9/24/2008 Global Marketing – Schrage 3 Global Marketing – Schrage 3 CONSUMER CULTURE Cultural differences are the most significant and troublesome variables encountered Product names names Marketing strategies Translation of slogans Market research Company Global Marketing Chapter 4 SOCIAL & CULTURAL ENVIRONMENTS 1 2 Global Marketing – Schrage 3 WHAT IS CULTURE? Global Marketing – Schrage 3 GLOBAL CONSUMER CULTURE Attitudes, Beliefs, Values A system of values and norms shared among a group of people and, when taken together, constitute a design for living. Diet Aesthetics Culture Language Religion 3 4 Global Marketing – Schrage 3 RELIGION Global Marketing – Schrage 3 IMPLICATIONS ON BUSINESS Christianity Hindus Sikhs Bahais other religions 12% 2% 0%0% 1% 12% Muslims Buddhists Jews Atheists non-religious Christianity Islam Favors market-based systems. No payment or receipt of interest. Hinduism Buddhism Confucianism Caste system plays a role. 33% 6% 13% “Protestant Work Ethic” and “The Spirit of Capitalism”. 21% 2007 est. CIA fact book 5 Little emphasis on entrepreneurial behavior. Loyalty, reciprocal obligations, and honesty in dealings. 6 1 9/24/2008 Global Marketing – Schrage 3 AESTHETICS Global Marketing – Schrage 3 DIETARY PREFERENCES Availability Spices Tasteful vs. tasteless Beautiful vs. unattractive Color perceptions Music Apparel Way of life Habit 7 8 Global Marketing – Schrage 3 LANGUAGE AND COMMUNICATION SYMBOLISM Of 1st spoken language Chinese Bengali Spanish Russian English Japanese Global Marketing – Schrage 3 Arabic German Portuguese All others all aspects of culture Communication Where 13% 5% Verbal 5% 3% 63% most critical most blunders occur Nonverbal 3% Symbols 3% 2% 2% 1% Greetings 2007 est. CIA fact book 9 10 Global Marketing – Schrage 3 Global Marketing – Schrage 3 HOFSTEDE Four dimensions: Power distance. Individualism versus collectivism. Uncertainty avoidance. Masculinity versus femininity. CULTURAL TYPOLOGY 11 Later research added the dimensions of time orientation " Culture is more often a source of conflict than of synergy. Cultural differences are a nuisance at best and often a disaster." Dr. Geert Hofstede, Emeritus Professor, Maastricht University. 12 2 9/24/2008 Global Marketing – Schrage 3 Global Marketing – Schrage 3 KLUCKHOHN & STRODTBECK TROMPENAAR Fred Strodtbeck Relation to Nature Subjugation Harmony Mastery Time Orientation Past Present Future Basic Human Nature Evil Neutral/Mixed Good Activity Orientation Being Containing/controlling Doing Relationships among people Individualistic Group Hierarchical Space orientation Private Mixed Public Universalism vs. Particularism Individualism vs. Collectivism Neutral versus Affective relationships Specific versus diffuse relationships Achievement versus ascription Relationship to time Relationship to nature 13 14 Global Marketing – Schrage 3 SALAD BOWL CONCEPT Global Marketing – Schrage 3 GANNON’S METAPHORS The salad bowl is the idea that the U.S. is not a melting pot but a salad bowl. It is known as cultural mosaic in Canada. All the different cultures are combined (like a salad) but they do not merge together as a homogenous culture. Each culture keeps its own distinct qualities, just as a onion does not take on traits of a tomato merely by being placed adjacent to it. U.S. – Football Most popular sport Super Bowl – most popular holiday for gatherings Huddling to make decisions Based on statistics-reaching a goal Japan- Garden Wa (group harmony) Shikata (rules governing behavior) Seishin (training the mind to control the body) Aesthetics 15 16 15 16 Global Marketing – Schrage 3 Global Marketing – Schrage 3 ENVIRONMENTAL SENSITIVITY Product adaptation sensitivity The connection suggests: Environmental MARKETING IMPLICATIONS ON SOCIAL AND CULTURAL ENVIRONMENTS 17 Which countries are likely to be the most viable competitors. Which countries in which to locate production facilities and do business. 18 3 9/24/2008 Global Marketing – Schrage 3 Global Marketing – Schrage 3 CULTURE IS DYNAMIC CULTURE AND ETHICS Do the “right” thing. Thomas Donaldson’s Three Principles: Respect for core human values (human rights), which determine the absolute moral threshold for all business activities. Respect for local tradition. The belief that context matters when deciding what is right and what is wrong. Cultural Change 19 20 4