Cultural differences in international marketing

Outline Culture and its elements Marketing implications of cultural differences Examples of cultural blunders in marketing

Why should international marketers study different cultures? There are often surprises! the average French man uses twice as many cosmetics as his wife the Germans and French eat more packaged spaghetti than Italians do 15% of Chinese women style their hair and put on makeup at bedtime Let down hair, take off make up

So, companies need to study the cultures of countries in which they will be doing business

What is culture? Culture is the way we see and do things around here… Culture–a way of living built up by a group of human beings and transmitted from one generation to another (Stein, 1973) Culture is the way we see and do things around here… This slide is an introduction of the different aspects of culture. The goal of this slide is to help the student see that culture has a number of factors affecting it. Culture is acted out in social institutions and in society. 5

Culture is acted out in social institutions Family Education Religion Government Business These institutions function to reinforce cultural norms

Elements of culture CULTURE Religion Education Language Aesthetics Values Also, differences pertaining to ….can affect local reaction to a company’s brands or products as well as the ability of company personnel to function effectively in different cultures Attitudes Material culture Beliefs

Religion does influence consumer patterns Certain religions prohibit the use of certain goods -Hinduism does not allow beef consumption -Muslims are prohibited from drinking alcohol or eating pork -Jews are prohibited from eating pork and shellfish. Religion is often a total way of life in the Muslim world -during Ramadan all types of work slow down McDonald’s does not serve beef hamburgers in India because Hindus do not eat beef. There were objections raised in the merger of Daimler-Benz and Chrysler relating to Jewish history and the Holocaust.   Some Muslims have tapped into anti-American sentiment by urging a boycott of American brands due to U.S. military action in the Mideast following 9/11. Europeans are divided on the issue of referring to God and Christianity in a new European constitution. Strong Catholic countries like Ireland, Spain, Italy, and Poland are for inclusion. France and Belgium are strong advocates of separation of church and state. Europe’s politically active Muslim minority are resisting inclusion of Christianity in the EU Constitution. 8

Aesthetics Aesthetics refers to designs, colors, shapes, sounds- things conveying the concept of beauty White–identified with purity in the West, with death - in parts of Asia. Gray–means inexpensive in Japan and China, but high quality and expensive in the U.S. Black is usually worn at funerals in Europe, whereas in Brazil it is purple Yellow is associated with disease in Africa

The Meaning of Color Yellow indicates a merchant in India In the US, “Something Blue” on a bride’s garter symbolizes fidelity Red signifies good luck and celebration in China 4-10 10

Language Communication goes beyond the formal written and oral language. Language is also symbolic communication in terms of time, personal space, gestures, eye contact, etc.

Aren't 90 seconds the same in Berlin or Beijing? try being 90 seconds late to appointments in Berlin and Beijing! -in Beijing it won’t be noticed, but in Berlin you will insult your contact In Southern Europe, Latin America, and the Middle East time is a servant, not a master -it's fine if a person is on time. But it's also fine if a person is late in the US and most of Northern Europe time is money. Minutes are a precious resource -when someone is late, they have wasted someone’s time

(T. Morrison and W. Conaway) The relativity of time Absolute punctuality - Germany, Finland, and Japan (every minute counts!) Virtual punctuality - the US, Canada, Denmark, and Sweden (not more than 5 minutes late!) Relative punctuality - Belgium, France, and much of Asia (not more than 30min late) Moderate punctuality - Spain, Portugal, Italy, and most of Latin America (not more than 1 hour late) Zero punctuality - Middle East and Africa (hours late) (T. Morrison and W. Conaway)

THE THUMB UP MEANINGS Based on 1,200 informants from 40 different locations, the meanings were as follows: OK - 738 (the US, most European countries) One - 40 (Italy, Germany, Hungary) Sexual Insult - 36 (Iran, Thailand, Sardinia) Hitch-hike - 30 (the US, the UK, Australia) Directional - 14 Others - 24 Not used - 318 The gesture “thumb-up” is also commonly misinterpreted. In English, it is popularly known as 'thumbs up', despite the fact that the action is commonly performed with only one hand. English-speaking Caucasians use it to signal ‘OK’, which is same meaning as O.K. ring gesture. The two can in fact be used almost interchangeably. To most Europeans, it signals the number 1, since they count from 1 to 5 beginning with the thumb for 1 and ending with the little finger at number 5. Other nationalities, like Americans and Asians usually start counting on the index finger for number 1, and end on the thumb for number 5. Avoid using this gesture in Southern Sardina or Northern Greece unless you want to invite a fight. There, it is an obscene insult signal meaning ‘get stuffed’ (or f*** you). While American, British and Australian would use the thumb up to signal hitch-hiking to the drivers, this message will not encourage a Greek driver or motorist to stop to give them a ride.

Education Learning of culture is transmitted through education Education can indicate the type of consumer market available: -A high illiteracy rate may affect promotional strategy – the exclusion of printed instructions and more drawings.

Material culture Material culture - technological and economic aspects of a society Material culture has a major impact on the quantity, quality and type of products demanded -iPads, automatic dishwashers, vacuum cleaners will sell well in the developed markets, but the demand for these items will be limited in LDC

The challenges of international marketing are many Despite the availability of cross-cultural consultants, significant blunders are still being made by some very “significant” companies Here is the chart of 10 cultural blunders to remember

#10 A US. phone company tried to promote its services to Saudi’s. Its ad portrayed an executive talking on the phone with his feet propped up on the desk, showing the soles of his shoes. An Arab would never do this as the soles of the feet are considered unclean.

#9 Cologne for men pictured a pastoral scene with a man and his dog. It failed in Islamic countries since dogs are considered unclean Dogs should never be used in conjunction with a product meant to be applied to a man’s skin.

#8 When Gerber started selling baby food In Africa, they used the same packaging as they did in the U.S., with the beautiful baby on the label. Later they learned that in Africa, companies usually put pictures on the label of what's inside, since most people can't read.

#7 Pepsi's "Come alive with the Pepsi Generation" translated into "Pepsi brings your ancestors back from the grave", in Chinese.

#6 The Dairy Association's huge success with the campaign "Got Milk?" prompted them to expand advertising to Mexico. It was soon brought to their attention the Spanish translation read "Are you lactating?"

#5 The Coca-Cola name in China was first read as "Ke-kou-ke-la", meaning "female horse stuffed with wax”

#4 An American T-shirt maker in Miami printed shirts for the Spanish market which promoted the Pope's visit. Instead of "I saw the Pope" (el papa), the shirts read "I saw the potato" (la papa).

#3 When Parker Pen marketed a ballpoint pen in Mexico, its ads were supposed to say "It won't leak in your pocket and embarrass you." However, the company mistakenly thought the Spanish word "embarazar" meant embarrass. Instead the ads said "It won't leak in your pocket and make you pregnant."

#2 Scandinavian vacuum manufacturer Electrolux used the following in an American campaign: "Nothing sucks like an Electrolux"

#1 Things weren't any better for Ford when they introduced the Pinto in Brazil. After watching sales go nowhere, the company learned that "Pinto" is Brazilian slang means "tiny male genitals.“ Ford substituted this name with "Corcel," which means “horse”.

Conclusion Study cultural differences carefully to avoid expensive and embarrassing mistakes!

Questions?

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