Cultural environment in
International marketing
BY : ZEESHAN AHMED BHATTI
Cultural Environment in Intl’ Mktg
 Increasing level of trade, opening of markets, enhanced purchasing
power of customer allowed marketers to expand their operations
 Challenge for mktg managers: handle the difference in values and
attitudes or ppl in (i) customer behavior (ii) implementing mktg
programs
 Global Customer?
 Overseas success is based on: Cultural adaptability, patience,
flexibility, and tolerance towards other beliefs
 Aim of Marketers: extent to which similarities exist or can be
achieved by marketing
Southern Florida (Blend of
Hispanic Cultures. Whirlpool
study for griddle cook tops)
 Not only new customers, but also new partners, new
employees etc.
 Cultural diversity must be taken as a benefit – better
solutions
 Culture is “an integrated system of learned behavior
patterns that are distinguishing characteristics of
the members of any given society”
 Problem arise during acculturation
 High Context Culture – context is as important as
what is said (e.g., Japan, Pakistan etc.)
 Low Context Culture – explicit (North America,
Australia etc.)
 Failure to understand the difference might lead to
misunderstandings Example of Someone from a LowContext Culture Giving Feedback - YouTube.webm
 Intracultural Differences based on nationality, race,
religion, geographic areas results in subcultures – Intl’ mgrs
must identify them (e.g., Hispanic cultures in US want bigger
dinning tables)
 Sometimes managers are accused of Cultural Imperialism
 Fear in countries due to globalization to threaten their
cultural heritage
 UNESCO convention (2005) on Protection and
Promotion of Diversity of Cultural Expressions (e.g.,
France, Brazil, Canada protect their cultural industries with
restrictive rules and subsidies)
 Movies subsidies, Geographical indications on Products
 Resulting in behaviors unintended by regulators (e.g., EU
programs law of 40%)
 Quotas may also lead to local productions to satisfy
official mandates or capture subsidies
 Worst scenario: Accused of pushing alien culture,
results in boycotts etc.
Cultural Framework in Intl’ Mktg
LANGUAGE
 Language is defined as a mirror of culture (not just for
spoken language but also non-verbal language) – context
based
 Language capability serves 4 roles in Intl. Mktg.:
1.
Aids in information gathering and evaluation efforts
2.
Access to local society..speaking local language may
make a dramatic difference (e.g., Pepsi Yeh dil
Maange More and Pepsi for all)
Company communications
4. Interpretation of contexts
3.

Language command must be greater than just word
recognition (e.g., “Tabling a proposal”, “By the end of
the day”, Swedish idioms in Finland etc.)

Goodyear (Tire company) identified different names
for tires in Spanish-speaking nations such as
“Couchos” in Venezuala, Cubiertas in Argentina,
Gomas in Chile etc.)
 Translingual homonyms – language or words offensive in a country
(e.g., Kone to Koné –the elevators company)
 Other features of language (such as Arabs read from right to left)
 Language diversity can also sometimes be a sign of other types of diversity
(e.g., Quebec maintains a French identity – rights of consumers
to be informed and served in French language)
 The Bay company – La Baie (Spends $8 Million on translations
every year)
 English as Lingua Franca in Quebec – French govt. law to ban words
 Also to websites such as with “.fr” extension to be in French
 German society to preserve German language from




Denglish
Polish to be used in advertisement by foreign
companies
Therefore, hiring local ad agencies can prevent
problems
Careful translations should be done – backtranslation? Translate emotions not words!
Translations Mistakes.docx
Non-Verbal Language
 Managers must analyze and become familiar with
the hidden language in foreign cultures
 5 key topics provide a starting point – TIME, SPACE,
MATERIAL POSSESSIONS, FRIENDSHIP
PATTERNS and BUSINESS AGREEMENTS
 Setting Meeting times in Hong Kong is futile
 In some countries, extended social acquaintance is
important - rushing into business will not be rewarded
 Amount of space required from others (e.g., Arabs and
Latinos Vs. Westerners)
 International Body Language must be included in
nonverbal Intl. Business (e.g., finger-and-thumb OK
sign, Success in US, worthless deal in France, bribe asked
in Japan and very offensive for Brazilians) American
Hand Gestures in Different Cultures - 7 Ways to Get
Yourself in Trouble Abroad - YouTube.flv
RELIGION
 Religion defines the ideals for life, which in turn are
reflected in the values and attitudes shaping the
behavior of cultures – most challenging for
marketers to adjust to!
 Procter & Gamble launch of Biomat Laundary
Detergent in Israel with Orthodox Jews who
believed that they should aid those less fortunate
WORLD RELIGION MAPS
RELIGION
 Christianity (2.2 Billion following)
 Catholicism & Protestantism – attitudes towards making money
 Holidays are often tied to religions – mgrs must see them as economic activities as
well as scheduling of events
 Islam (1.5 Billion Following) – encourages entrepreneurship
 Role of Women in Business is also tied to religion specially in Islamic countries
(Limited female employees, final purchase decisions, access to women
customer via female sales personnel, women specialty shops etc.)
 Interest free banking
 Product and Service Delivery (Hallal, Non-Alcoholic bvgs, Swedish firm in Saudi
Arabia)
 Hinduism (860 million following) – based on cast
system: affects workforce integration and also
the purchasing power and hence consumption
patterns
 Confucianism focus on groups
VALUES & ATTITUDES
 Values are shared beliefs or group norms internalized by
individuals
 Attitudes are evaluation of alternatives based on these values
 Japanese middle-aged people consider buying
foreign product as Unpatriotic
 Barbie and Ken Dolls countered by Dara & Sara Dolls
 Disney land (successful in Japan but not in Paris)
MANNERS & CUSTOMS
 Changes occurring in manners and customs must be
carefully monitored specially in cases that indicate
narrowing down of cultural differences (e.g.
McDonald’s around the globe doesn’t mean
Westernization such in Saudia)
 Specially imp. in negotiations (such as Silence in
USA and Asian countries)
 HSBC 'Eels' Ad - YouTube.flv
 Gifts are important parts in relationship
management – care shd. be taken while selecting
and presenting gifts (appropriate color and way of
delivery)
 The way things are used (e.g., Drinks/beverages)
 Package sizes (e.g., Campbell’s soup packages for
Mexico and Britain are different, Starbucks Coffee)
China
India
Japan
Mexico
Saudi
Arabia
Occasion
Chinese New
Year
Hindu
Diwali Fest.
Oseibo
Christmas/N
ew Year
Eid-ul-Fitr
OK
Modest
gifts such
as coffee
table,
books,
ties, pens
Desk
Clocks,
fine pens,
gold
lighters
Fine
compasses
to
determine
direction
for prayer
NOT OK
Clocks,
anything
from Taiwan
Sterling
silver items,
logo gifts,
food baskets
Pork, and
Pigskin,
Liquor etc.
Sweets,
Scotch,
Nuts, fruit,
brandy,
Elephant Americana
carvings
round
fruits such
as melons
Leather
Objects,
Snakes
images
Gifts that
come in sets
of 4 or 9
 Meticulous research for acceptance (focus group
interviews) – also testing consumer usage, retail
distribution studies (American Warehouse like stores
in Japan)
 New situations creations (Heinz Ketchup in Greece
to use with Pasta, Eggs etc.)
 In depth studies (such as Intel Ethnographers)
MATERIAL ELEMENTS
 Material culture results from technology and is directly
associated with its economic activity (the economic,
social, financial and mktg infrastructure)
 Economic (Transportation, Energy, Comm.)
 Social (Health, Education and Housing)
 Financial & Mktg (facilitating agencies, banks, research
firms)
 Some firms may have to be part of this infrastructure
while others can benefit from the existing ones
 In developing countries demand for energy-generating
products while in developed time-saving (e.g., Washing
Machines)
 Unusual demands due to informal economy (such as
Kenya)
 Technological advanced may cause cultural change (35-
hr week in Germany)
 Consumers now seek more diverse products (Electronics)
AESTHETICS
 Every culture makes clear statement concerning good taste in its
arts, colors, music etc.
 What is acceptable and what is not?
 Sex./Nudity in advertising?
 Colors selection (e.g., Black is color or mourning in US where as
White in Japan)
 British Bank in Singapore using Green color (color of death)
 Buildings/Offices aesthetics – may bring goodwill respecting local
culture
EDUCATION
 Education levels of a culture can be assessed using
literacy rates
 Intl. firms need to emphasis on particular skills (e.g.,
Engineering is focused in Japan, Pakistan etc.)
 Use of visual aids for training and marketing for low-
literacy rates
 Marketing technology requires high level of literacy
SOCIAL INSTITUTIONS
 Social Institutions affect the way in which ppl. Relate to each
other.
 The family unit- different in different countries (particular
importance in HRM)
 Tribal Politics (such as Baluchistan/Nigeria etc.)
 Mafias
 Social Stratification – division of particular population into
classes (Europe mostly middle class and India highly
stratified)
Universal Language Ad.
 McDonalds - Universal Language commercial -
YouTube.flv