GLOBAL SOCIAL & CULTURAL

ENVIRONMENT

You can buy in your home-country language but you need to learn your customers language to sell.

Introduction
A solid understanding of culture is essential in international marketing. Cultural references impact significantly on consumers cognitive, affective and connotative behaviour.

A Definition
So, what is culture? Culture prescribes the forms of behaviour that are acceptable to people in a
specific community Culture is the learned ways in which a society understands, decides and communicates Culture is difficult to define but some of the key characteristics are:

Culture is learned Born into a culture/norms acquired Culture is interrelated one part of culture is deeply connected with
another part such as religion and marriage

Culture is shared tenets of culture extend to other members of a group

The Four Layers of Culture

National
The national culture impacts on dealings with Governments and is reflected in the values on which laws and institutions are based. This explains why in some cultures transgressors can evade punishment.

Industry
Culture impacts on negotiations within industry and the values and norms governing the activities performed by the industry in the other country.
Examples: Industry culture manifests itself in credit policy and the environment Business relationships are also effected by culture for example the way in which negotiations take place, a handshake is sufficient in some countries whereas the giving of gifts is expected in others

Organisational
Organisational culture impacts on negotiations with firms, as opposed to individuals. For example, when entering into alliances or arranging takeovers. It is reflected in assumptions that are held by a firm They include: code of ethics, attitude to employees, decision making style
Example : In Asian countries the employer-employee have a more paternal relationship. They are responsible for the welfare of their staff and their family. In Australian society, the employee is a short term commodity. Example: Decision making style in Japan by consensus, in Australia the final decision left with senior managers and imposed.

The Components of Individual Culture

Impact of Culture on International Marketing

Q. So, why is culture important to marketing?

Links back to the Marketing Concept
achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfaction more effectively and efficiently (Kotler)

Culture affects ALL aspects of the Marketing Mix

Price Promotion Place

Product

THE 4Ps AND CULTURAL DIFFERENCES

PRODUCT Names, flavours, aromas, strengths, packaging, labelling, colours PROMOTION Customs, symbols, language and advertising practices PRICE PLACE Marketability of larger sizes Distribution channels may be different
supermarket, hypermarket vs the corner shop

3 ADDITIONAL Ps FOR SERVICE MARKETING: PEOPLE Different attitudes to personal service PROCESSES Different due to cultural requirements PHYSICAL EVIDENCE Appearance and comfort e.g. hotels

Elements of culture
Language Manners and customs Technology and material culture Social institutions Education Values and attitudes Aesthetics Religion

7-11

Role of language in Global Marketing

Important in information gathering and evaluation Provides access to local society Important in company communications Helps interpret contexts than mere words

What is this?
_____ includes time, space, material possessions, friendship patterns, and business agreements. It is more important in high-context than low-context cultures.

Non-verbal language

7-13

Non-verbal communication (NVC) and global marketing

NVC includes
time
Polychronic vs monochronic

space
Personal space and physical space

material possessions friendship patterns

Friends act as social insurance in high context cultures

business agreements
Rushing straight to business Reliance on complex agreements than on friendly handshakes

It is more important in high-context than low-context cultures.

High-context and low-context cultures

High
Is one where what is said only conveys a limited portion of the meaning, which must also be interpreted in terms of how it is being said, where it is being said, and the body language of the speaker Primary purpose is to form and develop relationships Eg. Middle East, Latin America, Asia

Low
Messages are mostly explicit and the words convey most of the meaning in the communication Eg. Anglo-Germanic culture

The contextual continuum of differing cultures

7-16

Non-verbal language and culture: Examples

Italy
-Italians do not hesitate to greet a person they know with an embrace

- They are very animated and like to gesture with their hands
- Personal space is much closer -Queue jumping is not a crime in Italy; they even admire someone who sees an opportunity and takes it!

South Africa -Macho society, handshake on meeting - maintaining eye contact is essential

- talking with hands in pockets is rude

Non-verbal language and culture: Examples

UK

- The English are notoriously Undemonstrative -Stiff upper lip - Backslapping and hugs are discouraged - Lots of personal distance - Eye to eye contact is good for making a point but do not eye ball Someone. - Abhor Americanisms such as have a nice day - If there is a queue go to the end of the line

Sensuality and touch culture in Saudi Arabian versus European advertising

7-20

Verbal language and culture: Examples

Translations Found in Hotels Across the World
Mexico
The manager has personally passed all the water served here.

Norway
Ladies are required not to have children at the bar.

Greece
We will execute customers in strict rotation.

Verbal language and culture: Examples

COORS (Worlds 5th largest beer company) ad slogan TURN IT LOOSE was truly translated into Spanish -- Means suffer from diarrhoea Pepsi's slogan come alive with the Pepsi generation translated into Chinese means " Pepsi brings your ancestors back from the grave One of the brand names of facial tissue Puffs --- means brothels in colloquial German.

Verbal language and culture: Examples

When Kentucky Fried Chicken entered the Chinese market, to their horror they discovered that their slogan "finger lickin' good" came out as "eat your fingers off

The American slogan for Salem cigarettes, "Salem Feeling Free," got translated in the Japanese market into "When smoking Salem, you feel so refreshed that your mind seems to be free and empty.
General Motors had a perplexing problem when they introduced the Chevy Nova in South America. Despite their best efforts, they weren't selling many cars. They finally realized that in Spanish, "nova" means "it won't go". Sales improved dramatically after the car was renamed the "Caribe."

Verbal language and culture: Examples

Ford Pinto in Braziland substituted them with "Corcel," which means horse. When Braniff translated a slogan touting its upholstery, "Fly in Leather," it came out in Spanish as "Fly Naked." The great PARKER pen co. assumed the Spanish word EMBRAZER means to Embarrass and released the pen ad. -- As It wont leak in your pocket and embrazar you actually the meaning of embrazar in Spanish is Pregnancy

the ad has been read as It wont leak in your pocket and make you pregnant

Manners and customs

Changes occurring in manners and customs must be carefully monitored Also important in negotiations- need to read correctly all types of communication Basic customs must be observed by foreign business persons
Usage of left hand to eat is impolite in right-hand societies

Technology and material culture

Technological advancement leads to cultural convergence Technology may help certain cultures
Eg. Polaroid cameras

Social institutions
Business, political and family/class related institutions influence behaviour of people Family relationships influence work environment and employment practices
Eg. Nepotism is a part of business in India

Education
Impact of educational levels on business functions Obstacles in recruiting in Japan:
University graduates join only large and reputed foreign firms as they intend to stay long term in organizations and get stranded when firms wind up mid-way

Values and attitudes

Values and attitudes help determine what we think is right or appropriate, important or desirable. The more rooted values and attitudes are in central beliefs, the more cautious global manager should be
Eg. Barbie dolls

The original Barbie was launched in 1959

Mattel started licensing dolls out to foreign countries as early as 1971. Most of these Dolls are the same as Their American counterparts

The first Vintage Barbie Dolls were released in 1959

Vintage Barbie 1960

Miss America Dolls

Vintage Barbie 1963-64

Vintage Barbie 1965 - 66

Barbie 1967

Vintage Barbie 1969 1970

Barbie 1971

2010 Holiday Barbie Doll

1993 Filipina Barbie

Spain 10th Anniversary Barbie

De Moda from Venezuela

Wet and Wild Withney from Venezuela.

Mexican Steffie faced Barbie clone

Japan Barbie

Passeio Viky from Brazil

an Argentinan Rock Star Barbie

China Barbie

Barbie of SPAIN

Sumatra Indonesia Barbie

INDIAN BARBIE DOLLS

INDIAN BARBIE DOLLS

WORLD OF INDIAN BARBIE AND DOLLS

BARBIE-RAJASTHANI
INDIAN FESTIVAL FUN BARBIE

BARBIE PUNJABI
INDIAN CLOTHING

Swapna Sundari Barbie, part of the Expressions of India series

INDIAN WEDDING FANTASY

BARBIE IN BLACK DRESS

INDIAN BARBIE IN YELLOW

Fulla doll in Islamic countries

Thank you