Culture

What is culture?
Culture and subculture
How does culture manifest itself?
How does it impact marketing tasks?

Definition
Culture: That complex whole which
includes knowledge, belief, art, morals,
custom, and any other capabilities and
habits acquired by man as a member of
society.

Culture includes almost everything that

influences an individuals thought
processes and behaviours

Impact of Culture
Normsranges
of appropriate
behavior

Consumption
Patterns

Cultural
Values

Sanctions
penalties
for violating
social norms

Classification of Cultural Values

Three

broad classifications are used:

Other-oriented
Environment-oriented
Self-oriented

Other-Oriented Values

Individual vs collective

Romantic orientation (love)

Adult vs child (childs place)

Masculine vs feminine (male role)

Competition vs cooperation

Youth vs age (wisdom of elders)

Environment-Oriented
VCleanliness
alues(extent of)

Performance vs status (performance or class)

Tradition vs change (new behaviours?)

Risk-taking vs security (risk encouraged?)

Problem-solving vs fatalism (problem-solving or acceptance

encouraged?)

Nature (admired or overcome?)

Self-Oriented values

Active vs passive (physical activity)

Material vs non-material approach (acquisition?)

Hard work vs leisure (admire hard work?)

Postponed vs immediate gratification (save/enjoy now)

Sensual gratification vs abstinence (food, drink)

Humour vs seriousness (is life serious?)

Find the answers to these questions.

How

culture be the invisible hand for consumers in their

buying pattern?

How
Is

culture satisfied needs?

culture really be learned? How it is learned?

(a) Enculturation-

the learning of ones own culture

(b) Acculturation- learning of new or foreign culture
Is

culture being shared among society? How?

Culture

is Dynamic. Explain.

ELEMENTS OF
CULTURE

technologies
that are used to
produce,
distribute, and
consume goods
and services

social interactions among people; nuclear

family, extended family; reference groups

Social
Interaction
Material Life

values
shape
peoples
norms and
standards

Language

Components
of culture
Value System

Aesthetics

Education

One of the major

vehicles to channel
from one generation to
the next

Religion

language has
two parts: the
spoken and
the silent
language

ideas and
perceptions
that a culture
upholds in
terms of
beauty and
good taste

communitys set of beliefs that

relate to a reality that cannot
be verified empirically

It refers to tools, artifacts and technology. Before marketing in a foreign

culture it is important to assess the material culture like transportation,
power, packaging, communications and so on.

It relates to the way in which a society organizes and views its economic
Material
Culture
activities.

It includes the techniques and know-how used in the creation of goods

and services,

the manner in which the people of the society use their capabilities, and the
resulting benefits.

When one refers to an 'industrialized' or a 'developing' nation, one is really

referring to a material culture.

The material culture of a particular market will affect the nature and extent
of demand for a product

The material culture of a country may also necessitate modifications to the

product in terms of weights and measurements that have to be converted to
those applicable in the importing country (ex-US uses measures such as miles,
gallons and pounds, whereas most other parts of the world use the metric system
- kilometers, liters and kilograms).

Material culture can also have a significant effect on the proposed marketing
and distribution strategies.
like-highways and rail transport are the principal means of moving goods within
the US, rivers and canals are used extensively in certain European countries.

If the company is planning to develop a manufacturing operation in a foreign

market, aspects such as the supply of raw materials, power, transportation and
financing need to be investigated first.

Language

It is central to the expression of culture. Within each cultural group, the

use of words reflects the lifestyle, attitudes and many of the customs of
that group. Language is not only a key to understanding the group, it is
the principal way of communicating within it.

A language usually defines the parameters of a particular culture. Thus if

several languages are spoken within the borders of a country, that country
is seen to have as many cultures.

If promotional material needs to be prepared in a foreign language, it is

important to ensure that none of the meaning is lost or distorted when the
information is translated. Thus, translations should be undertaken within
the country concerned or at least by a native of the country in question

Aesthetics
Aesthetics

refer to the ideas in a culture concerning beauty

and good taste as expressed in the arts -music, art, drama and
dancing and the particular appreciation of colour and form.
Like African music is different in form to Western music.

Aesthetic differences affect design, colours, packaging,

brand names and media messages.

It

also embrace people's dress and appearance, i.e. their

outward garments and accessories. Distinctive national attire,
for instance, includes the Japanese kimono, Dutch clogs, and
the Englishman's bowler hat.

Education

It refers to the transmission of skills, ideas and attitudes as well as training in

particular disciplines. Education can transmit cultural ideas or be used for
change, for example the local university can build up an economy's
performance.

Education levels, or lack of it, affect marketers in a number of ways:

1. advertising programmes and labeling
2. girls and women excluded from formal education (literacy rates)
3. conducting market research
4. complex products with instructions
5. relations with distributors and,
6.support sources - finance, advancing agencies etc.

Religious
beliefs

A religious system refers to the spiritual side of a culture or its approach

to the supernatural.

Although very few religions influence business activities directly, the

impact of religion on human value systems and decision-making is
significant. Thus, religion exerts a considerable influence on people's
actions and outlook on life, as well as on the products they buy.

A society's religious belief system is often dependent on its stage of

human or economic development. They tend to be superstitious about life
in general while people in technologically advanced cultures seem to
focus on scientific approaches of business only

To disregard the significance of religious beliefs or superstitions evident

in a potential export market could result in expensive mistakes.

INDIAN CORE
VALUES.

Indian consumers are culture-oriented in the sense that they conform to

the cultural expectations of society. Core values of a society are adopted
by a significant number of people; are enduring or followed by people
for a long time; and enables marketers to understand the behaviour of
consumers. The following are some of the core values of Indians:-

Family orientation

Not only includes ones own family but also extended family- siblings,
parents, grandparents etc.

In such type of familys male is a wage earner as the chief of the

family.

Value- based brands at low- price

The brand at the lower end of the market in a number of product

categories like tea, soap, toothpaste, and shampoo typically cater to
these kinds of consumers.

This type of consumers also mixes the brands and products from
unorganized sector to balance his/ her expenditure on such
consumption needs.

Unilever India Limited and Colgate has a number of price points in

almost all its product line.

Savings Orientation

Saving a good portion of money and spend the little for basic needs
only (earlier)

Now, people are buying , above their basic needs. Like bicycles,
bikes, cars, TVs, computers etc (installment basis for convenient
living)

Investing money in gold is a key factor. People use to buy jeweler

from their family jewelers rather from brands like Tanishq (2%
market capturing)

Festivities

A number of companies step up their advertisement campaigns

during festive months. A number of consumers also postpone their
purchases, specially durables in hope of getting various types of
deals.

Even a niche jewelry brands like Tanishq came out with rakhis in
gold on raksha bandhan. Gold coins with images of god and
goddess for the festival like dhanteras (sign- prosperity, and
money).

Shopping as a Ritual

Buying commodities and vegetables from routine shops or near by

shops and hawkers even if the concept of BIG BAZAAR,
SHOPERS STOP etc spreaded out everywhere (urban areas)

BIG BAZAAR- promise to give ambience, service, and variety.

Bargaining, especially in the case of commodities and vegetables, is

an unwritten rule in the transaction.

Food Habits

Changing cultural trends in Indian Urban Market

(a) Achievement

Orientation- membership prestigious club, holidaying in a

foreign resort, possessing a middle- end car (Opel or Honda)

(b) Work

Ethic- convenience products (one-stop shop, fast foods chains

like Mc Donald's etc )

(c) Material

Success- Young highly qualified professional (25-30). The

education, aspirations, and intelligence of these consumers have resulted
in their acquiring substantial wealth. The wealth is spent on essential
products and services like- health, entertainment, and convenience.
There is a great demand for quality- oriented, branded services like
laundry services, in- home delivery of food,, baby- sitters, pet-care
people, and in small way, online marketing of essentials.

(d) Use

of hi-tech products

Hofstedes Contribution- Hofstede, Franke and Bond.

There theory is based on competitive theory of Michael Porter

Competitive Advantage (given by Michael Porter )

A competitive advantage is an advantage over competitors
gained by offering consumers greater value, either by
means of lower prices or by providing greater benefits and
service that justifies higher prices.

Hofstede's contribution

Culture
The differences in Cultural values rather than in material and structural conditions
(the private and state control) are ultimate determinants of human organization and
behaviour, and thus of economic growth.

THE FIVE CULTURAL DIMENSIONS OF HOFSTEDE

The cultural dimensions model of Hofstede is a framework that
describes five sorts (dimensions) of differences / value perspectives
between national cultures:

Power distance. The degree of inequality among people which the

population of a country considers as normal.

Individualism versus collectivism. The extent to which people

feel they are supposed to take care for, or to be cared for by
themselves, their families or organizations they belong to.

Masculinity versus femininity. The extent to which a culture is conducive to

dominance, assertiveness and acquisition of things. Versus a culture which is
more conducive to people, feelings and the quality of life.

Uncertainty avoidance. The degree to which people in a country prefer

structured over unstructured situations or we can say that Openness or
Resistance to Change

Long-term versus short-term orientation. Long-term: values oriented

towards the future, like saving and persistence. Short-term: values oriented
towards the past and present, like respect for tradition and fulfilling social
obligations.

They took two examples of 18 and 20 nations, comparing rich countries like
the USA, UK, Canada and Australia, to poor countries like India, Pakistan and
Thailand and those on the rich/poor dividing line like Hong Kong, Taiwan and
Singapore. Nigeria and Zimbabwe were in the study.

Hofstedes Cultural
Factors
High Individualism : US, Australia, Great Britain, Canada
Low Individualism: Japan, Venezuela, Thailand, Japan,
Mexico, China
Individualism
vs
collectivism
Feminine:
Netherlands,
High : Korea,
Masculinity
Power
France, Sweden
Hofstedes
Japan,
Vs
Distan
Masculine:
Cultural
Mexico
Femininity
ce
Japan, Mexico,
Low: India,
Factors
Britain, Germany
Australia, US,
Germany

Long Term: Hong

Kong, Japan
Short Term: Great
Britain, US,
Germany

Long
term
orientatio
n

Uncertain
ty
avoidanc
e High :
France,
Japan,
Mexico
Low: India,
Hong Kong,
US, Great

Adaptation of culture and

Subculture with its type.

Subcultures

Subgroups of people who dont think/ behave alike. They share

most of societys norms, values, beliefs but they change some
of societys ideas to reflect more closely to their own needs.

Important features of subculture:

Provide a sense of belonging and identity.

develop unique features
rules of behavior are set up for dealing with the outside world.
supports group members in their daily activity
even if they are ridiculed by other groups in society, subculture
members know that upon returning on their own, they will
receive social support and approval
Special signals- they are the same with the way they use
language, dress, handshakes. They uses special signals to
notice/ identify each other without being notice by an outsiders

Types of Subculture

Nationality Subculture Ex: Indians born in US and Indians born in India. USIndians are influenced by Indian food, tradition, custom, beliefs etc.

Religious Subculture- purchasing is done according to the religious identity or

influenced by religious identity.

Geographic and regional subculture- Consumption and eating habits depends

on geographic conditions and region like Energy drinks are more prefer by San
Francisco rather then Philadelphia, Ground Coffee is more liked by Boston
people rather then Los Angeles one.

Racial Subculture- Differences in lifestyle, consumer spending patterns etc.

Age Subculture

Gender Subculture- Masculine/ Feminine Market with their respective

products

Cross Cultural Consumer

behavior

What is Cross- Cultural Marketing?

Cross-cultural marketing is defined as the effort to determine to

what extent the consumers of two or more nations are similar or
different. This will facilitate marketers to understand the
psychological, social and cultural aspects of foreign consumers they
wish to target, so as to design effective marketing strategies for
each of the specific national markets involved.

The firms objectives could be

To determine how consumers in two or more societies are Similar /

different and devise suitable, appropriate strategies

Devise individualized marketing strategy if cultural beliefs, values

and customs of a specific country are different

Variables Influencing Cross-Cultural Marketing

Strategies

Cross-Cultural Variations: Factors influencing Non-Verbal

communications and also become problems for the MARKETERS

Time

Space

Friendship - Two or more nations with each other

Agreements

Symbols

Etiquette (basic manners)

National Language

Country-of-Origin Issues
Ethnocentricity
Animosity
Bi-national products
Matchup Hypothesis

Time Perspective
Monochronic

One thing at a time

Concentrate on one job

Deadlines matter

Commitment to task

Adhesion to plans

Promptness is valued

Short-term relationships

Australian and many other

western culture

Polychronic
Many things at once
Highly distractible
Deadlines are secondary
Commitment to people
Changing plans is easy
Promptness depends
Long-term preferred
Chinese, Koreans, Indians and
Latin Americans

Symbols
7

is unlucky in Ghana, Kenya, lucky in India and in

Czech Republic.
4 is unlucky in Japan, China.
8, 3, 2 sound good in Hong Kong.
So, Symbols should be like that only which are not
shown any negative signs for the buyers.
Numbers, words, sentences all are come under such
category

COUNTRY-OF-ORIGIN
ISSUES

Ethnocentricity

It is a common tendency for people to:

Interpret others from the perspective of their own group.
Reject those who are culturally dissimilar.

Bi-national Products

The current trend is manufacturing product components in one

country and assembling in another, or designing in one and
manufacturing in another.

Firms should consider the effects of multiple national origins on

product quality evaluations.

Matchup Hypothesis
Consumers

have preferences for goods that match their

taste of the country of origin.

Animosity
Some people may prefer not to buy products from a
certain country.
Chinese consumers have been found to hold animosity
towards Japanese products in general.
Older Mexican consumers are less likely to buy U.S.
products than younger Mexicans

Problems in Cross Cultural marketing

Problems related to product selection: The marketer going for

cross cultural marketing has to select the customers / market not on
the basis of the superficial similarities of age or income, but by
using the real motivating factors that prompt them to accept or
reject products.

Problems related to promotion/marketing communication: e.g.

Ariel in the middle east and also Pepsi promotions according to the
area and location.

Problems related to pricing: the marketer has to adjust his pricing

policies according to the local economic conditions and customs.

Problems related to selection of distribution channels

Developing a Cross-Cultural Marketing Strategy (7

Questions)

Is it a homogenous culture?

What needs will the product fill?

Can enough afford the product?

What values are relevant to this product?

What are the distribution, political and legal structures?

How can the firm communicate about the product?

What are the ethical implications?

CROSS-CULTURAL
CONSUMER
ANALYSIS..

Cross-Cultural Consumer Analysis

To determine whether and how to enter in a foreign market, we need to
conduct some form of cross-cultural consumer analysis.

Cross-cultural consumer analysis can be defined as the effort to

determine to what extent the consumers of two or more nations are
similar or different.

Such analysis can provide marketers with an understanding of the

psychological, social, and cultural characteristics of the foreign
consumers they wish to target, so that they can design effective
marketing strategies for the specific national markets involved.

Basic research issues in cross-cultural analysis

Differences in language and meaning, e.g. restroom

Difference in market segmentation opportunities, e.g. age while
buying the first car
Difference in consumption patters,
Difference in the perceived benefits of products and services, e.g.
yogurt
Differences in the criteria for evaluating products and services, e.g.
credit cards
Difference in economic and social conditions and family structure,
e.g. family soap
Differences in marketing research and conditions, e.g. direct-mail
lists
Differences in marketing research possibilities, e.g. telephone
surveys

1. Similarities and differences among people

A major objective of cross-cultural consumer analysis is to determine how

consumers in two or more societies are similar and how they are different.
According to some personality traits or behavioral aspects of the consumer we can
analyze the things.

Fight for ones beliefs/positions

Individualistic
Clear-cut
Specific
Display emotions in public
Result oriented
Make a short story long
Verbal communication important
Interested in what is spoken

2.The Growing global middle class

3.Acculturation is a needed marketing view point

DIFFUSION & ADOPTION OF

INNOVATION

Diffusion & Adoption of innovations

Diffusion of innovation is based on acceptance of new product by

consumers.

Researchers focused on the understanding of 2 closely related aspects(a) Diffusion process

(b) Adoption process

Diffusion is a broader term, is a macro process concerned with the

spread of a new product (an innovation) from its sources to the
consuming public.

Adoption is a micro process that focuses on the stages through which

an individual consumer passes when deciding to accept or reject a
new product.

A NEW Product means:-

(a) A touch
(b) Value,

of reality ; specifically in India

Convenience, and cultural association Vatika hair oil(Lime &

coconut), Good Night coil are the example related with the cultural
practice of India

New Categories & the Diffusion of innovations

New category of product - take the Example of Contact lenses

have been in India from last 4 decades but not so popular. WHY?

The following aspects related closely to the diffusion issues

associated with the product category:

(a) What

is the target segment & what is the benefit?

(b) How

will the consumer be satisfied with the product?

(c) Are

we able to spread the proper usage of the product?

There are some aspects related to the product that the marketer needs to
look at in terms of product purchase & brand loyalty

Knowledge Aspects: Is there a lack of understanding among the

prospective consumers

Persuasion Aspect: What is the Word of Mouth from users of the

product? Is there bad WOM that a marketer needs to address? How
this can be done? What is the most appropriate medium for
achieving it?

Decision Aspect: on what basis consumer take a decision to buy a

product.

Implementation of the decision: What kind of reassurance needs to

be provided by the brand and the retailers to ensure that the
consumer implements his/ her decision to try out the product?
Should there be trail offers in addition to the reassurances provided?
Confirmation: What should be the brands strategy to retain the
consumer and ensure that he/she not leave the brand/ category?

DIFFUSION PROCESS

Diffusion Process
Diffusion

is a process by which the acceptance of an

innovation(new product, new service, new idea, or new
practice) is spread by communication(mass media, sales
people) to the members of a social system over a period
of time.

Definition

includes- (a) The innovation, (b) the channels

of communication (c) the social system, (d) time

1. The Innovation of product

Firm-oriented-

newness of the product related with the

perspective of company producing or marketing it.

Product-oriented-

newness of features and

characteristics of the product & its effect on consumer.

(a) Continuous

innovation- modified product rather then new or totally

changed product

(b) Dynamically

Continuous innovation- it may involve a new product

or the modification of an existing product. Ex- digital cameras,
MP3, digital video recorder etc.

(c) Discontinuous

innovation- requires to adopt new behavior pattern

like- airplanes, TVs, Automobiles, radios, internet etc

Market-oriented-newness of the product in terms of how much

exposure is in the market among the consumer about the new
product.

Consumer-oriented- value, safety, suitability, usage, brand image.

How Consumer accept the new product?

Relative advantage- the degree to which potential customers

perceive a new product as superior to existing substitute.
Ex- MP3 player over traditional CD player

Compatibility- the degree to which new product is consistent with

their present needs, values, and practices is a measure of its
compatibility.
Ex- Gillette MACH3 Turbo over disposable razors.
Digital alarm clocks over analog alarm clock.

Trailability- the degree to which a new product tried on a limited

basis. The greater the opportunity to try a new product, the easier it
is for consumers to evaluate it & ultimately adopt it.
Ex- Free samples of creams, make-up kits
Free trail of software like antivirus

Observability or Communicability- its a process with which a

products benefits or attributes can be observed, imagined, or
described to potential consumers

ex- clothing like jean, sneakers, capries etc

Complexity- the degree to which a new product is difficult to

understand or use, affects product acceptance. The easier it is to
understand &use a product, the more likely it is to be accepted.

ex- electronic items

2. The social system

A social system is physical, social & cultural environment to which

an individual belong & function accordingly.
Ex- for new drug the social system consist of all physicians within a
specific medical specialty. Like hybrid-seed- social systems would
be all farmers

When the social system is modern in thinking, the acceptance of

innovations is likely to be high.

Characteristics of Modern Social System are:-

(a) A positive
(b) An

advance technology & skilled labor force

(c) A general
(d) An

attitude towards change

respect for education & science

outreach perspective, in which members of the system

frequently interact with the outsiders, thus facilitating the entrance
of new ideas into social system

3. The channel of communication

4. Time:- it is backbone of diffusion process. It includes three aspect
to be search out
(a) The amount of purchase time- Purchase time refers to the amount of
time that elapses between consumers initial awareness of a new
product or services & the point at which they purchase or reject it.
(b) The identification of adopter categories- 5 categories are come
under this(i) Innovators- Earliest Consumers specially for Hi-Tech Product and
can pay any amount for the new product. They are the waiting
buyers for the new product (act as an opinion leader for hi-tech
products)
(ii) Early Adopters- who buy the product within the short period of
time following its introduction but not as early as innovators. They
are those buyers who buy the product just to become superior in
their social circle or neighborhood.

Early Majority- are those members who do not purchase the

product when it was first introduce, they perceived purchasing as
risky because it was new. But after small number of consumer
purchased the product, these consumers conclude that purchasing
the product is wise

Late Majority- They are the late entrants or say late pickers of an
innovation. They are the second half of the early majority group.
They take relatively long time to evaluate the product & its
benefits. Together the Early & Late Majority adopter categories
constitute the large & maturing market for any innovation.

Laggards- are the last group of consumers to purchase the

innovation. When they are going to buy or thinking to buy the
product at that time the innovators & early adopters are already
probably switching to the more advanced innovations in this
particular product . Laggards are the High-Risk perceivers & last
ones to recognize the value of innovation.

There are some consumers who are not categorize in the list of
adopters & the are called non-adopters or non-purchasers

Rate of Adoption

It is concerned with how long the product is to be adopted by the

members of a social system, that is how quickly it takes a new
product to be accepted by those who will ultimately adopt it.

Rate of Adoption for new products is getting faster or shorter =

means the time lag is faster or shorter

Ex- black-white TV take 12yrs time in Japan or India to reach to a

same level of acceptance & then adoption as in US & for color TV
the time is of 5yrs to reach in Japan and other counties & may be
more several yrs in Europe or other countries

 For

increasing the demand or supply of the product

What will be our strategy?

(a) Either

we use Penetration Policy of pricing- set

relatively low prices of the product or,
(b)Or use Skimming policy of pricing- set higher price first
target the cream customers & then lower the price to
target the lower base of the market.

ADOPTION PROCESS

Stages in Adoption Process

Awareness: customer
Interest: interest

is exposed to the product

and information seeking

Evaluation: assessment

of the advantages and

disadvantages of the new product

Trial: customer

tries the product in low-risk situation;

may be a sample or test drive

Adoption: customer

decides to buy the product

Confirmation: customer

decides to stay with the product

Finding out the % of adopter category

Researchers

have identified five categories of

individual adopters for new products:

Innovators 3% of the market.

Early adopters 13% of the market.
Early majority 34% of the market.
Late majority 34% of the market.
Laggards 16% of the market

Different products are having different % of 5

categories of adopters.