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Cultural Dynamics in Assessing Global
MarketsINTERNATIONAL MARKETING
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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
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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
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Historical perspective in global business
SRC & Ethnocentrism
History is subjective
History helps in understanding why a
country behaves as it does (Cateora, 2011).
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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/
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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/
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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.
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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/
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Origins of the culture
Culture
Social institutions
Political & Economy
Technology
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Cateora, P., & Gilly, M. (2011). International marketing (15th ed.).New York, NY: McGraw-Hill/Irwin.
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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
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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.
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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
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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
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Cultural sensitivity and tolerance
Sensitive
Tolerant
Flexible
It’s not about judging but being…
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Cultural borrowing
Responsible effort to learn from others’ cultures for better
solutions to a society’s particular problems.
Similarities
Illusion
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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
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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.
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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.
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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.
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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