INTERNATIONAL MARKETING 6e
The Cultural Environment
Chapter 3
Copyright? 2001 by Harcourt,Inc,All rights reserved,3-2
Making Culture Work For Your Success
Embrace local culture
Employ locals to gain cultural knowledge
Build relationships
Adapt products to local markets
Help employees understand you
Coordinate by region
Copyright? 2001 by Harcourt,Inc,All rights reserved,3-3
What is Culture?
,Culture” defined
,… an integrated system
of learned behavior patterns
that are distinguishing
characteristics of the
members of any given
society...”
Acculturation
,… adjusting or adapting to a specific culture
other than one’s own” … and,one of the keys
to success in international operations.”
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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
Change agent
,An entity that introduces new
products or ideas or practices.”
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The Elements of Culture
Language - verbal and non-verbal
Religion
Values and Attitudes
Manners and Customs
Material Elements
Aesthetics
Education
Social Institutions
Copyright? 2001 by Harcourt,Inc,All rights reserved,3-6
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
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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
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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
Copyright? 2001 by Harcourt,Inc,All rights reserved,3-9
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.
Copyright? 2001 by Harcourt,Inc,All rights reserved,3-10
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.
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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.
Copyright? 2001 by Harcourt,Inc,All rights reserved,3-12
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.
Copyright? 2001 by Harcourt,Inc,All rights reserved,3-13
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
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Social Institutions
Kinship relationships
immediate and extended family
Social stratification
Reference groups
Primary reference groups
– family,coworkers
Secondary reference groups
– professional associations,
trade organizations
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Sources of Cultural Knowledge
Experiential knowledge
Interpretive knowledge
Ty p es o f In t er n a t i o n a l In f o rm a t i o n
T y p e o f in f o r m at io n
S o u r ce o f I n f o r m at io n Gen er al C o u n t r y - S p ec if ic
Obj ecti ve E x a m pl es,E x a m pl es:
I m pa ct of GD P? T ar i ff b ar r i e r s
R eg i o na l i nt eg r at i on? Gove r nm en t r eg u l at i on s
E x pe r i en t i a l E x a m pl es,E x a m pl es:
C or po r at e ad j ustm en t to
i nt e r na t i o na li zat i on
P r od uct a cc ep ta nce
P r og r am a pp r op r i at en ess
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Communica-
tion about
Innovation
Change
Agent
Strategic
Opinion
Leadership
Consequences
Propensity to
Change
Adoption
Tendency Adoption
Evaluation of
Innovation
Cognitive
Distortion
Cognitive
Search
Cultural
Lifestyle
Cultural Analysis
Fig,3.2
A Model of Cross-
Cultural Behavior
Source,Adapted by permission of the publisher from,A Theory of
Cross-Cultural Buying Behavior,” by Jagdish N,Seth and S,Prakash
Sethi,in Consumer and Industrial Buying Behavior,eds,Arch G,
Woodside,Jagdish N,Seth,and Peter D,Bennett,1977,p,373,
Copyright 1977 by Elsevier Science Publishing Co.,Inc.
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Dimensions of Culture
Individualism
,I” consciousness versus,we,consciousness
Power distance
Level of equality in a society
Uncertainty avoidance
The need for formal rules and regulations
Masculinity
Attitudes toward achievement
The roles of men and women
Orientation
Long-term versus short-term results approach
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Adjusting to Cultural Differences
Recognition of differences
The Self-reference Criterion
– is the basis of most
international business
problems.
Ethnocentrism
–,…regarding one’s culture
as superior to others”
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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