Cultural Dynamics in Assessing Global Markets
Cultural Dynamics in Assessing Global Markets
Definitions & Origins of Culture Dutch management Prof. Geert Hofstede : culture is the software of the mind. Provides a guide for humans on how to think and behave; it is a problem solving tool. Edward Hall : culture is a way of organising life, of thinking, and of conceiving the underlying assumptions about the family and the state, the economic system and even Man himself. Cultural differences are often invisible if marketers ignore them it often hurts both companies and careers. Traditional defn. : culture is the sum of the values, rituals, symbols, beliefs, and thought processes that are learned, shared by a group of people and transmitted from generation to generation.
History A D A P T I O N
Socialisation/ acculturation
Peers
Application
Consequences
Management style
Causal factors and social processes that determine and form culture and cultural differences Adaptations to changing env. thru innovation,. Learn culture from social institutions thru socialisation(growing up) & acculturation (adjusting to new culture) Absorb culture thru role modeling or imitation of their peers Make decisions about consumption & production thru application of their culture-based knowledge. Components of Culture Geography History Political Economy Technology Social Institutions Family Religion School Media Government corporations
Elements of Culture
Cultural Values Rituals Symbols Beliefs Thought Processes
Cultural Values
Main causes of cultural differences Cultures differ in terms of primary dimensions Individualism/Collectivism Index (IDV) Preference for behaviour that promotes ones self interest. Cultures that reflect I mentality against WE mentality. Power Distance Index (PDI) Measures the tolerance of social inequality-power inequality between superiors & subordinates within social system. High PDI hierarchical. Low PDI - equalitarian Uncertainty Avoidance Index (UAI) Tolerance of uncertainty & ambiguity among members High high level of anxiety & stress distrustful of new ideas
Rituals
Life is filled with rituals- patterns of behaviour that are learned and repeated Most obvious marriage, etc. Rituals coordinate everyday interactions and special occassions. Let people know what to expect.
Symbols
Language Thought of as a social institution with political importance. Importance of understanding language of a country is very important. Successful international marketers must achieve expert communication. Advt. more concerned with idiomatic meanings and less with language differences Aesthetics Art communicates Arts, folklore, music, drama, dance. Customers respond to imates, myths, metaphors that help them define their personal and national identities and relationships within a context of culture and product meanings. Without culturally correct interpretation of a countrys aesthetic values, a host of marketing problems can arise. Product styling must be aesthetically pleasing to be successful.
Beliefs
Much of what we learn comes from religious training. Relationship between superstition and religion is not clear. Eg. 13 unlucky???? Many beliefs are secular ghosts, fortune telling, palmistry, bloodtypes, phases of moon, demons, etc. are integral part of every society. Many times one persons beliefs are another persons funny story. Its a mistake to discount importance of myths, beliefs, superstitions or other cultural beliefs.
Thought Processes Thought processes shape our perception about things, events and situations. Thought process differ from one culture to other culture. Eg. Asians tend to see the whole picture and can report details about background and foreground. Westerners focus on foreground and can provide great detail about central figures.
Cultural Knowledge
2 kinds of knowledge about culture 1.Factual Knowledge about culture It is obvious and must be learned. Different meanings of tastes, colours, other traits and patterns. 2. Interpretive knowledge about culture Ability to understand and to appreciate fully the nuances of different cultural traits and patterns.
Cultural Change
Culture is dynamic ; a living process Cultural change is constant Paradox attribute of culture is that it is conservative and resists change. Dynamic character of culture is significant in assessing new markets eventhough changes face resistance.
Cultural Borrowing Responsible effort to learn from others cultural ways for better solutions to a societys particular problems. Similarities: An Illusion Inexperienced marketer, similar-but-different aspect of culture creates illusions of similarity that usually do not exist. Several nationalities can speak the same language or similar race and heritage, but are different culturally. A product acceptable to one culture may not be necessarily acceptable to other culture.
Resistance to Change Culture is subject to change. This change occurs through lot of resistance. New methods, ideas and products are considered suspect before they are accepted, if ever. Degree of resistance varies.