Topic04_B_

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TopicSocial and Cultural

Environments

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Phase one

Preliminary analysis

and screening:

matching

company/countryneeds

Phase two

Adapting the

marketing mix to

target markets

Phase three

Developing the plan

Phase four

implementation and

control

Environmentaluncontrollables,

company character,

and screening.

Host country (s)

constraints

Company character

Matching mix

requirements

Product

Price

Promotion

Distribution/place

Physical Evidence

People

Process

Marketing plandevelopment

Situation analysis

Objectives

Strategic options

Tactics

BudgetAction programmes

Implementation,evaluation, control

Objectives and

standards

Assign

responsibilities

Measure

performance

Corrective action

Information derived from each phase, market research and performance.

The International Marketing Planning Process.

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Task of Global Marketers

Study and understand the country

cultures in which they will be doing

businessIncorporate 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 wayJuan VillanongaFormer Chairman of

Telefonica

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Society, Culture, and

Global Consumer Culture

CultureWays of living, built up by a

group of human beings, that are transmitted

from one generation to anotherCulture is acted out in social institutions

Culture has both conscious and unconscious

values, ideas and attitudesCulture is both material and nonmaterial

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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

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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 worldsmajor 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

Visualembodied in

the color or shape of a

product, label, or

package

Stylesvarious

degrees of complexity,

for example areperceived 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

Linguistic Category Language Example

Syntax English has relatively fixed word order;Russian has relatively free word order

Semantics Japanese words convey nuances of feelingfor which other languages lack exactcorrelations; yes and no can be

interpreted differently than in other

languages.

Phonology Japanese does not distinguish between the

sounds l and r; English and Russian bothhave l and r sounds.

Morphology Russian is a highly inflected language, withsix different case endings for nouns and

adjectives; English ahs fewer inflections.

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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 marketingprogram

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

context

Emphasis on background,

basic values

Less emphasis on legal

paperwork

Focus on personal

reputation

Saudi Arabia, Japan

Low Context

Messages are explicit and

specific

Words carry all information

Reliance on legal

paperwork

Focus on non-personal

documentation of

credibility

Switzerland, US, 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 Not reliableget it in

writing

Responsibility for

Organizational

error

Taken by highest level Pushed to the lowest level

Space People breathe on each

other

Private space maintained

Time Polychronic Monochronic

Competitive

Bidding

Infrequent Common

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Hofstedes Cultural Typology

Power Distance

Individualism / Collectivism

MasculinityUncertainty Avoidance

Long-term Orientation

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Self-Reference Criterion and

PerceptionUnconscious 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 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 planEnvironmental 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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Social Institutions

Family

Education

ReligionGovernment

Business

These institutions function to reinforce

cultural norms

Return

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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

Return

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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

Return

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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)

Return

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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

Return

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Characteristics of Innovations

Innovation is something new, five factorsthat affect the rate at which innovations areadopted include

Relative advantage

Compatibility

Complexity

DivisibilityCommunicability

Return

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Classifications of individuals within amarket on the basis of their innovativeness.

Five categories

InnovatorsEarly Adopters

Early majority

Late majorityLaggards

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Return

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Class Exercise

Divide the class into 2 groups

One is in favor of launching Vicks

Vaporub to Russian MarketOther is in favor of launching it to

Australian Markets

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Topic04_B_

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