© Laureate International Universities 2016€¦ · The international marketer will need to identify the operational culture of the organisations they do business with and adapt accordingly

© Laureate International Universities 2016

MKT303A International Marketing

TOPIC THREECULTURAL & DEMOGRAPHIC INFLUENCES

EUROPE & THE US


KEY POINTS FOR THIS SESSION…

• Understanding the meaning of ‘culture’ and its complexities

• Appreciating the components of a culture• Evaluating culture and cross-cultural comparison• Understanding your own culture and learning how to

adapt to other cultures• The way cultural differences affect international

marketing strategy• Organisational cultural influences


Understanding the meaning of ‘culture’ and its complexities• Cultural identity & heredity form the basis of country culture• We use ethnic identifiers – Australian, Chinese, Indian – to define

ourselves as groups• Many groups are seen through stereotypes often media driven• Many ‘old’ cultures trace their origins back hundreds or thousands of

years• Many ‘new’ countries such as Australia and the United States only

look back a couple of hundred years and their culture is the result of the ‘melting pot’ of immigrant and surviving native culture

• Every country has a cultural mindset that must be considered


Appreciating the components of a culture

• Language– Spoken language and non-verbal communication– Misunderstanding & misinterpretation

• Social interaction– Nuclear families, extended families, single families,

reference groups• Material life

– What level of consumption do people have?


• Aesthetics– What do people find attractive? What is taboo?

Colours?• Religion

– What type of religion and how strong is it socially?• Education

– Does everyone get an education? To what level?• Gender balance

– Are men or women dominant or is there equality?


Evaluating culture and cross-cultural comparisonHigh versus low context cultures

• High context cultures put much more emphasis on the context of the communication. Contextual cues include the relationship between the parties, age, gender, power balance and so on.

• What is left unsaid may be as important as what is said.• These countries include China, Japan. Korea and Latin America

• Low context cultures, like Australia, put more emphasis on the spoken and written word. What is said is what is meant.


Cross cultural comparisons

• Many regions in the world are culturally similar within the region

• In other regions there is more cultural affinity with another country, for example the Chinese in Singapore have more cultural similarity to mainland Chinese than to the Malays in Singapore

• The international marketing manager needs to evaluate the intended market for cultural identity and similarity to other markets


Understanding your own culture and learning how to adapt to other cultures• Can you define the Australian culture?• Is t one homogenous culture or a mix of many?• Do we have cultural taboos?• How does our behaviour influence our consumption?• How do we translate our cultural behaviour to other

cultures?• How does culture spread naturally in the age of the

internet?


The way cultural differences affect international marketing strategy• Product policy

– In many markets you will need to modify or adapt your product and packaging

• Pricing– There are different attitudes to premium pricing, discounts and

bargaining

• Distribution– Some countries will not have sophisticated distribution networks

and may still rely on travelling face to face sales techniques

• Promotion – Advertising styles successful in one market may be completely

inappropriate in other cultures


3 Marketing mistakes to ponder…1. The Swedish furniture giant IKEA somehow agreed upon the

name "FARTFULL" for one of its new desks. Enough said..2. In the late 1970s, Wang, the American computer company could

not understand why its British branches were refusing to use itslatest motto "Wang Cares". Of course, to British ears this soundstoo close to "Wankers" which would not really give a very positiveimage to any company.

3. A nice cross cultural example of the fact that all pictures or symbolsare not interpreted the same across the world: staff at the Africanport of Stevadores saw the "internationally recognised" symbol for"fragile" (i.e. broken wine glass) and presumed it was a box ofbroken glass. Rather than waste space they threw all the boxesinto the sea! More at:

http://www.kwintessential.co.uk/cultural-services/articles/crosscultural-marketing.html


http://www.kwintessential.co.uk/cultural-services/articles/crosscultural-marketing.html

Organisational cultural influences

Organisations can also be characterised by their culture and this is often influenced by the culture of the country or region in which they operate.

Organisational culture varies from an emphasis on flexibility and entrepreneurship to an emphasis on efficiency.

Leadership styles are also different, ranging from autocratic through transformational and charismatic to collaborative styles.

The international marketer will need to identify the operational culture of the organisations they do business with and adapt accordingly.


Europe has a strong cultural base that goes back well over 1000 years

http://www.debatingeurope.eu/wp-content/uploads/2014/03/map.jpg


http://www.debatingeurope.eu/wp-content/uploads/2014/03/map.jpg

European cultural influences• Europe has a strong cultural base that goes back well over 1000

years• At that time there were many smaller regions and this has translated

into the current 28 countries of the EU representing half a billion people

• Understandably with 24 official languages there is a widely diverse culture throughout the region as a whole.

• This rich cultural diversity makes it an exciting place to do business and presents many opportunities through segmentation

• The EU is a region that can be travelled through with a minimum of bureaucracy and ease of passage

• The EU has many rules and guidelines about imports and exports• Read more at: http://europa.eu/index_en.htm


http://europa.eu/index_en.htm

The Eurozone – a quick look

http://europa.eu/teachers-corner/15/index_en.htm


http://europa.eu/teachers-corner/15/index_en.htm

North American influences:United States and Canada

http://i.dailymail.co.uk/i/pix/2013/09/02/article-2408591-1B95A350000005DC-125_964x720.jpg


http://i.dailymail.co.uk/i/pix/2013/09/02/article-2408591-1B95A350000005DC-125_964x720.jpg

Canada by 2nd language https://pbs.twimg.com/media/CJ2eNGoVEAAimR3.jpg


https://pbs.twimg.com/media/CJ2eNGoVEAAimR3.jpg

Quick facts..

• US – 50 states more than 300 million people, 37 ancestry groups• US African Americans and Hispanics make up a very high proportion

of the population• One the largest world economies

• Canada – two official languages – English & French• 10 provinces and 3 territories• – at least 35 million people and a very high immigration rate


‘Australianness’ as a positive differentiator in international marketsDefining the Australian culture is tricky! But let’s have a go – with humour!

1. That point ‘let’s have a go’ tends to define us well2. We are generally self deprecating – we laugh at ourselves3. Knowing a person is Australian is not based on their appearance or colour

of their skin, but whether or not every sentence they say sounds like a question.

4. If a hand is offered you shake it, if someone needs help you give it, and allowing anyone to believe whatever they like as long as it doesn't hurt anyone

5. Accepting that anyone who is an Australian citizen is as Australian as everyone else

6. Everyone we meet is a mate until they prove otherwise and we’re all equal whatever our socio-economic status

Read more: http://www.smh.com.au/entertainment/about-town/what-is-australian-culture-20130618-2ogqp.html#ixzz3gDbsKaGv


http://www.smh.com.au/entertainment/about-town/what-is-australian-culture-20130618-2ogqp.html%23ixzz3gDbsKaGv

Summary

• Culture is a defining factor• Culture is diverse• Marketers must understand the culture in their chosen

markets• Culture will affect every aspect of the marketing mix• You need local knowledge


Documents

© Laureate International Universities 2016€¦ · The international marketer will need to identify the operational culture of the organisations they do business with and adapt accordingly