International Marketing: Chapter 5 Key Concepts u Cultural adaptation u Types of business customs u Hall’s Framework of Cultural Context u Cultural context and personal orientation u Cultural context and communication style u Cultural context and time orientation u Culture and bribery u Different types of bribery u Three ethical principles

Cultural Adaptation: A Key Concept in International Marketing u Ten basic criteria for adaptation 1) Open tolerance 2) Flexibility 3) Humility 4) Justice/fairness 5) Ability to adjust to varying tempos 6) Curiosity/interest 7) Knowledge of the country 8) Liking for others 9) Ability to command respect 10) Ability to integrate oneself into the environment

Effective Adaptation u Awareness of one’s own culture u Recognition that differences in others can cause anxiety, frustration, and misunderstanding u The self-reference criterion (SRC) is especially operative in business customs

Self-Reference Criterion (SRC) u An unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decisions

Business Customs u Cultural imperatives u Cultural electives u Cultural exclusives

Cultural Context u What is it? –Environment –Setting –Interrelated conditions u What does it provide? –The meaning of the object, message, or situation

Hall’s Framework of Cultural Context

High Context Low Context

Culture and Personal Orientation Group Orientation (Collectivist) Group Orientation (Collectivist) Individual Orientation (Individualistic) Individual Orientation (Individualistic) High Context Cultures Low Context Cultures

Culture and Communication Style Indirect Communication Style Indirect Communication Style Direct Communication Style Direct Communication Style High Context Cultures Low Context Cultures

The Silent Language: Non-Verbal Communication  Time Orientation  Social Status  Proxemics  Oculesics  Postures  Etc.

Culture and Time Orientation Polychronic Time (P-Time) Polychronic Time (P-Time) Monochronic Time (M-Time) Monochronic Time (M-Time) High Context Cultures Low Context Cultures

Origins, Elements, and Consequences of Culture

Consequences of Culture Consumption Decisions and Behaviors Management Style

The Impact of American Culture on Management Style u “Master of destiny” viewpoint u Corporations are independent enterprises u Job promotions and rewards based on merit u Decisions based on objective analysis u Wide sharing in decision making u Never-ending quest for improvement u Competition produces efficiency

Management Styles Around the World Are Different u Authority and decision making u Management objectives and aspirations u Communication styles u Formality and tempo u P-time versus M-time u Negotiation emphasis u Marketing orientation

Business Ethics in the Global Context u What is Corruption? –Profits (Marxism) –Individualism (Japan) –Rampant consumerism (India) –Missionaries (China) –Intellectual property laws (Sub-Sahara Africa) –Currency speculation ( Southeast Asia)

The Western Focus on Bribery u Bribery became a national issue during 1970s u Organizations combating bribery of foreign public officials in international business transactions –Organization for Economic Corporation & Development (OECD) –Transparency International (TI) 5-17

Bribery versus Lubrication u Bribery –Voluntary payment offered to gain unlawful advantage u Extortion –Payment made to an authority figure under duress –Authority figure is lawfully entitled u Subornation –Large payments made to entice an official to commit an illegal act u Lubrication –Small payment or gift made to a low-ranking official in a country in which such payments are not prohibited by law –To facilitate or expedite normal, lawful activities

Ethical and Socially Responsible Decisions u Difficulties arise in making decisions, establishing policies, and engaging in business operations u Ethical principles help the marketer distinguish between right and wrong, determine what ought to be done, and justify actions

Three Ethical Principles: (If It Feels Wrong It Probably Is) Does it achieve a common good? Utilitarian Ethics Do the actions involve the rights of the individual? Rights of the Parties Does the action represent fairness for all? Justice or Fairness