The Cultural Environment[1]

The Cultural Environment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.1) LanguageContext2) Religion3) Values and Attitudes4) Manners/Customs5) Material ElementsInfrastructureConvergenceElements of Culture:6)Aesthetics7)Education8)Social InstitutionsLearning about other culturesexperiential knowledgefactual knowledgeKey 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 AmericaContextual Background of Various CountriesHigh Context ImplicitJapaneseArabianLatin AmericanSpanishItalianEnglish (UK)FrenchNorth American (US)ScandinavianGermanSwissLow Context ExplicitLanguage •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 contextsNonverbal Language •Hidden language of cultures–Time flexibility and sensibility–Social acquaintance and rapport–Personal physical space and personal touching–Non-verbal gestures and signalingFractured TranslationsProductEnglish TranslationEquivalent to Japanese SpamLiver PuttyToilet PaperMy Fanny BrandReady to Eat PancakesStrawberry Crap DessertAntifreeze SprayHot Piss BrandPediatrician’s SloganSpecialist in Deceased ChildrenSOURCE: Some Strawberry Crap Dessert, dear South China Morning Post, December 9, 1996 p. 12.English Translations made by Japanese firm added to labels to increase prestige for their products being sold in China.Irwin/McGraw-HillWhose English?United StatesUnited KingdomTrunkBootHoodBonnetConvertible TopHoodElevatorLiftToiletW.C.BathroomTub or ShowerVacuumHoover???ShagBloody???4-8The Major World Religions•Christianity -2.0 billion followers•Islam -1.2 billion followers•Hinduism -860 million followers•Buddhism -360 million followers•Confucianism -150 million followersReligionMarketing in an Islamic FrameworkElementsImplications for MarketingA. Unity. (Concept of Centrality, oneness of God, harmony in life.)Product standardization, mass media techniques, centralbalance, unity in advertising copy and layout, strong brandloyalties, a smaller evoked set size, loyalty to company,opportunities for brand extension strategies.B. Legitimacy. (Fair dealings, reasonable level of profits.)Less formal product warranties, need for institutionaladvertising and/or advocacy advertising, especially byforeign firms, and a switch from profit-maximizing to aprofit-satisficing strategy.C. Zakat. (2.5% per annum compulsory tax binding on all classified as “not poor.”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 evaluationsof alternativesbased on thesevalues.Work and LeisureAttitudes Toward Work:Have a Substantial Impact on EconomicPerformanceVary Greatly Among CountriesWork 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.Values of Selected Countries*CountryWork Hrs.Work/FunComp. Sup.Austria1,7445.725.50Australia1,8475.445.93Canada1,8926.597.06Chile2,4006.237.19Germany1,7045.25.87Greece1,7754.64.38France1,790.335.74Hungary1,7565.144.11Ireland1,7276.376.46Italy1,7215.325.12Japan1,8935.47.37Mexico2,0945.514.83S. Africa1,9994.653.71Spain1,7215.414.68U.K.1,8804.55.53U.S.A.1,9465.376.54Work and Leisure*See text for complete listing of countries and statistics.Cultural Analysis for International Marketing *Source of this entire list: Philip R. Harris and Robert T. Moran: Managing Cultural Differences, 2nd ed. (Houston: Gulf, 1987) pp. 212-215.Cultural DimensionsIndividualism vs. CollectivismSmall vs. Large Power DistanceMasculine vs. FeminineWeak vs. Strong Uncertainty AvoidancePower Distance Index011210 110Small PowerDistanceCollectivistLarge PowerDistance CollectivistSmall Power DistanceIndividualistLarge PowerDistance Individualist412356Individualism Index ExampleCountries:1. Costa Rica2. Korea and Mexico3. Brazil & India4. Israel and Ireland5. Australia andU.S.A.6. France andItalySource: Geert Hofstede, Cultures and Organizations, McGraw-Hill, 1991, pp. 23, 51, 83 & 111. Reprinted with permission of the McGraw-Hill Companies.Power Distance and Individualism-CollectivismManners 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”•Italy89%•United Kingdom59•France55•Spain53•Germany45•Australia33•United States25“I attend church regularly”•Spain77%•Italy75•Germany70•United States65•United Kingdom36•France23•Australia16“My children are the most important thing in my life”•Germany86%•Italy84•France73•United States71•Spain67•Australia48“There is too much emphasis on sex nowadays”•United Kingdom82%•Italy79•United States66•France52•Australia31•Germany24“Everyone Should Use a Deodorant”•United States89%•Canada79•United Kingdom71•Italy69•France59•Australia53Cultural 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, 1993Irwin/McGraw-HillIt’s Not the Gift That Counts, but How Your Present ItJapanDo 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. EuropeAvoid 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. Copyright©2002 by The McGraw-Hill Companies, Inc. All rights reserved.4-4Irwin/McGraw-Hill4-5It’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. 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. ChinaNever make an issue of a gift presentation—publicly or private.Gifts should be presented privately, with the exception of collective ceremonial gifts at banquets. 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 ofemphasizing science•Education affects–employee training–competition for labor–product characteristicsCountrySecondaryUniversityLiteracyAustria1043798Australia824099Canada1049998Chile722395Germany973699France1014699India44652Irelnd1013899Italy763497Japan9732100Mexico551487South Africa691482Spain1084095United Kingdom862899United States9046100Secondary= 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 educationLiteracy= Percentage of Population over 15 years oldSource: The World Competitiveness Report1996(Lausanne: IMD, 1996), pp. 560, 561, 567.Education*See text for complete listing of countries andstatistics.Educational Statistics of Selected Countries (in %)*Social Institutions•Kinship relationships–immediate and extended family•Social stratification•Reference groups–Primary reference groups•family, coworkers–Secondary reference groups•professional associations, trade organizationsThe FamilyFamily Roles Display GreatVariances between CulturesNuclear FamilyFamily 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.CountryPop. GrowthFem. WorkAustria0.641Australia1.443Canada1.345Chile1.632Germany0.542Greece0.536France0.544Ireland0.133Italy0.138Japan0.441Mexico2.13S. Africa2.337Spain0.236U.K.0.343U.S.A.0.946The Family*See text for complete listing of countries andstatistics.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 experienceBusiness CustomsCultural ImperativesCultural AdiaphoraCultural ExclusivesIrwin/McGraw-Hill5-2