Chapter 3: Catering for the cultural and social environment of international marketing

8/12/2019 Chapter 3: Catering for the cultural and social environment of international marketing

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PowerPointto accompany

Chapter 3

Catering for the culturaland social environment

of international

marketing


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Copyright Pearson Australia (a division of Pearson Australia Group Pty Ltd) 97814425277201/Fletcher/International Marketing/5th edition

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What is culture?

No single accepted definition of culture

Indicative definitions of culture:

Culture is the total way of life in a society(Fletcher, 1979)

Culture is the collective programming of

the mind (Hofstede, 1980)


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Aspects of culture

Culture encompasses anumber of broad dimensions

Culture is:

Prescriptive Learned

Subjective

Shared
http://videos.howstuffworks.com/hsw/27461-how-to-study-cultures-describing-culture-video.htm


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Culture as a collective fingerprint

A mark of identity notsuperiority

It is dynamic in nature

There exists resistance

to change

Elements of culture

impact differently on

different aspects of the

marketing program


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Elements of culture

Material culture: technology

and economics Social institutions: concernedwith the way people relate toeach other

Relations with the universe:religion, superstition, andimpact on value systems

Aesthetics: activities and artforms

Language: differ in the waythey convey meanings
http://masudblog.com/wordpress/wp-content/uploads/2008/10/nike.jpghttp://masudblog.com/wordpress/wp-content/uploads/2008/10/nike.jpghttp://masudblog.com/wordpress/wp-content/uploads/2008/10/nike.jpg


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Expressions of culture
http://en.wikipedia.org/wiki/File:Nazi_Swastika.svghttp://en.wikipedia.org/wiki/File:HinduSwastika.svg


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Cultural universals

Human nature: people are inherently good or bad Man-nature orientation: people either wish to

dominate, submit or cooperate

Time orientation: people make decisions based

on the past, present or the future

Relational orientation: in their relationships with

each other, people are either individualistic, have

a group orientation or take hierarchy into account Activity orientation: people are either passive and

accepting or focus on changing and evolving or

concentrate on getting things done


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Cultural universals examples


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Levels at which culture operates Global levelcreated by global networks

and institutions that cross national

and cultural borders

National levelvalues are reflected in

values on which laws and institutions are based

Industry levelvalues and norms of industry Organisational levelaffects negotiations with

firms rather than individuals and is based on

the patterns of assumptions developed by the

firm


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Cultural concepts andcultural differences

Maslows hierarchy of needs:

impacts on how consumers

respond to cultural stimuli

Self-reference criterion:develop awareness

Context and culture: verbal

versus non-verbal cues

Psychic distance: factors that

differentiate the foreign

market from the home market


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Maslows hierarchy of needs


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Key cultural differences

Time: assumptions about time

vary across cultures

Space: both physical and abstract

Language: precision vs. ambiguity

Familiarity: friendship patterns

Consumption patterns: material

possessions and dress

Gender: attitudes toward women

Business customs: bribery is

acceptable


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Non-verbal communication

Morris (1978) developed

this scale of non-verbal

signals:

Body stress signals

Lower body signals

Body posture signals

Random gestures

Facial expressions

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Low and high context cultures

The relative importance of verbal and non

verbal communication varies in low and

high context cultures

http://www.youtube.com/watch?v=8tIUilYX56E&feature=related

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http://www.youtube.com/watch?v=8tIUilYX56E&feature=relatedhttp://www.youtube.com/watch?v=8tIUilYX56E&feature=related


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Measuring culture on a global basis

Hofstede (1980, 1991, 2001)

Five underlying dimensions measure

cultural differences across countries

1. Power distance

Degree to which inequality is accepted

High in countries that let inequalitiesgrow into inequalities of power and

wealth

Low in countries that play this down

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Hofstedesdimensions ofcultural differences


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Hofstedes dimensions ofcultural differences (cont. 1)

2. Uncertainty avoidance

Degree to which people feel

threatened by uncertain or

unknown situations

High: places premium on job

security, career patterns, rules,

trust

Low: greater willingness to

accept risks and less emotional

resistance to change


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3. Individualism/Collectivism

The extent to which people in a

culture look after their own

interests and those of theirimmediate family

Individualism: ties are loose,

achievements valued

Collectivism: groups, ties are

tight, people born into

collectives

Hofstedesdimensions ofcultural differences (cont. 2)


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4. Masculine and feminine

Relationship between

gender and work roles

Masculine cultures: strong

minded, individualistic,

assertive

Feminine cultures: modest,relational, concerned with

quality of life



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5. Long-term vs. short-term

orientation

Long-term - thrift,perseverance, trust

Short-term - chase

immediate returns,

competitive, opportunism,price focus



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Etic versus emic approch

Two key approaches: Etic approach: based on the notion that

underlying cultural differences between nations

are a set of variables that can be applied

uniformly and which cover all dimensions ofdifference

Emic approach: values and differences are

culturally specific and not able to be reduced to

common dimensionshttp://www.youtube.com/watch?v=ijpbhile6aY
http://www.youtube.com/watch?v=ijpbhile6aYhttp://www.youtube.com/watch?v=ijpbhile6aY


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The iceberg principle

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Preparing for internationalnegotiations

Strategy Approaches to negotiation

Composition of the

negotiating team Researching the context

of negotiations

The competition The home organisation

Alternative approaches


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Stages in international negotiation

1. Pre-negotiation stage

2. Opening stage

3. Bargaining stage

4. Concession and

agreement stage

5. Post-negotiation stage


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The atmosphereof international negotiations

Degree of mutual orientation

Feelings toward the other

party

Openness versus secrecy

Willingness to make cultural

adjustments

BATNA


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Chapter 3: Catering for the cultural and social environment of international marketing