© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 3 The Cultural Environment

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Culture Defined Culture - It encompasses a wide variety of elements, from materialistic to the spiritual. Acculturation - It is one of the keys to success in international operations.

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. It is important to understand the difference between the context cultures to avoid misunderstanding of messages and intentions. High-context culture - Low-context culture - Culture Defined

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Culture Defined The international manager must identify cross- cultural and intracultural differences and isolate potential opportunities and problems. The international business entity acts as a ______ _____ by introducing new products, ideas, or practices which may lead to change in consumption. The international marketer may be accused of “________ ___________,” especially if the changes brought about are dramatic or if culture-specific adaptations are not made in the marketing approach.

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Elements of Culture Cultural universals - This includes elements such as

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit Elements of Culture

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Elements of Culture Language –Is described as the mirror of culture and is multidimensional by nature. – –Aids information gathering and evaluation efforts. – –Is important for company communication. –

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Elements of Culture Dealing with language problem invariably requires the use of local assistance. Back-translation -

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Elements of Culture Managers must analyze and become familiar with the hidden language of foreign cultures. The five key topics being:

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Elements of Culture Religion provides the basis for transcultural similarities under shared beliefs and behavior. The major religions include: –Christianity - –Islam -

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Elements of Culture The major religions –Hinduism - –Buddhism - –Confucianism -

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Elements of Culture Values and attitudes –Values are –Attitudes are –Attitudes towards change is positive in industrialized countries, while in tradition bound societies change is viewed with suspicion.

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Elements of Culture Manners and customs –Understanding manners and customs is especially important in negotiations. –Potential problem areas for marketers arise from insufficient:

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit When and What to Give as Gifts

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Elements of Culture Manners and customs –Managers must be concerned : –Package sizes and labels must be adapted: –Concept tests determine:

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Elements of Culture Manners and customs –Focus groups, consisting of eight to twelve consumers representative of the proposed target market audience, can be interviewed to check for disasters and fine-tune research findings. –

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Elements of Culture Material culture results from technology and is manifested in the availability and adequacy of the following basic infrastructures. –Economic - –Social - –Financial and marketing - Technological advancement also brings about cultural convergence.

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Elements of Culture Aesthetics – –Color is often used as a mechanism for brand identification, feature reinforcement, and differentiation.

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Elements of Culture Education –Formal and informal education play a major role in the passing on and sharing of culture. –

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Elements of Culture Social institutions –Affect the ways in which people relate to each other. –Kinship or blood relationships - –Social stratification -

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Elements of Culture Social institutions –Reference groups - –Social organization also determines the roles of managers and subordinates and the way they relate to one another.

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Elements of Culture Sources of cultural knowledge –The concept of cultural knowledge is broad and multifaceted and can be defined by the way it is acquired. –Factual information - –Experiential knowledge - –Interpretive knowledge -

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit A Model of Cross-Cultural Behavior

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Cultural Analysis Dimension of culture – – – – –

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 3.8 – Culture-Based Segmentation

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Cultural Analysis Self-reference criterion – Recommendations to reduce the influence of one’s own cultural values: – – –

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Cultural Analysis Ethnocentricism - It can be controlled only by acknowledging it and properly adjusting to its possible effects in managerial decision making.

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Training Challenge The objective of training programs is to : Internal educational programs used to foster culture sensitivity and acceptance of new ways of doing things include: – – –

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Training Challenge Area studies - Cultural assimilator - Sensitivity training - Field experience -

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit Cross-Cultural Training Methods

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Making Culture Work for Marketing Success Embrace local culture. Employ locals to gain cultural knowledge. Adapt products and processes to local markets.