Cultural Dynamics in Assessing Global

Markets

7

The International Marketing Task

Political/legalforces

Economicforces

1

2

Environmentaluncontrollables

country market A

Environmentaluncontrollables

countrymarket B

Environmentaluncontrollables

countrymarket C

Competitivestructure Competitive

Forces

Level of Technology

Price Product

Promotion Channels of distribution

Geography and

Infrastructure

Foreign environment(uncontrollable)

Structure ofdistribution

Economic climate

Cultural forces

3

45

6

7Political/

legalforces

Domestic environment(uncontrollable)

(controllable)

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Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Elements of Culture

Material Culture

Technology Economics

Irwin/McGraw-Hill

� Social Institutions

Family Political Structure

Education The Media

� Humans and The Universe

Belief Systems

� Aesthetics

Graphics and Plastic Arts Music, Drama, and Dance

Folklore or

Language

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Fractured Translations

English Translations made by Japanese firm that were added to

labels to increase prestige for their products being sold in China.

Product English Translation

Equivalent to Japanese Spam Liver Putty

Toilet Paper My Fanny Brand

Ready to Eat Pancakes Strawberry Crap Dessert

Antifreeze Spray Hot Piss Brand

Pediatrician’s Slogan Specialist in Deceased Children

SOURCE: “Some Strawberry Crap Dessert, dear?” South China Morning Post, December 9, 1996 p. 12.Irwin/McGraw-Hill

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Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Irwin/McGraw-Hill

It’s Not the Gift That Counts, but How Your Present It

Japan Do not open a gift in front of a Japanese counterpart unless asked, and do not expect the Japanese to open your gift.

Avoid ribbons and bows as part of the gift wrapping. Bows as we know them are considered unattractive, and ribbon colors can have different meanings.

Do not offer a gift depicting a fox or badger. The fox is the symbol of fertility; the badger, cunning.

Europe Avoid red roses and white flowers, even numbers, and the number 13. Do not wrap flowers in paper.

Do not risk the impression of bribery by spending too much on a gift.

Copyright©2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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It’s Not the Gift That Counts, but How Your Present It…

Arab World Do not give a gift when you first meet someone. It may be interpreted as a bribe.

Do not let it appear that you contrived to present the gift when the recipient is alone. It looks bad unless you know the person well. Give the gift in front of others in less –personal relationships.

Latin America Do not give a gift until after a somewhat personal relationship has developed unless it is given to express appreciation for hospitality.

Gift should be given during social encounters, not in the course of business.

China Never make an issue of a gift presentation—publicly or private.

Gifts should be presented privately, with the exception of collective ceremonial gifts at banquets.

Cultural Factors

Never touch the head of a Thai or pass an object over it

The head is considered sacred in Thailand.

Avoid using triangular shapes in Hong Kong, Korea and Taiwan. It is considered a negative shape.

The number 7 is considered bad luck in Kenya, good luck in the Czech Republic and has a magical connotation in Benin.

The number 10 is bad luck in Korea.

The number 4 means death in Japan.

Red represents witchcraft and death in many African countries.

Red is a positive color in Denmark.

SOURCE: Business America, July 12, 1993Irwin/McGraw-Hill

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Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Irwin/McGraw-Hill

Whose English?

United States United Kingdom

Trunk Boot

Hood Bonnet

Convertible Top Hood

Elevator Lift

Toilet W.C.

Bathroom Tub or Shower

Vacuum Hoover

??? Shag

Bloody ???

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Cultural Change

Pas de Franglais

Old New

Prime Time Heures de grande ecoute

(hours of largest audience)

Air Bag Coussin gonflable de protection (Inflatable cushion of protection)

Cookie Sable americain

Trans. (American cookie)

SOURCE: Adapted from “La Guerre Franglaise,” Fortune, June 13, 1994, p. 14.Irwin/McGraw-Hill

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The Matrix of Culture

How the cultural values are

Deep

HELD

Shallow

Narrow Wide

Shared

The Nature of Assumptions

Humanity’s Relationship to the Environment

The Nature of Human Nature The Nature of Human Relationships The Nature of Human Activity The Nature of Reality and Truth

4

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Irwin/McGraw-Hill

Cultural Values Four Dimensions

Individualism/Collective Index (IDV)

Power Distance Index (PDI)

Uncertainty Avoidance Index (UAI)

Masculinity/Femininity Index (MAS)

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Impact of Culture on Managerial Behaviour

Communication

High Context Low context

Explicit Implicit Negotiation – 5 stages

1. Planning

2. Non-Task time

3. Exchanging Information

4. Attempts to Influence the Other Party.

5. Mutually acceptable Exchange is agreed upon

Decision Making

Decision Makingon Making

1. Who Makes the Decision

2. How Decisions are Made

3. Decisions in Uncertain Environment

Cross Cultural Analysis to Isolatethe SRC Influences

Step 1: Define the business problem or goal in home-country cultural traits, habits, or norms.

Step 2: Define the business problem or goal in foreign-country cultural traits, habits, or norms. Make no value judgements.

Step 3: Isolate the SRC Influence in the problem and examine it carefully to see how it complicates

the problem. Step 4: Redefine the problem without the SRC

influence and solve for the optimum business goal situation.*