Uluslararası Pazarlama SOCIAL AND CULTURAL ENVIRONMENT lecture 3 &4. Social and Cultural EnvironmentsSOCIETY, CULTURE, AND GLOBAL CONSUMER CULTURE TASKS OF GLOBAL MARKETER: To study and understand the country 1. cultures in which they will be doing business. To incorporate this understanding into the 2. marketing planning process. SOCIETY, CULTURE, AND GLOBAL CONSUMER CULTURE In some instances strategies and marketing programms will have to be adapted; however, marketers should also take advantage of shared cultural characteristics and avoid unnedeed and costly adaptations of the marketing mix. SOCIETY, CULTURE, AND GLOBAL CONSUMER CULTURE While marketers should be secure in their own convictions and traditions, tolerance is required to appreciate the integrity and value ot other ways of life and points of view. SOCIETY, CULTURE, AND GLOBAL CONSUMER CULTURE Overcome the prejudices that are a natural result of the human tendency towards ethnocentrism. SOCIETY, CULTURE, AND GLOBAL CONSUMER CULTURE Although is a human reaction to the new and unknown; strive to comprehend human expreience from the local point of viewSOCIETY, CULTURE, AND GLOBAL CONSUMER CULTURE One reason cultural factors challenge global marketers i that many of them are hidden from view. SOCIETY, CULTURE, AND GLOBAL CONSUMER CULTURE “ Outsider ” should become “insider ” and developSOCIETY, CULTURE, AND GLOBAL CONSUMER CULTURE There are many different paths to the same goals in life. Marketer should understand this and rejoices in life ’ s rich diversity. culture “ ways of living, built up by a group of human beings, that are transmitted from one generation to another”culture Material culture (physical culture, includes 1. physical objects and aircrafts created by humans such as clothing and tools) Non-material culture (abstract culture, 2. includes intangibles such as religion, perceptions, attitudes, beliefs, and values) Elements of both cultures are interrelated and interactive. “ cultural universals”: Athletic sports, • Body adornment, • Cooking, • Courtship, • Dancing, • Decorative art, • Education, • Ethics, • Etiquette, • Family feasting, • Food taboos, • Language, • Marriage, • Mealtime, • Medicine • Mourning, • Music, • Propert rights, • Religious rituals, • Residence rules, • Status diffentiation, • Trade •culture via Satellite TV, the INTERNET and similar communication channels NEW GLOBAL CONSUMER CULTURES are evolving Some of these cultures are associated with spesific product categories:“ fast-food culture ”“ credit card culture”“ coffee culture ”interconnectednessattitudes, beliefs and values An attitude is a learned tendency to respond in a consistent way to a given object or entity; attitudes are clusters of interrelated beliefs. A belief is an organized pattern of knowledge that an individual holds to be true about the world. Attitudes and beliefs are closely related to values. A value can be defined as an enduring belief or feeling that a specific mode of conduct is personally or socially preferable to another mode of conduct. Strive to achieve cooperation, consensus, self-denial, harmony Japan ’ s monocultural society reflects the belief among the Japanese that they are unique in the world. Many Japanese, especially young people, also believe that the West is the source of important fashion trends. As a result, many Japanese share a favorable attitude toward American brands. subculture “ smaller groups of people whith their own shared subset of attitudes, beliefs, and values”Kabartay-Balkars, Cherkess, Lezgins, Turks, Tatars, UygursSubcultures often represent attractive niche marketing opportunities. religion TAWFIK MATHLOUTHI2003 “ FOR ANY CONSUMER WITH A CONSCIENCE, IRRESPECTIVE OF ETHNICITY OR RELIGION”aesthetics Whithin every culture, there is an overall sense of what is beautiful and what is not beautiful, what represents good taste as opposed to tastelessness or even obscenity. aesthetics visual aesthetics color or shape of a product, label or packageaesthetics Different parts of the world perceive aesthetic styles. Aesthetic elements that are attractive, appealing, and in a good taste in one country may be perceived differently in another. aesthetics In some cases, a standardized color can be used in all countries. aestheticsaesthetics Because color perceptions can vary among cultures, adaptation to local preferences may be required. Such perceptions ashould be taken into account when making decisions about product about product packaging and other brand-related communications. aesthetics 1990aesthetics All associations and perceptions regarding color arise from culture.aesthetics One recent study of perceptions in 8 coutries found that red is associated with “active ”, “hot”, and “vibrant ”; in most countries studied, it also conveys meanings such as “emotional” and “ sharp”. aesthetics Red has positive connotations in many societies, however red is poorly received in some African countries. aesthetics BLUE has an elemental connotation with undertones of dependability, constancy, and eternity aesthetics WHITE purity and cleanliness in the West, death in parts of Asiaaesthetics death in the Middle Eastaesthetics inexpensive high quality and expensive aesthetics Music is an aesthetic component of all cultures, accepted as a form of artistic expression and source of entartainment. In one sense, music represents a “transculture” that is not identified with any particular nation. aesthetics Rhythm or movement through time is a universal aspect of music. However, music is also characterized by considerable stylistic variation with regional or country specific associations. a unique music style can represent “the uniqueness of the cultural entity and of the community” Samba – Brasil Salsa – Cuba Reggae – Jamaica Hip-Hop, Rap – the USA Zeybek – Turkey Lezginka – the Caucasus aesthetics Music plays an important role in ad that is why marketers must understand what style is appropriate in a given national market. Although background music can be used effectively in broadcast commercials, the type of music appropriate for a commercial in one part of the world may not be acceptable or effective in another. Government restrictions must also be taken into account. aesthetics Authoriries have the power to dictate which songs can be marketed and performed. dietary preferences Culture influences food preparation and consumption patterns and habits.dietary preferences was pulled out of Italy because Italians perceived its product to be “too American”. the tomato sauce was too bold and the toppings were too heavydietary preferences To successfully launch Subway chain in India, it was necessary to educate consumers about the benefits of the company ’ s sandwiches. Why? dietary preferences Global dietary preferences are converging . “ FAST – FOOD” is gaining increased acceptance around the world. dietary preferences Such processes can provoke a nationalist backlash. To counteract the exposure of its young citizens to le Big Mac and other American-style fast food, the French National Council of Culinary Arts designed a course on French cuisine and “ good taste” for elementary school students. language and communication The diversity of cultures around the world is also reflected in language. Verbal communication • Non verbal communication (gestures, touching, • and other forms of body language that supllement spoken communication)language and communication A well-known American psychologist named Albert Mehrbian stated that when it comes to expressing feelings (1971): 55% of the communication consists of body language • 38% is expressed through tone of voice and • Only 7% is communicated through words. • (Wikipedia.com) That is to say, we express 93% of our feelings in a non verbal way! The most important part is called body language. http://spsu.edu/tc/Undergrad/portfolios/Spring%202009/Students/Shuting%20Wei/MyWeb/Documents/Research/rhetorical+analysis+paper.pd flanguage and communication Both the spoken and unspoken aspects of language are included in the broader linguistic field of semiotics, which is the study of signs and their meanings. language and communication Tarkan sings in Russian in the Turkish Commercial of citrus http://www.dailymotion.com/video/xb8jzf_tarkan-rus-reklam-1-lemon_musiclanguage and communication In China, Dell had to find a meaningful interpretation of “direct sales”, the phrase that describes the company ’ s powerful business model. A literal translation results in zhi xiao, which is the Chinese term for legal for illegal pyramid marketing schemes. To counteract the negative connotation, Dell ’ s sales representatives began using the phrase zhi xiao ding, which translates as “direct orders”. language and communication Colgate faced a big obstacle marketing toothpaste in Spanish speaking countries.  Colgate translates into the command "GO HANG YOURSELF." language and communication spent considerable sums of money on brand ad in Europe only to discover that consumers in ITALY, FRANCE, GERMANY had trouble pronouncing the company ’ s name. language and communication Renzo Rosso deliberately chose for a new jeans brand because, as he once noted, “ It ’ s one of the few words pronounced the same in every language” . Rosso has built Diesel into a successful global youth brand and one of Italy ’ s top fashion success stories; annual sales revenues exceed $ 1.2 billion. language and communication One impact of globalization on culture is the diffusion of the English language around the globe. and make it clear for job applicants in any part of the world that they doesn ’ t consider English to be a “ foreign language ” . language and communication The challenges presented by nonverbal communication are perhaps even more formidable. For example, Westerns doing business in the Middle East must be careful not to reveal the soles of their shoes to hosts or pass documents with the left hand. language and communication language and communication People who grow up in the West tend to be verbal; those from Asia exhibit behavior that places more weight on nonverbal aspects of interpersonal communication. There is a greater expectation in the East that people will pick up non verbal cues and understand intuitively without being told. Westerners must pay close attention not only to what they hear but also to what they see when conducting business in such countries. marketing ’ s impact on culture Universal aspects of the cultural environment represent opportunities for global marketers to standardize some or all elements of a marketing program. marketing ’ s impact on culture Widespread shared preference for convenience food, disposable products, popular music and movies in the USA, Europe and Asia suggests that many consumer products have broad, even universal, appeal. marketing ’ s impact on culturemarketing ’ s impact on culture ................ can be controversial, f.e. occurs when global companies break down cultural barriers while expanding into new markets with their new productsmarketing ’ s impact on culture Fabien Ouaki (managing director of Tati, discount retailer based in France) has also joined battle against McDonaldization. He is opening new stores in select countries, including the USA. marketing ’ s impact on culture Ouaki claims that “personal revenge” is one motivation for enterng the U.S. Market. “ As a Frenchman, it makes me sick to see kids crying to go see “Titanic”, eat at McDonald ’ s, or drink Coke. I want to see New Yorkers crying to have a Tati wedding dress,”he said. HIGH- AND LOW-CONTEXT CULTURES Low-context culture – messages are explicit and specific, word carry most of the communication power (the USA, Switzerland, Germany) High-context culture – less information is contained in the verbal part of a message (Japan, Saudi Arabia). HIGH- AND LOW-CONTEXT CULTURES Japan, Saudi Arabia, and other high-context cultures place a great deal of emphasis on a person ’ s value and position or place in society. In a low-context culture, such as the USA or Switzerland deals are made with much less information about the character, background and values of the participants. Table 4.1 HIGH- AND LOW-CONTEXT CULTURES Factors H.C. L.C. Lawyers Less important Very important A person ’ s word Is his/her bond Is not be relied upon; “ get it writing” Responsibility for Taken by highest level Pushed to lowest level organizational error Space People breath on each People maintain a other bubble of private space and recent intrusions Time Polychronic – everything Monochronic – time is in life must be dealt with money in terms of its own time linear – one thing at a time Negotiations Are lengthy-a major Proceed quickly purpose is to allow the parties to get to know each other Competitive bidding Infrequent Common Country or regional Japan, Middle East US, Northern Europe examplesHOFSTEDE ’ S CULTURAL TYPOLOGY POWER DISTANCE is the extent to which the less powerful members of a society accept –even expect -power to be disributed unequally. All societies are unequal, but some are more unequal then others. HOFSTEDE ’ S CULTURAL TYPOLOGY High power distance cultures Hong Kong France (hierarchical design, a prefernce for centralization, more supervisory personnel, several layers of assistants to get the boss, companies prefer sole ownership of subsidiaries because it provides them with more control) Low power distance cultures Germany AustriaThe Netherlands Scandinavia (joint ventures)HOFSTEDE ’ S CULTURAL TYPOLOGY Individualist cultures each member of society is primarily concerned with his or her own interest and those of the immediate family. Collectivist cultures all of society ’ s members are integrated into cohesive in-groups. HOFSTEDE ’ S CULTURAL TYPOLOGY High individualism is a general aspect of culture (ad) USA EUROPE Low individualism is a general aspect of culture JAPAN (worth of mouth)HOFSTEDE ’ S CULTURAL TYPOLOGY Masculinity describes a society in which men are expected to be assertive, competitive, and concerned with material success, and women fulfil the role of nurturer and are concerned with issues such as the welfare of children. Femininity Describes a society in which the social roles of men and women overlap, with neither gender exhibiting overly ambitious or competitive behavior. HOFSTEDE ’ S CULTURAL TYPOLOGY High in masculinity (a Western woman who is sent to make a presentation to a Japanese company will undoubtedly find that her audince consists of men. The Japanese managers may react negatively to a woman, especially if she is younger than they are.) Japan Austria Low in masculinity Spain Taiwan the NetherlandsHOFSTEDE ’ S CULTURAL TYPOLOGY Uncertainty avoidance is the extent to which the members of a society are uncomfortable with unclear, ambigious, or unstructured situations. Members of uncertainty avoiding cultures may resort to aggresive, emotional and intolerant behavior (Greese , Portugal, Japan ) (warranty, money-back guarantees, other risk-reducing features) Members of uncertainty accepting cultures are more tolerant of persons whose opinions differ from their own (Denmark, Sweden, Ireland, theUSA)DIFFUSION THEORY – Everest Rogers The adoption process ? Characteristics of innovations ? Adopter categories ?the adoption process ? awareness (mass media ad) ? interest ? evaluation ? trial (sales promotion) ? adoption (word-of-mouth) ?characteristics of ? innovation Relative advantage (how a new product compares ? with existing products or methods in the eyes of customers) Compatibility (the extent to which a product is ? consistent with existing values and past experiences of adopters) Complexity (the degree to which an innovation or ? new product is difficult to understand and use) Divisibility (the ability of a product to be tried and ? used on a limited basis without great expense) Communicability (the degree to which benefits of ? an innovation or the value of a product may be communicated to a potential market)adopter categories ?MARKETING IMPLICATIONS OF SOCIAL AND CULTURAL ENVIRONMENTS Environmental sensitivity reflects the extent to which products must be adapted to the culture specific needs of different national markets. An awareness of environmental sensitivity can help marketers determine whether consumer and industry products must be adapted to the needs of different markets.Figure 4.1 Environmental sensitivity Product adaptation Environmental sensitivity High High Low Low INTEGRATED CIRCUITS COMPUTERS FOOD