BERLIANA. YENTY. ROMI

in Assessing Global MarketsDYNAMICS

CULTURAL

? ??why studieswhy studiesCULTURCULTUREE

A marketer has to realize that every nation has a different culture. Since marketing is a people oriented function, this affects the global marketer powerfully. Culture is a direct determinant of demand and ways to do business

o “Culture is pervasive in all marketing activities”

o The Importance of studies Culture

Culture is pervasive in all marketing activities because all the marketer’s effort in pricing, promotion, channels of distribution,

product, packaging and styling are judged in a cultural context for acceptance, resistance or rejection.

The human-made part of human environment-the sum total of knowledge, beliefs, art, morals, laws, customs, and any other

capabilities and habits acquired by humans as members of society

CULTURE

Cultures come from how the people try to solve their problems and how they interact to each other in a society

To be more detail, Individuals learn culture from social institutions through socialization (growing up) and acculturation

(adjusting to a new culture.) Individuals also absorb culture through role modeling, or imitation of their peers. Finally, people

make decisions about consumptions and production through application of their culture-based knowledge.

Culture Origin

Cultural ElementsValues, Rituals, Symbols, Beliefs, and Thought Processes

Marketers must design products, distribution systems, and promotional programs, with due consideration of each of the five elements.

Just look when Chinese New Year comes. All Chinese’s welcomed this day with joyous. It’s an opportunity for the marketer to a major or selling time for food and clothing. Especially when the marketer sells’

any item that present the icon for that year. For example, if it was a dragon’s year. It will be better for marketer to decorate the door

hanger with a picture of a dragon or maybe lampion, ang pao, etc.

Language

•Different language means differences in idiom that makes it difficult of exact translation.

• For example, Tropicana orange juice brand case. Tropicana brand orange juice was advertised as jugo de China in Puerto Rico, but when transported to Miami’s Cuban community, it failed. To the Puerto Rican, China translated into orange, but to the Cuban it was China the country-and the Cuban were not in the market for Chinese juice.

Social Institution The roles and status positions found within a society are influenced by the dictates of social institution, include one of them is the government. Government influence thinking and behavior through the passage, promulgation, promotion and enforcement of a variety of laws affecting consumption and marketing behaviors.

For examples, the violent sex scenes in a Japanese game disappear in the American version, while in Indonesia; it is prohibited to be distributing.

Be Cultural Sensitivity …“An awareness of the nuances of culture so that a culture can

be viewed objectively, evaluated, and appreciated; an important part of foreign marketing”

o Why ?

o How ?

Being culturally sensitive will reduce conflicts and improve communications, and thereby increase success in collaborative relationships

To acquire cultural empathy, it’s important to recognize that cultures are not right or wrong, better or worse. Just because a culture is

different does not make it wrong. Marketers must understand how their own cultures influence their assumptions about another culture.

Cultural Dynamic …The degree of resistance to new patterns varies. In some situations new elements are accepted completely and rapidly; in others, resistance is so strong that acceptance is never forthcoming. One studies show that the most important factors in determining what kind and how much of an innovation will be accepted is the degree of interest in the particular subject, as well as how drastically the new will change the old-that is, how disruptive the innovation will be presently acceptable values and behavior patterns.

For examples, today where the people are time-consciousness; instant foods, labor-saving devices, and fast foods restaurant that might have been resisted just a few years ago are rapidly gaining acceptance. This condition surely increases the quantity of demand for the industry of fast-food while demand for vegetables or meat (non-instant) will decrease.

Resistance to Cultural Change…

Resistance to cultural change will affect new product introduction in the respect that the greatest resistance will

confront products which are farthest from the status quo, but this resistance can be lowered by gaining public interest.

Lowering resistance in this situation means shortening the duration of the resistance. Domestic marketing is subject to the

same resistance to change.

Examples of this resistance in the domestic market are the introduction of contact lenses and using motorcycles as an

acceptable means of recreation.

Cultural Borrowing…The phenomenon by which societies learn from other cultures'

ways and borrow ideas to solve problems or improve conditions

o Technology and it’s effect…

Internet is invented, many nations welcomed this innovation. Communication through all over the world seems borderless. It does really solve the problems for many nations to have an easier way to communicate wherever and whenever it’s needed. And it does really change the way of marketer’s efforts; promotions, transaction and many others

Cultural AnalysisThe best procedure for making a cultural analysis for a potential market is to go through each of the elements of culture and evaluate each on the basis of how it could possibly affect a proposed marketing program.  Material Culture

Technology – the techniques and “know-how” of producing material goods.Economics – the employment of capabilities and the results.

Social InstitutionsSocial organizations – family life, status, age.Education – literacy and intelligence and how informed the public is.Political structures – control over business.

Man and the UniverseBelief systems – how do these affect product and promotional acceptance?

AestheticsGraphic and plastic arts – degree of modernization.Folklore – superstition, tradition, etc.Music, drama, and the dance – promotional possibilities.

Marketers Attitude Towards the Constantly Change of Markets …

o Adjusting efforts to cultural demands of the market

o Marketers as agents of change

Marketer plays as a change agent when the marketer success to

make the market use of something new in whatever the degree

of acceptance in whatever level of culture.

Cultural Change Strategies…

Strategy of cultural congruenceA marketing strategy in which

products are marketed in a way similar to the marketing of products

already in the market in a manner as congruent as possible with

existing cultural norms

Strategy of unplanned change A marketing strategy in which a company introduces a product into a market without a plan to influence the way the market's culture responds to or resists the company's marketing message.

Strategy of planned change A marketing strategy in which a company deliberately sets out to change those aspects of a foreign culture resistant to predetermined marketing goals.

‘Similar-but-Different’

Several nationalities can speak the same language doesn’t mean a product acceptable to the other, or that a promotional message that succeeds in one country will succeed in the other.

A common language does not guarantee a similar interpretation of word or phrases. Both British and Americans speak English, but their cultures are sufficiently different so that a single phrase has different meaning to each and can be even completely misunderstood. The movie title The Spy Who Shagged Me means nothing to most Americans, but it means a lot to British consumers.

MARKETMarketer’s efforts - Economic conditions – Culture Elements

Culture elements make how the people behaviors and so on with

the markets needs and wants (lifestyle, etc). So does the

economic condition which involve in market decision what to

buy depend on how theirs own budget condition at that time. In

addition, there are moment where marketer success to make the

market use of something new in whatever the degree of

acceptance in whatever level of culture (agent change)

INNOVATIONFunctional VS Dysfunctional

When a processes feeding formula into the diet of babies in undeveloped countries is being introduced, the producer think it might bring functional consequences of better nutrition and health which would solve protein deficiency problem in that countries. However, what really happens is contradictory with the first prediction. In Nicaragua, where sanitation methods are inadequate, a substantial increase in dysentery and diarrhea and a higher infant mortality rate resulted (dysfunctional).

DYSFUNCTIONAL Corporate Responsibility???

It would be difficult to defend this proposition since the dysfunctional consequences of an innovation may not only have negative consequences on the social system but may

ultimately impact on the success of the multinational concern. While most multinational companies have not

concerned themselves with the consequences of an innovation beyond product safety, it appears that in the future there will be greater concern on the part of host countries in holding companies responsible for the consequences of their marketing activities. It would seem that from an enlightened

self-interest viewpoint, companies should attempt to determine the consequences of their innovations, and should

they prove to be dysfunctional, include in their marketing strategies attempts to eliminate the negative aspects of the

acceptance of diffusion of their product.

??

DYSFUNCTIONAL How to Solve it…………..

Westernized diet has caused many Japanese to become overweight. To counter this, the Japanese are buying low-calorie, low fat-foods to help shed excess weight and are flocking to health clubs. So then the product still profitably introduced.

Glossary …o Social institutions

o Cultural values

The methods and systems, including family, religion, school, the media, government, and corporations, that affect the ways in which people relate to one another, teach acceptable behavior to succeeding generations, and govern themselves.

The system of beliefs and customs held by a population in a given culture

o Linguistic distanceThe measure of difference between languages; an important factor in determining the amount of trade between nations.

o Aesthetics

o Factual knowledge

The measure of difference between languages; an important factor in determining the amount of trade between nations

A type of knowledge or understanding of a foreign culture that encompasses different meanings of color, different tastes, and other traits of a culture that a marketer can study, anticipate, and absorb

o Interpretive knowledge

An ability to understand and to appreciate fully the nuances of different cultural traits and patterns

fin…fin…