02 cultural dynamics

8/12/2019 02 Cultural Dynamics

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I n t e r n a t i o n a l M a r k e t i n g

Cultural Dynamics in

Assessing

Global Markets

Chapter 4

1 4 t h E d i t i o n

P h i l i p R. C a t e o r a

M a r y C. G i l l y

J o h n L . G r a h a m


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What Should You Learn?

The importance of culture to an internationalmarketer

The origins and elements of culture

The impact of cultural borrowing

The strategy of planned change and itsconsequences


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Global Perspective Equities and eBayCulture Gets in the Way

Culture deals with a groups design for living

The successful marketer clearly must be astudent of culture

Markets are the result of the three-wayinteraction of a marketers

Economic conditions Efforts All other elements of culture

The use of something new is the beginning ofcultural change

The marketer becomes a change agent


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Cultures Pervasive Impact

Culture affects every part of our lives, every day,from birth to death, and everything in between

Japanthe year of the Fire Horse

As countries move from agricultural to industrial toservices economies birthrates decline

Consequences of consumption

Tobacco

Culture not only affects consumption, it also affectsproduction

Stomach cancer in Japan


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Birthrates (per 1000 women)

Exhibit 4.1


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Patterns of Consumption(annual per capita)

Exhibit 4.2


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Consequences of Consumption

Exhibit 4.3


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Human UniversalsMyth of Diversity

Use metaphors

Have a system of statusand roles

Are ethnocentric

Create art Conceive of success and

failure

Create groups antagonistic tooutsiders

Imitate outside influences

Resist outside influences

Consider aspects of sexualityprivate

Express emotions with face

Reciprocate

Use mood altering drugs Overestimate objectivity of

thought

Fear of snakes

Recognize economicobligations in exchanges ofgoods and services

Trade and transport of goods


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Definitions and Origins of Culture

Traditional definition of culture

Culture is the sum of the values, rituals, symbols, beliefs, and

thought processes that are learned, shared by a group of people,

and transmitted from generation to generation

Humans make adaptations to changingenvironments through innovation

Individuals learn culture from social institutions

Socialization (growing up)

Acculturation (adjusting to a new culture)

Application (decisions about consumption and production)


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Origins, Elements,and Consequences of Culture

Exhibit 4.4


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Geography

Exercises a profound control

Includes climate, topography, flora, fauna, and microbiology

Influenced history, technology, economics, social institutions and

way of thinking

The ideas of Jared Diamond and Philip Parker

Jared Diamond

Historically innovations spread faster east to west than north to south

Philip Parker

Reports strong correlations between latitude (climate) and per capita GDP

Empirical data supports climates apparent influence on workers wages

Explain social phenomena using principles of physiology


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We All Love FlowersWhy?

Geography

History

Technology and economics

Social institutions

Cultural values

Aesthetics as symbols


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History, the Political Economy,and Technology

History

Impact of specific events can be seen reflected in technology, social

institutions, cultural values, and even consumer behavior

Tobacco was the original source of the Virginia colonys economic survival in the 1600s

Political Economy Three approaches to governance competed for world dominance

Fascism

Communism

Democracy/free enterprise

Technology Jet aircraft, air conditioning, televisions, computers, Internet, etc.

None more important than the birth control pill


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Social Institutions

Family

Religion

School

The media

Government

Corporations


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Social Institutions

Family

Nepotism

Role of extended family

Favoritism of boys in some cultures

Religion First institution infants are exposed to outside the home

Impact of values systems

Misunderstanding of beliefs

School

Affects all aspects of the culture, from economic development toconsumer behavior

No country has been successful economically with less than 50%literacy


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Social Institutions

The media

Media time has replaced family time

TV

Internet

Government Influences the thinking and behaviors of adult citizens

Propaganda

Passage, promulgation, promotion, and enforce of laws

Corporations

Most innovations are introduced to societies by companies

Spread through media

Change agents


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Elements of Culture

Cultural values

Individualism/Collectivism Index

Power Distance Index

Uncertainty Avoidance Index Cultural Values and Consumer Behavior


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Hofstedes IndexesLanguage, and Linguistic Distance

Exhibit 4.5


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Elements of Culture

Rituals Marriage

Funerals

Symbols

Language Linguistic distance

Aesthetics as symbols Insensitivity to aesthetic values can offend, create a negative impression, and, in general, render

marketing efforts ineffective or even damaging

Beliefs

To make light of superstitions in other cultures can be an expensivemistake

Thought processes Difference in perception

Focus vs. big-picture


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Metaphorical Journeysthrough 23 Nations

Exhibit 4.6


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Cultural Knowledge

Factual knowledge

Has meaning as a straightforward fact about a culture

Assumes additional significance when interpreted within the

context of the culture

Needs to be learned

Interpretive knowledge

Requires a degree of insight that may best be described as a

feeling

Most dependent of past experience for interpretation

Most frequently prone to misinterpretation

Requires consultation and cooperation with bilingual natives with marketing

backgrounds


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Cultural Sensitivity and Tolerance

Being attuned to the nuances of culture so that anew culture can be viewed objectively,evaluated and appreciated

Cultures are not right or wrong, better or worse, they are simply

different

The more exotic the situation, the more sensitive, tolerant, and

flexible one needs to be


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Cultural Change

Dynamic in natureit is a living process

Paradoxical because culture is conservative andresists change

Changes caused by war or natural disasters

Society seeking ways to solve problems created by changes in

environment

Culture is the means used in adjusting to the environmental and

historical components of human existence


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Cultural Borrowing

Effort to learn from others cultural ways in thequest for better solutions to a societys particularproblems

Imitating diversity of other makes cultures unique

Contact can make cultures grow closer or further apart

Habits, foods, and customs are adapted to fiteach societys needs


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SimilaritiesAn Illusion

A common language does not guarantee asimilar interpretation of word or phrases

May cause lack of understanding because of apparent and

assumed similarities

Just because something sells in one countrydoesnt mean it will sell in another

Cultural differences among member of European Union a

product of centuries of history


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Resistance to Change

Gradual cultural growth does not occur withoutsome resistance

New methods, ideas, and products are held to be suspect before

they are accepted, if ever

Resistance to genetically modified (GM) foods

Resisted by Europeans

Consumed by Asians

Not even labeled in U.S. until 2000


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Planned and UnplannedCultural Change

Determine which cultural factors conflict with aninnovation

Change those factors from obstacles to acceptance intostimulants for change

Marketers have two options when introducing andinnovation to a culture

They can wait

They can cause change

Cultural congruence

Marketing products similar to ones already on the market in a

manner as congruent as possible with existing cultural norms


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Consequences of Innovation

May inadvertently bring about change that affects veryfabric of a social system

Consequences of diffusion of an innovation

May be functional or dysfunctional Depending on whether the effects on the social system are desirable or undesirable

Introduction of a processed feeding formula into the dietof babies in underdeveloped countries ended up beingdysfunctional


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Summary

A complete and thorough appreciation of theorigins and elements of culture may well be thesingle most important gain to a foreign marketerin the preparation of marketing plans and

strategies

Marketers can control the product offered to amarketits promotion, price, and eventualdistribution methodsbut they have only limited

control over the cultural environment withinwhich these plans must be implemented


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Summary

When a company is operating internationallyeach new environment that is influenced byelements unfamiliar and sometimesunrecognizable to the marketer complicates the

task

Special effort and study are needed to absorbenough understanding of the foreign culture tocope with the uncontrollable features

02 cultural dynamics

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