Cultural dynamics in Assessing

Global Markets

Dr. Md Razib Alam

 Culture
•Culture deals with a group’s design for living

•Culture is the human-made part of human environment-the

sum total of knowledge, beliefs, art, morals, laws, customs,
and any other capabilities and habits acquired by humans as
members of society
•When designing a product, the style, uses and other related
marketing activities must be made culturally acceptable if
they are to be operative and meaningful
•Markets are the result of three way interaction of a
marketer’s efforts, economic conditions, & all other elements
of the culture
Culture’s Pervasive Impact
Culture affects every part of our lives, every day, from
birth to death, and everything in between. It even
affects how we sleep.
For example, Japanese children often sleep with their parents

Culture is pervasive in all marketing activities- in

pricing, promotion, channels of distribution, product,
packaging, and styling-and the marketer’s efforts
actually become a part of the fabric of culture

It is important for foreign marketers to learn to

appreciate the intricacies of cultures different from
their own if they are to be effective in foreign markets
 Definitions & Origins of Culture
 Dutch management professor Geert Hofstede refers to culture as the
‘Software of the mind’
‘It provides a guide for humans on how to think and
behave’ ‘It is a problem solving tool’
 James Day Hodgson, former U.S. ambassador to
Japan, describes
culture as a “thicket”

 Most traditional definitions of culture center around the notion that

‘culture is the sum of the values, rituals, symbols, beliefs, &
thought processes that are learned, shared by a group of people, &
transmitted from generation to generation’
 Culture resides with an individual’s mind
 Definitions & Origins of Culture
Origins , Elements, & Consequences of Culture
Origins
Geography
( climate, topography, flora,
fauna, microbiology)

History
Technology &
Social
Political institutions
economy
Adaptation ( family, religion, school, media, government, corporations)

Socialization/
Peers Imitation Elements of Culture
( values, rituals, symbols, beliefs, thought processes)
acculturation

Consumption decisions
Application Management Style
& behavior
 Definitions & Origins of Culture

Geography
It has some impact on history, economics, consumer behavior

Includes climate, topography, flora, fauna, & microbiology

One researcher marked that ‘historically innovations spread

faster from east-to-west than north-to-south’

One professor marked that, ‘strong correlation exists between

the latitude (climate) and the per capita GDP of countries’
 Definitions & Origins of Culture

History
 The impact of specific events in history can be seen
reflected in technology, social institutions, cultural
values, & even consumer behavior

For example, the Declaration of Independence and thereby Americans’ values

and institutions were fundamentally influenced by the coincident 1776
publication of Adam Smith’s Wealth of Nations

The military conflicts in the Middle East in 2003 caused new cola brands to be
developed, including Mecca Cola, Muslim Up, & Arab Cola
Definitions & Origins of
Culture
The Political economy
For most of the twentieth century three approaches to
governance competed for world dominance:

 Fascism (fell in 1945)

 Communism (crumbled in 1990s)
 Democracy/ free enterprise

Appreciate the influence of the political economy

on social institutions & cultural values & ways of
thinking
 Definitions & Origins of Culture

Technology

Includes the techniques used in the creation of material

goods; it is the technological know-how possessed by the
people of a society

Has the greatest impact on institutions & cultural values

For example, Birth control techniques have had a huge impact on life….
 Definitions & Origins of Culture

Social Institutions: Family, religion, school, media, govt. & corporations

Affect the ways in which people relate to one another, organize activities
to live in harmony with one another, teach acceptable behavior to
succeeding generations & govern themselves

The positions of men & women, the role of family, social classes, group
behavior, age groups, & definition of decency & civility are interpreted
differently within every culture

The role & status positions found within a society are influenced by the
dictates of social institutions

For example, The caste system in India

 Definitions & Origins of Culture

Social Institutions : Family

Family forms & functions vary substantially around the world
These differences lead to differences in how children think & behave

For example, individualism is being taught the first night the American infant is
tucked into her own separate bassinette
Definitions & Origins of Culture

Social Institutions: Religion

Infants are taught that church/mosque/shrine/ temple is their 2nd institution
Impact of religion on value systems & the effect of value systems
on marketing must be recognized
For example, Protestants believe that one’s relationship with God is a personal
one, & confessions are made directly through prayer
It affects people’s habits, their outlook on life, the products they buy, the
way they buy them, & even the news paper they read
Most people do not understand religions other than their own, & what is
known about other religions is often incorrect
Exception is Islamic religion which shows the need for knowing other religions
Definitions & Origins of Culture

Social Institutions: School

It affects all aspects of culture, from economic development to
consumer behavior
Literacy rate is a force in economic development
For example, no country has been successful economically
with less than 50% literacy & investment in education
means economic development
Literacy has a profound effect on marketing
For example, it is much easier to communicate with a literate market
 Definitions & Origins of Culture

Social Institutions: The Media

It is one of the 4 social institutions-schools, churches, families

and .. Media time has replaced family time-much to the detriment of

American culture
 Definitions & Origins of Culture
Social Institutions: Government
 Governments hold relatively little sway
 Influence the thinking & behaviors of citizens for the citizens’ “own good”
For example, The French government offers “birth bonus” of $800 to encourage procreation
 In some countries the government owns media & regularly uses propaganda to
form “favorable” public opinion
For example, Iran is ruled by religious clerics and govt. also affects the ways of thinking among
students through the support of religious organizations
For example, The Japanese & Chinese governments are trying to promote more creative thinking
among students through mandated changes in classroom activities
 Influence thinking & behavior through the passage, promulgation, promotion,
& enforcement of a variety of laws affecting consumption & marketing
behaviors
For example, the Irish govt. propagates ’excessive drinking costs the country 2% GDP
 Definitions & Origins of Culture

Social Institutions: Corporations

Most innovations are introduced to societies by companies, many times

multinational companies

Multinational firms have access to ideas from around the world

Merchants & traders throughout history were the primary conduit for the
diffusion of innovations
Cultures are changed & new ways of thinking are stimulated through
efficient distribution of new products & services
Multinational firms work as change agents
 Elements of Culture
Five elements of culture:
Values
Rituals
Symbols
Beliefs
Thought
• Marketers must design 4 Ps with due consideration of each of
the five elements
 Elements of Culture

Cultural Values
Fundamental differences in cultural values exist among countries

Hofstede studied over 90,000 people in 66 countries, he found that

cultures differed along 4 primary dimensions:

 Individualism/Collectivism Index (IDV)

 Power Distance Index (PDI)
 Uncertainty Avoidance Index (UAI)
 Masculinity/Femininity Index (MAS)
Elements of Culture
Cultural Values: Hofstede’s 4-Factor Model

The Individualism/Collective Index (IDV)

Focuses on self-orientations

 Emphasize ‘I’ mentality& tend to reward accept

& individual initiative
 Low in IDV reflect ‘we’ mentality & generally subjugate
the individual to the group
 Ties between individuals are loose
 Collectivism pertains to societies in which people
from birth onward are integrated into strong , cohesive
groups
Elements of Culture
Cultural Values: Hofstede’s 4-Factor Model

The Power Distance Index (PDI)

Focuses on authority orientations
 Measures the tolerance of social inequality
 Cultures with high PDA scores tend to be hierarchical
 Cultures with low PDA scores tend to value equality
 High PDA scores tend to indicate a perception of difference between
superior & subordinate & a belief that those who hold power are
entitled to privileges
 A low score reflects more egalitarian views
 Elements of Culture
Cultural Values: Hofstede’s 4-Factor Model

The Uncertainty Avoidance Index (UAI)

Focuses on risk orientations
 Measures the tolerance of uncertainty & ambiguity among members
of a society

 High UAI scores are highly intolerant of ambiguity & as a result tend
to be distrustful of new ideas or behavior

 Cultures with low in UAI are associated with a low level of anxiety &
stress, a tolerance of deviance & dissent, & a willingness to take risks
Elements of Culture

Cultural Values & Consumer Behavior

 Cultural values provide useful information to marketers

 Cultural values help to predict the speed of diffusion of

innovation
For example, diffusion of innovation will be slower in Japan &France than in the U.S.
 Elements of Culture

Rituals
Patterns of behavior & interaction that are learned & repeated
 Most obvious rituals are associated with major events in life
For example, Marriage ceremonies & funerals
For example, dinner at a restaurant or a visit to a department store

 Rituals coordinate everyday interactions & special

occasions
 They let people know what to expect
Elements of Culture
Symbols
T. Hall says ‘culture is communication’& talks about the
‘languages’ of time, space, things, friendships and agreement’

Learning to correctly interpret the symbols is a key part of

socialization

Symbols: Language
Language itself is a social institution with political influence
(Canada) The number of spoken languages and cultural diversity are
decreasing Marketers must achieve expert communication
Ad. copy writers should be concerned less with obvious
differences
between languages & more with the idiomatic meanings expressed
For example, Tambo means a ‘roadside inn’ in Bolivia, Colombia, Ecuador, & Peru ‘a
diary firm’ in Argentina & a ‘brothel’ in Uruguay and in Chile Cont.
 Elements of Culture

Symbols: Language
 Linguistic distance:
Provides useful input in market segmentation & strategic entry decisions
 Is a factor in determining the amount of trade between countries
 Languages around the world conform to family trees based on similarity
of
forms and development
For example, Spanish, Italian, France, & Portuguese are all classified as Romance languages
because of their common roots in Latin
 Direct influence of language on cultural values & expectations
For Example, as English language spreads, the culture of individualism & egalitarianism
increases
 Cultural Knowledge

Symbols: Aesthetics As Symbols

the art, folklore, music, drama,& dance

 Marketers need to know the symbolic system in aesthetics

 Customers respond to images, myths, & metaphors that help them
define their personal & national identities & relationships within their
culture
For example, think about the subtle earth tones of the typical Japanese restaurant
compared with the bright reds & yellows in the décor of ethnic Chinese restaurants

 Product styling, ad. & package designs must be aesthetically pleasing

 Know the strong symbolic meanings
For example, 4 means death in Japan; Tea cups are sold in sets of 5 not 4
Cultural Knowledge
Beliefs
 Much of what we learn to believe comes from religious training
 Relationship between superstition & religion is not at all clear
For example, Western aversion to the number 13
 Many of our beliefs are secular in nature
 Superstition plays a large role in a society’s belief system in some parts
of the world
For example, in parts of Asia, ghosts, fortune telling, palmistry, blood types,
head-bump reading, phases of the moon, faith healers, demons, & soothsayers
can all be integral elements of society
 One person’s belief are another person’s funny story
 Consider the importance of myths/beliefs/superstitions/other cultural beliefs
Cultural Knowledge

Thought Processes
Thinking process vary across cultures

For example, Asians tend to see the whole picture & can report details
about the background & foreground. Westerners alternatively focus on
the foreground & can provide great details about central figures, but see
almost nothing in the background
Cultural Knowledge

Factual Knowledge:

Factual Knowledge is usually obvious and must be learned

Different meaning of colors, different tastes, and other traits in a

culture are facts that a marketer can anticipate, study, and absorb
It has a meaning as straightforward fact about a culture
For example, in Mexico 98% people are Roman Catholic
 Cultural Knowledge
Interpretive Knowledge
 An ability to understand and appreciate the nuances of different cultural
traits and patterns
 The meaning of time, attitudes and the understanding of one’s role in
society, and the meaning of life can differ considerably from culture to
culture and may require more than factual knowledge
 It is something deeper and needs insight
 It is kindof knowledge that on past experience
depends interpretation for
 Prone to misinterpretation if SRC works
 Cultural Knowledge
Cultural Sensitivity and Tolerance
 Cultural sensitivity means being attuned to the nuances of culture so
that a
new culture can be viewed objectively, evaluated, and appreciated

 Cultural sensitivity, or cultural empathy, must be carefully cultivated

 Nothing is right or wrong, better or worse; they are simply different

 Must know how cultures change or accept or reject ideas

Cultural Change

 Culture is dynamic in nature; it is a living process

 That cultural change is constant is paradoxical
because….
 Cultural change by war or by natural disaster
For example, the change in Japan after World War II

 Change
Changesby seeking ways
through theto solve the problems
of series of
accumulation solutions to problems best
 Accident has paved some solutions
 Change through cultural borrowing
 Cultural Change

Cultural Borrowing

A responsible effort to learn from other culture in the quest for

better solutions to a society’s particular problems

Behaviors borrowed from other cultures are combined

in a unique manner that becomes typical for a
particular society
Cultural Change

Similarities: An Illusion
For inexperienced marketer, the similar-but-different aspect of
culture creates illusions of similarity that do not exist

For example, both British & Americans speak English. An American

when speaking of a bathroom ,generally refers to a toilet, whereas in
England a bath room is a place to take a tub bath
Cultural Change

Resistance to Change
 People’s habits, tastes, styles, behavior and values change
 This change does not occur without some resistance
 The degree of resistance to new patterns varies
For example, the resistance to genetically modified (GM) food
 Resistance can be overcome
 Knowing the process of acceptance of innovations is important
Cultural Change: Planned & Unplanned

Marketers have 2 options when introducing any innovation

 Wait  Cause change
Planned Change: Deliberately set out to change those aspects of
the culture offering resistance to predetermined marketing goals

Unplanned Change: Introduce a product & hope for the best

For example, The Japanese diet has changed since the introduction of milk & bread
soon after World War II
Not all marketing efforts need change to be accepted
Some are done by the strategy of cultural congruence
Cultural Congruence involves marketing products similar to ones
already on the market in a manner as congruent as possible with
existing cultural norms, there by minimizing resistance