International Marketing - Chapter 4: Cultural Dynamics in Assessing global Markets

Chapter 4Cultural Dynamics in Assessing global MarketsInternational Marketing15th edition Philip R. Cateora, Mary C. Gilly, and John L. GrahamOverviewThe importance of culture to an international marketerDefinition and origins of cultureThe elements of cultureThe impact of cultural change and cultural borrowingStrategies of planned and unplanned changeRoy Philip 2Definitions and Origins of CultureTraditional definition of culture 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.Individuals learn culture in three waysSocialization (growing up)Acculturation (adjusting to a new culture)Application (decisions about consumption and production)3Roy Philip Origins, Elements, and Consequences of CultureRoy Philip 4Exhibit 4.4GeographyExercises a profound controlIncludes climate, topography, flora, fauna, and microbiologyInfluenced history, technology, economics, social institutions and way of thinkingThe ideas of Jared Diamond and Philip ParkerJared DiamondHistorically innovations spread faster east to west than north to southPhilip ParkerReports strong correlations between latitude (climate) and per capita GDP5Roy Philip HistoryHistory - Impact of specific events can be seen reflected in technology, social institutions, cultural values, and even consumer behavior Tobacco was the original source of the Virginia colony’s economic survival in the 1600s American values and institutions influenced by Adam Smith’s book The Wealth of NationsMilitary conflicts in the Middle East brought about new cola alternatives such as Mecca Cola, Muslim Up, and Arab Cola. 6Roy Philip Social InstitutionsSchool – the most important social institutionDirect link between a nation’s literacy rate and its economic developmentDifficult to communicate with a market when a company must depend on symbols and picturesThe media – it has replaced family timeTV and the InternetAmerican educational system produces a lower percentage of college graduates than 12 other countries including Russia, Japan, and France7Roy Philip Social InstitutionsGovernment - influences the thinking and behaviors of adult citizensPropaganda through mediaPassage, promulgation, promotion, and enforcement of lawsCorporations - most innovations are introduced to societies by companiesSpread through mediaChange agents8Roy Philip Elements of Culture (1 of 4)ValuesRitualsSymbolsBeliefsThought processes9Roy Philip Elements of Culture (2 of 4)Cultural values – Geert HofstedeIndividualism/Collectivism IndexReflects the preference of behavior that promotes one’s self interestPower Distance IndexMeasures the tolerance of social inequalityUncertainty Avoidance IndexMeasures the tolerance of uncertainty and ambiguityCultural Values and Consumer Behavior10Roy Philip Hofstede’s Indexes Language, and Linguistic DistanceRoy Philip 11Exhibit 4.6Elements of Culture (3 of 4)Rituals – patterns of behavior and interaction that are learned and repeatedMarriages , funerals, baptisms, graduationsSymbolsLanguageLinguistic distance – relationship between language and international marketingAesthetics as symbolsInsensitivity to aesthetic values can offend, create a negative impression, and, in general, render marketing efforts ineffective or even damagingNext12Roy Philip LanguageAccording to www.ethnologue.com: A total of 7,413 known living languages exist in the world311 being spoken in the U.S.; 297 in Mexico, 13 in Finland, and 241 in ChinaEU has 20 official languages India alone has 452 known languages!Back13Roy Philip Elements of Culture (4 of 4)BeliefsSuperstitions play a large role in a society’s belief system and therefore, to make light of superstitions in other cultures can be an expensive mistakeThe number 13 in the western hemisphere is considered unlucky, where as the number 8 in China connotes “prosperity”The practice of “Feng Shui”Thought processesDifference in perception between the East and the WestFocus vs. big-picture14Roy Philip Similarities – An IllusionA common language does not guarantee a similar interpretation of word or phrasesDifference between British and American English because something sells in one country doesn’t mean it will sell in anotherCultural differences among member of European Union a product of centuries of history15Roy Philip