Global Marketing Management

Global Cultural Environment and Buying Behavior

Chapter 4

Copyright (c) 2007 John Wiley & Sons, Inc.

TOPIC Overview
1. 2. 3. 4. 5. 6. 7. Defining Culture Approaches to the study of culture Elements of Culture Cross-Cultural Comparisons Cultural Classification Scheme Cultures and the Marketing Mix Organizational Cultures

Chapter 4

Copyright (c) 2007 John Wiley & Sons, Inc.

Definition of Culture
Culture (in a business setting) is defined as being a learned, shared, compelling, interrelated set of symbols whose meanings provide a set of orientations for members of society. Cultures may be defined by national borders, especially when countries are isolated by natural barriers. Cultures contain subcultures that have little in common with one another.

Chapter 4

Copyright (c) 2007 John Wiley & Sons, Inc.

Approaches to the study of culture

1. 2. 3. 4. 5. 6. 7. ANTHROPOLOGICAL APPROACH MASLOW s APPROACH THE SELF- REFERENCE CRITERION(SRC) DIFFUSION THEORY, HIGH AND LOW CONTEXT CULTURES PERCEPTION NATIONALISM

Chapter 4

Copyright (c) 2007 John Wiley & Sons, Inc.

Approaches to the study of culture

1. ANTHROPOLOGICAL APPROACH - In order to understand beliefs, motives and values, the anthropologist studies the country in question anthropology and unearths the reason for what apparently appears bizarre. 2. MASLOW APPROACH - Maslow hypothesized that people s desires can be arranged into a hierarchy of needs of relative potency. As soon as the lower needs are filled, other and higher needs emerge immediately to dominate the individual.
Chapter 4 Copyright (c) 2007 John Wiley & Sons, Inc. 5

Approaches to the study of culture

3. THE SELF REFERENCE CRITERION (SRC) - Perception of market needs can be blocked by one s own cultural experience, whereby one could systematically reduce this perception. 4 point approach a. Define the problem or goal in terms of home country traits, habits and norms b. Define the problem or goal in terms of the foreign culture traits, habit and norms. c. Isolate the SRC influence in the problem and examine it carefully to see how it complicates the pattern. d. Redefine the problem without the SRC influence and solve for the foreign market situation.
Chapter 4 Copyright (c) 2007 John Wiley & Sons, Inc. 6

Approaches to the study of culture

4. DIFFUSION THEORY - Everett Rogers, prolific writer, suggested in his book,
Diffusion of Innovations , that adoption was a social phenomenon, characterized by a normal distribution.

Chapter 4

Copyright (c) 2007 John Wiley & Sons, Inc.

Approaches to the study of culture

5. HIGH AND LOW CONTEXT CULTURES - In low context cultures messages have to be explicit, in high context cultures less information is required in the verbal message. 6. PERCEPTION - Perception is the ability to see what is in culture. High perceptual skills need to be developed so that no one misperceive a situation, which could lead to negative consequences. 7. NATIONALISM - Nationalism is a cultural trait which is increasingly surfacing.
Chapter 4 Copyright (c) 2007 John Wiley & Sons, Inc. 8

Elements of Culture
Culture consists of many interrelated components. Knowledge of a culture requires a deep understanding of its different parts. Following are the elements of culture: A. Material life - technologies that are used to produce, distribute, and consume goods and services B. Language - language has two parts: the spoken and the silent language C. Social Interaction - social interactions among people; nuclear family, extended family; reference groups
Chapter 4 Copyright (c) 2007 John Wiley & Sons, Inc. 9

Elements of Culture
D. Aesthetics - ideas and perceptions that a culture upholds in terms of beauty and good taste E. Religion - community s set of beliefs that relate to a reality that cannot be verified empirically F. Education - one of the major vehicles to channel from one generation to the next G. Value System - values shape people s norms and standards

Chapter 4

Copyright (c) 2007 John Wiley & Sons, Inc.

10

Cross-Cultural Comparisons
Cultures differ from one another, but usually share certain aspects. Recent social psychology research reveal key cultural differences between East (high) and West (low) context cultures in how people perceive reality and reasoning. High-context cultures: Interpretation of messages rests on contextual cues; e.g., China, Korea, Japan. Low-context cultures: Put the most emphasis on written or spoken words; e.g., USA, Scandinavia, Germany.

Chapter 4

Copyright (c) 2007 John Wiley & Sons, Inc.

11

Contextual Background of Various Countries

High context

Japanese

IMPLICIT

Arabian Latin American

Spanish Italian English (UK) French English (US) Scandinavian German Low context Swiss

EXPLICIT
Copyright (c) 2007 John Wiley & Sons, Inc.

Chapter 4

12

Geert Hofstede s Cultural Classification Scheme

a. Power distance: The degree of inequality among people that is viewed as being equitable b. Uncertainty avoidance: The extent to which people in a given culture prefer structured situations with clear rules over unstructured ones

Chapter 4

Copyright (c) 2007 John Wiley & Sons, Inc.

13

Geert Hofstede s Cultural Classification Scheme

c. Individualism: The degree to which people prefer to act as individuals rather than group members. d. Masculinity: The importance of male values (assertiveness, success, competitive drive, achievement) versus female values (solidarity, quality of life). e. Long-term orientation versus short-term focus: Future versus past and present orientations

Chapter 4

Copyright (c) 2007 John Wiley & Sons, Inc.

14

Geert Hofstede s Cultural Classification Scheme

Chapter 4

Copyright (c) 2007 John Wiley & Sons, Inc.

15

Culture and the Marketing Mix

Culture is a key pillar of the marketplace. a. Product Policy: Certain products are more culturebound than other products. Food, beverages, and clothing products tend to be very culture-bound. b. Pricing: Pricing policies are driven by four Cs: Customers Company (costs, objectives, strategy) Competition Collaborators (e.g., distributors)
Chapter 4 Copyright (c) 2007 John Wiley & Sons, Inc. 16

Culture and the Marketing Mix

c. Distribution: Cultural variables may also dictate distribution strategies. d. Promotion: Promotion is the most visible marketing mix. Culture will typically have a major influence on a firm s communication strategy. Local cultural taboos and norms also influence advertising styles.

Chapter 4

Copyright (c) 2007 John Wiley & Sons, Inc.

17

Organizational Cultures
Organizational Culture: Most companies are characterized by their organizational (corporate) culture. A model of organizational culture types includes the following four cultures: Clan culture Adhocracy culture Hierarchy culture Market culture
Chapter 4 Copyright (c) 2007 John Wiley & Sons, Inc. 18

Organizational Cultures

Chapter 4

Copyright (c) 2007 John Wiley & Sons, Inc.

19