Chapter 4 Social and Cultural Environments

1. Chapter 4Social and Cultural Environments

2. Task of Global Marketers • Study and understand the country cultures in which they will be doing business • Incorporate this understanding into the marketing planning process

3. Introduction “It is not just speaking a common language. It is sharing a culture and understanding friendships in the same way” Juan Villanonga – Former Chairman of Telefonica

4. Society, Culture, and Global Consumer Culture • Culture – Ways of living, built up by a group of human beings, that are transmitted from one generation to another • Culture is acted out in social institutions • Culture has both conscious and unconscious values, ideas and attitudes • Culture is both material and nonmaterial

5. 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

6. Society, Culture, and Global Consumer Culture • Global consumer cultures are emerging • Persons who share meaningful sets of consumption-related symbols • Pop culture; coffee culture; fast-food culture • Primary the product of an interconnected world

7. Attitudes, Beliefs and Values • Attitudes - learned tendency to respond in a consistent way to a given object or entity • Belief - an organized pattern of knowledge that an individual holds to be true about the world • Value - enduring belief or feeling that a specific mode of conduct is personally or socially preferable to another mode of conduct

8. Religion Religion is one important source of society’s beliefs, attitudes, and values. The world’s major religions include: Buddhism, Hinduism, Islam, Judaism, and Christianity.

9. Religion

10. The sense of what is beautiful and what 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 example are perceived differently around the world Aesthetics

11. Dietary Preferences • Would you eat….. • Reindeer (Finland) • Rabbit (France) • Rice, soup, and grilled fish for breakfast (Japan) • Kimchi - Korea • Blood sausage (Germany)

12. Language and Communication

13. Language and Communication • Verbal Cues • Nonverbal cues or body language

14. Marketing’s Impact on Culture • Universal aspects of the cultural environment represent opportunities to standardize elements of a marketing program • Improved communications have contributed to a convergence of tastes and preferences in a number of product categories

15. Marketing’s Impact on Culture • Movement has 70,000 members in 35 countries • “Slow food is about the idea that things should not taste the same everywhere.”

16. Examples of Cultural Environment Low-Context Cultures –_____Messages, Contract 1. U.S. 2. Germany High-Context cultures – Non-verbal Messages __________ 1. Asia 2. Latin America 3. Middle East

17. High and Low Context Cultures Factors / Dimensions Low Context High Context Lawyers A person’s word Responsibility fororganizational error Negotiations Examples: ______important Is his or her bond Taken by top level __________ JapanMiddle East Very important Get it in writing Pushed to lowest level Proceed quickly U.S.A.Northern Europe

18. Hofstede’s Cultural Typology • ______________________ • ______________________ • ______________________ • ______________________ • Long-term Orientation

19. Hofstede’s Cultural Typology ______________ The extent to which less powerful members of a society accept power to be distributed unequally High Low Germany Austria Netherlands Hong Kong France

20. Hofstede’s Cultural Typology _____________ The extent to which each member of society is primarily concerned with his or her own interest and those of immediate family High Low Japanese Asian Countries USA Europe

21. Hofstede’s Cultural Typology _____________ A society in which men are expected to be assertive, competitive and concerned with success and women are concerned with the welfare of children High Low Taiwan Spain Japan Austria

22. Hofstede’s Cultural Typology ___________________ The extent to which the members of a society are uncomfortable with unclear, ambiguous, or unstructured Situations. High Low Southeast Asia India Latin America Greece Portugal

23. Hofstede’s Cultural Typology • Power Distance USA 38 • Individualism / Collectivism USA 1 • Masculinity USA 15 • Uncertainty Avoidance USA 43 • Long-term Orientation http://www.safarix.com/0131469193/ch04lev1sec3 Keegan P135

24. Self-Reference Criterion and Perception • Unconscious reference to one’s own cultural values; creates cultural myopia • How to Reduce Cultural Myopia: • Define the problem or goal in terms of home country cultural traits • Define the problem in terms of host-country cultural traits; make no value judgments • Isolate the SRC influence and examine it • Redefine the problem without the SRC influence and solve

25. Diffusion Theory • The Adoption Process • Characteristics of Innovations • Categories of Adopters

26. Marketing Implications • The topics in this chapter must be considered when formulating a global marketing plan • Environmental Sensitivity reflects the extent to which products must be adapted to the culture-specific needs of different national markets

27. Environmental Sensitivity

28. Looking Ahead to Chapter 5 The Political, Legal, and Regulatory Environments of Global Marketing

29. Social Institutions • Family • Education • Religion • Government • Business • These institutions function to reinforce cultural norms Return

30. Physical components of culture Objects Artifacts Clothing Tools Pictures Homes Subjective or abstract culture Religion Perceptions Attitudes Beliefs Values Material and Nonmaterial Return

31. What do you associate with Red? Active, hot, vibrant Weddings in some Asian cultures Poorly received in African countries With white? Purity, cleanliness Death in parts of Asia Aesthetics and Color Return

32. Phonology in action • Colgate is a Spanish command that means ‘go hang yourself’ • Technology implications for Text messages • 8282 means ‘hurry up’ (Korea) • 7170 means ‘close friend’ (Korea) • 4 5683 968 means ‘I Love You’ (Korea) Return

33. 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 Return

34. Characteristics of Innovations • Innovation is something new, five factors that affect the rate at which innovations are adopted include • Relative advantage • Compatibility • Complexity • Divisibility • Communicability Return

35. Categories of Adopters • Classifications of individuals within a market on the basis of their innovativeness. • Five categories • Innovators • Early Adopters • Early majority • Late majority • Laggards

36. Categories of Adopters Return