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CULTURE
Culture is pervasive in all marketing activities-pricing, promotion, distribution packaging and styling. Culture is the human made part of human environment. When designing a product, the style, uses and other related marketing activities must be made culturally acceptable..
The manner in which people consume, the priority of needs and wants are function of their culture.
For example; there was a drop in Japanese birth rate in the year of the fire horse because if girl child was born in that year she would be very unhappy and would even murder their husband.
In Chinese culture, being born in the year of the dragon is considered good.
Britishers love their chocolates; the Spaniards love fish but they do not even come close to the Japanese in their love for fish. Pasta was actually invented in China but was brought to Italy by Marco Polo
The best international marketers not only appreciate the cultural difference pertinent in their business, they also understand the origins of these differences.
Origin, Elements and Consequences of Culture
Geography
[climate, topography, flora, fauna, microbiology]
History
Technology and Political economy
Social institutions
[[family, religion, school, media, government]
Elements of culture
Peers imitation rituals, values, beliefs, symbols
Consumption decisions Management style
Social institutions, including family religion etc affect the ways in which people relate to each other. The position of men and women in society, the family, the social classes group behaviour and how societies define decency and civility are interpreted differently within every culture. Where social organisations 1result in close knit families it is usually more effective to aim a promotional campaign at the family than individual members. Travel ads in the English speaking areas of Canada are aimed at the women while in the French speaking areas both the man and the wife are shown.
The roles and status positions found within a society are influenced by the dictates of social institutions. Family forms and functions vary substantially around the world. In Cairo, India and many other countries extended family live in one apartment. In Japan grand parents look after the grandchildren and the working male often catches up on his sleep during the four ride by train to work. An American family in California both working like dogs worrying about parents half way across the country in Texas. All these differences lead directly in how children think and behave.
The influence of religion is quite often strong. So when marketers have little or no understanding of a religion, it is easy to deeply offend. The French fashion house had taken design, which looked very nice, from a book on Taj Mahal. He was unaware of the meaning. The fashion house had to destroy the dresses.
Education affects all aspects of culture. From economic development to consumer behaviour. Literacy has a profound effect on marketing.
Media is now having too much influence. Even Americans are complaining about the detrimental effects of media.
Cultures of nations can be studied along four dimensions.
The four dimensions are;
1. Individualism/Collectivism Index [IDV]
2. Power Distance Index [PDI]
3. Uncertainty Index [UAI]
4. Masculinity/Femininity Index [MSI]
5 High Context & Low Context.
Cultures that scores high on IDV reflect the ‘I’ mentality whereas those with low individualism reflect the ‘we’ mentality.
PDI measures the tolerance of social insquality, that is inequality between superiors and subordinates. Cultures with high PDI tend to be hierarchical. A low score reflects a more egalitarian society.
Cultures with high UAI are intolerant of ambiguity and distrustful of new ideas. They have a high level of anxiety and stress. They do not like to take risks.
Japan and France are high on UAI scale and USA are low.
Rituals differ across cultures. You have reception before the wedding; In Madrid dessert may precede the entre, dinner often starts at midnight and lasts about three hours.
Language. The importance of understanding the language cannot be overestimated. Advertising copywriters should be concerned less with obvious difference between languages and more with idiomatic meanings expressed. In is not enough to translate into a foreign language.Tamboo means a roadside inn in Bolivia, Colombia, Equador and Peru. In Argentina and Urugguay it means a dairy farm and a brothel in Chili.
Symbols Arts, folklore, music, dance, drama help define national identities and relationships within a context of culture and product benefits. Without a culturally correct interpretation of a county’s symbolic values a whole host of marketing problems can arise. Japanese revere the crane as being very lucky as it is said to live a thousand years while number 4 represents death.
Beliefs. It is a mistake to discount the importance of myths, superstitions or any cultural beliefs. Superstition plays a large role in a society’s belief system in some parts of the world. In Asia we have beliefs about ghost,fortune telling, phases of the moon bad days of the month etc. Japanese beliefs
about the year of the fire horse and other myths are an integral part of society as the Chinese Feng Shui and Indian Vastu Shastra. It is a mistake to discount the importance of such beliefs.
There are two kinds of knowledge about culture, factual and interpretive. For example 98% of Mexicans are Catholics; but one understand what it means to be a Catholic in Mexico. Each culture practices Catholicism in slightly different ways in different. In India too various festivals are celebrated in different manner in different areas of the country.
A product acceptable to one culture may not be accepted in another or that a promotional message that succeeds in one country will succeed in another. The British say ‘lift’ instead of an elevator as the Americans do’. Americans use the word bathroom for toilet while refer to a place with where one has a tub bath. Similarly economically unified Europe does not mean a common set of consumer wants and needs. So also the unification of Germany does not mean the cultural differences between the two have been erased. Marketers must asses each country thoroughly before planning its venture in international arene.
The scope and challenge of international marketing
A global economic boom unprecedented in modern economic history has been underway as the drive for efficiency, productivity and open market sweeps the world. Powerful economic, technological, industrial, political and demographic forces are converging to build the foundation of a new global economic order.
Of all the events and trends affecting global business today four stand out as the most dynamic.
The rapid growth of world trade organisation and regional free trade areas.
The trend towards the accepting the free market system among developing countries LATIN America, Asia and Eastern Europe
The impact of the internet and other global media
The mandate to properly manage the resources and global environment for the generations to come.
It is not possible to avoid the influence of the globalisation of the world markets and the growth of emerging markets. For a growing number of companies, being international is no longer a luxury but a necessity for economic survival.
Domestic and International marketing.
Marketing concepts, principles and process are universally applicable and the marketers task is the same whether doing business in Africa or Japan. What then is the difference between domestic and international marketing? The difference lies in the environment within which the marketing plans have to be implemented. There are uncontrollable elements like government controls,legal restraints are some factors that affect marketing plans. Each country in which a company operates adds its own set of uncontrollable factors. The adaptation of the marketing mix to these environmental factors determine the ultimate outcome of the marketing enterprise. The uncontrollable elements are:
Political/legal forces
Competition
Level of technology
Economic forces
Geography
Culture
Distribution
Aspects of domestic environment
A political decision involving domestic foreign policy can have a direct effect on a firm’s international marketing success.
1) For example US government placed a total ban on trade to Libya to condemn Libyan support for terrorist attack. It also placed a total ban on trade with S Africa to protest apartheid.
2) Domestic economic climate is another important home based uncontrollable variable with far reaching effects on a company’s position in foreign markets. A capacity to invest is to a large extent a function of domestic economic vitality. If internal economic conditions deteriorate restrictions against foreign investments may be imposed to strengthen domestic economy.
Competition within the home country can also have a profound effect on the international marketer’s task. Eastman Kodak, leader in the domestic market planned to go international. However the competitive structure changed radically. Fuji Photo Film opened a 300 million dollars plant and gained 12% share of the market. Kodak had to direct its resources and energy back to the domestic market.
Foreign environmental uncontrollables often involves substantial doses of culture, political and economical shock. In China, which has moved from a communistic legal to a transitional period, new laws are passed but there is a lot of confusion as to what rules are still in force and what rules are not applicable.
The more significant elements of uncontrollable international environment.also include distribution, geography, infrastructure, cultural forces, level of technology, economic forces, and legal/political forces.
Level of technology exist between developed and un derdeveloped countries. Technical expertise may not be available. A marketer cannot assume technical concepts will be the same in all countries.
Political and legal issues are often amplified be the ‘alien status’ where foreign companies are viewed as outsiders and not to be trusted. The point is that foreign companies are foreign and always subject to the local political whims of the local government than a domestic firm.
The task of cultural adjustment is the most challenging and important one confronting international marketers. A westerner must learn that white is a mourning colour in parts of Asia; they are not prepared to understand the meaning of time to Latin Americans. Cross cultural misunderstanding can also occur a simple hand gesture has a number of different meanings in different parts of the world. When wanting to signify something is OK Americans raise a hand and make a circle with the thumb and forefinger. The same gesture means zero or worthless to the French, it means money to the Japanese and a general sexual insult in Greece. A US president sent an unintentional message to some Australian protesters when he held up his first two fingers with the back of his hand. To the Australians it meant putting up the middle finger.
Cultural conditioning is like an iceberg. We are not aware of nine-tenths of it. Foreigners must constantly guard against measuring and assessing the markets against the fixed values and assumptions of their own cultures.
Self reference criterion is the major obstacle to success in international marketing. It is the notion that one’s own cultural values, experience and knowledge is the basis for decision making. It is the notion culture is the best. When faced with a problem in another culture the tendency is to react instinctively and refer to one’s SRF. For eg in USA unrelated individuals keep a certain physical distance between themselves and others talking or in groups. In some cultures the acceptable distance is substantially less. A common mistake by westerners is to refuse food or drink. In Asia and Middle East a host is offended if you refuse hospitality. ESSO, the brand name in Japan phonetically means ‘stalled car’ the brand Pet in Pet Milk means flatulence in France. Unilever reformulated its detergent in Brazil. It realised the most Brazilian wash their clothes in rivers so the powder was wrapped in plastic and not paper and also that most Brazilians were poor and buy in small quantities so the product was in small low priced packages. In Germany ‘Vicks’ sounds like the crudest slang for intercourse, so it was changed to Wicks.
To go global one has to have tolerance of cultural differences and have knowledge of cultures, history, market potential and global economic, social and political trends.
Historical Perspective in Global Business
History helps define a nation’s mission, how it perceives its neighbour, how it sees its place in the world and how it sees itself. Insights into the history of the company are important for understanding the attitude about the role of government and business, the relationship between the managers and the managed, the sources of authority and attitudes towards foreign corporations. Unless we have a sense of the many changes have taken place in Japan’s history it will be difficult to understand why the Japanese have such strong loyalty towards their companies; or understand the loyalty in their distribution system, or why decisions are made by consensus. Loyalty to family, to country, to company, to social groups and the strong drive to co-operate to work together for a common cause, permeate many facets of Japanese behaviour
Why do Mexicans have a love-hate relationship with the USA? Latin Americans see the Monroe Doctrine as an offensive expression of US influence in their country.
Manifest Destiny and the Monroe Doctrine was the USA foreign policy. Manifest destiny meant in fact that USA was chosen by God to create a model society; it referred to territorial expansion of the US from the Atlantic to Pacific
The idea of Manifest Destiny was used to justify the annexation of Texas, New Mexico and California and later US involvement Cuba, Alaska, Hawaii and the Philippines. US prohibit non American intervention in Latin American affairs but it would police the area and guarantee that Latin America met their international obligations. The manner in which the USA acquired the land for the Panama Canal Zone typifies their policy ‘what is good for America is justifiable.
Geography and Global Markets
Geography is an element of uncontrollable environment that confronts every marketers. It is important in the study of markets and their environment. Altitude, humidity and temperature extremes are climatic features that affect uses and functions of products and equipments. The construction of equipment used in the USA requires extensive modifications to cope with the intense heat and dust of the Sahara Desert. A Taiwnese company sent a shipment of glasses packed in wooden crates with hay to prevent breakage.due to the warm climate and less humidity, the moisture content dropped and the hay shrivelled and the glasses arrived in pieces. Climate differences in Europe caused Bosch-Siemens to alter its washing machines. Germany and Switzerland needed a spin cycle of 1000rpm to 1600rpm. In Italy and Spain a spin cycle of 500 was enough. South America represents a well defined example of the importance of geography in marketing. 2/3rd is like Africa in climate, 48% is forest and jungle and only 5% arable .the location, quality and availability of resources will affect the pattern of world development and trade.
.
.
Culture is pervasive in all marketing activities-pricing, promotion, distribution packaging and styling. Culture is the human made part of human environment. When designing a product, the style, uses and other related marketing activities must be made culturally acceptable..
The manner in which people consume, the priority of needs and wants are function of their culture.
For example; there was a drop in Japanese birth rate in the year of the fire horse because if girl child was born in that year she would be very unhappy and would even murder their husband.
In Chinese culture, being born in the year of the dragon is considered good.
Britishers love their chocolates; the Spaniards love fish but they do not even come close to the Japanese in their love for fish. Pasta was actually invented in China but was brought to Italy by Marco Polo
The best international marketers not only appreciate the cultural difference pertinent in their business, they also understand the origins of these differences.
Origin, Elements and Consequences of Culture
Geography
[climate, topography, flora, fauna, microbiology]
History
Technology and Political economy
Social institutions
[[family, religion, school, media, government]
Elements of culture
Peers imitation rituals, values, beliefs, symbols
Consumption decisions Management style
Social institutions, including family religion etc affect the ways in which people relate to each other. The position of men and women in society, the family, the social classes group behaviour and how societies define decency and civility are interpreted differently within every culture. Where social organisations 1result in close knit families it is usually more effective to aim a promotional campaign at the family than individual members. Travel ads in the English speaking areas of Canada are aimed at the women while in the French speaking areas both the man and the wife are shown.
The roles and status positions found within a society are influenced by the dictates of social institutions. Family forms and functions vary substantially around the world. In Cairo, India and many other countries extended family live in one apartment. In Japan grand parents look after the grandchildren and the working male often catches up on his sleep during the four ride by train to work. An American family in California both working like dogs worrying about parents half way across the country in Texas. All these differences lead directly in how children think and behave.
The influence of religion is quite often strong. So when marketers have little or no understanding of a religion, it is easy to deeply offend. The French fashion house had taken design, which looked very nice, from a book on Taj Mahal. He was unaware of the meaning. The fashion house had to destroy the dresses.
Education affects all aspects of culture. From economic development to consumer behaviour. Literacy has a profound effect on marketing.
Media is now having too much influence. Even Americans are complaining about the detrimental effects of media.
Cultures of nations can be studied along four dimensions.
The four dimensions are;
1. Individualism/Collectivism Index [IDV]
2. Power Distance Index [PDI]
3. Uncertainty Index [UAI]
4. Masculinity/Femininity Index [MSI]
5 High Context & Low Context.
Cultures that scores high on IDV reflect the ‘I’ mentality whereas those with low individualism reflect the ‘we’ mentality.
PDI measures the tolerance of social insquality, that is inequality between superiors and subordinates. Cultures with high PDI tend to be hierarchical. A low score reflects a more egalitarian society.
Cultures with high UAI are intolerant of ambiguity and distrustful of new ideas. They have a high level of anxiety and stress. They do not like to take risks.
Japan and France are high on UAI scale and USA are low.
Rituals differ across cultures. You have reception before the wedding; In Madrid dessert may precede the entre, dinner often starts at midnight and lasts about three hours.
Language. The importance of understanding the language cannot be overestimated. Advertising copywriters should be concerned less with obvious difference between languages and more with idiomatic meanings expressed. In is not enough to translate into a foreign language.Tamboo means a roadside inn in Bolivia, Colombia, Equador and Peru. In Argentina and Urugguay it means a dairy farm and a brothel in Chili.
Symbols Arts, folklore, music, dance, drama help define national identities and relationships within a context of culture and product benefits. Without a culturally correct interpretation of a county’s symbolic values a whole host of marketing problems can arise. Japanese revere the crane as being very lucky as it is said to live a thousand years while number 4 represents death.
Beliefs. It is a mistake to discount the importance of myths, superstitions or any cultural beliefs. Superstition plays a large role in a society’s belief system in some parts of the world. In Asia we have beliefs about ghost,fortune telling, phases of the moon bad days of the month etc. Japanese beliefs
about the year of the fire horse and other myths are an integral part of society as the Chinese Feng Shui and Indian Vastu Shastra. It is a mistake to discount the importance of such beliefs.
There are two kinds of knowledge about culture, factual and interpretive. For example 98% of Mexicans are Catholics; but one understand what it means to be a Catholic in Mexico. Each culture practices Catholicism in slightly different ways in different. In India too various festivals are celebrated in different manner in different areas of the country.
A product acceptable to one culture may not be accepted in another or that a promotional message that succeeds in one country will succeed in another. The British say ‘lift’ instead of an elevator as the Americans do’. Americans use the word bathroom for toilet while refer to a place with where one has a tub bath. Similarly economically unified Europe does not mean a common set of consumer wants and needs. So also the unification of Germany does not mean the cultural differences between the two have been erased. Marketers must asses each country thoroughly before planning its venture in international arene.
The scope and challenge of international marketing
A global economic boom unprecedented in modern economic history has been underway as the drive for efficiency, productivity and open market sweeps the world. Powerful economic, technological, industrial, political and demographic forces are converging to build the foundation of a new global economic order.
Of all the events and trends affecting global business today four stand out as the most dynamic.
The rapid growth of world trade organisation and regional free trade areas.
The trend towards the accepting the free market system among developing countries LATIN America, Asia and Eastern Europe
The impact of the internet and other global media
The mandate to properly manage the resources and global environment for the generations to come.
It is not possible to avoid the influence of the globalisation of the world markets and the growth of emerging markets. For a growing number of companies, being international is no longer a luxury but a necessity for economic survival.
Domestic and International marketing.
Marketing concepts, principles and process are universally applicable and the marketers task is the same whether doing business in Africa or Japan. What then is the difference between domestic and international marketing? The difference lies in the environment within which the marketing plans have to be implemented. There are uncontrollable elements like government controls,legal restraints are some factors that affect marketing plans. Each country in which a company operates adds its own set of uncontrollable factors. The adaptation of the marketing mix to these environmental factors determine the ultimate outcome of the marketing enterprise. The uncontrollable elements are:
Political/legal forces
Competition
Level of technology
Economic forces
Geography
Culture
Distribution
Aspects of domestic environment
A political decision involving domestic foreign policy can have a direct effect on a firm’s international marketing success.
1) For example US government placed a total ban on trade to Libya to condemn Libyan support for terrorist attack. It also placed a total ban on trade with S Africa to protest apartheid.
2) Domestic economic climate is another important home based uncontrollable variable with far reaching effects on a company’s position in foreign markets. A capacity to invest is to a large extent a function of domestic economic vitality. If internal economic conditions deteriorate restrictions against foreign investments may be imposed to strengthen domestic economy.
Competition within the home country can also have a profound effect on the international marketer’s task. Eastman Kodak, leader in the domestic market planned to go international. However the competitive structure changed radically. Fuji Photo Film opened a 300 million dollars plant and gained 12% share of the market. Kodak had to direct its resources and energy back to the domestic market.
Foreign environmental uncontrollables often involves substantial doses of culture, political and economical shock. In China, which has moved from a communistic legal to a transitional period, new laws are passed but there is a lot of confusion as to what rules are still in force and what rules are not applicable.
The more significant elements of uncontrollable international environment.also include distribution, geography, infrastructure, cultural forces, level of technology, economic forces, and legal/political forces.
Level of technology exist between developed and un derdeveloped countries. Technical expertise may not be available. A marketer cannot assume technical concepts will be the same in all countries.
Political and legal issues are often amplified be the ‘alien status’ where foreign companies are viewed as outsiders and not to be trusted. The point is that foreign companies are foreign and always subject to the local political whims of the local government than a domestic firm.
The task of cultural adjustment is the most challenging and important one confronting international marketers. A westerner must learn that white is a mourning colour in parts of Asia; they are not prepared to understand the meaning of time to Latin Americans. Cross cultural misunderstanding can also occur a simple hand gesture has a number of different meanings in different parts of the world. When wanting to signify something is OK Americans raise a hand and make a circle with the thumb and forefinger. The same gesture means zero or worthless to the French, it means money to the Japanese and a general sexual insult in Greece. A US president sent an unintentional message to some Australian protesters when he held up his first two fingers with the back of his hand. To the Australians it meant putting up the middle finger.
Cultural conditioning is like an iceberg. We are not aware of nine-tenths of it. Foreigners must constantly guard against measuring and assessing the markets against the fixed values and assumptions of their own cultures.
Self reference criterion is the major obstacle to success in international marketing. It is the notion that one’s own cultural values, experience and knowledge is the basis for decision making. It is the notion culture is the best. When faced with a problem in another culture the tendency is to react instinctively and refer to one’s SRF. For eg in USA unrelated individuals keep a certain physical distance between themselves and others talking or in groups. In some cultures the acceptable distance is substantially less. A common mistake by westerners is to refuse food or drink. In Asia and Middle East a host is offended if you refuse hospitality. ESSO, the brand name in Japan phonetically means ‘stalled car’ the brand Pet in Pet Milk means flatulence in France. Unilever reformulated its detergent in Brazil. It realised the most Brazilian wash their clothes in rivers so the powder was wrapped in plastic and not paper and also that most Brazilians were poor and buy in small quantities so the product was in small low priced packages. In Germany ‘Vicks’ sounds like the crudest slang for intercourse, so it was changed to Wicks.
To go global one has to have tolerance of cultural differences and have knowledge of cultures, history, market potential and global economic, social and political trends.
Historical Perspective in Global Business
History helps define a nation’s mission, how it perceives its neighbour, how it sees its place in the world and how it sees itself. Insights into the history of the company are important for understanding the attitude about the role of government and business, the relationship between the managers and the managed, the sources of authority and attitudes towards foreign corporations. Unless we have a sense of the many changes have taken place in Japan’s history it will be difficult to understand why the Japanese have such strong loyalty towards their companies; or understand the loyalty in their distribution system, or why decisions are made by consensus. Loyalty to family, to country, to company, to social groups and the strong drive to co-operate to work together for a common cause, permeate many facets of Japanese behaviour
Why do Mexicans have a love-hate relationship with the USA? Latin Americans see the Monroe Doctrine as an offensive expression of US influence in their country.
Manifest Destiny and the Monroe Doctrine was the USA foreign policy. Manifest destiny meant in fact that USA was chosen by God to create a model society; it referred to territorial expansion of the US from the Atlantic to Pacific
The idea of Manifest Destiny was used to justify the annexation of Texas, New Mexico and California and later US involvement Cuba, Alaska, Hawaii and the Philippines. US prohibit non American intervention in Latin American affairs but it would police the area and guarantee that Latin America met their international obligations. The manner in which the USA acquired the land for the Panama Canal Zone typifies their policy ‘what is good for America is justifiable.
Geography and Global Markets
Geography is an element of uncontrollable environment that confronts every marketers. It is important in the study of markets and their environment. Altitude, humidity and temperature extremes are climatic features that affect uses and functions of products and equipments. The construction of equipment used in the USA requires extensive modifications to cope with the intense heat and dust of the Sahara Desert. A Taiwnese company sent a shipment of glasses packed in wooden crates with hay to prevent breakage.due to the warm climate and less humidity, the moisture content dropped and the hay shrivelled and the glasses arrived in pieces. Climate differences in Europe caused Bosch-Siemens to alter its washing machines. Germany and Switzerland needed a spin cycle of 1000rpm to 1600rpm. In Italy and Spain a spin cycle of 500 was enough. South America represents a well defined example of the importance of geography in marketing. 2/3rd is like Africa in climate, 48% is forest and jungle and only 5% arable .the location, quality and availability of resources will affect the pattern of world development and trade.
.
.