The Cultural Environment

Session 5 & 6Session 5 & 6Dr. Bikramjit RishiDr. Bikramjit Rishi

Key Learning'sKey Learning's

• How the cultural environment will How the cultural environment will affect the international marketing.affect the international marketing.

• Define culture and name some of its Define culture and name some of its elements.elements.

• What cultural adaptation is and its What cultural adaptation is and its relevance in international marketing.relevance in international marketing.

• Role religion plays in formation of Role religion plays in formation of culture and how it affects culture and how it affects international marketing.international marketing.

Think……….Think……….• Govt. of India raised permitted levels of the flavour Govt. of India raised permitted levels of the flavour

Monosodium Glutamate in Dec. 1995. The decision Monosodium Glutamate in Dec. 1995. The decision came after a Bangalore court closed a Kentucky came after a Bangalore court closed a Kentucky Fried Chicken outlet because its food exceeded legal Fried Chicken outlet because its food exceeded legal limits for the additive.limits for the additive.

• Saudi Arabia has the world’s highest per capita Saudi Arabia has the world’s highest per capita consumption of Fragrance. Guy Laroche (French consumption of Fragrance. Guy Laroche (French Brand) toned down the sensuality its ads in S.A. Brand) toned down the sensuality its ads in S.A. market. The European Ad shown a man’s hand market. The European Ad shown a man’s hand clutching the perfume bottle and a woman hand clutching the perfume bottle and a woman hand seizing his forearm. In the S.A. version the man’s seizing his forearm. In the S.A. version the man’s arm is clothed in a dark jacket sleeve and the arm is clothed in a dark jacket sleeve and the woman is touching the man’s hand only with woman is touching the man’s hand only with fingertip.fingertip.

• During the past 30 years Polaroid’s instant During the past 30 years Polaroid’s instant photography has been largely responsible for photography has been largely responsible for breaking down taboos against picture taking in breaking down taboos against picture taking in Muslim countries.Muslim countries.

• P & G launched Biomat laundry detergent in P & G launched Biomat laundry detergent in Israel, it found orthodox Jews (15% of the Israel, it found orthodox Jews (15% of the population) a challenge since they do not have population) a challenge since they do not have TV. Focused on the segment’s core belief that TV. Focused on the segment’s core belief that they should aid those less fortunate.they should aid those less fortunate.

• Chinese Believe that one should build the Chinese Believe that one should build the relationship first and if that is successful, relationship first and if that is successful, transactions will follow. The GUANXI is a set of transactions will follow. The GUANXI is a set of exchanges of favours to establish trust.exchanges of favours to establish trust.

Success and CultureSuccess and Culture

An understanding of cultural An understanding of cultural differences allows marketers differences allows marketers to determine when adaptation to determine when adaptation may be necessary and when may be necessary and when products allow for regional or products allow for regional or global approaches.global approaches.

Defining CultureDefining Culture

• An integrated system of learned An integrated system of learned behavior patterns that are behavior patterns that are distinguishing characteristics of distinguishing characteristics of the members of any given the members of any given society.society.

• The definition encompasses a The definition encompasses a wide variety of elements, from wide variety of elements, from materialistic to the spiritual.materialistic to the spiritual.

AcculturationAcculturation

• Adjusting or adapting to a specific culture Adjusting or adapting to a specific culture other than one’s own … and “one of the other than one’s own … and “one of the keys to success in international marketing.keys to success in international marketing.

Context CulturesContext Cultures• High-context cultureHigh-context culture

– is where the social context in which what is said is where the social context in which what is said strongly affects the meaning of the message. strongly affects the meaning of the message. (what is not said carry more meaning)(what is not said carry more meaning)

– Examples: Japan and Saudi ArabiaExamples: Japan and Saudi Arabia

• Low-context cultureLow-context culture– is where the meaning of the message is is where the meaning of the message is

explicitly expressed by the words and is less explicitly expressed by the words and is less affected by the social context. affected by the social context.

– Example: North AmericaExample: North America

Elements of CultureElements of CultureElements

Language• verbal• non-verbalReligionValues and Attitudes

Manners and CustomsMaterial ElementsAestheticsEducationSocial Institutions

LanguageLanguage• Non VerbalNon Verbal

– How words are spoken.How words are spoken.– Gestures made.Gestures made.– Body position assumed.Body position assumed.– Degree of eye contact.Degree of eye contact.

• Local language capability’s Local language capability’s important role in international marketingimportant role in international marketing– Aids in information gathering and evaluation.Aids in information gathering and evaluation.– Provides access to local society.Provides access to local society.– Important to company communications.Important to company communications.– Allows for interpretation of contexts.Allows for interpretation of contexts.

Nonverbal LanguageNonverbal Language

• Hidden language of culturesHidden language of cultures– Time flexibility and sensibility.Time flexibility and sensibility.– Social acquaintance and rapport.Social acquaintance and rapport.– Personal physical space and personal touching.Personal physical space and personal touching.– Non-verbal gestures and signaling.Non-verbal gestures and signaling.

The Imperative To Be MultinationalThe Imperative To Be Multinational • Today the issue is generally not whether to Today the issue is generally not whether to

market a brand in other countries but rather market a brand in other countries but rather how to do it (e.g., the same product, the how to do it (e.g., the same product, the same “global” advertising campaign, or same “global” advertising campaign, or “tailored” products and localized ads for “tailored” products and localized ads for each country).each country).

• This challenge has been given special This challenge has been given special meaning by the efforts of the meaning by the efforts of the European European UnionUnion (EU) to forming a single market. (EU) to forming a single market. – It is unclear whether this diverse market It is unclear whether this diverse market

will be transformed into a single market of will be transformed into a single market of homogeneous “Euro-consumers” with the homogeneous “Euro-consumers” with the same or very similar wants and needs. same or very similar wants and needs.

– Many people hope that the introduction of Many people hope that the introduction of the “euro” as a common currency among a the “euro” as a common currency among a number of EU members will help shape number of EU members will help shape Europe into a huge, powerful, single Europe into a huge, powerful, single market.market.

Cross-Cultural Consumer Cross-Cultural Consumer AnalysisAnalysis

Time EffectsTime Effects• The pace of life differs from one nation to another. The pace of life differs from one nation to another.

– The average children’s birthday party in the United States lasts The average children’s birthday party in the United States lasts approximately two hours.approximately two hours.

– Brazilians are willing to wait a little more than two hours for a late Brazilians are willing to wait a little more than two hours for a late arriver to show up at a birthday party. arriver to show up at a birthday party.

• How time is spent on the job is also an issue that varies from How time is spent on the job is also an issue that varies from country to country. country to country.

– In the United States., about 80 percent of work time is spent on the In the United States., about 80 percent of work time is spent on the task, and perhaps 20 percent is used for social activities. task, and perhaps 20 percent is used for social activities.

– But in countries like India and Nepal, the balance is closer to 50 But in countries like India and Nepal, the balance is closer to 50 percent on each; and in Japan, social time, such as having tea with percent on each; and in Japan, social time, such as having tea with peers in the middle of the day, is considered to be a part of work.peers in the middle of the day, is considered to be a part of work.

• Research on pace of life in 31 countries (basing overall pace on Research on pace of life in 31 countries (basing overall pace on how long pedestrians take to walk 60 feet, the minutes it takes how long pedestrians take to walk 60 feet, the minutes it takes a postal clerk to complete a stamp-purchase transaction, and a postal clerk to complete a stamp-purchase transaction, and the accuracy of public clocks) reveals substantial cross-cultural the accuracy of public clocks) reveals substantial cross-cultural differences. Switzerland has the fastest pace of life; Mexico has differences. Switzerland has the fastest pace of life; Mexico has the slowest pace of life.the slowest pace of life.

Table: Basic Research Issues in Cross-Cultural Analysis

FACTORS

Differences in language and meaning

Differences in market segmentation opportunities

Differences in consumption patterns

Differences in the perceived benefits of products and services

EXAMPLES

Words or concepts may not mean the same in two different countries.

The income, social class, age, and sex of target customers may differ dramatically in two different countries.

Two countries may differ substantially in the level of consumption or use of products or services.

Two nations may use or consume the same product in very different ways.

Table: continued

FACTORS

Differences in the criteria for evaluating products and services

Differences in economic and social conditions and family structure

Differences in marketing research and conditions

Differences in marketing research possibilities

EXAMPLES

The benefits sought from a service may differ from country to country.

The “style” of family decision making may vary significantly from country to country.

The types and quality of retail outlets and direct-mail lists may vary greatly among countries.

The availability of professional consumer researchers may vary considerably from country to country.

Leading Leading Wrist-Watch Wrist-Watch ManufacturerManufacturer Uses Global Uses Global Advertising Advertising StrategyStrategy

Dominant Religions of The Dominant Religions of The WorldWorld

• Christianity - 2.0 billion followersChristianity - 2.0 billion followers

• Islam - 1.2 billion followersIslam - 1.2 billion followers

• Hinduism - 860 million followersHinduism - 860 million followers

• Buddhism - 360 million followersBuddhism - 360 million followers

• Confucianism - 150 million Confucianism - 150 million followersfollowers

Manners and CustomsManners and Customs

• Potential problem areas for marketers arise Potential problem areas for marketers arise from an insufficient understanding of:from an insufficient understanding of:– different ways of thinking.different ways of thinking.– the necessity of saving face.the necessity of saving face.– knowledge and understanding knowledge and understanding

of the host country.of the host country.– the decision-making process the decision-making process

and personal relations.and personal relations.– the allocation of time the allocation of time

for negotiations.for negotiations.

To Give or Not To GiveTo Give or Not To Give

Social InstitutionsSocial Institutions

• Kinship relationshipsKinship relationships– immediate and extended familyimmediate and extended family

• Social stratificationSocial stratification

• Reference groupsReference groups– Primary reference groupsPrimary reference groups

•family, coworkersfamily, coworkers

– Secondary reference groupsSecondary reference groups•professional associations, trade organizationsprofessional associations, trade organizations

Sources of Cultural Sources of Cultural KnowledgeKnowledge

Making Culture WorkMaking Culture Work

Embrace local culture.Embrace local culture.Build relationships.Build relationships.Employ locals to gain cultural knowledge.Employ locals to gain cultural knowledge.Help employees understand you.Help employees understand you.Adapt products and processes to local Adapt products and processes to local

markets.markets.Coordinate by region.Coordinate by region.

• You are on your first business visit to You are on your first business visit to Germany. You feel confident about Germany. You feel confident about your ability to speak the language your ability to speak the language (you studied German in school and (you studied German in school and have taken a refresher course), and have taken a refresher course), and you decide to use it. During you decide to use it. During introductions, you want to break the introductions, you want to break the ice by asking "Wie geht's?" and ice by asking "Wie geht's?" and insisting that everyone call you by insisting that everyone call you by the first name. Speculate as to the the first name. Speculate as to the reaction.reaction.

• In many cultures, formal and informal rules exist for human In many cultures, formal and informal rules exist for human interaction. Quite often rules in a given culture do not become interaction. Quite often rules in a given culture do not become evident to an international business person until they realize evident to an international business person until they realize something is wrong. In the situation described, the person's request something is wrong. In the situation described, the person's request is probably as overly friendly and offensive. In many cultures calling is probably as overly friendly and offensive. In many cultures calling a business associate by the first name or using the second person a business associate by the first name or using the second person singular (for example, the French "tu") is unheard of. Whereas the singular (for example, the French "tu") is unheard of. Whereas the French reserve the informal only for childhood friends, the Swedes, French reserve the informal only for childhood friends, the Swedes, for example, tend to be informal with everyone.for example, tend to be informal with everyone.

• Sharon Ruhly, in her book Sharon Ruhly, in her book Orientation to Intercultural CommunicationOrientation to Intercultural Communication (Chicago, Science Research, Inc., 1976), provides a system for (Chicago, Science Research, Inc., 1976), provides a system for analyzing different levels of culture. The technical level can be learnt analyzing different levels of culture. The technical level can be learnt from factual materials. The formal level of culture is learnt by trial from factual materials. The formal level of culture is learnt by trial and error. Rules for particular behavior exist, as indicated in the and error. Rules for particular behavior exist, as indicated in the situation described. The informal level of culture is learnt through situation described. The informal level of culture is learnt through modeling; for example, the roles men and women have in a certain modeling; for example, the roles men and women have in a certain culture. Calling a person by the first name (at all or too soon) is a culture. Calling a person by the first name (at all or too soon) is a violation of the informal levels of culture. violation of the informal levels of culture.

• In some cultures, different degrees of "acceptance" exist. For In some cultures, different degrees of "acceptance" exist. For example, in the Soviet Union, a business person may follow his or her example, in the Soviet Union, a business person may follow his or her own progress by observing what business partners call him or her. own progress by observing what business partners call him or her.