CROSS-

CULTURAL

VARIATIONS

Marketing Across

Cultural Boundaries

Culture is the complex whole that includes knowledge, belief, art, law, morals, customs,

and any other capabilities and habits acquired by humans as members of society.

Other-Oriented Values

Individual/Collective

Youth/Age

Extended/Limited Family

Masculine/Feminine

Competitive/Cooperative

Diversity/Uniformity

Environment-Oriented Values

Cleanliness

Performance/Status

Tradition/Change

Risk taking/Security

Problem solving/Fatalistic

Nature

Self-Oriented Values

Active/Passive

Sensual

gratification/Abstinence

Material/Nonmaterial

Hard work/Leisure

Postponed

gratification/Immediate

gratification

Religious/Secular

Nonverbal Communications

Global Cultures

Global Demographics

Cross-Cultural

Marketing Strategy

Marketing Across Cultural Boundaries is

a Difficult and Challenging Task

One-way influence from U.S. to other countries to…

Mutual influence

Global citizens

Global dreamers

Antiglobals

Global agnostics

Globalization

Globalization changing from

Four major world citizens

Although globalization can

influence cultural values, it

would be a mistake to think that

all cultures are becoming

homogenized.

The Concept of Culture

Culture is the complex whole that includes knowledge,

belief, art, law, morals, customs, and any other capabilities

and habits acquired by humans as members of society.

• a comprehensive concept

• is acquired

• is seldom provides detailed

prescription

• We are seldom aware of

them

The Concept of Culture

Cultural values give

rise to norms and

associated sanctions,

which in turn influence

consumption patterns.

Cultures are not static.

They typically evolve

and change slowly over

time.

Other-Oriented Values

Environment-Oriented Values

Self-Oriented Values

Variations in Cultural Values

The numerous values that differ across

cultures and affect consumption include:

Variations in Cultural Values

Other-Oriented Values

Individual/Collective

Youth/Age

Extended/Limited Family

Masculine/Feminine

Competitive/Cooperative

Diversity/Uniformity

Variations in Cultural Values

Environment-Oriented Values

Cleanliness

Performance/Status

Tradition/Change

Risk taking/Security

Problem solving/Fatalistic

Nature

Variations in Cultural Values

Self-Oriented Values

Active/Passive

Sensual gratification/Abstinence

Material/Nonmaterial

Hard work/Leisure

Postponed gratification/Immediate gratification

Religious/Secular

Cultural Variations in Nonverbal

Communications

Cultural Variations in Nonverbal

Communications

Time

• Time perspective

• monochronic

• polychronic

• Meanings in the use of time

The meaning of time varies

between cultures in two major

ways:

Cultural Variations in Nonverbal

Communications

• Overall use and meanings

assigned to space vary widely

among different cultures

Space

Cultural Variations in Nonverbal

Communications

Symbols

Colors, animals, shapes,

numbers, and music have

varying meanings across

cultures.

Failure to recognize the

meaning assigned to a symbol

can cause serious problems!

Cultural Variations in Nonverbal

Communications

Relationships

How quickly and easily do cultures

form relationships and make friends?

•Americans tend to form relationships

and friends quickly and easily.

•Chinese relationships are much more

complex and characterized by guanxi.

Cultural Variations in Nonverbal

Communications

Agreements

How does a culture ensure

business obligations are honored?

How are disagreements resolved?

Some cultures rely on a legal

system; others rely on

relationships, friendships, etc.

Cultural Variations in Nonverbal

Communications

Things

The cultural meaning of things leads

to purchase patterns that one would

not otherwise predict.

The differing meanings that cultures

attach to things, including products,

make gift-giving a particularly difficult

task.

Cultural Variations in Nonverbal

Communications

Etiquette The generally accepted ways of behaving in

social situations.

Behaviors considered rude or obnoxious in one

culture may be quite acceptable in another!

Normal voice tone, pitch, and speed of speech

differ between cultures and languages, as do the

use of gestures.

CROSS CULTURAL

MARKETING…

CROSS CULTURAL

MARKETING • WHEN DOES IT HAPPEN:

• PULLED BY BETTER OPPORTUNITIES.

• HIGH MARKET SHARES IN EXISTING MARKET.

• ECONOMIES OF SCALE.

• SETTING UP MANUFACTURING BASE.

• TECHNOLOGY / RAW MATERIAL SOURCING.

CROSS CULTURAL MARKETING

AREAS TO BE UNDERSTOOD

• LANGUAGE & MEANING

• MARKET SEGMENTATION

OPPORTUNITIES.

• CRITERIA FOR EVALUATING

PRODUCTS.

• CONSUMPTION PATTERNS.

• PERCEPTION OF BENEFITS.

• ECONOMIC & CULTURAL SOCIAL

CONDITIONS.

Cross-Cultural Variables

of Consumer Behaviour

• Consumer loyalty

• Consumer involvement

• Perceived risk

• Consumer cognitive style

• Legal marketing environment

PROBLEMS IN CCM

• PRODUCT SELECTION.

• MARKETING COMMUNICATION.

• PRICING.

• SELECTION OF DISTRIBUTION

NETWORK.

International Marketing Blunders

When General Motors introduced the Chevy

Nova in South America, it was unaware that in

Spanish nova means it won‘t go

International Marketing Blunders

• When Pepsi started marketing

its products in China a few

years back, they translated their

slogan, "Pepsi Brings You Back

to Life" pretty literally. The

slogan in Chinese really meant,

"Pepsi Brings Your Ancestors

Back from the Grave."

International Marketing Blunders

Clairol, introduced the

"Mist Stick", a curling

iron, into Germany only to

find out that mist is slang

for trash, waste or manure.

International Marketing Blunders

The Scandinavian vacuum manufacturer

Electrolux used the following in an American

campaign:

Nothing sucks like an

Electrolux

International Marketing Blunders

Colgate introduced a a

toothpaste in France called

CUE, the name of a

notorious porno magazine

Product policy determinants are..

Adaptation

Consideration of:

• local standards

• Local hygiene and safety standards

• Local peculiarities in service, maintenance and distribution

• Avoidance of unfavourable image of imported products, companies, nationality or brand names

• Cultural and adequate use of symbols where ever possible

Standardization

Use of:

– Experience effects

– Economies of scale

– International standards

• International use of products

• Significant learning effects

• Use of favourable image of

imported products, companies,

nationality or brands, exotic or

ethnic appeal

or

Symbolic attributes

• The use of colours in

– Product design

– Advertising

– Information material

Red

• China - symbol of celebration and luck, used in many cultural ceremonies that range from funerals to weddings. India - color of purity (used in wedding outfits). Eastern cultures - signifies joy when combined with white.

• Western cultures -

Christmas colour when

combined with green;

Valentines Day when

combined with pink;

indicates stop (danger) at

traffic lights.

Yellow

• YellowAsia - sacred,

imperial.

Western cultures - joy,

happiness.

Blue

• China - associated with immortality. Colombia - associated with soap. Hindus - the color of Krishna. Jews - holiness. Middle East - protective color. * Note: Blue is often considered to be the safest global color.

Green

China - studies indicate this is not a good color

choice for packaging, green hats mean a man's

wife is cheating on him.

Arab world, India - the color of Islam.

Ireland - religious significance (Catholic).

Some tropical countries - associated with

danger

Western cultures - indicates go (safe) at traffic

lights, environmental awareness, St. Patrick's

Day

Cross culture & Maslow’s

‘Need Hierarchy’

Maslow’s ‘need hierarchy’: variability

across cultures • Physiological needs

• Safety needs

• Social needs

• Esteem needs

• Self-actualisation needs

FRAMEWORK FOR DETERMINING CCM

TARGET MARKET

MARKET POSITION

NATURE OF PRODUCT

ENVIRONMENT

COMPANY FACTORS

Geographic area

, economic factors Mkt development;

condition, competition

Type &

positioning

Orientation,

Delegation,

Control,

Local knowledge

Degree of

Program

Standardization

Performance

Of market

Program