Chapter 4 Social and Cultural Environments

1. Chapter 4Social and Cultural Environments PowerPoint by Kristopher Blanchard North Central University

2. Task of Global Marketers • Study and understand the country cultures in which they will be doing business • Incorporate this understanding into the marketing planning process

3. Introduction “It is not just speaking a common language. It is sharing a culture and understanding friendships in the same way” Juan Villanonga – Former Chairman of Telefonica

4. Society, Culture, and Global Consumer Culture • Culture – Ways of living, built up by a group of human beings, that are transmitted from one generation to another • Culture is acted out in social institutions • Culture has both conscious and unconscious values, ideas and attitudes • Culture is both material and nonmaterial

5. Society, Culture, and Global Consumer Culture “Culture is the collective programming of the mind that distinguishes the members of one category of people from those of another.” - Geert Hofstede

6. Society, Culture, and Global Consumer Culture • Global consumer cultures are emerging • Persons who share meaningful sets of consumption-related symbols • Pop culture; coffee culture; fast-food culture • Primary the product of an interconnected world

7. Attitudes, Beliefs and Values • Attitudes - learned tendency to respond in a consistent way to a given object or entity • Belief - an organized pattern of knowledge that an individual holds to be true about the world • Value - enduring belief or feeling that a specific mode of conduct is personally or socially preferable to another mode of conduct

8. Religion Religion is one important source of society’s beliefs, attitudes, and values. The world’s major religions include: Buddhism, Hinduism, Islam, Judaism, and Christianity.

9. Religion

10. The sense of what is beautiful and what is not beautiful What represents good taste as opposed to tastelessness or even obscenity Visual – embodied in the color or shape of a product, label, or package Styles – various degrees of complexity, for example are perceived differently around the world Aesthetics

11. Dietary Preferences • Would you eat….. • Reindeer (Finland) • Rabbit (France) • Rice, soup, and grilled fish for breakfast (Japan) • Kimchi - Korea • Blood sausage (Germany)

12. Language and Communication

13. Language and Communication • Verbal Cues • Nonverbal cues or body language

14. Marketing’s Impact on Culture • Universal aspects of the cultural environment represent opportunities to standardize elements of a marketing program • Improved communications have contributed to a convergence of tastes and preferences in a number of product categories

15. Marketing’s Impact on Culture • Movement has 70,000 members in 35 countries • “Slow food is about the idea that things should not taste the same everywhere.”

16. High Context Information resides in context Emphasis on background, basic values Less emphasis on legal paperwork Focus on personal reputation Saudi Arabia, Japan Low Context Messages are explicit and specific Words carry all information Reliance on legal paperwork Focus on non-personal documentation of credibility Switzerland, US, Germany High- and Low-Context Cultures

17. High- and Low-Context Cultures

18. Hofstede’s Cultural Typology • Power Distance • Individualism / Collectivism • Masculinity • Uncertainty Avoidance • Long-term Orientation

19. Self-Reference Criterion and Perception • Unconscious reference to one’s own cultural values; creates cultural myopia • How to Reduce Cultural Myopia: • Define the problem or goal in terms of home country cultural traits • Define the problem in terms of host-country cultural traits; make no value judgments • Isolate the SRC influence and examine it • Redefine the problem without the SRC influence and solve

20. Diffusion Theory • The Adoption Process • Characteristics of Innovations • Categories of Adopters

21. Marketing Implications • The topics in this chapter must be considered when formulating a global marketing plan • Environmental Sensitivity reflects the extent to which products must be adapted to the culture-specific needs of different national markets

22. Environmental Sensitivity

23. Looking Ahead to Chapter 5 The Political, Legal, and Regulatory Environments of Global Marketing

24. Social Institutions • Family • Education • Religion • Government • Business • These institutions function to reinforce cultural norms Return

25. Physical components of culture Objects Artifacts Clothing Tools Pictures Homes Subjective or abstract culture Religion Perceptions Attitudes Beliefs Values Material and Nonmaterial Return

26. What do you associate with Red? Active, hot, vibrant Weddings in some Asian cultures Poorly received in African countries With white? Purity, cleanliness Death in parts of Asia Aesthetics and Color Return

27. Phonology in action • Colgate is a Spanish command that means ‘go hang yourself’ • Technology implications for Text messages • 8282 means ‘hurry up’ (Korea) • 7170 means ‘close friend’ (Korea) • 4 5683 968 means ‘I Love You’ (Korea) Return

28. The Adoption Process • The mental stages through which an individual passes from the time of his or her first knowledge of an innovation to the time of product adoption or purchase • Awareness • Interest • Evaluation • Trial • Adoption Return

29. Characteristics of Innovations • Innovation is something new, five factors that affect the rate at which innovations are adopted include • Relative advantage • Compatibility • Complexity • Divisibility • Communicability Return

30. Categories of Adopters • Classifications of individuals within a market on the basis of their innovativeness. • Five categories • Innovators • Early Adopters • Early majority • Late majority • Laggards

31. Categories of Adopters Return