Global Marketing Management Global Cultural Environment

1. Global Marketing ManagementGlobal Cultural Environment MKTG 3215-001 Spring 2013 Mrs. Tamara L. Cohen Class # 3

2. Elevator Speech Have you signed up yet? If not, please do so after class today, or check the sign-up list on my web site, and let me know via email which of the open spots you would like. This is worth 10% of your Participation grade.

3. Let’s look ahead . . . Group Project • Project Proposal due on Wednesday, Feb.13 • Start thinking: • Choose your group 5 students in each group • Choose your country 1 group per country • Choose your product / brand - NOT marketed in that country yet - real or imagined • Let me know - your group, country, product / brand

4. Reading for this class: Reading #5: Bribery Homework: Knife and Fork exercise Global Cultural Environment

5. KEY TERMS Culture= sum of values, rituals, symbols, beliefs, & thought processes that are learned, shared by group of people, & transmitted from generation to generation. Cultural borrowing= phenomenon by which societies learn from other cultures, and borrow ideas to solve problems or improve conditions Cultural sensitivity= awareness of nuances of culture so it can be viewed objectively, evaluated & appreciated

6. KEY CONCEPTS • Why history is important • Why & how geographyis important • Importance of population profiles • Importance of culture • Origins & elements of cultures

7. History helps define a nation’s mission perception of neighbors perception of itself Insights into history are important to understand current attitudes & culture History is subjective - biases & self reference criteria (SRC) HistoryPerspective in Global Business

8. U.S. Intervention in Latin America since 1945

9. History, Political Economy, & Technology • History • impact of specific events reflected in technology, social institutions, cultural values, consumer behavior e.g. tobacco original source of Virginia colony’s economic survival in 1600s • Political Economy • 4 approaches to governance competed for world dominance: • Colonialism • Fascism • Communism • Democracy / free enterprise • Technology • jet aircraft, A/C, TVs, computers, Internet, etc. • most important = birth control pill ? ? a ? ?

10. World Trade Routes • Progression of trade routes • overland • sea routes • air routes • the Internet • Trade routes bind the world together, minimizing: • distance • natural barriers • lack of resources • fundamental differences between people & economies • Trade routes represent attempts to overcome influence of geography • causing economic & social imbalances

11. Geography • Profound effect on culture & economy • includes climate, topography, flora, fauna, & microbiology • influenced history, technology, economics, social institutions & ways of thinking • Great cities of the world • why are most of them in cold climates? • why are most in Northern hemisphere?

12. Climate affects lives • Food we eat • Energy we use • Homes we live in • Means of transportation • How we spend our leisure time • Health & diseases

13. Bicycles around the world USA Africa India Nether-lands

14. Geography, Nature & Economic Growth • Poorest countries suffer most from disasters. • As countries prosper, natural barriers are overcome • Environmental issues • disruption of ecosystems • relocation of people • inadequate hazardous waste management • industrial pollution

15. HAITI • Jan.12, 2010 • 7.0 Mw earthquake + tsunami • 1 million people made homeless • 316,000 people died • JAPAN • Mar.10, 2011 • 9.0 Mw earthquake + tsunami • 430,000 people made homeless • 10,000 people died

16. Social Responsibility & Environmental Management • Environmental protection is NOT an optional extra • Pollution is on verge of getting completely out of control • China has 16 of world’s 20 most polluted cities • Critical issue: disposal of hazardous waste • Sustainable development • Some countries prioritize environmental care

17. This photograph taken by NASA satellite over a 24 hour time span, so as to capture the view of earth at night from space in every time zone. It shows quite dramatically the global spread of industrialization, as evidenced by the lights of human civilization. Note the Nile River Delta, the Siberian Express railway route, the Australian coastal cities, and Africa, Literally “the dark continent”.

18. World Population map

19. Global population trends determine today’s demand for goods rural / urban population shifts rates of growth age levels population control Changes in population will profoundly affect future demand Most important deterrent to population control is cultural attitudes about importance of large families Dynamics of Population Trends

20. Rural / Urban Migration Result of a desire for greater access to: • sources of education • health care • improved job opportunities

21. Population Decline & Aging • Population growth in many countries has dropped below the rate necessary to maintain present levels. • A nation needs a fertility rate of about 2.1 children per woman to maintain population. • Not one major developed country has sufficient internal population growth to maintain itself.

22. The cost of health care around the world • USA spends more on medical care per person than any country, yet life expect- ancy is shorter than in most other developed nations and many developing ones. • “More care does not necessarily mean better care.”

23. Age Density for World and Selected Countries

24. Free flow of immigration will help to relieve dual problems of explosive population expansion in less-developed countries & worker shortage in industrialized regions Europe will need 1.4 billion immigrants over next 50 years Japan & U.S. will need 600 million immigrants between now & 2050 Worker Shortage & Immigration

25. Why is culture such a big deal? • Culture deals with a group’s design for living • Cultureis society’s accepted basis for responding to external & internal events • Culture determines consumption: • how & how much people consume • priorities of needs & wants • ways of satisfying those needs & wants • Culture is pervasive • Geert Hofstede: “culture is the software of the mind” – how humans think & behave

26. Origins of Culture • Humans make adaptations to changing environments through innovation • Individuals learn culture from social institutions by • socialization (growing up) • acculturation (adjusting to new culture) • imitation (role modeling) • application (decisions about consumption & production)

27. Social Institutions • Family • nepotism • role of extended family • favoritism of boys in some cultures • Religion • 1st institution infants exposed to outside home • impact of values systems • misunderstanding of beliefs • School • affects all aspects of culture, from economic development to consumer behavior • no country successful economically with < 50% literacy

28. moreSocial Institutions • Media • - media time replaces family time • - TV • - Internet • Government • - influences thinking & behaviors of adult citizens • - propaganda • - passage, promulgation, promotion & enforcement of laws • Corporations • - most innovations introduced to societies by companies • - spread through media • - change agents

29. Elements of Culture • Rituals • weddings • funerals • Symbols • language • linguistic distance • aesthetics as symbols • insensitivity to aesthetic values can offend, create negative impression, can render marketing efforts ineffective or damaging • Beliefs • making light of superstitions in other cultures can be expensive mistake • Thought processes • difference in perception • focus vs. big-picture

30. Cultural Knowledge Factual knowledge • has meaning as straightforward fact about a culture • assumes additional significance when interpreted within context of culture • needs to be learned Interpretive knowledge • requires degree of insight that may best be described as a feeling • most dependent on past experience for interpretation • most frequently prone to misinterpretation • requires consultation & cooperation with bilingual natives with marketing backgrounds

31. Cultural Sensitivity & Tolerance • Become attuned to nuances of culture so new culture can be viewed objectively, evaluated & appreciated • cultures not right or wrong, better or worse, justDIFFERENT • more exotic situation need for more sensitivity, tolerance, & flexibility

32. use metaphors have system of status & roles ethnocentric create art conceive of success & failure create groups antagonistic to outsiders imitate outside influences resist outside influences consider aspects of sexuality private express emotions with face use mood-altering drugs overestimate objectivity of thought fear snakes reciprocate recognize economic obligations in exchanges of goods & services trade & transport goods Human Universals – Myth of Diversity

33. Similarities – An Illusion • Common language does not guarantee similar interpretation of words or phrases • may cause lack of understanding because of apparent & assumed similarities • Just because something sells in one country doesn’t mean it will sell in another • cultural differences among members of European Union derive from centuries of history & common Christian heritage

34. Cultural Borrowing = effort to learn from others’ cultural ways in quest for better solutions to a society’s particular problems • imitating diversity of others makes cultures unique (e.g. foods of other cultures) • contact can make cultures grow closer or further apart • Habits, foods & customs are adapted to fit each society’s needs

35. Resistance to Change Gradual cultural growth does not occur without some resistance • new methods, ideas & products held to be suspect before accepted, if ever e.g. Resistance to genetically modified (GM) foods • resisted by Europeans • consumed by Asians • not even labeled in U.S. until 2000

36. Lost in Translation Anthropologist Edward T. Hall tells us that culture is communication. He talks about languages of time, space, things, friendships & agreements. Learning to interpret correctly symbols around us is key part of socialization. Cultural interpretation is essential for all successful multicultural communications. Efforts to span cultures without local input often backfire. Language is KEY!

37. Pepsi's "Come Alive With the Pepsi Generation" translated into "Pepsi Brings Your Ancestors Back From the Grave" in Chinese. Coca-Cola, Ke-ke-ken-la, Ko-kou-ko-le Coca-Cola’s name in China was first rendered as Ke-ke-ken-la. Unfortunately, Coke company did not discover until after thousands of signs printed that phrase means "bite the wax tadpole" or "female horse stuffed with wax" depending on dialect. Coke then researched 40,000 Chinese characters and found a close phonetic equivalent, "ko-kou-ko-le," loosely translated as "happiness in the mouth." Frank Perdue's chicken slogan, "It takes a strong man to make a tender chicken" was translated into Spanish as "it takes an aroused man to make a chicken affectionate." Dairy Association's huge success with "Got Milk?" campaign prompted them to expand advertising to Mexico. Soon brought to their attention that Spanish translation read "Are you lactating?"

38. She’s dressed to kill ?

39. What do we know about the Global Cultural Environment? • Origins & Elements of culture Geography, history, political economy, technology, social institutions Values, rituals, symbols, beliefs, ways of thinking • Cultural sensitivity / empathy / interpretation / tolerance / distinctions / borrowing • Language challenges in foreign marketing • Impact of geography & history on culture • Of all tools foreign marketer must have, those that help generate empathy for another culture are most valuable.

40. Next class: Multinational Negotiations Preparation: Course Pack - Reading #2 Homework: #2 the art of woo