2. The Cultural Environment

3. §International marketing requires constant concern for different cultures and therefore requires adaptation. §Self-reference criterion - a tendency to rely on one own cultural values, personal experience and knowledge as the primary basis for making decisions. §The SRC must be effectively overcome in order to adapt marketing programs to foreign countries.

4. 1) Language §Context 2) Religion 3) Values and Attitudes 4) Manners/Customs 5) Material Elements §Infrastructure §Convergence Elements of Culture:

5. 6)Aesthetics 7)Education 8)Social Institutions § Learning about other cultures § experiential knowledge § factual knowledge

6. Key Concepts High-context culture –is where the social context in which what is said strongly affects the meaning of the message. –Examples: Japan and Saudi Arabia Low-context culture –is where the meaning of the message is explicitly expressed by the words and is less affected by the social context. –Example: North America

7. Contextual Background of Various Countries High Context Implicit Japanese Arabian Latin American Spanish Italian English (UK) French North American (US) Scandinavian German Swiss Low Context Explicit

8. Language Verbal –How words are spoken –Gestures made –Body position assumed –Degree of eye contact Local language capability’s important role in international marketing –Aids in information gathering and evaluation –Provides access to local society –Important to company communications –Allows for interpretation of contexts

9. Nonverbal Language Hidden language of cultures –Time flexibility and sensibility –Social acquaintance and rapport –Personal physical space and personal touching –Non-verbal gestures and signaling

10. Fractured Translations Product English Translation Equivalent to Japanese Spam Liver Putty Toilet Paper My Fanny Brand Ready to Eat Pancakes Strawberry Crap Dessert Antifreeze Spray Hot Piss Brand Pediatrician’s Slogan Specialist in Deceased Children SOURCE: Some Strawberry Crap Dessert, dear South China Morning Post, December 9, 1996 p. 12. English Translations made by Japanese firm added to labels to increase prestige for their products being sold in China.

11. Irwin/McGraw-Hill Whose English? United States United Kingdom TrunkBoot HoodBonnet Convertible TopHood ElevatorLift ToiletW.C. BathroomTub or Shower VacuumHoover ???Shag Bloody??? 4-8

12. The Major World Religions Christianity - 2.0 billion followers Islam - 1.2 billion followers Hinduism - 860 million followers Buddhism - 360 million followers Confucianism - 150 million followers

13. Religion Marketing in an Islamic Framework Source: Mushtaq Luqmani, Zahir A Quraeshi, and Linda Delene, “Marketing in Islamic Countries: A Viewpoint,” MSU Business Topics, Summer 1980, pp. 20-21. Reprinted by permission.

14. Values and Attitudes Values –are shared beliefs or group norms that have been internalized by individuals. Attitudes –are evaluations of alternatives based on these values.

15. Work and Leisure §Attitudes Toward Work: §Have a Substantial Impact on Economic Performance §Vary Greatly Among Countries

16. Work Hrs. = Average number of working hours per year. Work/Fun = Young people’s desire to work/learn vs. have fun. (0 for fun - 10 for work/learn). Comp. Sup. = Society’s support of competitiveness (0 for least support - 10 for most support). Source: The World Competitiveness Yearbook 1996, (Lausanne: IMD, 1996), pp. 556, 579, 581. Values of Selected Countries* Work and Leisure *See text for complete listing of countries and statistics.

17. Cultural Analysis for International Marketing *Source of this entire list: Philip R. Harris and Robert T. Moran: Managing Cultural Differences, 2nd ed. (Houston: Gulf, 1987) pp. 212-215. Cultural Dimensions § Individualism vs. Collectivism § Small vs. Large Power Distance § Masculine vs. Feminine § Weak vs. Strong Uncertainty Avoidance

18. Power Distance Index 0 112 10 110 Small Power Distance Collectivist Large Power Distance Collectivist Small Power Distance Individualist Large Power Distance Individualist 4 1 2 3 5 6 Individualism Index Example Countries: 1. Costa Rica 2. Korea and Mexico 3. Brazil & India 4. Israel and Ireland 5. Australia and U.S.A. 6. France and Italy Source: Geert Hofstede, Cultures and Organizations, McGraw-Hill, 1991, pp. 23, 51, 83 & 111. Reprinted with permission of the McGraw-Hill Companies. Power Distance and Individualism-Collectivism

19. Manners and Customs Potential problem areas for marketers arise from an insufficient understanding of: –different ways of thinking. –the necessity of saving face. –knowledge and understanding of the host country. –the decision-making process and personal relations. –the allocation of time for negotiations.

20. “A house should be dusted and polished three times a week” Italy89% United Kingdom59 France55 Spain53 Germany45 Australia33 United States25

21. “I attend church regularly” Spain77% Italy75 Germany70 United States65 United Kingdom36 France23 Australia16

22. “My children are the most important thing in my life” Germany86% Italy84 France73 United States71 Spain67 Australia48

23. “There is too much emphasis on sex nowadays” United Kingdom82% Italy79 United States66 France52 Australia31 Germany24

24. “Everyone Should Use a Deodorant” United States89% Canada79 United Kingdom71 Italy69 France59 Australia53

25. Cultural Factors Never touch the head of a Thai or pass an object over it. The head is considered scared in Thailand. Avoid using triangular shapes in Hong Kong, Korea, and Taiwan. It is considered a negative shape. The number 7 is considered bad luck in Kenya, good luck in Czech Republic and has a magical connotation in Benin, Africa. The number 10 is bad luck in Korea. The number 4 means death in Japan. Red represents witchcraft and death in many African countries. Red is a positive color in Denmark. SOURCE: Business America, July 12, 1993

26. Irwin/McGraw-Hill It’s Not the Gift That Counts, but How Your Present It JapanDo not open a gift in front of a Japanese counterpart unless asked, and do not expect the Japanese to open your gift. Avoid ribbons and bows as part of the gift wrapping. Bows as we know them are considered unattractive, and ribbon colors can have different meanings. Do not offer a gift depicting a fox or badger. The fox is the symbol of fertility; the badger, cunning. EuropeAvoid red roses and white flowers, even numbers, and the number 13. Do not wrap flowers in paper. Do not risk the impression of bribery by spending too much on a gift. Copyright©2002 by The McGraw-Hill Companies, Inc. All rights reserved. 4-4

27. Irwin/McGraw-Hill 4-5 It’s Not the Gift That Counts, but How Your Present It… Arab World Do not give a gift when you first meet someone. It may be interpreted as a bribe. Do not let it appear that you contrived to present the gift when the recipient is alone. It looks bad unless you know the person well. Give the gift in front of others in less –personal relationships. Latin America Do not give a gift until after a somewhat personal relationship has developed unless it is given to express appreciation for hospitality. Gift should be given during social encounters, not in the course of business. ChinaNever make an issue of a gift presentation—publicly or private. Gifts should be presented privately, with the exception of collective ceremonial gifts at banquets.

28. Material Elements Material culture –Results from technology and is directly related to how a society organizes its economic activity. –Material culture is manifested in Economic infrastructure Social infrastructure Financial infrastructure Marketing infrastructure Cultural convergence –The degree of industrialization can provide a marketing segmentation variable.

29. Aesthetics What is or is not acceptable as good taste varies widely in cultures. The symbolism of colors, forms, and music carries different meanings in different cultures.

30. Education Assessing the educational level of a culture –formal and informal education –literacy rates –enrollment in secondary or higher education –qualitative aspects of emphasizing science Education affects –employee training –competition for labor –product characteristics

31. Secondary = Percentage of relevant age group receiving full time secondary education. Scores in excess of 100% indicate adults also participating in that education. University = Percentage of population 20 - 24 years old enrolled in higher education Literacy = Percentage of Population over 15 years old Source: The World Competitiveness Report 1996 (Lausanne: IMD, 1996), pp. 560, 561, 567. Education *See text for complete listing of countries and statistics. Educational Statistics of Selected Countries (in %)*

32. Social Institutions Kinship relationships –immediate and extended family Social stratification Reference groups –Primary reference groups family, coworkers –Secondary reference groups professional associations, trade organizations

33. The Family Family Roles Display Great Variances between Cultures § Nuclear Family

34. Family Statistics of Selected Countries (in %)* Pop. Growth = Population Growth: percentage per year, 1985-1995. Fem. Work = Female participation in the labor force as a percentage of the total labor force, 1995. Source: 1997 World Bank Atlas, Washington, DC: World Bank, 1997, pp. 16-17. The Family *See text for complete listing of countries and statistics.

35. The Training Challenge - Global Managers Internal education programs that increase cultural sensitivity –Culture-specific information –Culture-general information –Self-specific information Specialized training for global managers –Area studies Environmental briefings Cultural orientation programs –Cultural assimilator –Sensitivity training –Field experience

36. Business Customs Cultural Imperatives Cultural Adiaphora Cultural Exclusives Irwin/McGraw-Hill 5-2