3.01 Exemplify culture and how cultural influences affect international marketing

Winning Strategies

Two Companies - Similar StrategiesCoca-Cola & McDonald’s

Both companies adapt to a country’s culture“Book of Little Honorary Guests” in ChinaIn Asia, limited menu, to avoid customers “losing

face”

Both companies boldly enter new markets“Always Coca-Cola” in former Soviet UnionC2 in Japan

Culture

A system of shared beliefs, values, customs, & behaviors that define how group of people live.

UNESCO defines culture as: “set of distinctive spiritual, material, & intellectual &

emotional features of society or social group that encompasses art, literature, lifestyles, ways of living together, value systems, traditions, & beliefs.”

http://www.youtube.com/watch?v=57KW6RO8Rcs&feature=related What is culture?

http://www.youtube.com/watch?v=EkZyvDZFC8QCulture shock…

Culture (con’t) Cultural learning begins 1st day one begins to

learn. Enculturation - a process that helps people learn

about their culture In many Western cultures, babies are taken out into world

almost as soon as they are born. In Ghana, mothers spend first weeks alone with their

babies. Christian parents typically have their young children

baptized. In US, most young children recognize McDonalds golden

arches In US, Cheerios are popular finger good for young children

Culture (con’t)

Cultural learning (con’t) Context - background or surrounding

circumstances of an event. • Can include facial expressions or

gestures which precede or follow specific word or passage that may influence meaning or effect

Culture (con’t)Cultural learning (con’t)

High-context culture places priority on interpersonal relationships.

People guided more by intuitions & feelings than by logic or facts.

Decisions made by groups rather than individuals.

Communication more indirect & vague. Context is more important than words. Japan, China, France, Greece & most

Middle Eastern countries considered high-context.

http://www.youtube.com/watch?v=x7a3mSoEJs8 Japanese culture factors

Culture (con’t) Cultural learning (con’t)

Low-context culture values individualism. Decisions based on facts. Communication is concise, structured, &

direct. Focus placed on words used & meaning

rather than context. Personal relationships less important than

getting task done. US, Germany, Switzerland, the UK &

Scandinavian countries considered low-context.

Culture (con’t)

Cultural learning (con’t) Challenges occur when high-cultures & low-cultures

work together.• Statement “I agree” can mean different things

In Japan, it may mean “I understand what you are saying”.

In Switzerland, it means “There is an actual agreement.”

International marketers must understand cultural context of communication

otherwise behaviors & messages may be misunderstood.

Cultural influences

Provide understanding of how consumer will react to products.

History and geography:• In Europe & Asia, towns much older than in US

where most have built up after 1900. • Towns were center of cultural life in Europe &

Asia; offered protection from wars & bandits.• Homes & cultural traditions in Europe & Asia

been passed down for generations.• Different sense of community than in US.

Cultural influences (con’t) History & geography (con’t)

Americans cannot trace back any part of their consumer culture more than few decades & are easily willing to let go of the past.• Japanese rice culture 2,000 years old.• In other countries, traditional open-air markets have

provided fresh foods for thousands of years

French government passed law protecting name boulangeries (hot bread shops) ensuring only bakeries that made, kneaded & cooked bread entirely from scratch on premises could use name.

Cultural influences (con’t)

History & geography (con’t) Geography - study of differences that exist in

physical, biological, & cultural features of earth. Cultures develop under unique geographic

conditions such as temperature, weather conditions, population density & nature of neighboring cultures.

These conditions affect how food is produced or gathered.

Cultural influences (con’t)

International marketers should consider city size where selling.

Wealth & cultural differences exist between rural & urban areas.

Differences greater in developing countries.

Cultural influences (con’t)

Belief systems - allows individuals to understand their place in larger universe.

Can set rules of conduct & ethics, how one should interact with others, & how one should live life.

Religion - belief system that answers spiritual questions.• Christianity currently largest religion in the world - 2

billion followers.• Islam currently 2nd largest religion - 1.3 billion

followers.• Other major religions include Hinduism, Buddhism, &

Judaism.

Cultural influences (con’t)

http://religion.blogs.cnn.com/2011/01/27/world-muslim-population-doubling-report-projects/

CNN clip on the global growth of Islam

Cultural influences (con’t)

Belief systems (con’t) Non-religious belief systems do not answer

spiritual questions, but set rules of conduct & ethics. Culture’s history acts as guide for setting rules of

conduct.

• In 20th century, leaders in communist countries tried to impose belief systems on citizens regardless of their history or religion.

• Communist leaders only partially successful.

Cultural influences (con’t)

Belief systems (con’t) International marketers must be able to

identify & understand how belief systems will affect product design, sales practice, & business negotiations.

In many countries, such as in Middle East, violations of belief systems can violate laws.

Communication

Verbal communication - involves use of words, either spoken or written.

Ethnologue Organization lists more than 6,900 active, distinct languages in world

Languages exist within families

• Europe - include Germanic, Romance, Slavic, Celtic & Greek

• France & Quebec - laws protect French language & even limit ability to add new non-French words to official language.

Communication (con’t)

Verbal communication English is official business language in US,

Canada, Great Britain, Australia, South Africa & India

• Within these countries, pronunciation, spelling & meanings differ.

• “Rubber” is used for eraser; “lift” is used for elevator with former British colonies.

• Other European countries use British-style English.

Communication (con’t)

Verbal communication (con’t) Back translation process recommended for

international marketers A native speaker translates material to his/her

own language. Translation is then translated by native

speaker back to original language.

Communication (con’t)

Non-verbal communication - what people communicate with their bodies.

Can include facial expressions, eye contact, hand gestures, bowing, & showing emotions.

Understanding non-verbal communication as important as understanding verbal communication.

Communication (con’t)

Non-verbal communication (con’t) Examples:

• Hand shaking common throughout world, but varies within cultures.

• In France & other countries, individuals shake hands each time they meet.

• In US & Northern Europe, individuals may not shake hands once they get to know each other.

Communication (con’t)

Non-verbal communication (con’t)Examples:

In Japan, individuals may bow to each other when they shake hands.

In Columbia, individuals may take long time before shaking hands because they feel it conveys respect.

In many countries, such as Middle East, one would never shake hands or eat food with left hand because this hand is reserved for “unclean” tasks.

Communication (con’t)

Non-verbal communication (con’t) Interpersonal distances vary around world

In Southern Europe, the Middle East & most of South America, individuals move very close to others when they talk.

In North American & Northern Europe, interpersonal distances much greater.

Communication (con’t)

Non-verbal communication (con’t)Americans often viewed as highly aggressive

communicators: speaking loudly, appearing argumentativeusing excessive hand gestures without regard to local

hand gesturing customs.

International marketers need to understand verbal & non-verbal communications standards before attempting to do business in another culture.