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International marketing consumers 1: Culture
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Kotabe and Helsen Marketing approach Domestic focus Export focus
International interntional Multinational focus Global focus/transnational Orientation Ethnocentric Polycentric (country-based) Regiocentric (regionally-based) Geocentric (Globally coordinated)
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Cultural Segmentation
The division of the market into groups with similar product needs and cultural characteristics.
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E.g. Common cultural characteristics has led to…
Emergence of global market segments eg young, urban professional: Nike trainers (US, made in China) Toshiba laptops (Japanese) Nokia mobiles (Finnish) AOL ISP (US) BMW car (German) Creating a global village
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Also led to… Growth in standard products to meet the needs of global segments (see Levitt 1983) Growth in ‘global’ brands targeting these segments
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Culture (see Keegan chapter 3)
Western modernism characterises market segments across the world, but... it is not necessarily the dominant culture in many countries International research must therefore: 1. assess the impact of culture, but also 2. adapt research methods to local culture
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Cultural gaffes are nevertheless common
When Walmart entered Argentina: It sold electric appliances for 110volt supply, not 200volts! P&G in Japan Showed an advert with a man walking into a bathroom when his wife was taking a shower Husbands are supposed to respect a wife’s privacy in the bathroom in Japan!
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Examples of cultural differences
Muslims - no pork Hindus - no beef Europeans - front loading washing M/Cs Americans - top loading……………. Japanese - suspicious of foreign products
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What is culture? (Schein, 1985)
Artifacts and symbols Visible but not often decipherable = Values and norms Greater level of awareness = Beliefs/ Assumptions Taken for granted and invisible =
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Developing a cultural profile
Low context: emphasis on written or spoken word - what is meant is said. E.g., say “Yes” or “No” Status of less importance
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High vs. low context culture (Edward Hall)
High context: emphasis on contextual cues e.g. relationship between sender and receiver trust more important than contracts status age gender
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Developing a cultural profile
2 main researchers in this area: Hofstede (1991) Trompenaars (1991) Research identifies cultural orientation in around 50 different countries
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Hofstede A selection of countries and orientations
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Hofstede: Individualism index - how important is the individual?
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Hofstede: Power distance -How much inequality is tolerated?
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Hofstede:uncertainty avoidance - How important is structure?
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Hofstede: Masculinity index - how important are ‘male’ values e. g
Hofstede: Masculinity index - how important are ‘male’ values e.g., success vs. female values, e.g., quality of life?
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Cultural analysis framework
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