which people relate to one another, organize their activities to live in harmony with one another, teach acceptable behaviour to succeeding generations and govern themselves.
  • 116.
  • 117. • The cultures in which the social organisations result in close-knit family units, a promotion campaign aimed at the family unit is usually more effective than one aimed at individual family members.
  • 118. Making culture work for marketing success • Embrace local culture • Build relationships • Employ locals to gain cultural knowledge • Help employees understand you • Adapt products and processes to local markets • Coordinate by region
  • 119. Self Reference Criterion • The key to successful global marketing is adaptation to environmental differences from one market to another. Adaptation is a conscious effort on the part of the global marketing manager to anticipate the influences of both the domestic and foreign or global uncontrollable factors on a marketing mix and then to adjust the marketing mix to minimize the effects.
  • 120. Self Reference Criterion • The primary obstacles to success in global marketing are a person’s SRC and an associated ethnocentrism. • It is an unconscious reference to one’s own cultural values, experiences and knowledge as a basis for decisions.
  • 121.
  • 122. Stalled Car in Japanese
  • 124. Japan •Priced three times higher than in UK •Wrapped individually •Packed in presentation cardboard boxes •Cookies are used as gifts in Japan
  • 125.
  • 126. Self Reference Criterion • Undetected similarities do not cause problems, however, the one difference that goes undetected can create a marketing failure. • To avoid errors in business decisions, the knowledgeable marketer will conduct a cross cultural analysis that isolates the SRC influences and maintain vigilance regarding ethnocentrism.
  • 127. Self Reference Criterion • The following steps can be suggested as a framework for such an analysis: 1. Define the business problem or goal in home-country traits, habits or norms. 2. Define the business problem or goal in foreign country cultural traits, habits or norms through consultation with natives of the target country. No value judgments should be made. 3. Isolate the SRC influence in the problem and examine it carefully to see how it complicate s the problem. 4. Redefine the problem without SRC influence and solve for the optimum business goal situation.
  • 129. • In France, Kellogg’s commercials are aimed as much at providing nutrition lessons as they are at promoting the product. • In Brazil, the company advertised on a soap opera to gain entry into the market, because Brazilians often emulate shows.