Introduction

Social and Cultural Environments

Global Gl b l Marketing M k ti (Global Edition) Chapter 4
1

Chapter topics: Society, y Culture, and Consumer Culture Halls Theory y Maslows Hierarchy Hofstede Hofstedes s Cultural Typology Ethnocentricity and SelfSelf Reference Criterion Diffusion Theory
2011 Pearson Education, Inc.

African Market
4-2

Task of Global Marketers

Study and understand the cultures of countries ti i in which hi h they th will ill be b doing d i business b i Understand how an unconscious reference to their own cultural values, or self-reference criterion, may influence their perception of the market Incorporate p this understanding g into the marketing planning process
4-3
2011 Pearson Education, Inc. 2011 Pearson Education, Inc.

Society, Culture, and Global Consumer Culture

Culture ways of living, built up by a group of human beings, beings that are transmitted from one generation to another Culture C lt has h both b th conscious i and d unconscious i values, ideas, attitudes, and symbols Culture is acted out in social institutions physical y (clothing ( g and tools) ) Culture is both p and nonphysical (religion, attitudes, beliefs, ) and values)
4-4

Characteristics of Culture
Learned Formal, informal, technical learning Socialization, l acculturation l Handed down Triad of institutions (family, (family religious institutions, institutions schools) Early lifetime experiences Social ( (shared by y significant g portion p of society) y) Ideational (group norms conceptualized as ideal norms of behaviour) Gratifying G atif ing (satisfies basic o or seconda secondary need) Adaptive (dynamic; modified & replaced to meet societys ) needs) Integrative (form consistent & integrated whole) 4-5
2011 Pearson Education, Inc.

Search for Cultural Universals

Universal = Mode of behavior existing in all cultures Universal aspects = opportunities to standardize t d di some or all ll elements l t of fa marketing program Cultural universals: athletic sports, body adornment, religious rituals, music Increasing travel & improving communications g to convergence g are leading
4-6
2011 Pearson Education, Inc.

Consumer Behaviour Model

4-7
2011 Pearson Education, Inc. 2011 Pearson Education, Inc.

Social Institutions
Family Education Religion Government Business These institutions function to reinforce cultural norms
4-8

Material and Nonmaterial Culture

Physical component or physical culture Clothing Tools Decorative D ti art t Body adornment d t Homes
2011 Pearson Education, Inc.

Society, Culture, and Global Consumer Culture

Culture is the collective programming of the mind that distinguishes the members of one category of people from those of another.
Geert Hofstede A nation, an ethnic group, a gender group, an organization, i ti or a family f il may be b considered id d as a category.
4-10
2011 Pearson Education, Inc.

Subjective or abstract culture Religion g Perceptions Attitudes Beliefs Values

4-9

Society, Culture, and Global Consumer Culture

Global consumer cultures are emerging
Persons who share meaningful sets of consumptionconsumption related symbols Pub culture, , coffee culture, , fast-food culture, , credit card culture

Attitudes, Beliefs, and Values

Attitude learned tendency to respond in a consistent i t t way t to a given i object bj t or entity tit Belief an organized pattern of knowledge that an individual holds to be true about the world Value enduring belief or feeling that a p mode of conduct is personally p y or specific socially preferable to another mode of conduct
4-12
2011 Pearson Education, Inc.

Primarily y the p product of a technologically g y interconnected world

Internet Satellite TV Cell phones
4-11
2011 Pearson Education, Inc.

Religion
The worlds major religions include Buddhism, Buddhism Hinduism, Hinduism Islam, Judaism, and Christianity and are an important source of beliefs, attitudes and values attitudes, Religious tenets, practices, h lid holidays, and d history hi t impact i t global marketing activities
4-13
2011 Pearson Education, Inc. 2011 Pearson Education, Inc.

Aesthetics
The sense of what is b beautiful tif l and d what h t is not beautiful What represents good taste as opposed to tastelessness or even obscenity Visual embodied in the color or shape of a product, label, or package Styles various degrees of complexity, for p , are example, perceived differently around the world
4-14

Aesthetics and Color

Red associated with blood, wine-making, activity, ti it h heat, t and d vibrancy ib in i many countries ti but is poorly received in some African countries ti White identified with purity and cleanliness in the West, with death in parts of Asia Gray y means inexpensive p in Japan p and China, , but high quality and expensive in the US
4-15
2011 Pearson Education, Inc.

The Meaning of Color

Yellow indicates a merchant in India

Red signifies good luck and celebration in China

2011 Pearson Education, Inc.

In England and the US US, something blue on a brides garter t symbolizes b li 4-16 fidelity

Dietary Preferences
Dominos Pizza pulled out of Italy because its products were seen as too American with bold tomato sauce and heavy toppings Subway had to educate Indians about the benefits of sandwiches because they do not normally eat bread
4-17
2011 Pearson Education, Inc.

Language & Communication

Linguistic Category
Syntax - rules of sentence
formation

Language Example
English has relatively fixed word order; Russian has relatively free word order Japanese words convey nuances of feeling for which other languages lack exact correlations; yes and no can be interpreted differently than in other languages Japanese does not distinguish between the sounds l and r; English and Russian both ha e l and r have sounds so nds Russian is a highly inflected language, with six different case endings for nouns and adjectives; English has fewer inflections
4-18

Semantics - system of
meaning

Phonology - system of sound

patterns p

Morphology - word formation

2011 Pearson Education, Inc.

Language & Communication

Speaking English around Nonverbal Communication the Globe Westerners tend to be There are more people verbal; Asians value who speak English as a nonverbal communication foreign language than In Japan, bowing has native speakers many nuances 85% of European teens In the Mideast, study English Westerners should not Sony, S N Nokia, ki M Matsushita t hit show h the th soles l of f shoes h require managers to or pass documents with speak English the left hand
4-19
2011 Pearson Education, Inc. 2011 Pearson Education, Inc.

Mktgs Mktg s Impact on Culture

Universal aspects of the cultural environment represent opportunities to standardize elements of a marketing g program Increasing travel and improved communications have contributed to a convergence of tastes and preferences in a number of p product categories g
4-20

Controversy Surrounding Mktgs k Impact on Culture C l

McDonaldization of culture

High- and Low-Context Cultures (Edward T. Hall)

High Context
Information resides in context Emphasis p on background, g basic values, societal status Less emphasis on legal paperwork Focus on personal reputation

Eating is at the heart of most cultures l and d for f many it is something on which much time, attention, and money are lavished. In attempting to alter the way people eat, McDonaldization poses a profound threat to the entire cultural complex of many societies. George g Ritzer
Protest against the opening of McDonalds in Rome led to the establishment of the Slow Food 4-21 Movement

Low Context
Messages are explicit and specific Words carry all information Reliance on legal paperwork Focus F on non-personal l documentation of credibility

Saudi Arabia, Japan

Switzerland, US, Germany

4-22

2011 Pearson Education, Inc.

2011 Pearson Education, Inc.

High- and Low-Context Cultures

Factor/Dimension y Lawyers A persons word Responsibility for organizational error Space p Time Negotiations Competitive bidding Country examples
2011 Pearson Education, Inc.

Maslows Maslow s Hierarchy of Needs

Maslows Hierarchy of Needs
SelfSelfactualization actualization

High Context Less important p Is his/her bond Taken by highest level People p breathe on each other Polychronic Lengthy Infrequent Japan, Middle East

Low Context Very y important p Is not reliable get it in writing Pushed to lowest level Private space p maintained

Asian Equivalent
5
Status Status

(self-development (self-development andrealization) realization) and

Esteem Esteem 4 (self-esteem,recognition) recognition) (self-esteem, Social Social 3 (sense (sense of of belonging, belonging,love) love)

4 3 2 1

Admiration Admiration Affiliation Affiliation Safety Safety Physiological Physiological

S f t Safety Safety (security,protection) protection) (security, Physiological Physiological (food,water, water,shelter) shelter) (food,

Monochronic Proceed quickly Common US, Northern Europe

4-23

4-24
2011 Pearson Education, Inc.

Hofstedes Hofstede s Cultural Typology

Power Distance Individualism/Collectivism Masculinity/Femininity Uncertainty Avoidance Long-term/Short-term g Orientation

Self-Reference Criterion and Perception

Unconscious reference to ones own cultural values; creates cultural myopia How to reduce cultural myopia:
D Define fi th the problem bl or goal l in i terms t of f home h country t cultural traits Define the problem in terms of host host-country country cultural traits; make no value judgments Isolate the SRC influence and examine it Redefine the problem without the SRC influence and solve for the host country situation

4-25
2011 Pearson Education, Inc. 2011 Pearson Education, Inc.

4-26

Diffusion Theory: The Adoption Process

The mental stages through which an individual passes from the time of his or her first knowledge of an innovation to the time of product adoption or purchase Awareness Interest Evaluation Trial Adoption
4-27
2011 Pearson Education, Inc. 2011 Pearson Education, Inc.

Diffusion Theory: Chars. of Innovations

Innovation is something new; five f t factors th that t affect ff t th the rate t at t which hi h innovations are adopted:
Relative advantage Compatibility Complexity Divisibility Communicability
4-28

Diffusion Theory: Adopter Categories

Marketing Implications
Cultural factors must be considered when marketing consumer and industrial products p Environmental sensitivity reflects the extent to which products must be adapted to the culture-specific needs of different national markets
4-29 4-30
2011 Pearson Education, Inc.

2011 Pearson Education, Inc.

Environmental Sensitivity

Environmental Sensitivity
Independent of social class and income, culture lt is i a significant i ifi t influence i fl on consumption and purchasing Food is the most culturally-sensitive g y of consumer goods g category
Dehydrated Knorr soups did not gain popularity in the US market, which preferred canned soups Starbucks overcame cultural barriers in Great Britain and had 466 outlets by 2005

4-31
2011 Pearson Education, Inc. 2011 Pearson Education, Inc.

4-32