socio cultural enviroment

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Social andCultural

Environments

Global Marketing

Chapter 4


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2011 Pearson Education, Inc. publishing as Prentice Hall

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Introduction

This chapter includes:

Society, Culture, andConsumer Culture

Ethnocentricity andSelf-Reference Criterion

Halls Theory

HofstedesCulturalTypology

Diffusion Theory


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Task of Global Marketers

Study and understand the cultures ofcountries in which they will be doing business

Understand how an unconscious reference totheir own cultural values, or self-referencecriterion, may influence their perception ofthe market

Incorporate this understanding into themarketing planning process


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Culture

A basic definition -- Culture is the totalaccumulation of an identifiable group's

beliefs, norms, activities, institutions,and communication patterns.

Values, attitudes, standards and beliefs

are all embedded in culture


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Society, Culture, and

Global Consumer Culture

Culture is acted out insocial institutions

Culture is both physical

(clothingand tools) andnonphysical (religion,attitudes, beliefs, andvalues)


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Social Institutions

Family

Education

Religion

Government

BusinessThese institutions function to reinforce

cultural norms


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Material and

Nonmaterial Culture

Physicalcomponent orphysical culture

Clothing Tools

Decorative art

Bodyadornment

Homes

Subjective orabstract

culture Religion

Perceptions

Attitudes Beliefs

Values



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Culture is the collective programming of the

mind that distinguishes the members of one

category of people from those of another.Geert Hofstede

A nation, an ethic group, a gender group, anorganization, or a family may be consideredas a category.



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Global consumer cultures are emerging Persons who share meaningful sets of consumption-

related symbols

Pub culture, coffee culture, fast-food culture, creditcard culture

Primarily the product of a technologicallyinterconnected world

Internet Satellite TV

Cell phones



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Attitudes, Beliefs, and Values

Attitudelearned tendency to respond in aconsistent way to a given object or entity

Beliefan organized pattern of knowledge thatan individual holds to be true about the world

Valueenduring belief or feeling that a specificmode of conduct is personally or socially

preferable to another mode of conduct



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Religion

The worlds major religionsinclude Buddhism, Hinduism,

Islam, Judaism, andChristianity and are animportant source of beliefs,attitudes, and values.

Religious tenets, practices,holidays, and history impactglobal marketing activities.



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Aesthetics

The sense of what isbeautiful and what is not

beautiful What represents good

taste as opposed totastelessness or even

obscenity

Visualembodied inthe color or shape ofa product, label, orpackage

Stylesvariousdegrees ofcomplexity, forexample, areperceived differentlyaround the world



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Aesthetics and Color

Redassociated with blood, wine-making,activity, heat, and vibrancy in many countriesbut is poorly received in some African

countries.

Whiteidentified with purity and cleanliness in the West,with death in parts of Asia.



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The Meaning of Color

Red signifies

good luck and

celebration in

China

Red is associated with

active, hot and

vibrant



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Dietary Preferences



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Language and Communication

Speaking Englisharound the Globe

There are more

people who speakEnglish as a foreignlanguage than nativespeakers

85% of Europeanteens study English

Sony, Nokia,Matsushita requiremanagers to speak

English

Nonverbal Communication Westerners tend to be

verbal; Asians valuenonverbal communication

In Japan, bowing has manynuances

In the Mideast, Westernersshould not show the soles of

shoes or pass documentswith the left hand



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Marketings Impact on Culture

Universal aspects of the culturalenvironment represent opportunities to

standardize elements of a marketingprogram

Increasing travel and improved

communications have contributed to aconvergence of tastes and preferencesin a number of product categories



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Controversy Surrounding

Marketings Impact on Culture

McDonaldization ofcultureEating is at the heart of mostcultures and for many it issomething on which much time,attention, and money are lavished.In attempting to alter the way peopleeat, McDonaldization poses aprofound threat to the entire culturalcomplex of many societies.

-George Ritzer

Protest against the openingof McDonalds in Rome ledto the establishment of theSlow Food movement



Theoretical perspectives

Halls High- Low contextculture

Hofstedes Cultural Typology

Diffusion Theory

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Low vs. High ContextTreat everyone the same vs.

cater to backgroundcharacteristics



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High- and Low-Context

Cultures

High Context

Information residesin context

Emphasis onbackground, basicvalues, societalstatus

Less emphasis onlegal paperwork

Focus on personalreputation

Saudi Arabia, Japan

Low Context

Messages are explicitand specific

Words carry all

information Reliance on legal

paperwork

Focus on non-

personaldocumentation ofcredibility

Switzerland, U.S.,Germany


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High- and

Low-Context Cultures

Factor/Dimension High Context Low Context

Lawyers Less Important Very Important

A persons word Is his/her bond Is not reliableget it in writing

Responsibility for

Organizational error

Taken by highest level Pushed to the lowest level

Space People breathe on eachother

Private space maintained

Negotiations Lengthy- major purposeis to allow the parties toget to know each other

Proceed quickly

Competitive Bidding Infrequent Common


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Hofstedes Cultural Typology

Power Distance

Individualism/

Collectivism Masculinity

UncertaintyAvoidance

Long-term

Orientation


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Low vs. High power distance(shared power vs. power elites)


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1. Low power distance culturesdecentralize power into many differentorganizations & job positions. Powerful

people are not that much different fromeveryone else.

2. High power distance cultures centralize

power into a small group of power eliteswho are treated with great deference.

Power Distance


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Power Distance

Extent to which the lesspowerful members of asociety accept power to

be distributed unequally Hong Kong, France etc.

are high power distancecountries

Austria, Denmark,Sweden etc. are lowerpower distance

countries 4-27

I di id li ti lt e I defi e


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Individualistic culture: I definemyself (not society)

United States,

Europe arehaving highindividualism

Japan,Hong kong,

Taiwan arehaving highcollectivism


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Masculinity/Femininity

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Japan, Austria are ranked highest


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Uncertainty Avoidance

Preparedness of the people to face anyuncertainties in society.

Members of the uncertainty avoidingcultures may be more aggressive,emotional and have intolerant behavior.

Greece, Portugal etc. are outrank others Denmark, Sweden, Ireland, US are

uncertainty accepting countries.

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Long term orientation

The extent to which a societyencourages and rewards future oriented

behaviors such as planning, investing inthe future etc.

Most of the Asian countries such as

Japan, Hong Kong, Taiwan areexamples.

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S f f C i i


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Self-Reference Criterion

and Perception

Unconscious reference to ones own culturalvalues; creates cultural myopia

How to Reduce Cultural Myopia:

Define the problem or goal in terms of home countrycultural traits

Define the problem in terms of host-country culturaltraits; make no value judgments

Isolate the SRC influence and examine it

Redefine the problem without the SRC influence andsolve for the host country situation

Diff i Th


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Diffusion Theory:

The Adoption Process

The mental stages through which an individualpasses from the time of his or her first knowledge ofan innovation to the time of product adoption or

purchase Awareness

Interest

Evaluation

Trial Adoption

Diff i Th


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Diffusion Theory:

Characteristics of Innovations

Innovation is something new; fivefactors that affect the rate at which

innovations are adopted include: Relative advantage Compatibility

Complexity

Divisibility

Communicability

Diff i Th


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Diffusion Theory:

Adopter Categories


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Marketing Implications

Cultural factors must be consideredwhen marketing consumer and

industrial products Environmental sensitivity reflects the

extent to which products must be

adapted to the culture-specific needs ofdifferent national markets


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Looking Ahead to Chapter 5

The Political, Legal, and RegulatoryEnvironments of Marketing


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permission of the publisher. Printed in the United States of America.

Copyright 2011 Pearson Education, Inc.Publishing as Prentice Hall

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