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International Marketing Tim Beal Lecture 6 18 August 2006 TODAY Where we’re at Housekeeping Culture Country study: India Where we’re at Been looking at aspects of the international marketing environment Don’t forget that diagram Economic, political, social and technological aspects

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international marketing

International Marketing

Tim Beal

Lecture 6

18 August 2006

today
TODAY
  • Where we’re at
  • Housekeeping
  • Culture
  • Country study: India
where we re at
Where we’re at
  • Been looking at aspects of the international marketing environment
    • Don’t forget that diagram
  • Economic, political, social and technological aspects
  • Last week –Services and specifically education
    • Research project
    • Country study: Japan
housekeeping
HOUSEKEEPING
  • Wine assignment due today
  • Box on mezzanine floor
    • Top left corner
  • If late, hand in to office
  • Don’t forget
    • Name
    • Tutor
    • Tutorial
culture
CULTURE
  • What is culture?
  • Categories of cultures
  • Why is important for international marketing?
  • Role of language
  • What are the implications of culture?
what is culture
What is culture?
  • Many definitions
  • the set of values, assumptions and beliefs shared in common by a group
definition
Definition
  • values
    • prestige? Money? Respect of parents, peers, boss?…
  • Assumptions
    • time appointment at 5 means 5, or 5-6, during evening
  • Beliefs
    • 4 is an unlucky number, white is symbol of purity…death
boundaries of culture
Boundaries of culture
  • Boundaries are fuzzy
  • Sometimes conterminous with country
    • Samoa, Japan..
      • NZ Samoans?
  • Many countries are multicultural
  • Strong linkage with language
    • Chinese, German
  • What about English?
culture only part of story
Culture only part of story
  • Class
  • Ethnic background
  • Religion
  • Gender
class
Class
  • Rich tend to be more ‘cosmopolitan’
  • May have more in common with rich of other cultures than poor of own
ethnic background
Ethnic background
  • Lots of people are members of multiple cultures
  • eg Americans - Afro-Americans, Asian-Americans, Hispanics, WASPS
  • WASP
    • white Anglo-Saxon protestants
  • New Zealand
    • Maori, Pakeha, Asian, Islander ..all NZ
religion
Religion
  • Nationality no longer much guide to religion
  • Only small % of Moslems are Arabs
    • Fastest growing religion
  • Christians strong in Africa, South Korea...
    • Christianity was ‘’white, European’ soon most ‘non-white, non-European’
multiple groups multiple cultures
Multiple groups - multiple cultures
  • Cultural studies started with small, relatively isolated cultures
    • Pacific islands (Margaret Meade in Samoa)
  • IM deals with customers subject to diffuse and complex cultural influences
  • Multiple layers of culture
    • eg Chinese NZer, Jewish American…
  • Mixed ethnicity
change
Change
  • Culture changes
  • affected by other cultures
    • American values strong influence in IM
  • Contact with foreigners
  • Education
  • Marketing
categorising cultures
Categorising cultures
  • Hofstede’s four primary dimensions
  • Hall’s High and Low context cultures
hofstede
Hofstede
  • Individualism - collective
  • Power distance
    • social inequality
  • Uncertainty avoidance
    • tolerance of ambiguity
  • Masculinity/femininity
    • assertiveness….caring for others
  • Later added ‘Confucian dynamism’
high context low context cultures
High context - low context cultures
  • Analysis originated by Hall
  • Relative importance of spoken and silent languages
  • the more important the silent, the higher the context
low and high
low and high
  • Low context
    • rely on spoken and written language for meaning
  • high context
    • use and interpret more of the elements surrounding explicit message
  • Swiss, Germans, ..US..Brits...Italians...Arabs...Japanese
japanese
Japanese
  • Japanese language varies with age, sex and social position of speaker and listener
  • same sentence will vary depending on-
    • boy with boy
    • woman with woman
    • child to parent
    • junior to senior or superior
language
Language
  • Strong connection between language and culture
  • Spoken (written; explicit)
  • Silent (understood)
languages in im i
Languages in IM (I)
  • Some countries have one official language
    • England, France, Germany, Japan
  • Some have two
    • Wales, Canada, Belgium, NZ
  • Some have three or more
    • Switzerland, China, Russia
languages in im ii
Languages in IM (II)
  • Difference between spoken and written language
    • most marked with Chinese
      • separation between written and spoken language
    • also a factor in English
      • UK, USA have strong regional dialects that are not reflected in standard written language
      • could be an issue in TV adverts
languages in im iii
Languages in IM (III)
  • Official status may be important
    • reflection of large number of speakers
    • legal requirements (eg Canada)
  • Official status may reflect political situation rather than commercial realities
    • Welsh, Maori, Irish
who speaks what
Who speaks what?
  • First language (mother tongue)
    • Chinese 1000
    • English 350
    • Spanish 250
    • Bahasa Indonesia 225
    • Hindi 200
    • Arabic 150
    • Bengali 150
international languages
International languages
  • English is main business language
  • Used as lingua franca
  • often ‘second best’
    • not mother tongue of either person
    • may mask miscommunication
  • English now comes in many forms
    • American, British, Indian, Singapore...
  • Importance of global English
    • Avoid slang
english as international language
English as international language
  • Challenged by
    • German (Eastern Europe, Turkey)
    • Spanish
    • Chinese (Pacific Asia)
    • Hindi (India)
    • vernacular renaissance
      • Vernacular websites
danger of using english
Danger of using English
  • May mask substantial differences in business practice and culture
  • May give English native speaker false sense of superiority and security
problems of translation
Problems of translation
  • Translation is a skilled business
  • In general, translation should be done INTO mother tongue
  • Need to verify translations
  • Cultural nuances can be crucial
    • More from Ken Muramatsu
    • 29 September
silent language
Silent language
  • non-verbal communication
  • what actions, signs and symbols communicate
  • Hall claims that 90% of message in high-context cultures is communicated silently
aspects of silent language i
Aspects of silent language (I)
  • Time
    • importance of being ‘on time’ varies
  • Space
    • distance between people
  • Things
    • material possessions. Flaunting wealth
aspects of silent language i31
Aspects of silent language (I)
  • Friendship
    • importance of personal relationships differ
  • Agreements
    • based on laws or informal customs?
  • Contract
    • US, NZ..contract result of negotiation and fixes relationship
    • China, Japan, etc. contract’ is beginning of relationship
  • Self-reference criterion
    • Automatically refer to our own cultural values
    • Need to step aside and identify cultural aspect
james lee 4 step approach
James Lee - 4 step approach
  • Define problem/goal in own cultural traits, habits norms
  • Define in foreign terms
  • Isolate the SRC aspect
  • Redefine the problem
cultural sensitivity
Cultural sensitivity
  • Some goods and services are more sensitive to culture than others
  • Closer to religious and family practices less likely to be changed by marketing
examples
Examples
  • Food and drink often culturally sensitive
  • eg forbidden foods such as pork, beef, dog
    • Korea, dogs
  • Two articles on links page under culture
  • Four Eateries That Make a Delight of Sheep
  • Dog Meat Still Hot Potato in Korea
  • manufactures less culturally sensitive
    • TV, cars, etc
cross cultural analysis i
Cross-cultural analysis (I)
  • Determine relevant motivations
    • what needs are fulfilled?
  • Determine behaviour patterns
    • how frequently are these products purchased?
  • Determine what cultural values are relevant to product
    • is product in conflict with cultural values?
cross cultural analysis ii
Cross-cultural analysis (II)
  • Decision-making
    • who makes decisions? consensus? autocratic?
  • Determine appropriate promotion
    • what is valued? what is taboo?
    • eg dogs in Islamic cultures (NZ education video)
  • Determine appropriate distribution
    • What is available, what is expected?
culture and communication
Culture and communication
  • Humour often doesn’t carry over cultural boundaries
  • Attitudes towards sex vary
  • Humour and/or sex are key components of advertising and communication
  • Example: this ad works in India and NZ, not in China or Pakistan. Why?
culture and im
Culture and IM
  • Don’t assume anything
  • Every aspect of marketing mix must be re-examined
  • Utilise members of target culture
    • But don’t assume that they are typical
india
INDIA
  • Geography and history
  • Social profile
  • History and Liberalisation
  • Aspects of Indian market
  • Readings
geography
large area - 3.2 million sq kms

Large population: 984 million

Compared to NZ, US, China?

Geography
india vs china
India comparable to China in area and population

Will overtake China as world’s largest country soon

Compare statistics and attributes

Read ‘Asian Titans’ for more on this

India vs China
languages and ethnicity
China 92% Han

Use same written Chinese

India more diverse

Indo-Aryan 72%

Dravidian 25%

result of successive invasions from North

Languages and ethnicity
indian languages
Hindi (National, 30%)

14 Official languages: Bengali, Telugu, Marathi, Tamil, Urdu, Gujarati, Punjabi.....

Unofficial: Hindustani (variant of Hindi/Urdu) common in north

also further 24 spoken by 1 million plus

Numerous other languages and dialects

Indian languages
english
English - ‘associate status’ but widely used in commerce and as ‘lingua franca’

Indian English is different

Legitimate

Much of best writing in English comes from India

English
literacy
China: 82%

India: 52%

Gender imbalance worse than China

Literacy
history
Successive invasions from north

Brought Islam

Europeans

British

Portuguese (Goa)

French (Pondicherry)

1947 Independence and partition

History
economic strategy
Initially inward looking

import substitution

‘Hindu rate of growth’

90’s - liberalisation

current political crisis but liberalisation will continue

Economic strategy
aspects of indian market
British heritage

language, law...cricket

Diversity

Languages

Religions: 80% Hindu, 14% Moslem

Sikhs, Christians, Buddhists, Jains..

Moslems - 140 million

Aspects of Indian market
india56
Big and growing

Some things are familiar

Diversity is the key

Literacy rate of 52%

BUT Bangalore is one of world centres for software development

Challenging but necessary market

India
readings
Readings
  • Economist forecast
  • Beal & Lindsay: Opportunities for NZ business in India
  • Coursepage
programme
Programme
  • Today
    • Culture
    • India
  • After the break
    • Entry strategies
    • Distribution