Macroeconomics and Marketing

Slide 1.
Marketing
Across
Cultures
Chapter 1
The cultural process
Usunier and Lee, Marketing Across Cultures PowerPoints on the Web, 6th edition © Pearson Education Limited 2013
Slide 1.2
Course overview
Understanding the • The cultural process
cultural variable • Time and space
Chapters 1–4 • Interactions, mindsets and behaviour
Understanding • Cross-cultural consumer behaviour

Consumption • Local consumers and global consumption
Chapters 5–7 • Cross-cultural marketing research
Making global
• Global marketing strategy
marketing decisions
• Product
Chapters 8–14 • Price
• Distribution and sales
• Communications
Slide 1.3
Cultural definitions
 Culture is the link between individuals and societies:
 Learned behaviour and results of behaviour shared and
transmitted by the members of a particular society. Linton,
1945
 Societal solutions to common universal problems:

 All solutions are present in all societies at all times, but
they are differentially preferred. Kluckhohn and Strodtbeck, 1961
 Useful to, but not a characteristic of, individuals:
 Culture is a set of beliefs or standards (control
mechanisms), shared by a group of people, which help the
individual decide what is, what can be, how to feel, what to
do and how to go about doing it. Goodenough, 1971
Slide 1.4
Operational culture
 Cultural frame: A set of  Frame-switching
shared beliefs to help  Assumes individuals
individuals decide the can choose the
unwritten rules as to ‘culture’ in which to
 What is? interact at any given
moment or in a give
 What can be?
situation.
 How to feel?
 Bi-nationals, multi-
 What to do? linguals, national and
 How to do it? sub-cultural (including
professional and
Goodenough (1971) corporate culture)
Slide 1.5
Culture is the sum of its elements

Inter-related aspects: Directions for use
 Knowledge  Ready to eat?
 Beliefs  palatable
 Values  admissible
 Arts  ethical
 magical
 Laws
 religious
 Manners
 hygienic
 Morals
 taboo
 Skills  raw material
 Habits  preparation
 habitual
(see Box 1.2)
Slide 1.6
The ‘contents’ of culture: the Iceberg Analogy

Explicit
Behaviours Language
(verbal – non-verbal)
Everyday behaviours
(habits and traditions in all domains of human activity: food, housing,
dressing, medicine, hygiene, management…)
The know-hows
(from communication codes to the use of tools, artefacts, arts…)
Institutions
(Collective forms of organization: family, education, businesses,
associations, clubs, government, religion, justice…)
Social Norms
(‘do's and dont's’)
Values
(general concepts describing desired behaviours or purposes of life
that guide behaviours and evaluation of situations, and are ranked by
order of decreasing importance)
Mental states and cognitive processes
(perception, learning, memory, knowledge, affect…)
Myths, beliefs and basic assumptions
(about nature, other human beings, animals, power distribution,
uncertainty, life after life, activity, emotions, time, space…)
Implicit
Behaviours
Slide 1.7
Four major elements of culture

 Language and communication
 Institutions
 Material productions
 Symbolic productions.
Malinowski (1944)
Slide 1.8
1. Language and communication

 Primary mechanism to convey and share
information
 Includes both explicit and implicit elements
 Approximately 6000 languages!
 389 are spoken by more than 1 million people.
Slide 1.9
2. Institutions organize people

Based on:
 Reproduction (e.g. blood and marriage)
 Territoriality (e.g. neighbourhoods)
 Physiological (e.g. sex, age)
 Spontaneous (e.g. common interests/goals)
 Occupational (e.g. expertise)
 Hierarchy (e.g. status and rank)
 Totality (e.g. political processes).
Malinowski (1944)
Slide 1.10
3. Material productions
(inputs and outputs)
 Transmit, reproduce, update and improve
knowledge and skills.
 Primary material productions include:
 Artistic (e.g. music, art)
 Intellectual (e.g. books)
 Physical (e.g. buildings, tools, products)
 Service (e.g. education, media, banks).
Slide 1.11
4. Symbolic and sacred productions

 Religious/moral beliefs
 Life after death?
 Symbol conveys more than the object
 (e.g., road signs, wedding rings, skull and
crossbones)
 Symbolic meaning in many things
 (e.g., colour, shape, labels, brands, numbers)
 Quick understanding
Slide 1.12
Interpreting symbols
 7 is bad luck in Kenya.
 7 is good luck in the Czech Republic.
 7 is magical in Benin and Africa.
 10 is bad luck in Korea.
 4 is related to death in Japan.
 Red represents witchcraft and death in many
African countries, but is a positive in Denmark.
 Avoid triangular shapes in Hong Kong, Korea
and Taiwan.
 It is a negative shape.
SOURCE: Business America, July 12, 1993
Slide 1.13
Sources of Culture
Figure 1.1 Sources of culture
Slide 1.14
What use is culture?

 Provides a set of beliefs and standards
 What to do and how to do it correctly
 What is palatable, admissible, ethical, magical,
religious, hygienic, quality, etc.
 When it is time to sleep, to eat, to work, etc.
 Mindsets or mental maps guide behaviour
 Prejudices and stereotypes: what, why and how
 Ethnocentric behaviours.
Slide 1.15
Functions of culture
 Communication codes
 Long-term survival
 Synchronization of behaviours
 explicit – implicit
 ‘Best way’ for doing or not doing things (‘pools
of knowledge’)
 Identity (ingroups versus outgroups)
 Vision of the world (Weltanschauung)
 strongly related to deep-seated assumptions in
particular languages.
Slide 1.16
Tiger Mother (Chua, 2011)

 Daughters never allowed to:
 attend a sleepover;
 have a playdate;
 be in a school play or complain about not being in it;
 watch TV or play computer games;
 choose their own extracurricular activities;
 get any grade less than an A;
 not be No. 1 student in every subject except gym and
drama;
 play any instrument other than the piano or violin;
 not play the piano or violin.
Slide 1.17
Stereotypes: Heaven and hell

Cooks – French Cooks – British
Mechanics – German Mechanics – French
Police – British Police – Germans
Organize – Swiss Organize – Italian
Slide 1.18
Stereotypes of the French

Germans
 Pretentious, offhanded, fashionable, womanizing, frivolous, well-
mannered
British
 Nationalistic, chauvinistic, polite, humourless
Dutch
 Cultured, good living, talkative
Spanish
 Pretentious, early sleepers, cold and distant, impolite, hardworking
Swedish
 Superiority complex, boastful, immoral, disorganized, hierarchy
Americans
 Chauvinistic, well-mannered, curious, pleasant, pretentious, intelligent
Asians
 Exhibitionist, indiscreet, bureaucratic
Slide 1.19
More stereotypes
 ‘The Australia I know is, on the whole, happy, hard-working,
easy-going, kind, practical and ready for a laugh. But the one I
read about, or see in films, is usually racist, dull, cruel, shrunken
in spirit and grim’. Andrew Bolt – Journalist
 In China, the website www.index-china.com describes Chinese
people as:
‘peaceful, hardworking and easily contented. They respect
elders, love children and are patient with their fellows.
Chinese in general are reserve and humble. They believe
in harmony and never look for confrontation’.
 The Italians self-stereotype themselves as having great style.
 The French as having elegance.
 The Japanese as being hard workers.
 The Spanish as being lovers of life.
http://www.convictcreations.com/research/australianstereotypes.html
Slide 1.20
Homogeneity cultures & subcultures

 Linguistic
 e.g., Mandarin, Cantonese; French, English
 Religious
 e.g., Muslim, Christian, Agnostic
 Ethnic origin
 e.g., Chinese Malay
 Climatic
 Cold, hot; north south
 Geographical
 Regions
 Institutional & political
 Liberal, conservative
 Social/income
 Poor, wealthy
 Education and expertise
Slide 1.21
Ethnocentrism Racism
 Belief in superiority of own  Believe some humans are
culture; tendency to see own inferior (intelligence, creative
culture as the centre, and ability, moral sense...)
measure others by it because of their race
Cultural hostility
Self-referencing  Does not necessarily imply
 Judge others according to our racism
own normative standards  Cultural differences
 Territorial conflicts
 Economic competition
Slide 1.22
Eliminating self-reference criteria bias

1. Define the problem or objectives
 According to customs and standards home
 According to customs and standards host.
2. Isolate the influence of SRC and identify the
extent it complicates the problem.
3. Redefine the problem without SRC bias and find
the solutions to fit the cultural context.
Slide 1.23
Management Orientations
• Ethnocentric Orientation
– Home country is superior to others
– Sees only similarities in other countries
– Assumes products and practices that succeed at

home will be successful everywhere
– Leads to a standardized or extension approach
Slide 1.24
 Polycentric Orientation
 Each country is unique
 Each subsidiary develops its own unique business

and marketing strategies
 Often referred to as multinational
 Leads to a localized or adaptation approach that

assumes products must be adapted to local market
conditions
Slide 1.25
• Regiocentric Orientation
– A region is the relevant geographic unit

• Ex: The NAFTA or European Union market
– Some companies serve markets throughout the world
but on a regional basis
• Ex: General Motors had four regions for decades
European Union
Slide 1.26
 Geocentric Orientation
 Entire world is a potential market
 Strives for integrated global strategies
 Also known as a global or transnational company
 Retains an association with the headquarters country
 Pursues serving world markets from a single country
or sources globally to focus on select country markets
 Leads to a combination of extension and adaptation
elements
Slide 1.27
Discussion questions

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Slide 1.

Understanding • Cross-cultural consumer behaviour

 Societal solutions to common universal problems:

Culture is the sum of its elements

The ‘contents’ of culture: the Iceberg Analogy

Four major elements of culture

1. Language and communication

2. Institutions organize people

4. Symbolic and sacred productions

Figure 1.1 Sources of culture

What use is culture?

Tiger Mother (Chua, 2011)

Stereotypes: Heaven and hell

Stereotypes of the French

Homogeneity cultures & subcultures

Eliminating self-reference criteria bias

– Home country is superior to others

– Sees only similarities in other countries

– Assumes products and practices that succeed at

– Leads to a standardized or extension approach

 Each subsidiary develops its own unique business

 Often referred to as multinational

 Leads to a localized or adaptation approach that

– A region is the relevant geographic unit

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