Transcript Cultural Dynamics in Assessing Global Markets

Cultural Dynamics in
Assessing Global Markets
 International marketing requires constant
concern for different cultures and therefore
requires adaptation.
 Self-reference criterion - a tendency to rely
on one own cultural values, personal
experience and knowledge as the primary
basis for making decisions.
 The SRC must be effectively overcome in
order to adapt marketing programs to foreign
countries.
Elements of Culture:
1) Language
 Context
2) Religion
3) Values and Attitudes
4) Manners/Customs
5) Material Elements
 Infrastructure
 Convergence
6)
7)
8)
Aesthetics
Education
Social Institutions
 Learning about other cultures
 experiential knowledge
 factual knowledge
Key Concepts
• High-context culture
– is where the social context in which what is said
strongly affects the meaning of the message.
– 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
Contextual Background of
Various Countries
Japanese
Arabian
Latin American
Spanish
Italian
English (UK)
French
North American (US)
Scandinavian
German
Low
Context
Explicit
Swiss
High
Context
Implicit
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
Fractured Translations
English Translations made by Japanese firm added to labels
to increase prestige for their products being sold in China.
Product
English Translation
Equivalent to Japanese Spam
Liver Putty
Toilet Paper
My Fanny Brand
Ready to Eat Pancakes
Strawberry Crap Dessert
Antifreeze Spray
Hot Piss Brand
Pediatrician’s Slogan
Specialist in Deceased
Children
SOURCE: Some Strawberry Crap Dessert, dear South China Morning Post,
December 9, 1996 p. 12.
Whose English?
4-8
United States
United Kingdom
Trunk
Boot
Hood
Bonnet
Convertible Top
Hood
Elevator
Lift
Toilet
W.C.
Bathroom
Tub or Shower
Vacuum
Hoover
???
Shag
Bloody
???
Irwin/McGraw-Hill
The Major World Religions
•
•
•
•
•
Christianity - 2.0 billion followers
Islam - 1.2 billion followers
Hinduism - 860 million followers
Buddhism - 360 million followers
Confucianism - 150 million followers
Religion
Marketing in an Islamic Framework
Elements
A. Unity. (Concept of Centrality,
oneness of God, harmony in
life.)
B. Legitimacy. (Fair dealings,
reasonable level of profits.)
C. Zakat. (2.5% per annum
compulsory tax binding on all
classified as “not poor.”
Implications for Marketing
Product standardization, mass media techniques, central
balance, unity in advertising copy and layout, strong brand
loyalties, a smaller evoked set size, loyalty to company,
opportunities for brand extension strategies.
Less formal product warranties, need for institutional
advertising and/or advocacy advertising, especially by
foreign firms, and a switch from profit-maximizing to a
profit-satisficing strategy.
Use of “excessive” profits, if any, for charitable acts;
corporate donations for charity, institutional advertising.
Source: Mushtaq Luqmani, Zahir A Quraeshi, and Linda Delene, “Marketing in Islamic Countries:
A Viewpoint,” MSU Business Topics, Summer 1980, pp. 20-21. Reprinted by permission.
Values and Attitudes
• Values
– are shared beliefs or
group norms that have
been internalized by
individuals.
• Attitudes
– are evaluations
of alternatives
based on these
values.
Work and Leisure
Attitudes Toward Work:
Have a Substantial Impact on Economic
Performance
Vary Greatly Among Countries
Work and Leisure
Country
Austria
Australia
Canada
Chile
Germany
Greece
France
Hungary
Ireland
Italy
Japan
Mexico
S. Africa
Spain
U.K.
U.S.A.
Work Hrs.
1,744
1,847
1,892
2,400
1,704
1,775
1,790
1,756
1,727
1,721
1,893
2,094
1,999
1,721
1,880
1,946
Work/Fun Comp. Sup.
5.72
5.50
5.44
5.93
6.59
7.06
6.23
7.19
5.2
5.87
4.6
4.38
6.33
5.74
5.14
4.11
6.37
6.46
5.32
5.12
5.4
7.37
5.51
4.83
4.65
3.71
5.41
4.68
4.5
5.53
5.37
6.54
Values of Selected
Countries*
Work Hrs. = Average
number of working hours
per year.
Work/Fun = Young people’s
desire to work/learn vs.
have fun. (0 for fun - 10 for
work/learn).
Comp. Sup. = Society’s
support of competitiveness
(0 for least support - 10 for
most support).
Source: The World
Competitiveness Yearbook
1996, (Lausanne: IMD,
1996), pp. 556, 579, 581.
*See text for complete listing of
countries and statistics.
Cultural Analysis for
International Marketing
Cultural Dimensions




Individualism vs. Collectivism
Small vs. Large Power Distance
Masculine vs. Feminine
Weak vs. Strong Uncertainty Avoidance
*Source of this entire list: Philip R. Harris and Robert T. Moran: Managing Cultural
Differences, 2nd ed. (Houston: Gulf, 1987) pp. 212-215.
Power Distance and Individualism-Collectivism
Large Power
Distance Collectivist
1
3
4
Small
Power
Distance
112
Individualist
10
6
5
Example
Countries:
1. Costa Rica
2. Korea and
Mexico
3. Brazil & India
4. Israel and
Ireland
5. Australia and
U.S.A.
6. France and
Italy
2
Individualism Index
0
Small Power
Distance
Collectivist
Large Power
Distance
Individualist
110
Power Distance Index
Source: Geert
Hofstede, Cultures and
Organizations,
McGraw-Hill, 1991, pp.
23, 51, 83 & 111.
Reprinted with
permission of the
McGraw-Hill
Companies.
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.
“A house should be dusted and
polished three times a week”
•
•
•
•
•
•
•
Italy
United Kingdom
France
Spain
Germany
Australia
United States
89%
59
55
53
45
33
25
“I attend church regularly”
•
•
•
•
•
•
•
Spain
Italy
Germany
United States
United Kingdom
France
Australia
77%
75
70
65
36
23
16
“My children are the most
important thing in my life”
•
•
•
•
•
•
Germany
Italy
France
United States
Spain
Australia
86%
84
73
71
67
48
“There is too much emphasis on
sex nowadays”
•
•
•
•
•
•
United Kingdom
Italy
United States
France
Australia
Germany
82%
79
66
52
31
24
“Everyone Should Use a Deodorant”
•
•
•
•
•
•
United States
Canada
United Kingdom
Italy
France
Australia
89%
79
71
69
59
53
Cultural Factors
• Never touch the head of a Thai or pass an object over
it. The head is considered scared in Thailand.
• Avoid using triangular shapes in Hong Kong, Korea,
and Taiwan. It is considered a negative shape.
• The number 7 is considered bad luck in Kenya, good
luck in Czech Republic and has a magical connotation
in Benin, Africa.
• The number 10 is bad luck in Korea.
• The number 4 means death in Japan.
• Red represents witchcraft and death in many African
countries.
• Red is a positive color in Denmark.
SOURCE: Business America, July 12, 1993
It’s Not the Gift That Counts, but How Your Present It
Japan
4-4
Do not open a gift in front of a Japanese
counterpart unless asked, and do not expect the
Japanese to open your gift.
Avoid ribbons and bows as part of the gift wrapping.
Bows as we know them are considered unattractive,
and ribbon colors can have different meanings.
Do not offer a gift depicting a fox or badger. The fox
is the symbol of fertility; the badger, cunning.
Europe
Avoid red roses and white flowers, even numbers,
and the number 13. Do not wrap flowers in paper.
Do not risk the impression of bribery by spending
too much on a gift.
Irwin/McGraw-Hill
Copyright©2002 by The McGraw-Hill Companies, Inc. All rights reserved.
It’s Not the Gift That Counts, but How Your Present It…
Arab World
Do not give a gift when you first meet someone. It
may be interpreted as a bribe.
Do not let it appear that you contrived to present the
gift when the recipient is alone. It looks bad unless
you know the person well. Give the gift in front of
others in less –personal relationships.
4-5
Latin America
Do not give a gift until after a somewhat personal
relationship has developed unless it is given to
express appreciation for hospitality.
Gift should be given during social encounters, not in
the course of business.
China
Never make an issue of a gift presentation—publicly
or private.
Gifts should be presented privately, with the
exception of collective ceremonial gifts at banquets.
Irwin/McGraw-Hill
Material Elements
• Material culture
– Results from technology and is directly related to
how a society organizes its economic activity.
– Material culture is manifested in
•
•
•
•
•
Economic infrastructure
Social infrastructure
Financial infrastructure
Marketing infrastructure
Cultural convergence
– The degree of industrialization
can provide a marketing
segmentation variable.
Aesthetics
• What is or is not acceptable as good taste
varies widely in cultures.
• The symbolism of colors, forms, and music
carries different meanings in different
cultures.
Education
• Assessing the educational level of a culture
– formal and informal education
– literacy rates
– enrollment in secondary
or higher education
– qualitative aspects of
emphasizing science
• Education affects
– employee training
– competition for labor
– product characteristics
Education
Educational Statistics of Selected Countries (in %)*
Country
Austria
Australia
Canada
Chile
Germany
France
India
Ireland
Italy
Japan
Mexico
South Africa
Spain
United Kingdom
United States
Secondary University Literacy
104
37
98
82
40
99
104
99
98
72
23
95
97
36
99
101
46
99
44
6
52
101
38
99
76
34
97
97
32
100
55
14
87
69
14
82
108
40
95
86
28
99
90
46
100
*See text for complete listing of countries and
statistics.
Secondary = Percentage of relevant
age group receiving full time
secondary education. Scores in
excess of 100% indicate adults also
participating in that education.
University = Percentage of
population 20 - 24 years old enrolled
in higher education
Literacy = Percentage of Population
over 15 years old
Source: The World Competitiveness
Report 1996 (Lausanne: IMD, 1996),
pp. 560, 561, 567.
Social Institutions
• Kinship relationships
– immediate and extended family
• Social stratification
• Reference groups
– Primary reference groups
• family, coworkers
– Secondary reference groups
• professional associations,
trade organizations
The Family
Family Roles Display Great
Variances between Cultures
 Nuclear Family
The Family
Country
Austria
Australia
Canada
Chile
Germany
Greece
France
Ireland
Italy
Japan
Mexico
S. Africa
Spain
U.K.
U.S.A.
Pop. Growth Fem. Work
41
0.6
43
1.4
45
1.3
32
1.6
42
0.5
36
0.5
44
0.5
33
0.1
38
0.1
41
0.4
31
2.1
37
2.3
36
0.2
43
0.3
46
0.9
*See text for complete listing of countries and
statistics.
Family Statistics of Selected
Countries (in %)*
Pop. Growth = Population Growth:
percentage per year, 1985-1995.
Fem. Work = Female participation in the
labor force as a percentage of the total
labor force, 1995.
Source: 1997 World Bank Atlas,
Washington, DC: World Bank, 1997, pp.
16-17.
The Training Challenge - Global Managers
• Internal education programs that increase cultural
sensitivity
– Culture-specific information
– Culture-general information
– Self-specific information
• Specialized training for global managers
– Area studies
• Environmental briefings
• Cultural orientation programs
– Cultural assimilator
– Sensitivity training
– Field experience