Professional Documents
Culture Documents
Siddhartha S Majumder (S-93)
Siddhartha S Majumder (S-93)
Cultural Dynamics in Assessing Global Markets What is culture? sum total of knowledge, beliefs, art, morals, laws, customs, and habits acquired by humans as members of society. Software of the mind culture is a guide for humans on how to think and behave; it is a problem-solving tool (Hofstede)
Origin of Culture
Culture resides in the individuals mind. It is the sum of the values, rituals, symbols, beliefs and thought process. Geography (climate, topography, flora, fauna and microbiology )directly effect on consumer choice. Which has influenced history, technology, economies, social institutions (family, school, media, Govt., Religious) and our ways of thinking.
Elements of Culture
Cultural Values : 1. Individualism/ collectivism index (IDV), which
focuses on self-orientation 2. Power distance Index (PDI), which focuses on authority orientation. 3. Uncertainly avoidance index (UAI), which focuses on risk orientation 4. Masculinity/Femininity Index (MAS), which focuses on assertiveness and achievement
Elements of Culture
Elements of Culture
Rituals: Rituals are patterns of behavior and interaction Symbols: Language as Symbols - the languages of time, space, things, friendships, and agreements. Aesthetics as Symbols: the arts, folklore, music, drama, and dance. Language: a social institution. English spreads around the world via school systems and the internet. Beliefs : an organized pattern of knowledge that an individual holds to be true about the world. Thought Processes : degree to which ways of thinking vary across cultures.
Cultural Change
Culture is dynamic in nature; it is a living process. It change & accept or reject new ideas. Cultural Borrowing : acceptance of innovations varies across cultures. Innovation associated with higher IDV, lower PDI & UAI. Resistance to Change : It is a characteristic of human culture that resist change. Like working women in Masculine societies like Saudi Arabia. Planned and Unplanned Cultural Change : First, determine which cultural factors conflict with an innovation, thus creating resistance to its acceptance.
Cultural Change
Second, change those factors from obstacles to acceptance into stimulants for change. Third, marketers can cause change by introducing an idea or product and deliberately setting about to overcome resistance and to cause change that accelerates the rate of acceptance. a strategy of planned change by deliberately changing those aspects of the culture offering resistance to predetermined marketing goals
Political Environment
Global marketing activities take place within the political environmental of governmental institutions, political parties, and organizations through which a countrys people and rulers exercise power The Sovereignty of Nations : In the context of international law, a sovereign state is independent and free from all external control; enjoys full legal equality with other states; governs its own territory; selects its own political, economic, and social systems; and has the power to enter into agreements with other nations.
Political Environment
Stability of Government Policies - 5 political causes Forms of Government and Political Parties 3 forms of Govt. monarchy (or dictatorship), aristocracy (or oligarchy), and democracy. Nationalism Targeted Fear and/or Animosity Trade Disputes Political Risks of Global Business Confiscation, Expropriation and Domestication
Political Environment
Local-Content Laws Import Restrictions Tax Controls Price Controls Labor Problems Political Sanctions Violence, Terrorism and War Assessing Political Vulnerability Sensitive Products and Issues Economic Risks Exchange Controls
Political Environment
Forecasting Political Risk Lessening Political Vulnerability Joint Ventures the Investment Base Licensing Planned Domestication Political Bargaining Political Payoffs Government Encouragement