s5 cultural dynamics in assessing global markets

Cultural Dynamics in Assessing Global

MarketsINTERNATIONAL MARKETING

Importance of culture “Culture is pervasive in all marketing activities—in pricing, promotion, channels of distribution, product, packaging.”

Cateora, P., & Gilly, M. (2011). International marketing (15th ed.).New York, NY: McGraw-Hill/Irwin.

Source: http://www.123rf.com/clipart-vector/cultural_diversity.html

Geography and global markets

Climate & Topography

• Adaptation of strategies. • Extreme temperatures• Distribution channels

Economic growth

• Natural barriers• Differences on lifestyles• Physical distances

Sources: http://www.newfoodconcepts.nl/kernbegrippen/, http://www.eurotunnelfreight.com/fr/a-propos/Frequence-et-rapidite/, http://www.news24.com/Multimedia/World/Week-in-pictures-20131018 , http://www.cbc.ca/news, https://sustainabilityatspu.wordpress.com/2014/01/15/urban-vs-rural-living/

Even within a country

Historical perspective in global business

SRC & Ethnocentrism

History is subjective

History helps in understanding why a

country behaves as it does (Cateora, 2011).

CSR and Shared value creation

“Environmental protection is not an optional extra, it’s an essential part of doing business”

Society success

Company success

Cateora, P., & Gilly, M. (2011). International marketing (15th ed.).New York, NY: McGraw-Hill/Irwin.

Source: http://cliverich.com/blog/7-reasons-to-be-good-at-negotiation-part-7b-resource-shortages-a-mixture-of-oil-and-water/ http://retailgumboreviews.com/eco-friendly-products/

Global population trends

Birth rates

Migration

Source: http://theindependent.sg/birth-rate-and-national-service/

Source: http://blogs.swa-jkt.com/swa/10674/2013/03/03/academic-investigation-rural-urban-migration/

Population growth

Source: http://www.conceptdraw.com/examples/image-chart

Unemployment

Source: http://www.mycity-web.com/tips-for-people-struggling-with-unemployment/

What is culture?

Cateora, P., & Gilly, M. (2011). International marketing (15th ed.).New York, NY: McGraw-Hill/Irwin.

“Culture is the sum of the values, rituals, symbols, beliefs, and thought processes

that are learned and shared by a group of people, then transmitted from generation

to generation.”

“Culture is the collective mental programming of the people in an

environment. Culture is not a characteristic of individuals; it

encompasses a number of people who were conditioned by the same education and life experience.”

Society’s heritage transmitted from generation to generation.

Culture vs Personality Personality is the individual’s unique personal set of mental programs that he/she does not share with any other human being.

Culture is what members of a group have in common. “It is the glue that binds groups together” (De Mooij)

Source: http://blog.usabilla.com/how-to-create-brand-personality-for-your-website/

Origins of the culture

Culture

Social institutions

Political & Economy

Technology

Cateora, P., & Gilly, M. (2011). International marketing (15th ed.).New York, NY: McGraw-Hill/Irwin.

Elements of cultureRituals

Symbols

BeliefsThought process

Values

Cateora, P., & Gilly, M. (2011). International marketing (15th ed.).New York, NY: McGraw-Hill/Irwin.

Definition of culture

Manifestations

These elements of culture are interrelated and interactive

Cultural values and beliefs

Values are stable beliefs regarding desired behavior

or end states.

They often have a religious,

ideological or humanistic

background.

One of the first things we learn.

Related with superstition.

Rituals Patterns of behavior and interaction that are learned and repeated.

Major events in life

https://www.youtube.com/watch?v=FtSQJqIOj08

Sources: https://www.pinterest.com/angel2stamp/christmas-around-the-world/, http://oddstuffmagazine.com/10-strange-wedding-traditions-around-the-world.html , http://www.magforwomen.com/5-easter-traditions-from-around-the-world/.

https://www.youtube.com/watch?v=UTE0G9amZNk

Symbols• Different languages within a

country and between countries.• The official language and the one

in use.• Meaning differs from one country

to another one. • Non verbal language

Language

• Colors• Shapes and images• Arts, folklore, music• Dietary preferences

Aesthetics

https://www.youtube.com/watch?v=ry1E1uzPSU0 https://www.youtube.com/watch?v=xRryl8YNHx8

Cultural sensitivity and tolerance

Sensitive

Tolerant

Flexible

It’s not about judging but being…

Cultural borrowing

Responsible effort to learn from others’ cultures for better

solutions to a society’s particular problems.

Similarities

Illusion

Hofstede’s cultural model Quantitative study of cultural differences

between countries based on four dimensions.

Why some concepts of motivation do not work in all countries in the same way.

PDI IDV

UAI MAShttps://www.youtube.com/watch?v=6gJzRS0I7tA

1. Power distance (PDI)High PDIHierarchical culturesSuperior and subordinate

Low PDIReflects egalitarian views.

Influences the way people accept and give authority

Index that measures the tolerance of social inequality.

2. Individualism (IDV)Individualism or collective index

Distinguishes between societies where the group and being a member is important (collectiveness) and societies where the group is less important (individualism)

High

Low

Refers to the preference for behavior that promotes one’s self interest.

3. Uncertainty avoidance (UAI)

High UAIDistrustful of new ideas Anxiety and stressStick to rules

Low UAIWillingness to take risks

How people avoid situations related with uncertainty and ambiguity.

4. Masculinity (MAS)

Indicates the degree of gender differentiation and the importance of

masculine values

Assertiveness, money, material goods, success

Caring for others and quality of life