International Marketing Presentation 2007

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International Marketing International Marketing Presentation Presentation

ByBy MiroslawMiroslaw ukaszczykukaszczykByBy MiroslawMiroslaw ukaszczykukaszczyk


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Th e Question Th e Questions s

Th e Question Th e Questions s

What is culture?What is culture?

Why is an understanding of cultureWhy is an understanding of cultureimportant inimportant in international marketing?international marketing?

What is culture?What is culture?

Why is an understanding of cultureWhy is an understanding of cultureimportant inimportant in international marketing?international marketing?


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IN TRODUCT

I O

N TO

IN TRODUCT

I O

N TO

THE CULTURE THE CULTURE IN TRODUCT

I O

N TO

IN TRODUCT

I O

N TO

THE CULTURE THE CULTURE


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How did Coke capture Cambodia? Why doesHow did Coke capture Cambodia? Why doesMcDonald s make millions in Mecca?McDonald s make millions in Mecca?Welcome to the world of International Marketing,Welcome to the world of International Marketing,one of the most lucrative and challenging fields of one of the most lucrative and challenging fields of marketing.marketing.

Globalization will play an increasingly importantGlobalization will play an increasingly importantrole in the marketing mix of the 21st century. Therole in the marketing mix of the 21st century. Therise of the Internet, the emergence of the Worldrise of the Internet, the emergence of the World

Trade Organization, and the strength of free tradeTrade Organization, and the strength of free tradezones such as the EU and NAFTA will force allzones such as the EU and NAFTA will force allcompanies to develop an international marketingcompanies to develop an international marketingstrategy in order to think globally and act locally.strategy in order to think globally and act locally.

How did Coke capture Cambodia? Why doesHow did Coke capture Cambodia? Why doesMcDonald s make millions in Mecca?McDonald s make millions in Mecca?Welcome to the world of International Marketing,Welcome to the world of International Marketing,one of the most lucrative and challenging fields of one of the most lucrative and challenging fields of marketing.marketing.

Globalization will play an increasingly importantGlobalization will play an increasingly importantrole in the marketing mix of the 21st century. Therole in the marketing mix of the 21st century. Therise of the Internet, the emergence of the Worldrise of the Internet, the emergence of the World

Trade Organization, and the strength of free tradeTrade Organization, and the strength of free tradezones such as the EU and NAFTA will force allzones such as the EU and NAFTA will force allcompanies to develop an international marketingcompanies to develop an international marketingstrategy in order to think globally and act locally.strategy in order to think globally and act locally.


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W h at is C ulture? W h at is C ulture? W h at is C ulture? W h at is C ulture?

The collective programming of theThe collective programming of themind which distinguishes themind which distinguishes themembers of one group or categorymembers of one group or category(nation) from another .(nation) from another .It has been also argued by thatIt has been also argued by thatCulture means: learned and sharedCulture means: learned and sharedhuman patterns or models for living;human patterns or models for living;

dayday--toto--day living patterns. Theseday living patterns. Thesepatterns and models show allpatterns and models show allaspects of human social interaction.aspects of human social interaction.Culture is mankind's primaryCulture is mankind's primary

adaptive mechanismadaptive mechanism

The collective programming of theThe collective programming of themind which distinguishes themind which distinguishes themembers of one group or categorymembers of one group or category(nation) from another .(nation) from another .It has been also argued by thatIt has been also argued by thatCulture means: learned and sharedCulture means: learned and sharedhuman patterns or models for living;human patterns or models for living;

dayday--toto--day living patterns. Theseday living patterns. Thesepatterns and models show allpatterns and models show allaspects of human social interaction.aspects of human social interaction.Culture is mankind's primaryCulture is mankind's primary

adaptive mechanismadaptive mechanism HofstedeHofstede 20052005


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The way that we do things around here. CultureThe way that we do things around here. Culturecould relate to a country (national culture), acould relate to a country (national culture), adistinct section of the community (subdistinct section of the community (sub- -culture),culture),

or an organization (corporate culture). It is widelyor an organization (corporate culture). It is widelyaccepted that you are not born with aaccepted that you are not born with a cultureculture ,,and that it is learned. So, culture includes all thatand that it is learned. So, culture includes all thatwe have learned in relation to values and norms,we have learned in relation to values and norms,customs and traditions, beliefs and religions,customs and traditions, beliefs and religions,rituals and artefacts (i.e. tangible symbols of arituals and artefacts (i.e. tangible symbols of aculture, such as the Sydney Opera House or theculture, such as the Sydney Opera House or the

Great Wall of China).Great Wall of China).

The way that we do things around here. CultureThe way that we do things around here. Culturecould relate to a country (national culture), acould relate to a country (national culture), adistinct section of the community (subdistinct section of the community (sub- -culture),culture),

or an organization (corporate culture). It is widelyor an organization (corporate culture). It is widelyaccepted that you are not born with aaccepted that you are not born with a cultureculture ,,and that it is learned. So, culture includes all thatand that it is learned. So, culture includes all thatwe have learned in relation to values and norms,we have learned in relation to values and norms,customs and traditions, beliefs and religions,customs and traditions, beliefs and religions,rituals and artefacts (i.e. tangible symbols of arituals and artefacts (i.e. tangible symbols of aculture, such as the Sydney Opera House or theculture, such as the Sydney Opera House or the

Great Wall of China).Great Wall of China).

F ollowing C ulture is:F ollowing C ulture is:F ollowing C ulture is:F ollowing C ulture is:


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Culture is learnedCulture is learnedCulture is unconsciousCulture is unconscious

Culture is sharedCulture is sharedCulture is integratedCulture is integratedCulture is SymbolicCulture is SymbolicCulture is a way of lifeCulture is a way of lifeCulture is DynamicCulture is DynamicCulture is RelativeCulture is Relative

Ch aracteristics of C ulture Ch aracteristics of C ulture Ch aracteristics of C ulture Ch aracteristics of C ulture


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C ulture affects all areas of C ulture affects all areas of

Marketing Marketing

C ulture affects all areas of C ulture affects all areas of

Marketing Marketing

product design and acceptanceproduct design and acceptancecommunication methodscommunication methodsthe role of family members in thethe role of family members in thepurchasing processpurchasing process

relations with distributorsrelations with distributorsand even physical distributionand even physical distribution

product design and acceptanceproduct design and acceptancecommunication methodscommunication methodsthe role of family members in thethe role of family members in thepurchasing processpurchasing process

relations with distributorsrelations with distributorsand even physical distributionand even physical distribution


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LanguageLanguageReligionReligion

Values and AttitudesValues and AttitudesEducationEducationSocial OrganizationsSocial OrganizationsTechnology and Material CultureTechnology and Material CultureLaw and PoliticsLaw and PoliticsAestheticsAesthetics

LanguageLanguageReligionReligion

Values and AttitudesValues and AttitudesEducationEducationSocial OrganizationsSocial OrganizationsTechnology and Material CultureTechnology and Material CultureLaw and PoliticsLaw and PoliticsAestheticsAesthetics

E lements of C ulture E lements of C ulture E lements of C ulture E lements of C ulture


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With language one should consider whether orWith language one should consider whether ornot the national culture is predominantly a highnot the national culture is predominantly a highcontext culture or a low context culture (Hall andcontext culture or a low context culture (Hall andHall 1986). The concept relates to the balanceHall 1986). The concept relates to the balancebetween the verbal and the nonbetween the verbal and the non- -verbalverbalcommunication.communication.In a low context culture spoken language carriesIn a low context culture spoken language carriesthe emphasis of the communication i.e. what isthe emphasis of the communication i.e. what issaid is what is meant. Examples include Australiasaid is what is meant. Examples include Australiaand the Netherlands.and the Netherlands.In a high context culture verbal communicationsIn a high context culture verbal communicationstend not to carry a direct message i.e. what istend not to carry a direct message i.e. what issaid may not be what is meant. So with a highsaid may not be what is meant. So with a highcontext culture hidden cultural meaning needs tocontext culture hidden cultural meaning needs tobe considered, as does body language. Examplesbe considered, as does body language. Examplesof a high context cultures include Japan andof a high context cultures include Japan and

some Arabic nations.some Arabic nations.

With language one should consider whether orWith language one should consider whether ornot the national culture is predominantly a highnot the national culture is predominantly a highcontext culture or a low context culture (Hall andcontext culture or a low context culture (Hall andHall 1986). The concept relates to the balanceHall 1986). The concept relates to the balancebetween the verbal and the nonbetween the verbal and the non- -verbalverbalcommunication.communication.In a low context culture spoken language carriesIn a low context culture spoken language carriesthe emphasis of the communication i.e. what isthe emphasis of the communication i.e. what issaid is what is meant. Examples include Australiasaid is what is meant. Examples include Australiaand the Netherlands.and the Netherlands.In a high context culture verbal communicationsIn a high context culture verbal communicationstend not to carry a direct message i.e. what istend not to carry a direct message i.e. what issaid may not be what is meant. So with a highsaid may not be what is meant. So with a highcontext culture hidden cultural meaning needs tocontext culture hidden cultural meaning needs tobe considered, as does body language. Examplesbe considered, as does body language. Examplesof a high context cultures include Japan andof a high context cultures include Japan and

some Arabic nations.some Arabic nations.

L anguage L anguage L anguage L anguage


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R eligion R eligion R eligion R eligion

The nature and complexity of The nature and complexity of the different religions anthe different religions aninternational marketer couldinternational marketer couldencounter is pretty diverse. Theencounter is pretty diverse. Theorganization needs to make sureorganization needs to make surethat their products and servicesthat their products and services

are not offensive, unlawful orare not offensive, unlawful ordistasteful to the local nation.distasteful to the local nation.This includes marketingThis includes marketingpromotion and branding.promotion and branding.

The nature and complexity of The nature and complexity of the different religions anthe different religions aninternational marketer couldinternational marketer couldencounter is pretty diverse. Theencounter is pretty diverse. Theorganization needs to make sureorganization needs to make surethat their products and servicesthat their products and services

are not offensive, unlawful orare not offensive, unlawful ordistasteful to the local nation.distasteful to the local nation.This includes marketingThis includes marketingpromotion and branding.promotion and branding.


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In China in 2007 (which was the year of the pig)In China in 2007 (which was the year of the pig)all advertising which included pictures of pigs wasall advertising which included pictures of pigs wasbanned. This was to maintain harmony with thebanned. This was to maintain harmony with thecountry's Muslim population of around 2%. Thecountry's Muslim population of around 2%. Theban included pictures of sausages that containedban included pictures of sausages that contained

pork, and even advertising that included anpork, and even advertising that included ananimated (cartoon) pig.animated (cartoon) pig.In 2005 France's Catholic Church won a courtIn 2005 France's Catholic Church won a court

injunction to ban a clothing advertisement (byinjunction to ban a clothing advertisement (byclothing designersclothing designers MaritheMarithe and Francoisand Francois GirbaudGirbaud))based upon Leonardobased upon Leonardo dada Vinci's Christ's LastVinci's Christ's LastSupper.Supper.


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V alues and Attitudes V alues and Attitudes V alues and Attitudes V alues and Attitudes

Values and attitudes vary betweenValues and attitudes vary betweennations, and even vary within nations. Sonations, and even vary within nations. Soif you are planning to take a product orif you are planning to take a product orservice overseas make sure that you haveservice overseas make sure that you have

a good grasp the locality before you entera good grasp the locality before you enterthe market. This could mean alteringthe market. This could mean alteringpromotional material or subtle brandingpromotional material or subtle brandingmessages. There may also be an issuemessages. There may also be an issuewhen managing local employees. Forwhen managing local employees. Forexample, in France workers tend to takeexample, in France workers tend to takevacations for the whole of August, whilstvacations for the whole of August, whilstin the United States employees may onlyin the United States employees may onlytake a couple of week's vacation in antake a couple of week's vacation in anentire year.entire year.

Values and attitudes vary betweenValues and attitudes vary betweennations, and even vary within nations. Sonations, and even vary within nations. Soif you are planning to take a product orif you are planning to take a product orservice overseas make sure that you haveservice overseas make sure that you have

a good grasp the locality before you entera good grasp the locality before you enterthe market. This could mean alteringthe market. This could mean alteringpromotional material or subtle brandingpromotional material or subtle brandingmessages. There may also be an issuemessages. There may also be an issuewhen managing local employees. Forwhen managing local employees. Forexample, in France workers tend to takeexample, in France workers tend to takevacations for the whole of August, whilstvacations for the whole of August, whilstin the United States employees may onlyin the United States employees may onlytake a couple of week's vacation in antake a couple of week's vacation in anentire year.entire year.


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In 2004, China banned a Nike television commercial showingIn 2004, China banned a Nike television commercial showingU.S. basketball starU.S. basketball star LeBronLeBron James in a battle with animatedJames in a battle with animatedcartoon kung fu masters and two dragons, because it wascartoon kung fu masters and two dragons, because it wasargued that the ad insults Chinese national dignity.argued that the ad insults Chinese national dignity.In 2006, Tourism Australian launched its ad campaign entitledIn 2006, Tourism Australian launched its ad campaign entitled"S o where the bloody hell are you? " "S o where the bloody hell are you? " in Britain. The $130 millionin Britain. The $130 million(US) campaign was banned by the British Advertising Standards(US) campaign was banned by the British Advertising StandardsAuthority from the United Kingdom. The campaign featured allAuthority from the United Kingdom. The campaign featured allthe standard icons of Australia such as beaches, deserts, andthe standard icons of Australia such as beaches, deserts, andcoral reefs, as well as traditional symbols like the Opera Housecoral reefs, as well as traditional symbols like the Opera Houseand the Sydney Harbour Bridge. The commentary ran:and the Sydney Harbour Bridge. The commentary ran:

"W e've poured you a beer and we've had the camels shampooed,"W e've poured you a beer and we've had the camels shampooed,we've saved you a spot on the beach. W e've even got the sharkswe've saved you a spot on the beach. W e've even got the sharksout of the pool, " .out of the pool, " .Then, from a bikiniThen, from a bikini- -clad blonde, come the tag line:clad blonde, come the tag line:"S o where the bloody hell are you? " "S o where the bloody hell are you? "


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E ducation E ducation E ducation E ducation

The level and nature of education inThe level and nature of education ineach international market will vary.each international market will vary.This may impact the type of messageThis may impact the type of message

or even the medium that you employ.or even the medium that you employ.For example, in countries with lowFor example, in countries with lowliteracy levels, advertisers would avoidliteracy levels, advertisers would avoidcommunications which dependedcommunications which dependedupon written copy, and would favourupon written copy, and would favourradio advertising with an audioradio advertising with an audiomessage or visual media such asmessage or visual media such asbillboards. The labelling of productsbillboards. The labelling of productsmay also be an issue.may also be an issue.

The level and nature of education inThe level and nature of education ineach international market will vary.each international market will vary.This may impact the type of messageThis may impact the type of message

or even the medium that you employ.or even the medium that you employ.For example, in countries with lowFor example, in countries with lowliteracy levels, advertisers would avoidliteracy levels, advertisers would avoidcommunications which dependedcommunications which dependedupon written copy, and would favourupon written copy, and would favourradio advertising with an audioradio advertising with an audiomessage or visual media such asmessage or visual media such asbillboards. The labelling of productsbillboards. The labelling of productsmay also be an issue.may also be an issue.


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In the People's Republic of China a nationwide system of In the People's Republic of China a nationwide system of public education is in place, which includes primarypublic education is in place, which includes primaryschools, middle schools (lower and upper), andschools, middle schools (lower and upper), anduniversities. Nine years of education is compulsory for alluniversities. Nine years of education is compulsory for allChinese students.Chinese students.In Finland school attendance is compulsory between theIn Finland school attendance is compulsory between the

ages of 7 and 16, the first nine years of education (primaryages of 7 and 16, the first nine years of education (primaryand secondary school) are compulsory, and the pupils goand secondary school) are compulsory, and the pupils goto their local school. The education after primary school isto their local school. The education after primary school isdivided to the vocational and academic systems,divided to the vocational and academic systems,

according to the old German model.according to the old German model.In Uganda schooling includes 7 years of primaryIn Uganda schooling includes 7 years of primaryeducation, 6 years of secondary education (divided into 4education, 6 years of secondary education (divided into 4years of lower secondary and 2 years of upper secondaryyears of lower secondary and 2 years of upper secondary

school), and 3 to 5 years of postschool), and 3 to 5 years of post- -secondary education.secondary education.


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S ocial O rganisations S ocial O rganisations S ocial O rganisations S ocial O rganisations

This aspect relates to how a national societyThis aspect relates to how a national societyis organized. For example, what is the roleis organized. For example, what is the roleof women in a society? How is the countryof women in a society? How is the countrygovernedgoverned - - centralized or devolved? Thecentralized or devolved? The

level influence of class or casts upon alevel influence of class or casts upon asociety needs to be considered. Forsociety needs to be considered. Forexample, India has an established casteexample, India has an established castesystemsystem -- and many Western countries stilland many Western countries stillhave an embedded class system. So socialhave an embedded class system. So socialmobility could be restricted where castemobility could be restricted where casteand class systems are in place. Whether orand class systems are in place. Whether ornot there are strong trade unions willnot there are strong trade unions willimpact upon management decisions if youimpact upon management decisions if youemploy local workers.employ local workers.

This aspect relates to how a national societyThis aspect relates to how a national societyis organized. For example, what is the roleis organized. For example, what is the roleof women in a society? How is the countryof women in a society? How is the countrygovernedgoverned - - centralized or devolved? Thecentralized or devolved? The

level influence of class or casts upon alevel influence of class or casts upon asociety needs to be considered. Forsociety needs to be considered. Forexample, India has an established casteexample, India has an established castesystemsystem -- and many Western countries stilland many Western countries stillhave an embedded class system. So socialhave an embedded class system. So socialmobility could be restricted where castemobility could be restricted where casteand class systems are in place. Whether orand class systems are in place. Whether ornot there are strong trade unions willnot there are strong trade unions willimpact upon management decisions if youimpact upon management decisions if youemploy local workers.employ local workers.


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T ec h nology and Material C ulture T ec h nology and Material C ulture T ec h nology and Material C ulture T ec h nology and Material C ulture Technology is a term that includesTechnology is a term that includesmany other elements. It includesmany other elements. It includesquestions such as is there energy toquestions such as is there energy topower our products? Is there apower our products? Is there atransport infrastructure to distributetransport infrastructure to distributeour goods to consumers? Does theour goods to consumers? Does thelocal port have large enough cranes tolocal port have large enough cranes tooffload containers from ships? Howoffload containers from ships? Howquickly does innovation diffuse? Also of quickly does innovation diffuse? Also of key importance, do consumers actuallykey importance, do consumers actuallybuy material goods i.e. are theybuy material goods i.e. are theymaterialistic?materialistic?

Technology is a term that includesTechnology is a term that includesmany other elements. It includesmany other elements. It includesquestions such as is there energy toquestions such as is there energy topower our products? Is there apower our products? Is there atransport infrastructure to distributetransport infrastructure to distributeour goods to consumers? Does theour goods to consumers? Does thelocal port have large enough cranes tolocal port have large enough cranes tooffload containers from ships? Howoffload containers from ships? Howquickly does innovation diffuse? Also of quickly does innovation diffuse? Also of key importance, do consumers actuallykey importance, do consumers actuallybuy material goods i.e. are theybuy material goods i.e. are theymaterialistic?materialistic?


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TrevorTrevor BaylisBaylis launched the clockwork radiolaunched the clockwork radioupon the African market. Since batteries wereupon the African market. Since batteries wereexpensive in Africa and power supplies in ruralexpensive in Africa and power supplies in ruralareas are nonareas are non- -existent. The clockwork radioexistent. The clockwork radioinnovation was a huge success.innovation was a huge success.

China's car market grew 25% in 2006 and it hasChina's car market grew 25% in 2006 and it hasovertaken Japan to be the secondovertaken Japan to be the second- -largest carlargest carmarket in the world with sales of 8 millionmarket in the world with sales of 8 millionvehicles. With just six car owners per 100vehicles. With just six car owners per 100people (6%), compared with 90% car ownershippeople (6%), compared with 90% car ownershipin the US and 80% in the UK, the potential forin the US and 80% in the UK, the potential forgrowth in the Chinese market is immense.growth in the Chinese market is immense.


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L aw and Politics L aw and Politics L aw and Politics L aw and Politics

As with many aspects, theAs with many aspects, theunderpinning social culture will driveunderpinning social culture will drivethe political and legal landscape. Thethe political and legal landscape. Thepolitical ideology on which the societypolitical ideology on which the societyis based will impact upon youris based will impact upon yourdecision to market there. Fordecision to market there. Forexample, the United Kingdom has aexample, the United Kingdom has alargely marketlargely market- -driven, democraticdriven, democraticsociety with laws based uponsociety with laws based uponprecedent and legislation, whilst Iranprecedent and legislation, whilst Iranhas a political and legal system basedhas a political and legal system basedupon the teachings and principlesupon the teachings and principles

Islam and aIslam and a ShariaSharia tradition.tradition.

As with many aspects, theAs with many aspects, theunderpinning social culture will driveunderpinning social culture will drivethe political and legal landscape. Thethe political and legal landscape. Thepolitical ideology on which the societypolitical ideology on which the societyis based will impact upon youris based will impact upon yourdecision to market there. Fordecision to market there. Forexample, the United Kingdom has aexample, the United Kingdom has alargely marketlargely market- -driven, democraticdriven, democraticsociety with laws based uponsociety with laws based uponprecedent and legislation, whilst Iranprecedent and legislation, whilst Iranhas a political and legal system basedhas a political and legal system basedupon the teachings and principlesupon the teachings and principles

Islam and aIslam and a ShariaSharia tradition.tradition.


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Aest h etics Aest h etics

Aesthetics relate to your senses,Aesthetics relate to your senses,and the appreciation of the artisticand the appreciation of the artisticnature of something, including itsnature of something, including its

smell, taste or ambience. Forsmell, taste or ambience. Forexample, is something beautiful?example, is something beautiful?Does it have a fashionable design?Does it have a fashionable design?Was an advert delivered in goodWas an advert delivered in good

taste? Do you find the colour,taste? Do you find the colour,music or architecture relating to anmusic or architecture relating to anexperience pleasing? Is everythingexperience pleasing? Is everythingrelating to branding aestheticallyrelating to branding aestheticallypleasing?pleasing?

Aesthetics relate to your senses,Aesthetics relate to your senses,and the appreciation of the artisticand the appreciation of the artisticnature of something, including itsnature of something, including its

smell, taste or ambience. Forsmell, taste or ambience. Forexample, is something beautiful?example, is something beautiful?Does it have a fashionable design?Does it have a fashionable design?Was an advert delivered in goodWas an advert delivered in good

taste? Do you find the colour,taste? Do you find the colour,music or architecture relating to anmusic or architecture relating to anexperience pleasing? Is everythingexperience pleasing? Is everythingrelating to branding aestheticallyrelating to branding aestheticallypleasing?pleasing?


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Ch inese

C ulture versus

Ch inese

C ulture versus S wedis h C ulture S wedis h C ulture

Ch inese

C ulture versus

Ch inese

C ulture versus S wedis h C ulture S wedis h C ulture


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H ofsted H ofstede es C ultural D imensions s C ultural D imensions

HofstedeHofstede conducted aconducted acomprehensive study about crosscomprehensive study about cross- -cultural management. The aimcultural management. The aimwas to analyze the employeewas to analyze the employee

values in different countries. Hisvalues in different countries. Hisresearch concluded in the findingresearch concluded in the findingof 5 dimensions which enabledof 5 dimensions which enabledhim to point out certainhim to point out certaincharacteristics for each analyzedcharacteristics for each analyzed

country. In this thesis, the fivecountry. In this thesis, the fivedimensions function more as adimensions function more as aconceptual framework, trying toconceptual framework, trying toexplain the influence of culture onexplain the influence of culture onthe researchthe research. .

HofstedeHofstede conducted aconducted acomprehensive study about crosscomprehensive study about cross- -cultural management. The aimcultural management. The aimwas to analyze the employeewas to analyze the employee

values in different countries. Hisvalues in different countries. Hisresearch concluded in the findingresearch concluded in the findingof 5 dimensions which enabledof 5 dimensions which enabledhim to point out certainhim to point out certaincharacteristics for each analyzedcharacteristics for each analyzed

country. In this thesis, the fivecountry. In this thesis, the fivedimensions function more as adimensions function more as aconceptual framework, trying toconceptual framework, trying toexplain the influence of culture onexplain the influence of culture onthe researchthe research. .

C ulturalC ulturalDifferencesDifferences

PowerPowerDistanceDistance

UncertaintyUncertaintyAvoidanceAvoidance

IndividualismIndividualismandand

C ollectivismC ollectivism

MasculinityMasculinityandand

FemininityFemininity

LongLong-- versusversusShortShort- -TermTermOrientationOrientation

HofstedeHofstede 20012001


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Power D istance Power D istance Power D istance Power D istance

T he extent to which the less powerful

members of institutions and organizationswithin a country expect and accept that power is distributed unequally.

(Hofstede 2001, pp. 98)

T he extent to which the less powerful

members of institutions and organizationswithin a country expect and accept that power is distributed unequally.

(Hofstede 2001, pp. 98)


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U ncertainty Avoidance U ncertainty Avoidance

T he extent to which the members of aT he extent to which the members of aculture feel threatened by uncertain or culture feel threatened by uncertain or unknown situationsunknown situations ..

( (HofstedeHofstede, 2001, pp. 161) , 2001, pp. 161)

T he extent to which the members of aT he extent to which the members of aculture feel threatened by uncertain or culture feel threatened by uncertain or unknown situationsunknown situations ..



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Individualism and C ollectivism Individualism and C ollectivism Individualism and C ollectivism Individualism and C ollectivism

Individualism stands for a society in which theIndividualism stands for a society in which theties between individuals are loose: Everyone isties between individuals are loose: Everyone isexpected to look after him/herself and her/hisexpected to look after him/herself and her/hisimmediate family only. Collectivism stands for immediate family only. Collectivism stands for a society in which people from birth onwardsa society in which people from birth onwardsare integrated into strong, cohesive in groups,are integrated into strong, cohesive in groups,which throughout people s lifetime continue towhich throughout people s lifetime continue to protect them in exchange for unquestioning protect them in exchange for unquestioningloyalty. loyalty.


Individualism stands for a society in which theIndividualism stands for a society in which theties between individuals are loose: Everyone isties between individuals are loose: Everyone isexpected to look after him/herself and her/hisexpected to look after him/herself and her/hisimmediate family only. Collectivism stands for immediate family only. Collectivism stands for a society in which people from birth onwardsa society in which people from birth onwardsare integrated into strong, cohesive in groups,are integrated into strong, cohesive in groups,which throughout people s lifetime continue towhich throughout people s lifetime continue to protect them in exchange for unquestioning protect them in exchange for unquestioningloyalty. loyalty.



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Masculinity and F emininity Masculinity and F emininity Masculinity and F emininity Masculinity and F emininity M asculinity stands for a society in which social M asculinity stands for a society in which social

gender roles are clearly distinct: M en aregender roles are clearly distinct: M en aresupposed to be assertive, tough, and focused onsupposed to be assertive, tough, and focused on

material success; women are supposed to bematerial success; women are supposed to bemore modest, tender, and concerned with themore modest, tender, and concerned with thequality of life. Femininity stands for a society inquality of life. Femininity stands for a society inwhich social gender roles overlap: Both men and which social gender roles overlap: Both men and women are supposed to be modest, tender, and women are supposed to be modest, tender, and concerned with the quality of life. concerned with the quality of life.


M asculinity stands for a society in which social M asculinity stands for a society in which social gender roles are clearly distinct: M en aregender roles are clearly distinct: M en aresupposed to be assertive, tough, and focused onsupposed to be assertive, tough, and focused on

material success; women are supposed to bematerial success; women are supposed to bemore modest, tender, and concerned with themore modest, tender, and concerned with thequality of life. Femininity stands for a society inquality of life. Femininity stands for a society inwhich social gender roles overlap: Both men and which social gender roles overlap: Both men and women are supposed to be modest, tender, and women are supposed to be modest, tender, and concerned with the quality of life. concerned with the quality of life.



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L ong L ong-- versus S h ort versus S h ort-- T erm T erm O

rientation O

rientation

L ong L ong-- versus S h ort versus S h ort-- T erm T erm O

rientation O

rientation Long T erm Orientation stands for the fosteringLong T erm Orientation stands for the fostering

of virtues oriented towards future rewards, inof virtues oriented towards future rewards, in particular, perseverance and thrift. Its opposite particular, perseverance and thrift. Its opposite pole, Short T erm Orientation, stands for the pole, Short T erm Orientation, stands for the fostering of virtues related to the past and fostering of virtues related to the past and present, in particular, respect for tradition, present, in particular, respect for tradition, preservation of face and fulfilling social preservation of face and fulfilling social obligations. obligations.


Long T erm Orientation stands for the fosteringLong T erm Orientation stands for the fosteringof virtues oriented towards future rewards, inof virtues oriented towards future rewards, in

particular, perseverance and thrift. Its opposite particular, perseverance and thrift. Its opposite pole, Short T erm Orientation, stands for the pole, Short T erm Orientation, stands for the fostering of virtues related to the past and fostering of virtues related to the past and present, in particular, respect for tradition, present, in particular, respect for tradition, preservation of face and fulfilling social preservation of face and fulfilling social obligations. obligations.



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P E S TEL Model P E S TEL Model P E S TEL Model P E S TEL Model

Second very popular method afterSecond very popular method after Hofstede sHofstede sanalysis of culture dimensions is PESTEL model of analysis of culture dimensions is PESTEL model of research. PESTEL analysis describes a framework of research. PESTEL analysis describes a framework of macromacro--environmental factors used in theenvironmental factors used in theenvironmental scanning component of strategicenvironmental scanning component of strategicmanagement. It is a part of the external analysismanagement. It is a part of the external analysiswhen conducting a strategic analysis or doingwhen conducting a strategic analysis or doing

market research and gives a certain overview of market research and gives a certain overview of the different macrothe different macro- -environmental factors that theenvironmental factors that thecompany has to take into consideration.company has to take into consideration.

(Johnson et al 2006)


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P E S TEL Model F ramework P E S TEL Model F ramework P E S TEL Model F ramework P E S TEL Model F ramework

TheTheOrganisationOrganisation

TheTheOrganisationOrganisation

oliticaloliticaloliticalolitical

EconomicEconomic

factorsfactors

EconomicEconomic

factorsfactors

SocioculturalSocioculturalfactorsfactors

SocioculturalSocioculturalfactorsfactors

TechnologicalTechnologicalTechnologicalTechnological

EnvironmentalEnvironmentalEnvironmentalEnvironmental

LegalLegalLegalLegal

( (Johnson et al 2006) Johnson et al 2006)


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C ultural U nderstanding C ultural U nderstanding C ultural U nderstanding C ultural U nderstanding

EthnocentrismEthnocentrismA related belief that a particularA related belief that a particularculture is superior to another andculture is superior to another andthat strategies that are used inthat strategies that are used inthe home country will work justthe home country will work justas well abroad.as well abroad.

The Self The Self--Reference CriterionReference Criterion (SRC)(SRC)The unconscious reference toThe unconscious reference toone s own value systemone s own value system. .

EthnocentrismEthnocentrismA related belief that a particularA related belief that a particularculture is superior to another andculture is superior to another andthat strategies that are used inthat strategies that are used inthe home country will work justthe home country will work justas well abroad.as well abroad.

The Self The Self--Reference CriterionReference Criterion (SRC)(SRC)The unconscious reference toThe unconscious reference toone s own value systemone s own value system. .


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C ultural U nderstanding C ultural U nderstanding C ultural U nderstanding C ultural U nderstanding

Both the SRC and ethnocentrism impede theBoth the SRC and ethnocentrism impede theability to assess a foreign market in its true light.ability to assess a foreign market in its true light.

Reactions to meanings, values, symbols, andReactions to meanings, values, symbols, andbehavior relevant to our own culture arebehavior relevant to our own culture aredifferent from those of foreign.different from those of foreign.Relying on one s SRC could produce anRelying on one s SRC could produce anunsuccessful marketing programunsuccessful marketing program. .

Both the SRC and ethnocentrism impede theBoth the SRC and ethnocentrism impede theability to assess a foreign market in its true light.ability to assess a foreign market in its true light.

Reactions to meanings, values, symbols, andReactions to meanings, values, symbols, andbehavior relevant to our own culture arebehavior relevant to our own culture aredifferent from those of foreign.different from those of foreign.Relying on one s SRC could produce anRelying on one s SRC could produce anunsuccessful marketing programunsuccessful marketing program. .


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Failing to recognize the need to takeFailing to recognize the need to take

actionactionDiscounting the cultural differences thatDiscounting the cultural differences thatexist among countriesexist among countries

Reacting to a situation in a way offensive toReacting to a situation in a way offensive toyour hostsyour hosts

R isks of S RC and E t h nocentrism R isks of S RC and E t h nocentrism R isks of S RC and E t h nocentrism R isks of S RC and E t h nocentrism


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Th e Th e E nd E nd Th e Th e E nd E nd

ThankThank youyou for listeningfor listeningThankThank youyou for listeningfor listening

Documents

International Marketing Presentation 2007