Power Point 3 - A Global Marketer’s Social and Cultural Environments Flashcards
The Task of Global Marketers
- Research the cultures of countries (whose most important characteristics are hidden from view) and learn how people from different cultures prefer to do business.
- Understand how their own cultural values might influence your research material.
- Interpret the research material from the perspective of the target culture.
- Modify your marketing plan to accommodate the target culture’s preferences/expectations.
Culture:
“Culture is the collective programming of the mind that distinguishes the members of one category of people from those of another.”
- A nation, an ethic group, a gender group, an organization, or a ‘family business’ may be considered as a category.
Physical Culture:
Clothing and Art
Music and Dancing
Education and Sports
Social Status and Etiquette
Ethics and Language
Religion
Social Institutions
Family
Education
Religion
Government
Business
–> These institutions function to reinforce cultural norms.
Abstract Culture (cont’d):
Religious Rituals
Perceptions
Attitudes
Beliefs
Values
Identifying Global Segments
An interconnected world has found similar market segments that are geographically dispersed. These people share a common desire.
Examples:
1. An Irish pub in North America.
2. Starbucks (a coffee shop with global recognition).
3. Fast food.
4. Debt/credit cards.
5. Sports (World Cup).
Attitudes, Beliefs, and Values
The attitude (a response), belief (the output of cultural training) and values (the measurement of one belief when compared to another) can be generalized for the study of a national culture.
However, be aware of …
Subcultures: defined as smaller groups of people who have modified the basic national value.
Example: Japan:
Classic view: (i) strive to achieve cooperation, consensus, and harmony, (ii) believe that you are unique in the world.
Contemporary view: a favourable attitude toward American brands.
Subcultures:
defined as smaller groups of people who have modified the basic national value.
Japan Classic view:
(i) strive to achieve cooperation, consensus, and harmony, (ii) believe that you are unique in the world.
Japan Contemporary view:
a favourable attitude toward American brands.
Aesthetics
Subject to a cultural preference, aesthetics represent an opinion of what is attractive, pleasing or acceptable.
–>. It defines what is tasteful or tasteless, flattering or insulting.
The ‘signals’ (the 4P’s) sent from one culture to another could be:
–> Understood but have no impact, or
–> Confusing, or
–> Insulting.
The primary emotional trigger is ‘Visual’. For example:
The product’s package; a global business may use one standard (emotionally-neutral, but noticeable) colour as part of their global branding signal. Example: Caterpillar’s bright yellow. But others will need to be adapted to suit local cultural preferences.
The advertising; famous people used in commercials. The intent is to create an emotional bond between the product and your admiration of the person.
–> Some common secondary triggers include sound (music) and motion (body language).
Aesthetics and Colour
Red: represents (subject to cultural preferences):
–> Energy, excitement, active, vibrant.
–> Good luck.
–> Danger, death.
Blue: the most popular colour in the world.
–> Typically, the safest colour to use in business communication (emotional connection to sky and water).
–> Long-term exposure has a calming effect.
White: clean (the West) or death (some parts of Asia).
Gray: a low-quality signal in many Asian countries; a high-quality signal in America and some European countries.
Purple: high value. It emotionally signals: wealth, royalty, richness.
Music
Music is part of all cultures.
Regarding cultural preferences; the correct selection will support your advertisement; the wrong selection will irritate or insult the target audience.
Demographics (age, urban, rural) play a significant role for music selection within a culture.
Language and Communication
Unspoken language includes gestures, touching, body language. In a one-on-one business meeting, the unspoken language often tells more (to an experienced negotiator) than the spoken words.
Consider the following ‘Communication’ observations:
-> The ‘richness’ of a meeting room.
-> The shape of a meeting table.
-> The maintained physical distance after formal introductions.
-> The amount of eye contact.
-> The perceived stress level.
Spoken language has four areas:
Rules of sentence formation (the order of words).
System of meaning.
System of sound patterns.
Word formation.
Syntax:
Syntax: the order of words
Example:
English: a fixed word order
Russian: a free work order
Semantics:
Semantics: the meaning of words
Example:
Japanese: emotions can be tied to words, but only the word translates
Many countries: basic terms such as ‘yes’ and ‘no’ are interpreted differently
Phonology:
Phonology: the abstract value of sound patterns
Example:
Japanese does not distinguish between the sounds ‘I’ and ‘r’; English and Russian both have ‘I’ and ‘r’ sounds.
Morphology:
Morphology: word formation
Example:
Russian: a highly inflected language; six different case endings for nouns and adjectives; English has fewer inflections
Nonverbal Signals
In the Middle East, Westerners should not: (i) show the soles of shoes or (ii) pass documents with the left hand.
In Japan, the ‘depth’ of a bow sends different signals.
Collective cultures (most Asian countries) place greater value on nonverbal communication than individualistic cultures (America and many parts of Europe).
Government regulations: some governments must review the advertisement material before being allowed to be used in that country.
The ‘Language of Business’
More people in the world speak English as their second language than people who speak English as their first language.
Several global businesses require senior managers to be proficient in English if they wish to be considered for future promotions.
Learning a few basic words or phrases of the foreign language will add value to your initial reputation because you have ‘made an effort’.
Can Marketing Change a Culture’s Values? Opinion 1: Yes
Having standardized components (such as convenience foods and disposable products) for global marketing proves that one culture will adapt to another’s cultural product if they see something they want but don’t presently have it as part of their culture.
Increasing travel and exposure to different cultures results in new products being adapted by different cultures.
Examples:
Tobacco introduced to Europe.
South Pacific, 1942, ‘Crate Culture’.
A global marketer often discovers that much of world’s cultural diversity has some common preferences. Some obvious examples are the global acceptance of convenience foods, disposable products, popular music, and movies.
The ‘globalization’ of one country’s preferences has been leveraged by global companies that have seized these opportunities to find customers around the world.
Can Marketing Change a Culture’s Values? Opinion 2: No
Global marketing will expose different cultures to the products of other cultures and might even change some buying habits and preferences. But this exposure does not affect basic cultural values and beliefs.
Examples:
A multi-generational mistrust between two national cultures (countries) will not be overruled by a marketer’s advertisement.
A learned dislike of a product (example; ice cream, beer) at an early age will not be altered by advertising later in that person’s life.
Context: The ‘Unspoken’ Word: Low Context Cultures
Messages are explicit and specific.
Written words carry all information; verbal messages are meaningless.
There is a strong reliance on legal paperwork. An agreement exists only after those with authority have signed a contract; a handshake at the end of a meeting is meaningless.
There is no relationship between business representatives (other than being seen as negotiators who are striving for the ‘best deal’).
Deals are made with much less information about the character or values of the participants. More reliance is placed on the contract.
Negotiations are fast because there is minimal time committed to getting familiar with the other party.
The negotiating assignment is given to the person who has the proven ability to ‘close a deal fast’.
Context: The ‘Unspoken’ Word : High Context Cultures
High Context Cultures:
Only new information is shared; it is assumed that you are familiar with older (background, supporting) data.
A verbal promise is a contract; there is less emphasis on legal paperwork. A contract merely declares what has already been agreed to by the affected parties.
Focus is on: (i) personal reputation, (ii) an ongoing (trusting) relationship and (iii) societal status.
Negotiations are slow; time is required to develop a level of trust between the two parties.
The negotiating assignment is given to the person who you can trust. A great emphasis is placed on a person’s values and position or ‘place’ (status) in society.
–>. In such cultures, a business loan is more likely to be approved based on ‘who you are’ rather than financial security or a contract’s terms.
When a high-context sub-culture exists within a low-context culture:
–> This is a ‘friction’ point; two parties who trust each other (and do business based on a handshake and their personal reputations) will be forced to document all conversations to provide evidence of all transactions.
The culture prefers legal action as the tool to settle disputes; the sub-culture prefers face-to-face negotiations (to avoid publicity).
When a low-context sub-culture exists within a high-context culture:
This is also a ‘friction’ point; two parties who use only contracts to develop business agreements are instructed to ‘slow down’ and evaluate the trustworthiness of the other party. They will often view these directives as a waste of time and resources.
In terms of settling a dispute, the culture prefers face-to-face negotiations (to avoid publicity); the sub-culture prefers legal action.
High and Low Context Cultures
Factors or Dimensions:
Lawyers
A Person’s Word
Decision Responsibility
Physical Space between Individuals
Time
Negotiations
Competitive Bidding
High Context:
- Lawyers: Initially less important
- A Person’s Word: The basis of the agreement
- Decision Responsibility: Signed off at highest level
(trust issue) - Physical Space between Individuals: Inconsistent; extreme closeness (Arab) or distance (Japanese) can be expected
- Time: Parallel & Flexible; multiple projects can share the same time period
- Negotiations: Long; time is required to develop trust
- Competitive BiddingRare; trust those who you know
Low Context:
- Lawyers: Initially very important
- A Person’s Word: Meaningless
- Decision Responsibility: Pushed to lowest level
(cost-effective) - Physical Space between Individuals: Consistent; a preferred ‘bubble’ of private space (United States, Northern Europe)
- Time: Linear & Rigid- one thing at a time; each with fixed schedules
- Negotiations: Fast – focus on ‘the deal’; not the person
- Competitive BiddingRare: Common
Hofstede’s Five Dimensions of National Culture
Individualism/Collectivism
Power Distance
Uncertainty Avoidance
Achievement/Nurturing
Long-Term Orientation
Self-Reference Criterion and Perception
Defined as the sub-conscious reference to one’s own cultural values as a ‘correct’ benchmark; this creates a cultural ‘tunnel-vision’.
How to reduce: Self-Reference Criterion and Perception
Define the problem or goal in terms of your home country’s cultural traits.
Define the problem (again) in terms of the host country’s cultural traits; make no value judgements.
State the SRC influence; defined as the ‘spread’ between your country and the target country’s expectations.
Redefine the problem being aware of the SRC influence.
Diffusion Theory: The Adoption Process
The diffusion theory describes the mental stages an individual passes through from the first knowledge of an innovation to the time of a product purchase. It involves:
Awareness
Interest
Evaluation
Trial
Adoption
Diffusion Theory: Characteristics of Innovation
Innovation (from a client’s perspective) is a new product or service.
Five factors that affect the innovation rate are:
Relative advantage: How does the product compare with existing alternatives?
Compatible: Will it work with the other products I own?
Complexity: It is difficult to learn?
Divisibility: A free sample?
The advertisement: Does it communicate a perceived value?
Diffusion Theory: Adopter Categories: Typical Model
- Early Adopters
- Early Majority
- Late Majority
- Laggards
Cultural Imperatives
Cultural imperatives are the business customs and expectations that must be met and conformed to (or avoided) if business relationships are to be successful.
In Japan:
–> Prolonged eye contact is considered offensive.
–> Maintaining a physical space is essential.
For several Arab (Spain, Argentina) countries:
–> Prolonged eye contact is considered essential; avoiding eye contact signals a negative ‘trust’ issue.
–> Maintaining a physical space is not necessary (and not preferred).
Cultural Electives
Cultural electives include areas of behaviour or customs that one may wish to conform to (or participate in) but are not required.
The most common examples:
- The body language of a proper introduction.
- The formality and hierarchy during introductions.
- Learning a few basic language skills. (Even making mistakes that make your host smile indicates your willingness to make an extra effort).
Cultural Exclusives
Cultural exclusives are those customs or behaviour patterns reserved for the locals. It is best for foreigners to avoid these issues because:
–> they are complicated; basing your knowledge of the subject on news announcements gives you a biased and incomplete understanding.
–> you do not know the opinions of your hosts; you may offend them with your comments or actions.
Typical examples include:
1. Religion
2. Politics
Task Management: Monochronic Time (linear) vs Polychronic Time (parallel):
Monochronic Time (linear): Paying attention to and doing only one thing at a time.
Polychronic Time (parallel): Being involved with many things at once.
Monochronic People
Do one thing at a time.
Concentrate on one job.
Rigid time commitment.
Needs full information.
Committed to the job.
Never alters plans.
Promptness based on schedules.
Short-term business relationships.
Polychronic
Do many things at a time.
Allow interruptions.
Considers time value.
Uses available information.
Committed to people.
Easily alters plans.
Promptness based on relationships.
Long-term business relationships.
0 – 12: Highly Monochronic
Uses detailed plans and schedules.
Prefers unique work responsibilities.
Prefers private working conditions.
Prefers formal work relationships.
Communicates formally and with low context.
13 – 24: Moderately Monochronic
Committed to project completion on time.
Prefers a work environment with minimal interruptions.
Prefers social interaction at the appropriate time and place.
Prefers formal work relationships with minimal input from others.
Communicates mostly formally and with low/medium context.
25 – 36: Moderately Polychronic
Plans and schedules have some flexibility.
Prefers multiple activities at the same time.
Prefers limited team interaction.
Will develop informal work relationships.
Communicates informally with medium/high context.
37 – 45: Highly Polychronic
Fully flexible plans and shared responsibilities.
Believes that business success is based on team performance.
Work relationships are fully flexible.
Communication is spontaneous and informal.
To Summarize:
Thorough cultural research includes both physical (obvious) and abstract (hidden) components.
Language is verbal but communication includes a non-verbal component (such as colours, music and context); both are equally important.
Diffusion Theory applies to all cultures, but its timing differs based on cultural preferences.
Task Management (when applied to a marketing situation) describes a culture‘s preferences when assessing alternatives; linear or parallel.
