INTERNATIONAL MARKETING

Chapter 2

Cultural Dynamics in Assessing Global Markets

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 Chapter outline

1. The importance of culture to an international

marketer

2. The origins of culture

3. The elements of culture

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 1. The importance of culture to an international
marketer

• Culture influences every part of our lives

• Cultures impact on birth rates
– Birthrates have implications for marketers

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• Consumption of different types of food influenced
by culture
– Chocolate by Swiss, seafood by Japanese
preference, beef by British, wines by France and
Italy

• Even diseases are influenced by culture

– stomach cancer in Japan, and lung cancer in
Spain

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 Definitions of Culture

Culture is the sum of the “values, rituals,

symbols, beliefs, and thought processes
that are learned, shared by a group of
people, and transmitted from generation to
generation”

“software of the mind, problem-solving tool”

(Hofstede)

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2. Origins, Elements, and Consequences of Culture

4-7
 3. The elements of culture

➢Cultural Values

• Hofstede, who studied over 90,000 people in 66 countries,

found that the cultures differed along five primary dimensions
– Individualism/Collective Index (IDV), which focuses on self-
orientation
– Power Distance Index (PDI), which focuses on authority
orientation
– Uncertainty Avoidance Index (UAI), which focuses on risk
orientation
– Masculinity/Femininity Index (MAS), which focuses on
assertiveness and achievement
– Long term/short term index (LTI), which focuses on term
orientation
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VIDEOS 9
 DISCUSSION

• Why is it important for a marketer to

have cultural sensitivity ? Give examples

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 Chapter 3

Culture, Management Style, and Business

Systems

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 Chapter outline

1. The necessity for adapting to cultural differences

2. How and why management styles vary around

the world

3. The importance of cultural differences in

business ethics

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 1. The necessity for adapting to cultural
differences

• Adaptation is a key concept in international

marketing
• To successfully deal with individuals, firms, or
authorities in foreign countries, managers
should exhibit:
– open tolerance,
– flexibility,
– ability to adjust to varying tempos,
– knowledge of the country,
– liking for others,
– ability to command respect, and
– ability to integrate oneself into the
environment
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 Differences in Management Styles Around
the World
• Authority and Decision Making
• In high-PDI countries subordinates are not likely to
contradict bosses, but in low-PDI countries they
often do
• Three typical patterns exist:
1. top-level management decisions,
2. decentralized decisions, and
3. committee or group decisions
• Management Objectives and Aspirations
• Security and Mobility
• Personal Life
• Power and Achievement
• Differences in Communication Styles
• Face to Face Communication
• Internet Communication
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 Differences in Management Styles Around
the World
• Formality and Tempo
• Level of formality in addressing business clients by first
name
• Level of formality in addressing your boss by first name
• Perception of time varies in many cultures
• P-Time versus M-Time
• M-time, or monochronic time, (concentrating on one
thing at a time) typifies most North Americans, Swiss,
Germans, and Scandinavians
• P-time, or polychronic time is characterized by multi-
tasking and by “a great involvement with people”
• Negotiations Emphasis
• Differences with respect to the product, its price and
terms, services associated with the product, and finally,
friendship between vendors and customers
• Market Orientation
• American companies are embracing the market
orientation philosophy
• Other countries are still in the traditional production,
product and selling orientations 15
 Gender Bias in International Business

• The gender bias against women managers

exists in some countries
• Women are not easily accepted in upper
level management roles in Asia, Middle
East, and Latin America (although this is
changing) (Glass ceiling)
• Gender bias poses significant challenges in
cross-cultural negotiations

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 3. Business Ethics

• Business ethics is complex in the international

marketplace because value judgments differ
widely among culturally diverse groups
• Corruption varyingly defined from culture to
culture
• Existence of different levels of corruption,
bribery, and fraud
• Bribery creates a major conflict between ethics
and profitability
 Philosophies of Ethics
and Social Responsibility
ETHICS
Personal behavior in accordance with rules or
standards for right conduct or morality

Cultural Relativism
Friedman View When in Rome
Maximizing profits do as Romans do

Righteous Moralism Utilitarianism

Maximizing good outcomes
Maintaining the home
And minimizing bad outcomes
Country ethics
Wherever we operate
Copyright © 2010 Pearson
Education, Inc. publishing as
International Business 5e Chapter 3 - 18
Prentice Hall