All images in this presentation are used for educational purposes. Fair dealing.

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INTERNATIONAL MARKETING
MGT 382
Dr Zahra Shah

Lecture 2: International marketing

environment - II
1
 All images in this presentation are used for educational purposes. Fair dealing.

Macro marketing environment

POLITICAL/ LEGAL ECONOMIC

 Political condition  Economic system
of the foreign market Purchasing power
 Trade barriers  GNP/ GDP (per capita)
 Import/ Export policies  Economic integration
 Tax concessions  Fluctuation in exchange rates

TECHNOLOGICAL ECOLOGICAL
 Technological infrastructure,
for production, communications Government
 Data processing, software Companies
 Level of technology NGOs
(how people use technologies) Consumers

Today

3
 Agenda
• Demographic forces
– Social organisations, household structure, gender, social class
• Cultural forces
– The concept of culture
– Culture elements: language, aesthetics, education, religion, attitudes and values
– The work of Lee, Hofstede, Hall
– Multiculture

• Understand the influence of socio-cultural issues on

global/international/multicultural marketing strategy
• Consider key aspects of cultural concepts
• Understand the influence of culture on consumer behaviour
• Consider complexities of marketing to a multicultural and multinational
consumer audiences
• Identify approaches to addressing cultural challenges
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 Social organisation and demographics

• Demographic forces:
- population growth, household structure, age distribution
• Social institutions:
- family, friends, education, religion, Government, media
• Gender roles
• Social class
 Household structure
A shared residence & common housekeeping arrangement
• Traditional family: nuclear family
• Non-traditional: only one adult after divorce,
reconstituted families, no children, or children returning
home to avoid cost of living
• Non-family households: one adult because of choice not
to get married, unmarried couples, gay couples

 Differences among countries?

 Implications for marketers?

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 Gender role changes
• Expectations of gender roles
formed and communicated in
each society

• Drivers for changes?

– technology, ordered society, education,
contraception, war..
• What are the changes?
– women vs. men

(Source: de Mooj 2013)

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 Italy
Mexico

Role differentiation

(Source: de Mooj 2013)

8
 Netherlands Spain

Overlapping roles
(Source: de Mooj 2013)
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 Social class
• The way a society divide social classes differs from
country to country
• Can also change overtime

Source: http://socgen.ucla.edu/2013/08/genetic-study-looks-
for-clues-to-origin-of-indian-caste-system/ 10
 Cultural forces
• What is culture anyway?
– “Patterns of thought and manners which are widely shared” (Child
& Kieser, 1997)
– “the sum of total learned beliefs, values and customs that serve
direct customer behaviour in a particular country market”
(Schiffman & Kanuk 2007)

• Values, ideas, artefacts and other meaningful symbols which help

individuals to communicate, interpret and evaluate as members of
society (e.g. nationality, ethnicity, religion)

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 A cultural framework
Education

Aesthetics Values and

attitudes

CULTURE

Material Language and

artefacts and communication
material culture
Religion

(Source: adapted from Terpstra & Sarathy 2000)

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 Visible and invisible
elements of culture

Culture:
Values, symbols

Visible daily Social morals: Cultural

behaviour
- Family values assumptions
norms:
- Sex roles based on group
- Communication membership:
- Friendship
- Traditions patterns - National identity
- Lifestyle - Beliefs - Cultural identity
- Food & drinking - Religion (ethnic and other)
habits, clothing

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 Material culture

Material items that humans can create - Physical

objects, resources, and spaces that people use to
define their culture.
• the way we work
• the way we use technology
• techniques used to create goods
• tools and artefacts
• commercially-created artefacts –
brands, advertisements, etc…
Large part of culture expression
Source: https://materialculture.com/
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 The work of Lee (1966)
• Our own culture affects us
• Misjudgements can be based on this S.R.C.
• Need to understand other cultures
• Differences and similarities
• Our culture – ‘the norm’; other cultures – ‘different’
• Important for marketer to move away from the
S.R.C., to understand more.

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 Cultural Values
• The indicators people use to serve as guides for what is appropriate
behaviour.
http://www.youtube.com/watch?v=dAv3tBIKISM&feature=watch-vrec

• Hofstede’s (1980, 1984, 2001) national (culture) dimensions theory

and cultural values indices: seminal piece of research; 116,000
respondents in IBM across over 40 countries in early 1970’s.

• Criticisms:
• Data rather than theory driven
• Business culture
• Sweeping generalisations
• Time dependent results

• Still quite widely used 16

Hofstede’s (1980) cultural values indices

Power distance

Uncertainty avoidance

Individualism/ Collectivism

Masculinity/ Femininity

Long-term/ Short-term orientation

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1. High vs. Low power distance
The extent to which the less powerful members expect & accept that power is
distributed unequally - Rightful place vs. Equality

2. Individualism vs. Collectivism

The focus in the society is the self or the group - I vs. we

3. Masculinity vs. Femininity

The dominant values as 'achievement & success' compared to 'caring for others
& quality of life‘ - Hard vs. Soft

4. Uncertainty avoidance
The extent to which people feel threatened by uncertainty & ambiguity & try to
avoid the situation - Coping with Ambiguity

5. Long-term vs. short term orientation (Confucian dynamism)

A number of values regarding acceptance of change, thrift, perseverance etc. but
rather confusing & misleading (Fang & Kriz 2000, Fang 2003) 18
 Example

Power distance
90

80

70

60

50

40

30

20

10

0
Austria Mexico

Data sourced from: https://geert-hofstede.com/austria.html

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 Individualism
100

90

80

70

60

50

40

30

20

10

0
USA Columbia

Data sourced from: https://geert-hofstede.com/austria.html

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 Masculinity
70

60

50

40

30

20

10

0
Denmark UK

Data sourced from: https://geert-hofstede.com/austria.html

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 Uncertainty avoidance
100

90

80

70

60

50

40

30

20

10

0
France Denmark

Data sourced from: https://geert-hofstede.com/france.html

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 Long-term orientation
90

80

70

60

50

40

30

20

10

0
Chile Germany

Data sourced from: https://geert-hofstede.com/austria.html

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 Communication:
Language
• Formality British US
• Space required Petrol Gasoline
• What language to use: Biscuits Cookies
– Multi-language countries Crisps Chips
– Dialects Chips Fries
– Domestic/English Plimsolls Sneakers
There are 22 major languages in India, written Trousers Pants
in 13 different scripts, with over 720 dialects. Pavement Sidewalk
Toilet Washroom
• Translation Boot Feet
– “It’s not words, but subtle combination Elephant Trunk
of words, the echo, repercussion of the Curtain Drape
words within the mind of the reader- Nappy Diaper
that is the subtleties that translation
fails to carry” 24
 Communication:
Non-verbal language
• Greeting, gestures, eye contact, touch, body language

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 Communication:
Centrality of different channels

High vs Low context cultures (Hall, 1960):

 Low context: verbal messages convey meaning. Low context

cultures (e.g. UK, USA, Sweden etc) function with more legal
paperwork i.e. most information explicit

 High context cultures: non-verbal messages convey meaning.

High context cultures (e.g. Japan, Saudi Arabia etc) place
great deal of emphasis on a person’s values and position in
society, therefore, obligations, relationships and honour are
important values (for example, guanxi) – some information is
implicit
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 The work of Hall (1976)

High context - the communication is either part of the context or internalised in the person,
very little is made explicit as part of the message 27
 Can you have a different culture
with a common language?

 There are over 50 countries in the world where English language

has a de jure (i.e. defined by law) official status. There are also a
number of countries where English has a de facto status (including
the UK, USA)

 There are 20 countries in the world where Spanish is an official

language, with over 400 million people in the word speaking it as a
first language

 Mandarin Chinese is spoken by 848 million people, with Mandarin-

speaking diasporas residing in several countries across the world

Sources: https://www.worldatlas.com; British Council (2014) – The Languages of the Future report
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 Can you have a shared culture
without a common language?

 There are currently 28 Countries in the Union and >20 different

official languages.

 The French were willing to give up the Franc, the Germans the DM.
the Italians the Lira, but give up their language in favour of a foreign
one
( English) or a common one (Esperanto) - NON!

 However English is the most common second language by far and is

the common language for business.

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 Aesthetics
• Reflected in architecture, music, arts of that country,
dance etc.
• Music tastes: Arab, European and the West
• Dance: Thai tradition, African tribal dance
• Design and beauty: Taj Mahal, Eiffel Tower, HSBC
Bank building, ideals of beauty

 Implications for design of

plant, product, package,
brand names

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Source: https://en.wikipedia.org/wiki/Royal_Liver_Building
Colours in different cultures

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 Education
• Learning and sharing of cultural values
• Indicates the type of consumer market
• Literacy rates can be useful
• National enrolments in education

How does education affect marketing?

• Packaging and advertising design
• Consumer learning
• PR
• Your examples?
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 Religion
Christianity
• Religion influences
Islam
- Consumer behaviour: perception,
what products, value of product, Hinduism
how to buy, when buy etc.
- Company’s marketing activities Buddhism
• Company to understand taboos, Confucianism
holidays, rituals
Judaism
• Christian:
– Bible – swine unclean
• Muslim/ Islamic culture
– Halal meat, drink, pork
– Qur’an: dead meat, blood, flesh of swine
• Hindu
– Beef (sacred)
– Can eat pork, egg - depending on how orthodox they are
• Judaism
– Kosher
• Buddha
– Vegetarian, non violence

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Drakkar Noir: Sensuality and touch culture in Europe and Saudi Arabia
Source: Field (1986)
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 Culture-informed attitudes - I
Definition of attitude

 A learned predisposition to respond in a consistently favourable or

unfavourable manner with respect to a given object.
 An enduring organisation of motivational, emotional, perceptual
and cognitive processes with respect to some aspect of our
environment.
 An attitude is the way we think, feel and act towards some aspect
of our environment. Understanding of attitudes  predict
behaviour
 Confucius: “It is easier to move mountains than to change the
minds of men”.

Are attitudes consistent across cultures? 36

 Culture-informed attitudes - II

• Towards achievement
• Towards risk taking
• Towards time
• Towards work / leisure / family life (i.e., email
culture, punctuality, holidays, celebrations etc)
• Towards consumption and importance of
consumer goods

• Towards cultural ‘others’? More on this next week

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 Beyond National Culture:
Multiculture
How it used to be:
Dominant culture and subcultures: groups of people within society
whose traditions, values and customs differ in some significant way
from those of the larger culture of which they are a part. Subculture –
issue of power, not necessarily numbers

Trend: Multiculture
2/3 of world’s children are growing up in mixed ethnic and/or bilingual
environments (Clark and Maas 2009; Luna and Peracchio 2005; Aspinall 2003)
Population projections for USA: by 2050 there will be no dominant
cultural group (Haub, 2008; Wamwara-Mbugua et al., 2008)
Transnational diasporas and cultures (Kumar and Steenkamp, 2013)

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 Is there a “European consumer”?
Whilst most Europeans are happy to share a common currency “Euro” – a
minority do not - for example the UK retains Sterling.

However:

 National customs and traditions persist

 There is a legacy from the long and bitter history of wars between several of the
member states
 Strong national Identities remain and are often heavily promoted
 Very different family relationships, religions, daily patterns continue to persist –
thus the markets are often similar but also very different!

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 Why and how multiculture
evolved?
 Intensified long & short-term migration leads to multiple co-
cultures existing and interacting within one nation state

 Globalisation has seen ‘export’ of cultures through media and

trade and emergence of global culture

 As a consequence, people may identify with more than one

culture, and it may or may not be culture(s) defined by their
demographic origins (such as nationality/ethnicity)

Must-reads: Craig and Douglas (2006); Demangeot et al. (2015)

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 Enculturation vs. acculturation
• Culture is learned. Social institutions impart and reinforce beliefs,
values and norms: socialisation
• A set of core values, beliefs, rituals/traditions, symbols uniquely define
a society/ culture (but note contemporary nuances)
• Enculturation
– Learning the value system endorsed by one’s own culture
– Taught to us by socialisation agents, help form value systems
• Acculturation
• Learning the value system of another
culture – different!!!
Of co-resident diasporas; other countries
• Adaptation process depends on:
- language skills
- contact with acculturation agents
- motivation to adapt

Both can shape cultural identity Source: Elf, film

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 Multiculturation

“…a process of changes in the cultural identification

and consumption behaviors of individuals that happen
when the individual, social group and/or society as a
whole come into continuous contact with multiple
cultures.” (Kipnis et al., 2014)

When negotiating identity between cultures,

individuals consider whether/how valuable it is for them
to maintain or develop relationships with a particular culture

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 Levels of culture formation
from global perspective
 Transnational level: values, ideas, norms shared across
borders. Global culture; foreign cultures through ancestral
(ethnic/racial), religious and/or affiliative (e.g., based on
liking) links.

 National level: cultural norms and practices originating and

shared by a majority of a particular country (mainstream local
culture).

 Group level: cultural beliefs informed by identification with a

specific peer group (gender/race/ethnicity/social
groups/organisation (company)/family).

 Individual level 43
 Types of cultures in
global environment
 Alden et al. (1999) were first to identify Global, Foreign and
Local cultures – but associated Foreign and Local cultures
with national level

 This view was subsumed by Global-Local categorisation which

you still will see dominating books. The concept of
glocalisation stems from this view

 Kipnis, Broderick and Demangeot (2014) argued for the need

to return to Global, Foreign and Local cultures view but go
beyond national level when considering how these cultures
are understood by consumers

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 Multiple cultural forces that
can shape cultural identities

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Kipnis et al. (2014) – we will focus more on this in coming weeks
 Analysing socio-cultural
environment (more next week)
Secondary (desk) research
 National statistics bureaus reports (population by ethnic groups; religion
etc)

 Country background reports by market analyst

organisations (Datamonitor; Euromonitor; Business Monitor)
 Consumer lifestyle trends reports by market/marketing
research agencies (AC Nielsen, Mintel, Euromonitor)
 Industry publications (Marketing Week; The Marketer; Campaign; FT etc)
 Consumer research developments (journal papers; academic books;
Hofstede’s cultural values index; academic research projects reports etc)

Primary research. Not a requirement for your assignments!

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 Culture shapes behaviour

 Values, attitudes, customs, language, symbols: people learn

these through socialisation
 Provides people with a frame of identity references – cultural
self is one of many forms of social self (Reed, 2002; Belk, 1988)
which is fundamental to identity. It provides individuals with
“the sense of the self derived from formal or informal
membership in groups that impart knowledge, beliefs, values,
attitudes, traditions, and ways of life” (Jameson, 2007, 200).
 Self-reference criteria (SRC): “unconscious reference to own
culture when examining others” (Lee, 1966)