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					Marketing Issues in Pakistan

            Week 3: Lecture A
                             Marketing Issues in Pakistan

Agenda                                           “Get the Handout”
   Definitions and Origins of Culture
     –   Geography
     –   History
     –   The Political Economy
     –   Technology
     –   Social Institutions
   Elements of Culture
     –   Cultural Values
     –   Rituals
     –   Symbols
     –   Beliefs
     –   Thought Processes
   Cultural Knowledge
     –   Factual versus Interpretive Knowledge
     –   Cultural Sensitivity and Tolerance
   Cultural Change
     –   Cultural Borrowing
     –   Similarities: An Illusion
     –   Resistance to Change
     –   Planned and Unplanned Cultural Change
     –   Consequences of Innovation
            Marketing Issues in Pakistan


                                           Birth Rates per
                                            1,000 women

                                              Large consumption
 ‘Year of
                                                of diapers, toys,
                                              schools, colleges in
                                               successive years

‘Year of                                     Less consumption
the Fire                                     of feminine/female
 Horse’’                                         products in
                                              successive years
          Marketing Issues in Pakistan

                          Marketing Issues in Pakistan

   Definitions of Culture
    –   “sum of the values, rituals, symbols, beliefs, and thought
        processes that are learned, shared by a group of people, and
        transmitted from generation to generation”

    –   Geert Hofstede Defined it as “software of the mind” as it guides a
        human how to think and behave , it’s problem solving tool!

    –   Smart marketers not only appreciate the differences between
        culture but also explore the origins of the culture
                              Marketing Issues in Pakistan

   Geography
    –   This includes climate, topography, flora, fauna and microbiology;
        these do affect our way of thinking:

            Research Shows that cultures with large valleys, long rivers and
             surrounded by wilderness tend toward a strong central government.

            Deserts or nomads made people traders and made them very
             aggressive and persistent in their approach.

            Historically innovations spread faster from East to West than North to
             South; ideas flowed over silk route but not across the Sahara.

            Climate is strongly correlated with the income level!
                               Marketing Issues in Pakistan

   History
    –   The impact of specific events in history can be seen and reflected in
        how people behave.

            As soon as the Muslims of the sub-continent related themselves to the
             Islamic Origins; their way of thinking and behaving changed!

            Military conflicts in the middle east bred new cola brands – Mecca Cola, Qibla
             Cola, Muslim Up, Arab Cola, and Cola Turk.

   The Political Economy
            Three approaches to Governance Fell: Fascism, Communism, Democracy

               –   Fascism Fell in 1945

               –   Communism Fell in 1990
                                Marketing Issues in Pakistan

   Technology
   What technologies have changed our cultural values?
            Internet
               –   the way we communicate
            There is more to it!
               –   New values: ‘efficiency’, ‘successful’

   Social Institutions
    –   family, religion, media, school, government and the corporations,
        all affect the way people relate to each other, teach mutually
        acceptable behavior to generations

    –   The roles of men and women, family and social classes, age
        groups and how societies define decency and civility are
        interpreted differently
                              Marketing Issues in Pakistan

   Family
    –   where nepotism is seen a problem in the West it is an organizing
        force in many Asian and South American Cultures
            A Japanese guy lives with his spouse, kids and a parent where as
             for that of an American, both parents work to support their living
             standard and kids in colleges while worrying about aging parents
             living halfway across the continent.

            Think about how a newly born baby in America is tucked into his own

            Family roles are different; Dad doing the dishes

            Implications are the inculcation of the values of Egalitarianism and
                              Marketing Issues in Pakistan

   Religion
    –   In some cultures the impact is strong while in others it is benign
            Religion influences ethics, morality, ‘dos and don'ts’ in everyday life

            It affects people’s habits, their outlook in life, the products they buy,
             the way they buy them and so on.

            “The sacred and the profane in consumer behavior“ describes how
             people in different cultures set boundaries for sacred and profanes.

               – Think about eating meat in India or eating pork in Pakistan!
               – Think about making important decisions in Pakistan vs. the US

            Marketers will have to adjust and adapt to the cultural values for their
             marketing programs.
                            Marketing Issues in Pakistan

   School
    –   The literacy rate of a country is a potent force in economic
            Think about marketing to literate vs illiterate society
            Literacy also leads to change in the way people think and behave
             i.e., setting up and change in cultural values

   The Media
    –   Media has a strong impact on food habits, religious beliefs,
        dress and language; think about
            drinking foreign products; colas, coffees, burgers etc.
            various religious beliefs that are now known to us
            dress codes and the way people have adopted it
            many foreign words are now part of the ‘native language’
                               Marketing Issues in Pakistan

   The Government
    –   For decades communist countries (China, Russia, Parts of
        Europe) through their government policies have inculcated a
        sense of ‘collectivism’:

            Stateless, classless society

            based on common ownership and control of the means of production
             and property in general.

            Although an outdated model of ‘Marx and Lenin’ this led people to
             behave in non-materialistic way.

    –   On the other hand the Islamic countries also encouraged
        ‘collectivism’ but in a more sublime and unique manner.
               –   Think about ‘interest rates’ and ‘ownership’
                             Marketing Issues in Pakistan

   Corporations

    –   most innovations and new products have been introduced to new
        cultures primarily by local and foreign corporations

            Former Canadian Prime Minister Kim Campbell observed that
             “images of America are so pervasive in this global village that it is
             almost as if instead of the world immigrating to America, America
             has emigrated to the world, allowing people to aspire to be
             Americans even in distant countries.” (Barthin, 1998)
                  Marketing Issues in Pakistan

‘Gossip Girl’
    “the show’s sense of style is having a broader impact, in the retail
    marketplace. Merchants, designers and trend consultants say that
    ‘Gossip Girl,’ which is in summer reruns on the CW network
    before returning Sept. 1, just in time for back-to-school shopping,
    is one of the biggest influences on how young women spend.”
Marketing Issues in Pakistan
                             Marketing Issues in Pakistan
   Elements of Culture
    –   Rituals
           A ritual is a set of actions, performed mainly for their symbolic
            value, which is prescribed by a religion or by the traditions of a

           The purposes of rituals are varied;
             –   they include compliance with religious obligations or ideals,

             –   satisfaction of spiritual or emotional needs of the practitioners,

             –   strengthening of social bonds and social and moral education,

             –   demonstration of respect or submission, stating one's affiliation,
                 obtaining social acceptance or approval for some event — or,
                 sometimes, just for the pleasure of the ritual itself.

             –   Even common actions like hand-shaking and saying hello are rituals.
             –   Gift giving. See Crossing Borders 4.4
                             Marketing Issues in Pakistan
   Elements of Culture
    –   Language
           The successful marketer must be adept in understanding the
            language in a deeper sense:

             –   Advertising managers must be more concerned with the idiomatic
                 meanings expressed in a language rather than on literal translation
             –   Same language might have different vocabulary
                    Spanish speaking Latin America

             –   Gaffes: When KFC entered the Chinese market, to their horror they
                 discovered that their slogan "finger lickin' good" came out as "eat your
                 fingers off"

             –   "Pepsi Brings you Back to Life" was a little more literal than they
                 intended. In Chinese, the slogan meant, "Pepsi Brings Your Ancestors
                 Back from the Grave".

             –   Scandinavian vacuum manufacturer Electrolux used the following in an
                 American campaign: "Nothing sucks like an Electrolux"
                            Marketing Issues in Pakistan
   Elements of Culture
    –   Language

           Linguistic Distance:

             –   languages around the world conform to family trees based on similarity
                 of their forms and development

             –   If English is taken as the main language then, German is one branch
                 away, Danish 2, Spanish 3, Japanese 4, China 6, Thai 7
                 Exhibit: 4.3

             –   Spanish, Italian, Portuguese and French are all called as Romance
                          Marketing Issues in Pakistan

   Language and Communication Patterns

• Romance languages such as Spanish, French, and Portuguese, this style is
often considered “boring” and ‘inelegant’

• Asian Languages are ‘circular’
• Potential loss of face, opinions may not be expressed directly
                          Marketing Issues in Pakistan
   Elements of Culture
    –   Aesthetics as Symbols
           A picture is a worth a thousand words
            –   Images, art, folklore, music, drama, and dance depict symbolic
                system of a culture
                          Marketing Issues in Pakistan

   Symbols and Colors
    –   Symbols and colors differ in meaning. For example,
        while white symbols purity in the U.S., it is a symbol
        of death in China.
            Colors that are considered masculine and feminine also differ
             by culture. Some colors are omens!

    –   Marketers need to be very careful in designing and
        creating messages
                              Marketing Issues in Pakistan

Symbols and Colors
Color    Asian Color Symbolism                       Western Color Symbolism

Red      Happiness, marriage, prosperity             Hip, fun, hot, sizzling, Forever young

Pink     Marriage                                    Feminine

Yellow   Against evil, for the dead, geomantic       Attractive, young, also represent Easter

Green    Eternity, family, harmony, health, peace,   Ecology and Environment oriented, "to go
         posterity                                   ahead

Blue     Self-cultivation, wealth                    Cool, soothing, Freshness

Purple   Wealth, status                              Wealth, royalty, elite

White    Children, helpful people, mourning,         Marriage, patriotism and conservatism
         marriage, peace, purity

Gold     Strength, Wealth                            Strength, Wealth

Gray     Dull, Lack meaning                          Elegance, professional, sober

Black    Evil                                        Career, Stylish, Elegance
                           Marketing Issues in Pakistan
   Cultural Knowledge
    –   Factual Vs. Interpretive Knowledge
           factual knowledge is obvious while interpretive knowledge
            requires an in depth understanding of nuances in cultural
            traits and patterns

           Mexico is 98% catholic – catholic in Mexico is different than
            that of one in italy, spain or in Eastern Europe.
             –   Easter and Christmas

           SRC (Self-reference Criteria)
             –   Cultures are just different, Not Right or Wrong, Better or Worse
                          Marketing Issues in Pakistan
   Cultural Change “culture is dynamic”
         One way culture is defined is as accumulation of solutions to
          the problems posed by the environment from time to time

         Cultural Borrowing:

           –   Cultural borrowing is a responsible effort to learn from others’
               cultural ways in the quest for better solutions to a society’s
               particular problems.

           –   These facets are adapted and molded to the habits, foods, and

           –   Crossing Borders 4.6
                         Marketing Issues in Pakistan
   Cultural Change “culture is dynamic”
         Similarities: An Illusion
           –   A common language or dress does not guarantee similarity in

                   lift and elevator
                   bathroom to toilet
                   hover and vacuum
                   Apparent and Assumed Cultural Similarities
                        Marketing Issues in Pakistan
   Cultural Change “culture is dynamic”
         Resistance to Change

          –   people habits, tastes, styles, behavior, and values are not
              constant – read 20 year old magazines

          –   However, new methods, approaches do face resistance!

          –   In some cultures the resistance could be so strong that the
              acceptance is never forthcoming.

          –   One indication is that more disruptive a technology is or more
              radical the idea is more is the resistance
                            Marketing Issues in Pakistan
   Cultural Change “culture is dynamic”
          Planned and Unplanned Cultural Change

           –   Marketers cannot wait forever to let the change happen on its
               own- they can make a planned change

           –   The first step is to determine the cultural factors that create
               resistance to the new technology acceptance

           –   The next step is change these factors with deliberate approaches

                   Initial Fast Foods ads in India showed a ‘time urgency’
                   Pepsi’s hip image was nullified with uniqueness
                           Marketing Issues in Pakistan

   Cultural Change “culture is dynamic”
          Unplanned Cultural Change

           –   Japanese eat as many hamburgers as that of Sushi; HOW?

                   Burger King Purchased all chains of Morinaga Love
                    restaurant: The chain sold Whoppers instead!

                   Hamburgers are a daily part of their diet

           –   This involves marketing in the product line available already in
               market in a manner as congruent as possible with existing
               cultural norms
Marketing Issues in Pakistan
                   Marketing Issues in Pakistan

   Heaven is an
    –   American salary,
    –   a Chinese Cook,
    –   British Home,
    –   and a Japanese Wife

   Hell is a
    –   a Chinese salary,
        a British Cook,
        a Japanese House,
        and an American Wife.
                         Marketing Issues in Pakistan

   Elements of Culture

          How cultural values affect business and market behavior is
           being elaborated by

            –   Geert Hofstede

            –   Trompenaars & Hampden-Turner
                        Marketing Issues in Pakistan

   Elements of Culture
    –   Cultural Values: Geert Hofstede dimensions
                            Marketing Issues in Pakistan

   Elements of Culture
    –   Cultural Values: Geert Hofstede dimensions
    –   Power Distance Index (PDI)
    –   that is the extent to which the less powerful members of
        organizations and institutions (like the family) accept and expect
        that power is distributed unequally

    –   Individualism (IDV) on the one side versus its opposite,
        collectivism, that is the degree to which individuals are
        integrated into groups.
           The ties between individuals are loose
           Everyone is expected to look after him/herself and his/her
            immediate family
           Collectivist Side
             –   people from birth onwards are integrated into strong, cohesive in-
                 groups, often extended families (with uncles, aunts and grandparents)
                 which continue protecting them in exchange for unquestioning loyalty
                            Marketing Issues in Pakistan

   Elements of Culture
   Cultural Values: Geert Hofstede dimensions
    –   Masculinity vs. Femininity
           Masculine societies have a greater emphasis on:
           competition
           Ambition and
           career advancement.
             –   Rewards are based on performance, and considerable importance is
                 placed on individual accomplishments and the acquisition of material

           Feminine societies stress:
                     modesty,
                     equality, and a concern for the living environment.
                     They place a primary interest in people and the environment, not
                      in “things.”
                            Marketing Issues in Pakistan

   Elements of Culture
    –   Cultural Values: Geert Hofstede dimensions
    –   Uncertainty Avoidance
           the extent to which the members of a culture feel threatened by
            uncertain or unknown situations
           Cultures that are high in uncertainty avoidance possess an
            intolerance for and anxiety toward uncertain or ambiguous

           A technological product innovation’s functional attributes are both
            new and unproved compared with products that have previously
            been introduced and used by consumers.
             –   As such, to a large extent, they can be considered “unknown entities”

           People in high UA are unsure about new products and potentially
            delay its purchase
                          Marketing Issues in Pakistan

   Elements of Culture
    –   Cultural Values: Geert Hofstede dimensions
    –   Long-Term Orientation

           The future-focused, long-term aspects of this dimension
            encompass persistence, thrift, and perseverance toward slow

           Countries with short-term orientations experience materialist
            consumption pressures, “even if it means overspending”- keep
            up with the fads and fashion

           new products, with little or no history to support their
            dependability over time, are likely to be viewed with caution from
            long-term oriented cultures.
                           Marketing Issues in Pakistan

   Elements of Culture
    –   Cultural Values: Trompenaars & Hampden-Turner
           Specific v diffuse (Relationships with other people)
           Individualism – Communitarianism
           Achieved status/ascribed status
           Neutrality/affectivity
           Universalism/particularism
           Sequential time/synchronic time
           Human-Nature relationship

        video segment
                           Marketing Issues in Pakistan

   Elements of Culture
    –   Cultural Values: Trompenaars & Hampden-Turner
    –   Specific v diffuse (Relationships with other people)
           ‘Specific‘ cultures make a very clear distinction between working life
            and personal life; especially with use of titles

           In ‘diffuse‘ cultures the two areas of life are mixed up; everything is
            connected to everything else.

    –   Individualism – Communitarianism
           In some cultures, the interests of the group are more important than
            the interests of the individual, while other cultures place far more
            emphasis on individual rights and responsibilities
                           Marketing Issues in Pakistan
   Elements of Culture
    –   Cultural Values: Trompenaars & Hampden-Turner
    –   Achieved status/ascribed status (Doing and Being)
           the way people accord status to others: on the basis of their
            achievements, age, gender, social class, education, etc.

           If status is based on the importance of what you do, then we are
            talking about achieved status, while ascribed status has its origin in
            who you are, what your background is and what your contacts are!

    –   Neutrality/Affectivity

           Controlling your emotions in a professional way or showing your
            emotions are two ways of manifesting neutrality or affectivity, which
            are also culture-bound.
                           Marketing Issues in Pakistan
   Elements of Culture
    –   Cultural Values: Trompenaars & Hampden-Turner

    –   Universalism/particularism (rules vs. relationships)
           Following rules (for example laws, regulations or contracts) or
            believing in individual cases.

    –   Sequential time/synchronic time
           Doing things one by one, step by step or doing things all at the
            same time.

    –   Human-Nature relationship (attitudes toward the
        environment – harmony vs. control)
                          Marketing Issues in Pakistan
   Case Study: PSO
    –   Q1.What are the strategic issues faced by PSO in the case?

    –   Q.2 What is the situation currently facing PSO? What are the
        external and internal factors that should be considered? What is
        the bottom line?

    –   Q.3 What has been the growth and diffusion patterns of PSO
        loyalty cards? What was the rate of growth and demand from July
        2002 to June 2005? Can u forecast? Show your calculations.
        What implications does this growth pattern have for strategy for
        cards? (Everyone must prepare an excel sheet)

    –   Q.4 Given the two alternatives faced by PSO which one would
        you choose? Provide pros and cons of each alternative and justify
        your strategy.

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