4 - 1 Chapter Learning Objectives The importance of culture to an international marketer The origins and elements of culture The impact of cultural borrowing The strategy of planned change and its consequences

4 - 2 Culture’s Pervasive Impact Culture affects every part of our lives, every day, from birth to death, and everything in between. As countries move from agricultural to industrial to services economies’ birthrates decline. Consequences of consumption Culture not only affects consumption, it also affects production

4 - 3 Patterns of Consumption (annual per capita) Insert Exhibit 4.2

4 - 4 Consequences of Consumption Insert Exhibit 4.3

4 - 5 Definitions and Origins of Culture Most traditional definitions of culture state that culture is the sum of the values, rituals, symbols, beliefs, and thought processes that are learned, shared by a group of people, and transmitted from generation to generation. Humans make adaptations to changing environments through innovation. Individuals learn culture from social institutions through: -Socialization (growing up) -Acculturation (adjusting to a new culture)

4 - 6 Definitions and Origins of Culture (cont’d) Geography History The political and economic systems -Three approaches to governance competed for world dominance: Fascism Communism Democracy/Free Enterprise Islamic Law (added by Dr. Mallalieu) Technology

4 - 7 Definitions and Origins of Culture (cont’d) Social institutions -Family Favoritism of boys in some cultures -Religion Misunderstanding of beliefs -School No country has been successful economically with less than 50% literacy.

4 - 8 Definitions and Origins of Culture (cont’d) -The media Media time has replaced family time -Government Governments try to influence the thinking and behaviors of adult citizens. -Corporations Most innovations are introduced to societies by companies

4 - 9 Hofstede’s Indexes, Language, and Linguistic Distance Insert Exhibit 4.5

Elements of Culture Cultural values -Individualism/Collectivism Index -Power Distance Index -Uncertainty Avoidance Index -Cultural Values and Consumer Behavior Rituals -Marriage -Funerals

Cultural Knowledge Factual knowledge vs. interpretive knowledge -Has meaning as a straightforward fact about a culture but assumes additional significance when interpreted within the context of the culture. Cultural sensitivity and tolerance -Being attuned to the nuances of culture so that a new culture can be viewed objectively and appreciated. -Cultures are not right or wrong, better or worse, they are simply different. -The more exotic the situation, the more sensitive, tolerant, and flexible one needs to be.

Cultural Change Cultural borrowing: -Effort to learn from other cultures for better solutions to a society’s particular problems. Similarities: an illusion -A common language does not guarantee a similar interpretation of word or phrases. Resistance to change: -Cultural growth does not occur without some resistance. Resistance to genetically modified (GM) foods

Summary A complete and thorough appreciation of the origins and elements of culture may well be the single most important gain to a foreign marketer in the preparation of marketing plans and strategies. Marketers can control the product offered to a market – its promotion, price, and eventual distribution methods – but they have only limited control over the cultural environment within which these plans must be implemented.

Summary (cont’d) When a company is operating internationally each new environment that is influenced by elements unfamiliar and sometimes unrecognizable to the marketer complicates the task. Special effort and study are needed to absorb enough understanding of the foreign culture to cope with the uncontrollable features.