2 Chapter 2 Culture

Sub Culture
Nationalities
Religions
Racial
Culture Geographic
Cultural Factors
Four basic types of world citizens
Global citizens (55 percent)

signal of higher quality
Global dreamers (23 percent)
buy into their positive symbolic aspects
Antiglobals (13 percent)
don’t trust multinationals
Global agnostics (9 percent)
evaluate as they would local brands, don’t see global
brands as special
The Concept of Culture
What is Culture?
Culture is that complex whole which includes knowledge,
belief, art, law, morals, customs, and any other capabilities
and habits acquired by humans as members of society
Culture …
… is comprehensive.
… is acquired.
… supplies boundaries within which most individuals think and
act.
… influences us in such a way that we are seldom aware of it.
… is not static.
Values, Norms,
and Sanctions
Widely Held
Beliefs that
AffirmHeld
Widely What is
Desirable
Beliefs that
Affirm What is
Desirable
Variations in Cultural Values
Other- Society’s view

oriented of relationships
values between people
Society’s view Consumption

Environment-
of relationships Purchase
oriented
with environment Communications
values
Objectives/
Self-
approaches
oriented
to life society
values
finds desirable
Factors Influencing
Nonverbal
Communication
Personality 86%
Global Cultures
Global Demographics
Cross Cultural Marketing Strategy

Global Localizations
Major decisions
 15% revenues  Not understand foreign
 Better profit opportunities preference
 Larger customers  Not understand Business

culture
 Reduce its dependence
in one market  Regulations and cost
 Counterattack global  Lack managers with

competitors international experience
 Customers going abroad  Change law, currency,

and require service political
No regular Export via Sales Production

export agent subsidiaries facilities
Which Markets to Enter How to enter the markets
 How many markets to  Direct and indirect export
enter
 Licensing
 Evaluating potential
markets  Joint ventures
 Succeeding in  Direct investment
developing markets  Acquisition
 Developing and
developed markets
Marketing Program Marketing Organization
 Global similarities and  Local
differences  Regional
 Marketing adaptation  International
 Global product  Head office
 Global communications
 Global pricing
 Global distribution
Marketing strategies
Product Strategy Communication Strategy
Standardized Customized
Standardized Global Strategy Hybrid Strategy
Customized Hybrid Strategy Local Strategy

Measures of cross cultural aspects
Judgment regarding the quality

Willingness to buy a country products
Ethnocentrism
Perceptions of a country consumptions culture
Acculturation
Ethnic self identification
National self identification
 Independence
 Interdependence
 Power
 Entertainment
 Social inequality
 Furnishing
 Risk aversion
 Food
 Ambiguity tolerance
 Lifestyles
 Masculinity
 Brands
 Gender equality
 Tradition
 Prudence
 Consumer ethnocentrism
 Consumer innovativeness
Localization vs standardization
 Product and service customization for local
 Linguistic barriers
 Slogan chevy run deep – find new roads
 Chevy nova – it wont go
V–F
 Colgate – gao lu jie (superior cleanliness)
 Citibank – star spangled banner bank
 Promotional appeals
 Legal barriers
 World brands vs local brands
 Brand Shares and Extension
Global marketing opportunities
Spending power and consumption patterns

Growing global middle glass
Global teen market
Cross Cultural analysis
 Language and meaning
 Market segmentation
 Consumption patterns
 Perceived benefits of products
 Criteria for evaluating products
 Economic and social conditions
 Marketing research and condition
 Marketing research possibilities
Unilever Laundry Product
 Cultural homogeneity
 Needs
 Affordability
 Relevant Values
 Infrastructure
 Communication
 Ethical Implications
Essay
1. Find two advertisement that use reference groups in an attempt to
gain patronage. Describe the advertisement, the type og
reference group being used, and the type of influence being
used.
2. Develop an advertisement for (i) breath strips, (ii) energy drink, (iii)
upscale club, (iv) red cross, (v) scooter, or (vi) vitamins using the
following:
1. An informational reference group influence
2. A normative reference group influence
3. An identification reference group influence
3. Interview an individual who is involved in a brand community.
Describe the role the firm plays in maintaining the community, the
benefits the person gets from community, and how it affect his or
her consumption behavior.
Essay
4. Identify and interview several opinion leaders on your

campus for the following. To what extent do they
match the profile of an opinion leader as described
in the text?
a) Local restaurant
b) Sport equipment
c) Music
d) Computer equipment

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Sub Culture

Global citizens (55 percent)

Other- Society’s view

Society’s view Consumption

Cross Cultural Marketing Strategy

 Larger customers  Not understand Business

 Counterattack global  Lack managers with

 Customers going abroad  Change law, currency,

No regular Export via Sales Production

Standardized Global Strategy Hybrid Strategy

Customized Hybrid Strategy Local Strategy

Judgment regarding the quality

Spending power and consumption patterns

4. Identify and interview several opinion leaders on your

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