1. Social and Cultural Environments
Global Marketing

2. …a system of values and norms that are shared among a group of people
Culture is…
…a system of values and norms that are shared among a group of people
and constitute a design for living
by Hofstede
Acculturation
Adjusting or adapting to a specific culture other than one’s own. It is a key managerial factor of success in international operations

3. Culture #2:
Ways of living, built up by a group of human beings, transmitted from one generation to another
Social institutions
Family; Education; Religion; Government; Business – all included in the term of culture

4. Material vs. Non-material Culture
Physical components of culture
Objects
Artifacts
Clothing; Tools; Pictures; Homes
Subjective or abstract culture
Religion
Perceptions; Attitudes
Beliefs; Values
Marketing: is able to influence and often to change both physical and abstract cultures (Global Teens, Yuppies)

5. Cultural Universals: interacting dimensions of a culture (Murdock)
Athletics - Body adornment
Cooking
Courtship
Decorative arts
Education
Ethics
Property rights
Religious rituals
Etiquette
Family feasting - Food taboos
Language
Marriage
Mealtime
Mourning
Music
Status differentiation

6. Beliefs and Attitudes

7. Values and Norms Values: shared beliefs about what is right and wrong.
How things ought to be?
Ex: Is “being selfish” appropriate or not?

8. Aesthetics Aesthetics: Values and norms about beauty and taste
Marketing and aesthetics: local and regional tastes require modifications in the 4Ps

9. Aesthetics and Color
What do you associate with Red?
With White?

10. Dietary Preferences What would you eat? Reindeer (Finland)
Rabbit or frogs (France)
Rice, soup, and grilled fish for breakfast (Japan)
Raw Fish (Japan)
Kimchi (fermented veggies, Korea)
Blood / Black sausage (Germany, Scotland, Hungary)

11. Language and Communication
Verbal Language: spoken language, including
Morphology: how words are formed, are they similar to other languages
Syntax: rules of grammar, sentence formation
Phonology: how they pronounce the words
Semantics: the meaning of the words
Nonverbal Language

12. Measuring Cultural Differences: High Context Cultures (Hall)
Information resides in context
It’s very important where, how, with whom, and at what time we conduct business

13. Measuring Cultural Differences: Low Context Cultures
Messages are explicit and specific
Words carry all information

14. High vs. Low Context Factors High Context Low Context
Lawyers Less important Very important
A person’s word His or her bond Must “get it in writing”
Responsibility Accepted at highest level Pushed to lowest level
Personal Space Close Private space needed
Time Polychronic Monochronic
Negotiations Lengthy Proceed quickly
Competitive bidding Infrequent Common

15. Measuring Cultural Differences: Hofstede’s Cultural Dimensions (Geert Hofstede, Dutch social-psychologist)

16. Ethnocentrism and the Self-Reference Criterion
Potential Problems in Management

17. The International Product Life Cycle: There is no uniform diffusion process

18. Environmental Sensitivity: greatly influences the degree of product adoption in a country
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