IM Chapter 4PP_1

7/29/2019 IM Chapter 4PP_1

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Cultural Dynamics in Assessing Global Markets

Chapter 4 By Professor Riaz Khan

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Chapter Learning Objectives

1. The importance of culture to an internationalmarketer

2. The origins and elements of culture

3. The impact of cultural borrowing

4. The strategy of planned change and its

consequences


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Introduction

Culture refers to the human-made part of human environmentthe sum total of knowledge, beliefs, art, morals, laws, customs, and

any other capabilities and habits acquired by humans as membersof society

A successful marketer must be a student ofculture

Culture is pervasive in all marketing activities

in pricing, promotion, channels of distribution,product, packaging, and styling

Importance of culture in international marketing

Understanding culture can determine success or failure ininternational marketing


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Cultures Pervasive Impact

Culture influences every part of ourlives

Birthrates have implications for sellers of diapers, toys, schools,and colleges Consumption of different types of food influence is culture:

Chocolate by Swiss, seafood by Japanese preference, beef byBritish, wines by France and Italy

Even diseases are influenced by culture: stomach cancer inJapan, and lung cancer in Spain


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Origins of Culture: Geography

1. Geography, which includes climate, topography, flora, fauna,

and microbiology, influences our social institutions

2. Two researcherssuggest thatgeographyinfluenceseverything fromhistory to present-day culturalvalues

3. First, JaredDiamond states

that historicallyinnovationsspread fastereast-to-west thannorth-to-south

4. Second, Philip Parker reports strong correlations between thelatitude (climate) and the per capita GDP of countries


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Origins of Culture: History

1. The impact of specific events in history can be seen reflected intechnology, social institutions, cultural values, and even

consumer behavior

2. The military conflicts in the Middle East in 2003 bred new colabrands, Mecca Cola, Muslim Up, and Arab Cola

For e.g., American tradepolicy depended on tobacco

being the original source ofthe Virginia colonyseconomic survival in the1600s


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Origins of Culture: Technology

1. Technological innovations also impact institutions and cultural

2. Jet aircraft, air conditioning,televisions, computers, and theinternet have all influenced culture

3. Arguably the greatest impact is

the birth pill that has allowedwomen to have careers and freedmen to spend more time withkids


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Origins of Culture: Social Institutions

Social institutions including family, religion, school, the media,government, and corporations all affect culture

The family, social classes, group behavior,age groups, and how societies definedecency and civility are interpreted

differently within every culture(1) Family behaviorvaries across the world,e.g., extended families living together to Dadwashing dishes

(2) Religious value systems differ across the

world,e.g., Muslims not allowed to eat porkto Hindus not allowed to consume beef


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Origins of Culture: Social Institutions

(3) School andeducation, and literacy

rates affect culture and economic growth(4)Media (magazines, TV, the Internet)influences culture and behavior

(5) Government policies influence thethinking and behaviors citizens of adult

citizens, e.g., the French governmentoffers new birth bonuses of $800given to women as an incentive toincrease family size

(6) Corporations influence culture via theproducts they market, e.g., MTV


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Elements of Culture

International marketers must design products, distribution systems,and promotional programs with due consideration to culture, whichwas defined as including five elements:

1. Cultural values

2.Rituals

3. Symbols

4. Beliefs, and

5. Thought processes


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Elements of Culture: Rituals, and Symbols

Rituals are patterns of behavior and interaction that are learned

and repeated vary from country to country, e.g., extended lunchhours in Spain and Greece

French attempting to preserve thepurity of their language


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Elements of Culture: Rituals, and Symbols

In Canada, language has been the focus of political disputes

including secession

Aesthetics as Symbols: the arts,folklore, music, drama, and danceof a culture influences marketing

Differences in language vocabularyvaries widely


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Elements of Culture:

Beliefs and Thought ProcessesBeliefs, which stem from religious training, vary from culture toculture

In summary, marketers must consider larger cultural consequencesof marketing actions

Thought processes also vary across cultures

Examples:

The western aversion to the number 13 orrefusing to walk under a ladder

Japanese concern about Year of the Fire Horse The Chinese practice of Feng Shui in designing

buildings

Examples: Asian and Western thinking


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Factual versus Interpretive

Cultural Knowledge

There are two kinds of knowledge about cultures both of which are

necessary

Factual knowledge

is usually obviousand must be learned,

e.g., different

meanings ofcolors,

and different tastes;

it deals with a facts

about a culture

Interpretive knowledge is the ability to

understand and appreciate the nuances

of different cultural traits and patterns,

e.g., the meaning of time, and attitudestoward people

Interpretive knowledge requires a

degree of insightIt is dependent on past experience for

interpretation


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Cultural Change and Cultural Borrowing

International marketers should appreciate howcultures change and accept or reject new ideas

How cultures change, e.g., war (changes inJapan after World War II) or by naturaldisaster

International marketers should be aware theextent to which cultures borrow ideas andlearn from other cultures

Helps in the marketing of products from oneculture to a different culture


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Resistance to Change

Working women in Masculine societies like

Saudi Arabia

Although some cultures embrace change,others are resistant to it

Examples of cultures that resist change:

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