Chapter 4 Social and Cultural Environments

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Chapter 4Social and Cultural Environments
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Task of Global Marketers

• Study and understand the country cultures in
  which they will be doing business
• Incorporate this understanding into the marketing
  planning process

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Introduction

• It is not just speaking a common language. It is
  sharing a culture and understanding friendships
  in the same way
• Juan Villanonga Former Chairman of Telefonica

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Society, Culture, and Global Consumer Culture

• Culture Ways of living, built up by a group of
  human beings, that are transmitted from one
  generation to another
• Culture is acted out in social institutions
• Culture has both conscious and unconscious
  values, ideas and attitudes
• Culture is both material and nonmaterial

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Society, Culture, and Global Consumer Culture

• Culture is the collective programming of the
  mind that distinguishes the members of one
  category of people from those of another.
• - Geert Hofstede

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Society, Culture, and Global Consumer Culture

• Global consumer cultures are emerging
• Persons who share meaningful sets of
  consumption-related symbols
• Pop culture coffee culture fast-food culture
• Primary the product of an interconnected world

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Attitudes, Beliefs and Values

• Attitudes - learned tendency to respond in a
  consistent way to a given object or entity
• Belief - an organized pattern of knowledge that
  an individual holds to be true about the world
• Value - enduring belief or feeling that a
  specific mode of conduct is personally or
  socially preferable to another mode of conduct

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Religion

• Religion is one important source of societys
  beliefs, attitudes, and values. The worlds major
  religions include Buddhism, Hinduism, Islam,
  Judaism, and Christianity.

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Religion
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Aesthetics

• The sense of what is beautiful and what is not
  beautiful
• What represents good taste as opposed to
  tastelessness or even obscenity

• Visual embodied in the color or shape of a
  product, label, or package
• Styles various degrees of complexity, for
  example are perceived differently around the world

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Dietary Preferences

• Would you eat..
• Reindeer (Finland)
• Rabbit (France)
• Rice, soup, and grilled fish for breakfast
  (Japan)
• Kimchi - Korea
• Blood sausage (Germany)

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Language and Communication
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Language and Communication

• Verbal Cues
• Nonverbal cues or body language

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Marketings Impact on Culture

• Universal aspects of the cultural environment
  represent opportunities to standardize elements
  of a marketing program
• Improved communications have contributed to a
  convergence of tastes and preferences in a number
  of product categories

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Marketings Impact on Culture

• Movement has 70,000 members in 35 countries
• Slow food is about the idea that things should
  not taste the same everywhere.

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High- and Low-Context Cultures

• High Context
• Information resides in
• ___________
• Emphasis on background, basic values
• Less emphasis on
• ____________
• Focus on
• ____________
• Saudi Arabia, Japan

• Low Context
• Messages are
• ______________
• Words carry all information
• Reliance on
• ______________
• Focus on non-personal documentation of
  credibility
• Switzerland, US, Germany

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High- and Low-Context Cultures
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Hofstedes Cultural Typology

• ______________________
• ______________________
• ______________________
• ______________________
• Long-term Orientation

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Self-Reference Criterion and Perception

• Unconscious reference to ones own cultural
  values creates cultural myopia
• How to Reduce Cultural Myopia
• Define the problem or goal in terms of home
  country cultural traits
• Define the problem in terms of host-country
  cultural traits make no value judgments
• Isolate the SRC influence and examine it
• Redefine the problem without the SRC influence
  and solve

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Diffusion Theory

• The Adoption Process
• Characteristics of Innovations
• Categories of Adopters

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Marketing Implications

• The topics in this chapter must be considered
  when formulating a global marketing plan
• Environmental Sensitivity reflects the extent to
  which products must be adapted to the
  culture-specific needs of different national
  markets

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Environmental Sensitivity
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Looking Ahead to Chapter 5

• The Political, Legal, and Regulatory Environments
  of Global Marketing

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Social Institutions

• Family
• Education
• Religion
• Government
• Business
• These institutions function to reinforce cultural
  norms

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Material and Nonmaterial

• Physical components of culture
• Objects
• Artifacts
• Clothing
• Tools
• Pictures
• Homes

• Subjective or abstract culture
• Religion
• Perceptions
• Attitudes
• Beliefs
• Values

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Aesthetics and Color

• What do you associate with Red?
• Active, hot, vibrant
• Weddings in some Asian cultures
• Poorly received in African countries

• With white?
• Purity, cleanliness
• Death in parts of Asia

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Phonology in action

• Colgate is a Spanish command that means go hang
  yourself
• Technology implications for Text messages
• 8282 means hurry up (Korea)
• 7170 means close friend (Korea)
• 4 5683 968 means I Love You (Korea)

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The Adoption Process

• The mental stages through which an individual
  passes from the time of his or her first
  knowledge of an innovation to the time of product
  adoption or purchase
• Awareness
• Interest
• Evaluation
• Trial
• Adoption

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Characteristics of Innovations

• Innovation is something new, five factors that
  affect the rate at which innovations are adopted
  include
• Relative advantage
• Compatibility
• Complexity
• Divisibility
• Communicability

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Categories of Adopters

• Classifications of individuals within a market on
  the basis of their innovativeness.
• Five categories
• Innovators
• Early Adopters
• Early majority
• Late majority
• Laggards

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Categories of Adopters
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