Transcript 3.01 Exemplify culture and how cultural influences affect

3.01 Exemplify culture and how
cultural influences affect
international marketing
Winning Strategies
Two Companies - Similar Strategies
Coca-Cola & McDonald’s
Both companies adapt to a country’s culture
“Book of Little Honorary Guests” in China
In Asia, limited menu, to avoid customers “losing
face”
Both companies boldly enter new markets
“Always Coca-Cola” in former Soviet Union
C2 in Japan
Culture
 A system of shared beliefs, values, customs, &
behaviors that define how group of people live.
 UNESCO defines culture as:
“set of distinctive spiritual, material, & intellectual &
emotional features of society or social group that
encompasses art, literature, lifestyles, ways of living
together, value systems, traditions, & beliefs.”
http://www.youtube.com/watch?v=57KW6RO8Rcs&
feature=related What is culture?
http://www.youtube.com/watch?v=EkZyvDZFC8Q
Culture shock…
Culture (con’t)
 Cultural learning begins 1st day one begins to
learn.
 Enculturation - a process that helps people learn
about their culture
 In many Western cultures, babies are taken out into world
almost as soon as they are born.
 In Ghana, mothers spend first weeks alone with their
babies.
 Christian parents typically have their young children
baptized.
 In US, most young children recognize McDonalds golden
arches
 In US, Cheerios are popular finger good for young children
Culture (con’t)
 Cultural learning (con’t)
 Context - background or surrounding
circumstances of an event.
• Can include facial expressions or
gestures which precede or follow
specific word or passage that may
influence meaning or effect
Culture (con’t)
Cultural learning (con’t)
High-context culture places priority on
interpersonal relationships.
 People guided more by intuitions & feelings
than by logic or facts.
 Decisions made by groups rather than
individuals.
 Communication more indirect & vague.
 Context is more important than words.
 Japan, China, France, Greece & most
Middle Eastern countries considered highcontext.
 http://www.youtube.com/watch?v=x7a3mSo
EJs8 Japanese culture factors
Culture (con’t)
 Cultural learning (con’t)
 Low-context culture values individualism.
 Decisions based on facts.
 Communication is concise, structured, &
direct.
 Focus placed on words used & meaning
rather than context.
 Personal relationships less important than
getting task done.
 US, Germany, Switzerland, the UK &
Scandinavian countries considered lowcontext.
Culture (con’t)

Cultural learning (con’t)

Challenges occur when high-cultures & low-cultures
work together.
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Statement “I agree” can mean different things
 In Japan, it may mean “I understand what you are
saying”.
 In Switzerland, it means “There is an actual
agreement.”
 International marketers must understand
cultural context of communication
 otherwise behaviors & messages may be
misunderstood.
Cultural influences

Provide understanding of how consumer
will react to products.

History and geography:
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In Europe & Asia, towns much older than in US
where most have built up after 1900.
Towns were center of cultural life in Europe &
Asia; offered protection from wars & bandits.
Homes & cultural traditions in Europe & Asia
been passed down for generations.
Different sense of community than in US.
Cultural influences (con’t)
 History & geography (con’t)
 Americans cannot trace back any part of their
consumer culture more than few decades & are easily
willing to let go of the past.
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Japanese rice culture 2,000 years old.
In other countries, traditional open-air markets have
provided fresh foods for thousands of years
 French government passed law protecting name
boulangeries (hot bread shops) ensuring only
bakeries that made, kneaded & cooked bread entirely
from scratch on premises could use name.
Cultural influences (con’t)
 History & geography (con’t)
 Geography - study of differences that exist in
physical, biological, & cultural features of earth.
 Cultures develop under unique geographic
conditions such as temperature, weather
conditions, population density & nature of
neighboring cultures.
 These conditions affect how food is
produced or gathered.
Cultural influences (con’t)
 International marketers should consider
city size where selling.
 Wealth & cultural differences exist
between rural & urban areas.
 Differences greater in developing
countries.
Cultural influences (con’t)
 Belief systems - allows individuals to
understand their place in larger universe.
 Can set rules of conduct & ethics, how one should
interact with others, & how one should live life.
 Religion - belief system that answers spiritual
questions.
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Christianity currently largest religion in the world - 2
billion followers.
Islam currently 2nd largest religion - 1.3 billion
followers.
Other major religions include Hinduism, Buddhism, &
Judaism.
Cultural influences (con’t)
http://religion.blogs.cnn.com/2011/01/27/w
orld-muslim-population-doubling-reportprojects/
CNN clip on the global growth of Islam
Cultural influences (con’t)
 Belief systems (con’t)
 Non-religious belief systems do not answer
spiritual questions, but set rules of conduct &
ethics.
 Culture’s history acts as guide for setting rules of
conduct.
• In 20th century, leaders in communist
countries tried to impose belief systems on
citizens regardless of their history or religion.
• Communist leaders only partially successful.
Cultural influences (con’t)
 Belief systems (con’t)
 International marketers must be able to
identify & understand how belief systems will
affect product design, sales practice, &
business negotiations.
 In many countries, such as in Middle East,
violations of belief systems can violate laws.
Communication
 Verbal communication - involves use of
words, either spoken or written.
 Ethnologue Organization lists more than 6,900
active, distinct languages in world
 Languages exist within families
• Europe - include Germanic, Romance, Slavic,
Celtic & Greek
• France & Quebec - laws protect French
language & even limit ability to add new nonFrench words to official language.
Communication (con’t)
 Verbal communication
 English is official business language in US,
Canada, Great Britain, Australia, South Africa
& India
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Within these countries, pronunciation, spelling
& meanings differ.
“Rubber” is used for eraser; “lift” is used for
elevator with former British colonies.
Other European countries use British-style
English.
Communication (con’t)
 Verbal communication (con’t)
 Back translation process recommended for
international marketers
 A native speaker translates material to his/her
own language.
 Translation is then translated by native
speaker back to original language.
Communication (con’t)
 Non-verbal communication - what people
communicate with their bodies.
 Can include facial expressions, eye contact,
hand gestures, bowing, & showing emotions.
 Understanding non-verbal communication as
important as understanding verbal
communication.
Communication (con’t)
 Non-verbal communication (con’t)
 Examples:
• Hand shaking common throughout world, but
varies within cultures.
• In France & other countries, individuals shake
hands each time they meet.
• In US & Northern Europe, individuals may not
shake hands once they get to know each
other.
Communication (con’t)
Non-verbal communication (con’t)
Examples:
In Japan, individuals may bow to each other when
they shake hands.
In Columbia, individuals may take long time before
shaking hands because they feel it conveys respect.
In many countries, such as Middle East, one would
never shake hands or eat food with left hand
because this hand is reserved for “unclean” tasks.
Communication (con’t)
 Non-verbal communication (con’t)
 Interpersonal distances vary around world
 In Southern Europe, the Middle East & most of
South America, individuals move very close to
others when they talk.
 In North American & Northern Europe,
interpersonal distances much greater.
Communication (con’t)
Non-verbal communication (con’t)
Americans often viewed as highly aggressive
communicators:
speaking loudly,
appearing argumentative
using excessive hand gestures without regard to local
hand gesturing customs.
International marketers need to understand verbal
& non-verbal communications standards before
attempting to do business in another culture.