Transcript Chapter 3
Global Marketing
Management
A European Perspective
Social and Cultural
Environments
Warren J. Keegan
Bodo B. Schlegelmilch
Overview
Basic Aspects of Society and Culture
Analytical Approaches to Cultural Factors
Handling Cultural Diversity
Summary
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Learning Objectives
Understanding how important cultural and social
differences are in global marketing
Learning fundamental concepts that provide an
understanding of cultural differences
Understanding where potential conflicts may arise in
global business relations
Knowing how cultural differences impact the
marketing of products and services
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Basic Aspects of Society and Culture
Culture as “ways of living”
Conscious and unconscious values, ideas, attitudes, and
symbols that shape human behaviour
Culture is learned, not innate
Culture defines the boundaries between different
groups
All facets of culture are interrelated
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The Search for Cultural Universals
Universal = Mode of behaviour existing in all cultures
Universal aspects = opportunities to standardize some
or all elements of a marketing program
Cultural universals: e.g., athletic sports, body
adornment, religious rituals, music
E.g.: VIVA music channel employs same fundamental
concept in all markets, adapted to local preferences
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The Anthropologist’s Standpoint
Global marketers must understand human experience
from the local point of view and become insiders with
cultural empathy
Global marketers need combination of toughmindedness and generosity
Tough-mindedness: be secure in your own convictions and
traditions
Generosity: Appreciate the integrity and value of other ways
of life
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High- and Low-Context Cultures (1)
Low-context culture:
Messages are explicit
Words carry most of the information in communication
E.g., United States, Switzerland, Germany
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High- and Low-Context Cultures (2)
High-context culture
Less information is contained in the verbal part of the
message
More information resides in the context of communication
(background, associations, basic values of communicators)
E.g., Japan, Saudi Arabia
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High- and Low-Context Cultures (3)
Factors
Lawyers
A person’s word
Time
Negotiations
Competitive
Bidding
High-Context
- less important
- his/ her bond
- everything is dealt
with in its own time
- lengthy
- infrequent
Low-Context
- very important
- ‘get it in writing’
- ‘time is money’
- quick
- frequent
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Communication and Negotiation
Global marketers face challenges in
Verbal communication
Non-verbal communication
Knowledge and understanding of cross-cultural differences is
crucial during negotiations
Lists can function as guidelines, although typologies do not take
particular individuals into account
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Analytical Approaches to Cultural
Factors (1)
Maslow’s hierarchy of needs
SELF-ACTUALISATION
ESTEEM
SOCIAL NEEDS
SAFETY NEEDS
PSYCHOLOGICAL NEEDS
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Analytical Approaches to Cultural
Factors (2)
Hofstede’s cultural typology
Cultures of different nations can be compared in terms
of four dimensions
Power distance
Integration into groups
Masculinity
Uncertainty avoidance
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Analytical Approaches to Cultural
Factors (3)
Self-reference criterion (SRC) and perception
Perception of market needs is framed by own cultural
experience
Four-step framework
Define problem in terms of home country norms
Define problem in terms of host country norms
Isolate SRC influence. See how it complicates problem
Redefine problem without SRC influence. Solve for host
country market situation
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Analytical Approaches to Cultural
Factors (4)
Environmental Sensitivity
The extent to which products must be adapted to the
culture-specific needs of different national markets
Environmental sensitive products
Require significant adaptation to the environments of various
global markets (e.g., food)
Environmental insensitive products
Do not require significant adaptation (e.g., integrated
circuits)
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Handling Cultural Diversity (1)
Impact of social and cultural environments on
marketing industrial products
Industrial products might exhibit
Lower levels of environmental sensitivity (e.g., computer
chips)
Higher levels of environmental sensitivity (e.g., government
policies influencing purchasing behaviour of turbine
generators)
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Handling Cultural Diversity (2)
Impact of social and cultural environments on
marketing consumer products
Consumer goods are usually more sensitive to cultural
diversity than industrial goods
Culture is changing so rapidly that innovative
marketing may be able to change established
consumption patterns rooted in cultural differences
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Handling Cultural Diversity (3)
Example: Consumption of Soft Drinks (Y)
Y = f (A, B, C, D, E, F, G)
A = influences of other beverages’ relative prices, quality, taste
B = advertising expenditure and effectiveness, all beverage
categories
C = availability of products in distribution channel
D = cultural elements, tradition, custom, habit
E = availability of raw materials
F = climatic conditions, temperature, relative humidity
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Handling Cultural Diversity (4)
Culture always has been a major source for
disagreement and misunderstandings
Cross-cultural complications can lead to costly failures
Companies realize the importance of training and
supporting people in cultural awareness
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Summary
Culture has both a pervasive and changing influence
on each national market environment
Global marketers must recognize the influence of
culture
Nations can be classified as high- or low-context
cultures
Maslow’s hierarchy, Hofstede’s typology, and the
self-reference criterion can provide clues about
cultural differences and similarities
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