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International Marketing

International Marketing Tim Beal Lecture 6 18 August 2006 TODAY Where we’re at Housekeeping Culture Country study: India Where we’re at Been looking at aspects of the international marketing environment Don’t forget that diagram Economic, political, social and technological aspects

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International Marketing

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  1. International Marketing Tim Beal Lecture 6 18 August 2006

  2. TODAY • Where we’re at • Housekeeping • Culture • Country study: India

  3. Where we’re at • Been looking at aspects of the international marketing environment • Don’t forget that diagram • Economic, political, social and technological aspects • Last week –Services and specifically education • Research project • Country study: Japan

  4. HOUSEKEEPING • Wine assignment due today • Box on mezzanine floor • Top left corner • If late, hand in to office • Don’t forget • Name • Tutor • Tutorial

  5. CULTURE • What is culture? • Categories of cultures • Why is important for international marketing? • Role of language • What are the implications of culture?

  6. What is culture? • Many definitions • the set of values, assumptions and beliefs shared in common by a group

  7. Definition • values • prestige? Money? Respect of parents, peers, boss?… • Assumptions • time appointment at 5 means 5, or 5-6, during evening • Beliefs • 4 is an unlucky number, white is symbol of purity…death

  8. Boundaries of culture • Boundaries are fuzzy • Sometimes conterminous with country • Samoa, Japan.. • NZ Samoans? • Many countries are multicultural • Strong linkage with language • Chinese, German • What about English?

  9. Culture only part of story • Class • Ethnic background • Religion • Gender

  10. Class • Rich tend to be more ‘cosmopolitan’ • May have more in common with rich of other cultures than poor of own

  11. Ethnic background • Lots of people are members of multiple cultures • eg Americans - Afro-Americans, Asian-Americans, Hispanics, WASPS • WASP • white Anglo-Saxon protestants • New Zealand • Maori, Pakeha, Asian, Islander ..all NZ

  12. Religion • Nationality no longer much guide to religion • Only small % of Moslems are Arabs • Fastest growing religion • Christians strong in Africa, South Korea... • Christianity was ‘’white, European’ soon most ‘non-white, non-European’

  13. Multiple groups - multiple cultures • Cultural studies started with small, relatively isolated cultures • Pacific islands (Margaret Meade in Samoa) • IM deals with customers subject to diffuse and complex cultural influences • Multiple layers of culture • eg Chinese NZer, Jewish American… • Mixed ethnicity

  14. Change • Culture changes • affected by other cultures • American values strong influence in IM • Contact with foreigners • Education • Marketing

  15. Categorising cultures • Hofstede’s four primary dimensions • Hall’s High and Low context cultures

  16. Hofstede • Individualism - collective • Power distance • social inequality • Uncertainty avoidance • tolerance of ambiguity • Masculinity/femininity • assertiveness….caring for others • Later added ‘Confucian dynamism’

  17. High context - low context cultures • Analysis originated by Hall • Relative importance of spoken and silent languages • the more important the silent, the higher the context

  18. low and high • Low context • rely on spoken and written language for meaning • high context • use and interpret more of the elements surrounding explicit message • Swiss, Germans, ..US..Brits...Italians...Arabs...Japanese

  19. Japanese • Japanese language varies with age, sex and social position of speaker and listener • same sentence will vary depending on- • boy with boy • woman with woman • child to parent • junior to senior or superior

  20. Language • Strong connection between language and culture • Spoken (written; explicit) • Silent (understood)

  21. Languages in IM (I) • Some countries have one official language • England, France, Germany, Japan • Some have two • Wales, Canada, Belgium, NZ • Some have three or more • Switzerland, China, Russia

  22. Languages in IM (II) • Difference between spoken and written language • most marked with Chinese • separation between written and spoken language • also a factor in English • UK, USA have strong regional dialects that are not reflected in standard written language • could be an issue in TV adverts

  23. Languages in IM (III) • Official status may be important • reflection of large number of speakers • legal requirements (eg Canada) • Official status may reflect political situation rather than commercial realities • Welsh, Maori, Irish

  24. Who speaks what? • First language (mother tongue) • Chinese 1000 • English 350 • Spanish 250 • Bahasa Indonesia 225 • Hindi 200 • Arabic 150 • Bengali 150

  25. International languages • English is main business language • Used as lingua franca • often ‘second best’ • not mother tongue of either person • may mask miscommunication • English now comes in many forms • American, British, Indian, Singapore... • Importance of global English • Avoid slang

  26. English as international language • Challenged by • German (Eastern Europe, Turkey) • Spanish • Chinese (Pacific Asia) • Hindi (India) • vernacular renaissance • Vernacular websites

  27. Danger of using English • May mask substantial differences in business practice and culture • May give English native speaker false sense of superiority and security

  28. Problems of translation • Translation is a skilled business • In general, translation should be done INTO mother tongue • Need to verify translations • Cultural nuances can be crucial • More from Ken Muramatsu • 29 September

  29. Silent language • non-verbal communication • what actions, signs and symbols communicate • Hall claims that 90% of message in high-context cultures is communicated silently

  30. Aspects of silent language (I) • Time • importance of being ‘on time’ varies • Space • distance between people • Things • material possessions. Flaunting wealth

  31. Aspects of silent language (I) • Friendship • importance of personal relationships differ • Agreements • based on laws or informal customs? • Contract • US, NZ..contract result of negotiation and fixes relationship • China, Japan, etc. contract’ is beginning of relationship • Self-reference criterion • Automatically refer to our own cultural values • Need to step aside and identify cultural aspect

  32. James Lee - 4 step approach • Define problem/goal in own cultural traits, habits norms • Define in foreign terms • Isolate the SRC aspect • Redefine the problem

  33. Cultural sensitivity • Some goods and services are more sensitive to culture than others • Closer to religious and family practices less likely to be changed by marketing

  34. Examples • Food and drink often culturally sensitive • eg forbidden foods such as pork, beef, dog • Korea, dogs • Two articles on links page under culture • Four Eateries That Make a Delight of Sheep • Dog Meat Still Hot Potato in Korea • manufactures less culturally sensitive • TV, cars, etc

  35. Cross-cultural analysis (I) • Determine relevant motivations • what needs are fulfilled? • Determine behaviour patterns • how frequently are these products purchased? • Determine what cultural values are relevant to product • is product in conflict with cultural values?

  36. Cross-cultural analysis (II) • Decision-making • who makes decisions? consensus? autocratic? • Determine appropriate promotion • what is valued? what is taboo? • eg dogs in Islamic cultures (NZ education video) • Determine appropriate distribution • What is available, what is expected?

  37. Culture and communication • Humour often doesn’t carry over cultural boundaries • Attitudes towards sex vary • Humour and/or sex are key components of advertising and communication • Example: this ad works in India and NZ, not in China or Pakistan. Why?

  38. Culture and IM • Don’t assume anything • Every aspect of marketing mix must be re-examined • Utilise members of target culture • But don’t assume that they are typical

  39. INDIA • Geography and history • Social profile • History and Liberalisation • Aspects of Indian market • Readings

  40. large area - 3.2 million sq kms Large population: 984 million Compared to NZ, US, China? Geography

  41. Compared to NZ

  42. India comparable to China in area and population Will overtake China as world’s largest country soon Compare statistics and attributes Read ‘Asian Titans’ for more on this India vs China

  43. China 92% Han Use same written Chinese India more diverse Indo-Aryan 72% Dravidian 25% result of successive invasions from North Languages and ethnicity

  44. Hindi (National, 30%) 14 Official languages: Bengali, Telugu, Marathi, Tamil, Urdu, Gujarati, Punjabi..... Unofficial: Hindustani (variant of Hindi/Urdu) common in north also further 24 spoken by 1 million plus Numerous other languages and dialects Indian languages

  45. English - ‘associate status’ but widely used in commerce and as ‘lingua franca’ Indian English is different Legitimate Much of best writing in English comes from India English

  46. China: 82% India: 52% Gender imbalance worse than China Literacy

  47. Gender and literacy

  48. Life expectancy and growth

  49. Differences in age structure of population Result?

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