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DISNEYLAND in GERMANY?

DISNEYLAND in GERMANY?. DISNEYLAND. C U L T U R E. DISNEYLAND AND CULTURE. Culture : an unwritten system of behaviour that has been learned, shared, and transmitted from one generation to the next

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DISNEYLAND in GERMANY?

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  1. DISNEYLAND in GERMANY?

  2. DISNEYLAND C U L T U R E

  3. DISNEYLAND AND CULTURE Culture:an unwritten system of behaviour that has been learned, shared, and transmitted from one generation to the next ...”collective mental programming: it is part of our conditioning that we share with other members of our nation, region, or group but not with members of other nations or groups” (Hofstede, 1983) • Over 500 definitions!

  4. DISNEYLAND AND CULTURE Why is knowledge of culture abroad important for the international marketer? There is a correlation between culture values and behavior => avoid mistakes, use for segmentation, Marketers must be sensitive to culture dynamics, people express their needs and wants differently from culture to culture (Disney’s adoptation) A marketer’s efforts (strategies and programs) are developed, implemented and judged in a cultural context of acceptance, resistance, or rejection (not all marketing efforts require change in order to be accepted by a country)

  5. DISNEYLAND AND CULTURE Elements of culture: language, religion, values and attitudes, manners and customs, business ethics, education, aesthetics, communications, context, time, social class, etc. (many unconscious values) All facets of culture are interrelated • Universal Culture = mode of behaviour existing in most cultures = > opportunities to standardise some or all elements of a marketing program (research => clues about cultural differences and similarities)

  6. DISNEYLAND AND CULTURE Elements of culture: • Self reference criterion • unconcious reference to one’s own cultural values • fall back on one’s prior experiences • Static and dynamic elements • static: religion, social structures, language, values • dynamic: work and leisure, art, music • Learned by all people and passed on (cultivated) • Shared by individuals • May differ based on religeon/language • Determines work ethic / hierarchy

  7. DISNEYLAND AND CULTURE Hofstede’s five dimensions: • Individualism vs collectivism • Power vs distance • Masculine vs feminine • uncertainty avoidance: strong vs weak • long term vs short term orientation

  8. DISNEYLAND AND CULTURE Hofstede’s five dimensions • Individualism vs Collectivism Defined as people looking after themselves and their immediate family only, (rewarding and accepting individual initiative), versus peoplebelonging to in-groups that look after them in exchange for loyalty (Hofstede). Example:Japanese are collectevistic where as the Americans are individualistic. • Power Distance The extent to which less powerful members of a society accept and expect thatpower is distributed unequally. Example: Japan has a high power distance index and the The Netherlands has low power index.

  9. DISNEYLAND AND CULTURE Hofstede’s five dimensions • Masculinity vs Femininity The dominant values in a masculine society are achievement and success, the dominant values in a feminine society are caring for others and quality of life. Example: Japan is masculine, while the Netherlands is feminine. • Uncertainty Avoidance The extent to which people feel threatened by uncertainty and ambiguity and try to avoid these situations. Example: High on uncertainty avoidance are Germany and Japan, low ones are Sweden and Denmark.

  10. DISNEYLAND AND CULTURE Hofstede’s five dimensions • Long-term Orientation The extent to which a society exhibits a pragmatic future-oriented perspective than a conventional historic or short-term point of view. Example: Most Asian countries, China in particular score high on this dimension. Many western countries have a short-term orientation. Societies with similar scores on a cultural dimension tend to act similar => similar marketing approaches

  11. DISNEYLAND AND CULTURE Singapore Hong Kong (high power distance, low individualism => adjust!) Low Malaysia Individualism France Australia High USA Lower power distance, high individualism => adjust! High Low Power-distance

  12. HONG KONG: high power distance (hierarchy), weak uncertainty avoidance USA: lower power distance, stronger uncertainty avoidance => Adjust! HONG KONG: high power distance, weak uncertainty avoidance USA: lower power distance, stronger uncertainty avoidance => Adjust!

  13. HONG KONG and USA: masculinity about the same USA: much higher individualism => Adjust!

  14. Of the five dimensions of Hofstede’s cultural values Individual/Collectivism and Power Distance (PDI) are especially relevant in examining methods of doing business among countries UK Exporter Arab Agent Power Distance Indiv. Uncert. Avoiden. Mascul. High = 100 Low = 0 Diagrammatic representation of the dimensional gap between a UK exporter (solid line) and an import agent (broken line) from an Arabic culture using Hofstede’s dimensions. Source: Karunaratna and Johnson, JMM, 2001 (Forthcoming)

  15. Intra-border hetero/homogeneity • Homophilous cultures • similar beliefs, languages and religion • N/S Korea, Japan and Scandinavian countries Norway Sweden Denmark • Implications • Cannot standardise marketing mix within heterophilous cultures, particularly promotional mix • Determinant = ethnic mix within country Heterophilous high level of heterogeneity within country, eg. China (Source: Kotabe and Helsen (1998, p.94))

  16. DISNEYLAND AND CULTURE • High context: (e.g. China, Arabic countries) • words convey part of meaning • background, associations and values (what not is being said) • personal relationships important • who is speaking, position in society • contracts based on relationships, less paperwork • Low Context (e.g. German, Swiss) • words carry explicit message (what is being said is important) • contracts do not regard character of individual • more paperwork & legal contract

  17. Context (Hall, 1983) High Japanese Arab Latin American Italian/Spanish French English North American Scandinavian German Low Swiss Explicit Implicit

  18. DISNEYLAND AND CULTURE High- and Low-Context Cultures Factors High-Context Low-Context Lawyers - less important - very important A person’s word - his/ her bond - ‘get it in writing’ Time - everything is dealt - ‘time is money’ with in its own time Negotiations - lengthy - quick Low-context culture: verbal messages are explicit High-context culture: little information is contained in the verbal part of the message

  19. DISNEYLAND AND CULTURE • Disney’s Managers must understand human experience from the local point of view and become insiders with cultural empathy • Knowledge and understanding of cross-cultural differences is crucial during negotiations • Lists can function as guidelines, although typologies do not take particular individuals into account...

  20. DISNEYLAND AND CULTURE Self-reference criterion (SRC) and perception Perception of market needs is framed by own cultural experience • Four-step framework • Define problem in terms of home country norms • Define problem in terms of host country norms • Isolate SRC influence. See how it complicates problem • Redefine problem without SRC influence. Solve for host country market situation (Keegan & Schlegelmilch)

  21. DISNEYLAND AND CULTURE France limits • The number of U.S. shows on TV • The percentage of U.S. songs on the radio • The percentage of U.S. films in French theaters

  22. DISNEYLAND AND CULTURE Environmental Sensitivity The extent to which products must be adapted to the culture-specific needs of different national markets • Environmental sensitive products • Require significant adaptation to the environments of various global markets (e.g., food) • Environmental insensitive products • Do not require significant adaptation (e.g., integrated circuits) Consumer goods are usually more sensitive to cultural diversity than industrial goods

  23. DISNEYLAND AND CULTURE Why is knowledge of the language important when going abroad? • access to local society • communication Non-verbal language: • standing close to people when negotiating? • kiss your business partner? • Go to the sauna with business partner?

  24. DISNEYLAND AND CULTURE Examples: • In Taiwan, the Pepsi slogan ‘Come alive with the Pepsi generation’ was translated as ‘Pepsi will bring your ancestors back from the dead’ • In Thailand, ‘Out of sight, out of mind’ had become: ‘Invisible things are insane’ • In Brazil, Ford had problems when introducing the Pinto (Pinto is Brazilian slang for ‘tiny male genitals’) • USA: “Electrolux has the best suction power” was translated: “Nothing sucks like an Electrolux” (rimes) • In South America, General Motors had problems when introducing the Chevy Nova: ‘no va’ which means ‘it won't go’ • Japan: Antifreeze Spray was translated as: ‘Hot Piss Brandy’

  25. DISNEYLAND AND CULTURE Religion Why is knowledge of religion important when going abroad? • Christianity: Chistmas • Islam: Ramadan, role of women, alcohol • Hinduism: Caste system, extended family structure • Buddhism: Achieving Nirvana, sprituality • Example: effect of certain advertisements and advertising texts on the religious inhabitants of a country: • Will they appreciate the concept or will they be insulted and, as a result, reject and boycott the brand?

  26. DISNEYLAND AND CULTURE Other influences: • festivals (e.g. Christmas, Ramadan, Chinese new year) • public holidays, food • consumption patterns - products and advertising • food and alcohol • bottle top with verse from Koran? • social structure - relationship with parents and children

  27. DISNEYLAND AND CULTURE • Why is understanding manners and customs is extremely important in international business? • Negotiations • Business ethics: what is acceptable? • What is legal? • Why is taking ethical issues into consideration important for a business?

  28. DISNEYLAND AND CULTURE Business ethics: Bribes: The issue of giving gifts (or money) for favors (past or future) is common among most cultures. Often it is a matter of the size of the gift and its intent which causes concern among certain countries. Question: what is ethical and what is necessary for business... Fundamental Question: Is the action/decision a violation of a core human value? Five core human values: * Compassion * Responsibility * Fairness * Respect for others * Honesty

  29. DISNEYLAND AND CULTURE Education: • Hiring qualified employees • Written instructions, etc. • literacy rate, implications for: • marketing research • verbal, graphical vs written • ad messages • text vs pictographic • e.g., India: movie theatres • technically trained people • technological development (country’s comparative advantage)

  30. DISNEYLAND AND CULTURE • Social Classes • composition • DCs vs developing economies (and emerging economies) • Influences wealth on consumption patterns Income decreasing Developed LDC

  31. DISNEYLAND AND CULTURE • Sub cultures are groups within a society which have share the social structure but which have a unique lifestyle often based on religion, ethnicity or social class. Examples: Hispanics, orthodox Jews, ‘squatters’, punkers, social classes, consumers moving up the social ladder (juppies, dinky’s, etc.). • Social class: refers to devisions in the population based on objective economic criteria such as source of income and wealth (level of education), house type / area => association with purchase of products and brands => distinguish consumption patterns => market segments (working class, middle class, etc.) => positioning => 4 p’s => retail site location, pricing, advertising (tone of voice, choice of spokes person), choice of medium

  32. DISNEYLAND AND CULTURE Impact of social and cultural environments on marketing consumer products • Many products and brands serve as status symbols => increase social status, symbolizing a status position to others • Perceptual cues: color (gold, royal blue), county of origin (France), designer name (Calvin Klein), high pricing, exclusive distribution • Most people buy ‘higher’ than their class allows (presumed status) => positioning and perception important! • Dating based on brands…?, Supermarket dating in the US • Upper middle class booming!

  33. DISNEYLAND AND CULTURE • Aesthetics • Aesthetics refer to “beauty and good taste” • Examples aesthetics • Graphic and Plastic Arts • Folklore, Movies. Literature, Sports • Music, Drama, and Dance, etc. • Be sensitive to local aesthetic preferences regarding the design of products, packaging, or promotional campaign • Colours, names (Procter and Gamble has 20 different brand names for its detergents in foreign markets)

  34. DISNEYLAND AND CULTURE Example of a model: Turnover (Y) Y = f (A, B, C, D, E, F,G) A = cultural elements, tradition, custom, habit B = promotion expenditure and effectiveness, all categoriesC = price setting vs affordability D = influences of other parks’ relative prices, quality, experience (competition) E = nr. of tourists within five hours of travelling F = uniqueness of experience G = economic / infrastructure conditions

  35. DISNEYLAND AND CULTURE • Strategy of unplanned change- introduce the product and hope for the best; e.g. introduction of American cultural components in France • Strategy of planned change- deliberately planning to change those aspects of a culture offering resistance to a firm’s predetermined marketing objectives (Internet providers) => research to identify elements in the culture that are obstacles to change, then systematically introducing agents of change (lobbyists, ad campaigns)

  36. DISNEYLAND AND CULTURE Business manners : do and don’ts A lack of empathy for and knowledge of foreign business practices can create insurmountable obstacles to successful business relations • Great Britain: Don’t smoke until after the toast to Her Majesty’s health • Do arrive promptly for dinner, do bring a gift for the lady of the house • France / Singapore: Don’t chew gum. • Do address all women as madame (France). Dress formal. • Italy: Don’t hand out business cards freely. • Do stand when an older person enters the room • Spain: Don’t discuss bullfights; do talk about sports and politics • Greece: Don’t risk insult by waving with an open palm, do eat alot

  37. DISNEYLAND AND CULTURE Tips: • Never touch the head of a Thai or pass an object over it.(The head is considered sacred in Thailand.) • Avoid using triangular shapes in Hong Kong, Korea, and Taiwan. (The triangle is considered a negative shape.) • Red represents witchcraft and death in many African countries. Red is a positive color in Denmark. • The number 7 is considered bad luck in Kenya, but good luck in the Czech Republic and has a magical connotation in Benin, Africa. • The number 10 is bad luck in Korea. Thirteen in the western society • The number 4 means death in Japan. SOURCE: Business America, July 12, 1993

  38. DISNEYLAND AND CULTURE Be aware of: Authority patterns: 1. Top-level management decisions 2. Decentralized management decisions 3. Group decisions Patterns of aspirations and objectives among business people: 1. Personal goals 2. Security (Hofstede) 3. Power (Hofstede) Self-reference criterion

  39. DISNEYLAND AND CULTURE Communication Emphasis:High-Low Context Cultures The marketer must have a mastery over the language of business and the silent language of nuance and implication! Tempo: P-Time versus M-Time: monochronic (sequential) time- cultures that tend to concentrate on one thing at a time (a “to do” list). Polychronic (Synchronic)time - cultures where completion of a human transaction is more important than being bound to a schedule When people from predominantly M-time and P-time cultures meet, adaptation is necessary for a favorable relationship

  40. DISNEYLAND AND CULTURE • Sequential • (monochronic) • linear • changes or turbulence is upsetting • seen to be “efficient” • punctuality important • “time is money” • Synchronic • (polychronic) • several activities in parallel • different notion of “organisation” • final established goal • but stepping stones to get there / flexibility Critical path to task completion Stepping stones, some can be skipped USA, UK, Nordic countries Latin Europe, France

  41. DISNEYLAND AND CULTURE Gender Bias toward women managers exists in many cultures (and countries) In many countries, women are not typically found in upper levels of management

  42. DISNEYLAND AND CULTURE Give advice on what Disney can do to culture sensitize it’s American staff in GERMANY => What should they do in advance? What type of attitude is necessary?

  43. DISNEYLAND AND CULTURE “Hai” in Japanese : English Translation: “Yes” Case study: Comparing and contrasting USA and Japan What does it mean In Japanese? • Hai means “the other person had heard and is contemplating reply” • Is there a ‘yes’ in Japanese that corresponds to the Western ‘yes’? • Yes, when Hai is accompanied by ‘sodesu’ (which means it is so) • and ‘soshimasu’ (which means: “I will do so”)

  44. DISNEYLAND AND CULTURE Japan USA Case study: Comparing and contrasting: Myth / Hero Emphasis Group Individual Self-Denial Dependence Self-Expression Independence Attitude Emphasis Obligations Rights Style Cooperation Competition Assumptions Interdependence Independence Organization Man Individual With a Skill View of Self

  45. DISNEYLAND AND CULTURE Japan USA Everyone should be just like us Cultural Attitude 1 We Are Unique Willing To Borrow/Adopt/Adapt "Not Invented Here" Syndrome Cultural Attitude 2 Organization Goal 1 (Jobs / Employment) Profitability, Financial Success Share of Market Organization Goal 2 World Markets National Markets Quality / Customer Value Production / Financial Return Organization Goal 3

  46. DISNEYLAND AND CULTURE Japan USA Worker Identification Company Craft / Function Management Generalist Specialist Trust In Feeling Thinking Governmental Business Relations Cooperation Separation Financial Structure (Debt : Equity) 80 : 20 40 : 60 Key Stakeholder Employees Stockholders Perfection Harmony Consensus Freedom Success Winning Key Values & Goals

  47. DISNEYLAND AND CULTURE Japan USA Clear expression of joy and sorrow Unequivocal expression of “Yes/No” Strong self-assertion Strong personality Direct and efficient negotiating Priority of self-interest Ambiguous expression of Joy and Sorrow Equivocal expression of “Yes/No” Weak self-assertion Weak personality Extensive and inefficient negotiating Priority of harmony

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