Transcript The Cultural Environment

Session 5 & 6
Dr. Bikramjit Rishi
The Cultural Environment
Key Learning's
• How the cultural environment will affect
the international marketing.
• Define culture and name some of its
elements.
• What cultural adaptation is and its
relevance in international marketing.
• Role religion plays in formation of culture
and how it affects international marketing.
Think……….
• Govt. of India raised permitted levels of the flavour
Monosodium Glutamate in Dec. 1995. The decision came
after a Bangalore court closed a Kentucky Fried Chicken
outlet because its food exceeded legal limits for the
additive.
• Saudi Arabia has the world’s highest per capita
consumption of Fragrance. Guy Laroche (French Brand)
toned down the sensuality its ads in S.A. market. The
European Ad shown a man’s hand clutching the perfume
bottle and a woman hand seizing his forearm. In the
S.A. version the man’s arm is clothed in a dark jacket
sleeve and the woman is touching the man’s hand only
with fingertip.
• During
the past 30 years Polaroid’s instant
photography has been largely responsible for breaking
down taboos against picture taking in Muslim
countries.
• P & G launched Biomat laundry detergent in Israel, it
found orthodox Jews (15% of the population) a
challenge since they do not have TV. Focused on the
segment’s core belief that they should aid those less
fortunate.
• Chinese Believe that one should build the relationship
first and if that is successful, transactions will follow.
The GUANXI is a set of exchanges of favours to
establish trust.
Success and Culture
An understanding of cultural
differences allows marketers to
determine when adaptation
may be necessary and when
products allow for regional or
global approaches.
Defining Culture
• An integrated system of learned
behavior
patterns
that
are
distinguishing characteristics of the
members of any given society.
• The definition encompasses a wide
variety
of
elements,
from
materialistic to the spiritual.
Acculturation
• Adjusting or adapting to a specific culture
other than one’s own … and “one of the
keys to success in international marketing.
Context Cultures
• High-context culture
•
– is where the social context in which what is said
strongly affects the meaning of the message.
(what is not said carry more meaning)
– Examples: Japan and Saudi Arabia
Low-context culture
– is where the meaning of the message is explicitly
expressed by the words and is less affected by the
social context.
– Example: North America
Elements of Culture
Elements
Language
• verbal
• non-verbal
Religion
Values and Attitudes
Manners and Customs
Material Elements
Aesthetics
Education
Social Institutions
Language
• Verbal
– How words are spoken.
– Gestures made.
– Body position assumed.
– Degree of eye contact.
• Local language capability’s
important role in international marketing
– Aids in information gathering and evaluation.
– Provides access to local society.
– Important to company communications.
– Allows for interpretation of contexts.
Nonverbal Language
• Hidden language of cultures
– Time flexibility and sensibility.
– Social acquaintance and rapport.
– Personal physical space and personal
touching.
– Non-verbal gestures and signaling.
The Imperative To Be Multinational
• Today the issue is generally not whether to
•
market a brand in other countries but rather how
to do it (e.g., the same product, the same “global”
advertising campaign, or “tailored” products and
localized ads for each country).
This challenge has been given special meaning by
the efforts of the European Union (EU) to forming
a single market.
– It is unclear whether this diverse market will
be transformed into a single market of
homogeneous “Euro-consumers” with the same
or very similar wants and needs.
– Many people hope that the introduction of the
“euro” as a common currency among a number
of EU members will help shape Europe into a
huge, powerful, single market.
Cross-Cultural Consumer
Analysis
Time Effects
•
–
–
•
–
–
•
The pace of life differs from one nation to another.
The average children’s birthday party in the United States lasts approximately
two hours.
Brazilians are willing to wait a little more than two hours for a late arriver to
show up at a birthday party.
How time is spent on the job is also an issue that varies from country to
country.
In the United States., about 80 percent of work time is spent on the task, and
perhaps 20 percent is used for social activities.
But in countries like India and Nepal, the balance is closer to 50 percent on
each; and in Japan, social time, such as having tea with peers in the middle of
the day, is considered to be a part of work.
Research on pace of life in 31 countries (basing overall pace on how
long pedestrians take to walk 60 feet, the minutes it takes a postal clerk
to complete a stamp-purchase transaction, and the accuracy of public
clocks) reveals substantial cross-cultural differences. Switzerland has
the fastest pace of life; Mexico has the slowest pace of life.
Table: Basic Research Issues in Cross-Cultural Analysis
FACTORS
EXAMPLES
Differences in language and meaning
Words or concepts may not mean the same
in two different countries.
Differences in market segmentation
opportunities
The income, social class, age, and sex of
target customers may differ dramatically in
two different countries.
Differences in consumption patterns
Two countries may differ substantially in
the level of consumption or use of products
or services.
Differences in the perceived benefits of
products and services
Two nations may use or consume the same
product in very different ways.
Table: continued
FACTORS
EXAMPLES
Differences in the criteria for evaluating
products and services
The benefits sought from a service may
differ from country to country.
Differences in economic and social
conditions and family structure
The “style” of family decision making
may vary significantly from country to
country.
Differences in marketing research and
conditions
The types and quality of retail outlets and
direct-mail lists may vary greatly among
countries.
Differences in marketing research
possibilities
The availability of professional consumer
researchers may vary considerably from
country to country.
Leading
Wrist-Watch
Manufacturer
Uses Global
Advertising
Strategy
Dominant Religions of The
World
• Christianity - 2.0 billion followers
• Islam - 1.2 billion followers
• Hinduism - 860 million followers
• Buddhism - 360 million followers
• Confucianism - 150 million followers
Manners and Customs
• Potential problem areas for marketers arise from an
insufficient understanding of:
– different ways of thinking.
– the necessity of saving face.
– knowledge and understanding
of the host country.
– the decision-making process
and personal relations.
– the allocation of time
for negotiations.
To Give or Not To Give
Social Institutions
• Kinship relationships
– immediate and extended family
• Social stratification
• Reference groups
– Primary reference groups
• family, coworkers
– Secondary reference groups
• professional associations, trade organizations
Sources of Cultural Knowledge
Making Culture Work
Embrace local culture.
Build relationships.
Employ locals to gain cultural
knowledge.
Help employees understand you.
Adapt products and processes to
local markets.
Coordinate by region.
• You are on your first business visit to
Germany. You feel confident about your
ability to speak the language (you studied
German in school and have taken a
refresher course), and you decide to use
it. During introductions, you want to
break the ice by asking "Wie geht's?" and
insisting that everyone call you by the first
name. Speculate as to the reaction.
• In many cultures, formal and informal rules exist for human interaction.
Quite often rules in a given culture do not become evident to an
international business person until they realize something is wrong. In the
situation described, the person's request is probably as overly friendly and
offensive. In many cultures calling a business associate by the first name
or using the second person singular (for example, the French "tu") is
unheard of. Whereas the French reserve the informal only for childhood
friends, the Swedes, for example, tend to be informal with everyone.
• Sharon Ruhly, in her book Orientation to Intercultural Communication
(Chicago, Science Research, Inc., 1976), provides a system for analyzing
different levels of culture. The technical level can be learnt from factual
materials. The formal level of culture is learnt by trial and error. Rules for
particular behavior exist, as indicated in the situation described. The
informal level of culture is learnt through modeling; for example, the roles
men and women have in a certain culture. Calling a person by the first
name (at all or too soon) is a violation of the informal levels of culture.
• In some cultures, different degrees of "acceptance" exist. For example, in
the Soviet Union, a business person may follow his or her own progress by
observing what business partners call him or her.
• Management at a U.S. company trying to
market tomato paste in the Middle East
did not know that, translated into Arabic,
tomato paste is "tomato glue." How could
they have known in time to avoid
problems?
• A company marketing a product in a foreign country must use a
translator who is a native or fluent speaker of the language of the
target country. The employment of a local advertising or market
research agency is a effective way to accomplish this, and it is
advantageous because a local agency can advise on cultural factors
influencing the marketing of the product, as well as language
factors. Some exported products are stamped with the name of the
product in the language of the country of destination, with the
English graphics remaining on the packages. This is acceptable and
even beneficial for some products, because the fact that they are
American sometimes helps to sell them. However, the name tomato
paste, which translates as "tomato glue" in Arabic, should be
deleted entirely from the label.
• In general, "if you want to kill a message, translate it." Successful
standardized marketing campaigns strive for appropriate
commonalities, not 100% similarity. After all, truly good ideas are
difficult to come by and should be exploited to the full.