CULTURAL ENVIRONMENT OF INTERNATIONAL MARKETING

WHAT IS CULTURE?
Culture is a set of traditional belief and values that are passed from generation to generation.

INTERNATIONAL MARKETING: CONSIDERATIONS AND OUTCOMES

BELIEFS INVESTMENT PARTNERSHIPS

CULTURE

EXPECTATIONS

BEHAVIOR ATTRIBUTIONS

ENTRY STRATEGY

ECONOMICS

INTERNATIONAL MARKETING

MARKETING MIX

POLITICAL/ LEGAL/ HISTORICAL

PRODUCT

PROMOTION

PRICE

DISTRIBUTION

CHARACTERISTICS
Prescriptive Socially shared Facilitates communication Learned Subjective Dynamic Cumulative Enduring

ELEMENTS OF CULTURE
1. Language 2. Religion 3. value and attitude 4. Customs/ manners 5. Education 6. Social Institutions

THE INTERNATIONAL MARKETING TASK

Foreign Environment (Uncontrollables)

7. Structure of Distribution 1. Competition Domestic environment (Uncontrollables) Environmental uncontrollables country market A

(Controllables) 1. Competition 2. Technology Price Product Target 5. PoliticalEnvironmental 7 Market uncontrollables 6. Geography and Legal country Promotion Place or 2 .Technology Infrastructure market B Distribution 4. Culture Environmental 3. Economy uncontrollables 5. Political3. Economy country Legal market C 4. Culture

INFLUENCE OF CULTURE ON CONSUMPTION

Consumption patterns, living styles, and the priority of needs are all dictated by culture. Culture prescribes the manner in which people satisfy their desires. Example: Consumption of beef not in china coz Chinese believing that it is improper to eat cattle that works in farms but in Japan, the per capita annual consumption of beef is very high.

INFLUENCE OF CULTURE ON THINKING PROCESS

Self Reference Criterion: when travelling overseas, it is impossible for a person to observe foreign culture without making reference, perhaps unconsciously, back to personal cultural values. Eg. American and European commonly treat dogs as family members where as in Arabs, view dogs as filthy animals.

INFLUENCE OF CULTURE ON COMMUNICATION PROCESS

A country may be classified as either high context and low context culture. This classification provides an understanding of various cultural orientations and explains how communication is conveyed and perceived. Low context: in this type of society, messages are clear in the sense that actual words are used to convey the main part of the problem. High context: in this, the communication may be indirect and the expressive manner in which the message is delivered become critical.

HIGH CONTEXT VS. LOW CONTEXT CULTURES

Japanese Arabian Latin American Spanish Italian

High Context culture

English (UK)
French North American (US) Scandinavian

Low Context Swiss culture

German

CULTURAL UNIVERSALS
As a human being, regardless of race of religion, all have similar basic needs. Examples: 1. People everywhere have a love for music and a need for fun. 2. The homogeneous desire for beauty and diamonds also make it possible to promote diamonds in basically the same way worldwide.

CULTURAL SIMILARITIES:AN ILLUSION

Cultural similarities at first glance may in fact be just an illusion. A marketer must thus guard against taking any market for granted. Example: electronic tea kettle, used in Canada but not in America.

COMMUNICATION THROUGH VERBAL LANGUAGE

Aids in information gathering and evaluation Provide access to local society Allow for interpretation of context Example: Italian language allows several different ways of addressing someone that show a speakers position and feelings.

COMMUNICATION THROUGH NONVERBAL MANNER

How words are spoken? 1. Gestures made 2. Body position assumed 3. Degree of eye contact Example: Japanese view prolonged eye contact as rude, American instead feel that avoidance of eye contact is impolite.

LANGUAGE OF TIME
Example : In United States, there is a direct relation between time and the importance of matter. When a matter is important, it requires it requires immediate attention and action. In some other countries, a reverse relationship exist.

LANGUAGE OF SPACE
Space also has implications for personal selling. Example: Latin Americans are comfortable with just a few inches of distance and repeated embracing. Asian on the other hand, prefer substantial conversational distance and no physical contacts.

LANGUAGE OF AGREEMENT
The United States is a very legalistic society but on the other hand, Acc. To old saying of Thailand, It is better to eat dogs feces than to engage in a lawsuit

LAWSUIT FILED ON BEHALF OF OBESE CHILDREN

McDonalds negligently and intentionally markets to children food products that are high in fat and cholesterol On behalf of obese children and overweight children filed by Sam Hirsch, a lawyer in NY. Failing to warn of ingredients links to obesity, diabetes, coronary heart disease, etc.

LANGUAGE OF FRIENDSHIP
In many countries, friendship is not taken lightly it involves real obligations such as providing financial and physical help when friends are down and out. Eg. Business is a personal matter in Turkey where the idea is lets make friends first and then see if we can conduct business

LANGUAGE OF SUPERSTITION
Some westerners may assumed to see foreigners take superstition so seriously. Eg. American knock on wood, cross their fingers, and feel uneasy when a black cat crosses their path.

LANGUAGE OF RELIGION
Religion prescribes proper behavior, including work habits Marketer must pay attention to religious activities. Eg. Saudi Arabian publications will not accept any advertisement that has a woman pictured in it.

LANGUAGE OF COLOR
Flowers and colors have their own language and meaning. Preference for colors determined by the culture. Eg. White is appropriate color for American gown , yet white is used alternative with black for mourning in India.

CULTURAL LESSONS
Diet Coke is named Light Coke in Japan--dieting was not well regarded Red circle trademark was unpopular in Asia due to its resemblance of Japanese flag Packaging of products is more important in some countries than in U.S. Advertisement featuring man and dog failed in Africa--dogs were not seem as mans best friend

MARKETING PRACTICES
Fast food, snack food, and soft drink companies focus their marketing on children and adolescents through: Saturday morning TV commercials Cuddly characters like Ronald McDonald (the 2nd most recognized figure among children after Santa Claus) Contracts to advertise and serve soft drinks and fast food in schools Ever-changing toys included in Happy Meals

WHOS RESPONSIBLE?
Parents Schools Toy makers Food companies Children

CONCLUSION
Culture prescribe acceptable beliefs, tradition, customs and values that are then socially shared. Culture is subjective and cumulative. Culture affects peoples behaviour in diverse ways through logic, communication and consumption.

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CULTURAL FORCES INFLUENCE MARKETING

Cultural values, beliefs, norms &

characteristics