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1 Social and Cultural 1 Social and Cultural

1 Social and Cultural - PowerPoint Presentation

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1 Social and Cultural - PPT Presentation

Environments Pribanus Wantara 4 2 Introduction This chapter includes Society Culture and Consumer Culture Ethnocentricity and SelfReference Criterion Halls Theory Maslows Hierarchy ID: 419746

cultural culture high context culture cultural context high values consumer cultures english marketing global reference time countries color language

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Slide1

1

Social and Cultural Environments

Pribanus WantaraSlide2

4-2

IntroductionThis chapter includes:Society, Culture, and Consumer Culture

Ethnocentricity and

Self-Reference Criterion

Hall’s Theory

Maslow’s HierarchyHofstede’s Cultural TypologyDiffusion Theory

African MarketSlide3

4-3

Task of Global MarketersStudy and understand the cultures of countries in which they will be doing businessUnderstand how an unconscious reference to their own cultural values, or self-reference criterion, may influence their perception of the market

Incorporate this understanding into the marketing planning processSlide4

4-4

Society, Culture, and Global Consumer CultureCulture–ways of living, built up by a group of human beings, that are transmitted from one generation to anotherCulture has both conscious and unconscious values, ideas, attitudes, and symbols

Culture is acted out in social institutions

Culture is both physical (clothing and tools) and nonphysical (religion, attitudes, beliefs, and values)Slide5

4-5

Social InstitutionsFamilyEducationReligionGovernment

Business

These institutions function to reinforce cultural normsSlide6

4-6

Material and Nonmaterial CulturePhysical component or physical culture

Clothing

Tools

Decorative art

Body adornmentHomesSubjective or abstract culture

ReligionPerceptionsAttitudesBeliefsValuesSlide7

4-7

Society, Culture, and Global Consumer Culture “Culture is the collective programming of the mind that distinguishes the members of one category of people from those of another.”

Geert

HofstedeA nation, an ethic group, a gender group, an organization, or a family may be considered as a category.Slide8

4-8

Society, Culture, and Global Consumer CultureGlobal consumer cultures are emergingPersons who share meaningful sets of consumption-related symbols

Pub culture, coffee culture, fast-food culture, credit card culture

Primarily the product of a technologically interconnected world

Internet

Satellite TVCell phonesSlide9

4-9

Attitudes, Beliefs, and ValuesAttitude–learned tendency to respond in a consistent way to a given object or entityBelief–an organized pattern of knowledge that an individual holds to be true about the worldValue–enduring belief or feeling that a specific mode of conduct is personally or socially preferable to another mode of conductSlide10

4-10

ReligionThe world’s major religions include Buddhism, Hinduism, Islam, Judaism, and Christianity and are an important source of beliefs, attitudes, and values.Religious tenets, practices, holidays, and history impact global marketing activities.Slide11

4-11

ReligionMcDonald’s does not serve beef hamburgers in India because Hindus do not eat beef.There were objections raised in the merger of Daimler-Benz and Chrysler relating to Jewish history and the Holocaust.

Some Muslims have tapped into anti-American sentiment by urging a boycott of American brands due to U.S. military action in the Mideast following 9/11.

Europeans are divided on the issue of referring to God and Christianity in a new European constitution. Strong Catholic countries like Ireland, Spain, Italy, and Poland are for inclusion. France and Belgium are strong advocates of separation of church and state. Europe’s politically active Muslim minority are resisting inclusion of Christianity in the EU Constitution.Slide12

4-12

AestheticsThe sense of what is beautiful and what is not beautifulWhat represents good taste as opposed to tastelessness or even obscenity

Visual–embodied in the color or shape of a product, label, or package

Styles–various degrees of complexity, for example, are perceived differently around the worldSlide13

4-13

Aesthetics and ColorRed–associated with blood, wine-making, activity, heat, and vibrancy in many countries but is poorly received in some African countries.White–identified with purity and cleanliness in the West, with death in parts of Asia.Gray–means inexpensive in Japan and China, but high quality and expensive in the U.S.Slide14

4-

14Aesthetics and ColorSome colors may be used in all countries, i.e., Caterpillar yellow, Marlboro’s red chevron. Colors may need to be adapted according to local cultural preferences.

Soft drink labels and color associated with good taste: Chinese associate brown. South Koreans and Japanese associate yellow. Americans associate red.Slide15

4-15

The Meaning of Color

Red signifies good luck and celebration in China

Yellow indicates a merchant in India

In England and the U.S., “Something Blue” on a bride’s garter symbolizes fidelitySlide16

4-16

Dietary PreferencesDomino’s Pizza pulled out of Italy because its products were seen as “too American” with bold tomato sauce and heavy toppings.Subway had to educate Indians about the benefits of sandwiches because they do not normally eat bread. Slide17

4-17

Language and Communication

Linguistic Category

Language Example

Syntax-

rules of sentence formation

English has relatively fixed word order; Russian has relatively free word order.

Semantics-

system of meaning

Japanese words convey nuances of feeling for which other languages lack exact correlations; ‘yes’ and ‘no’ can be interpreted differently than in other languages.

Phonology-

system of sound patterns

Japanese does not distinguish between the sounds ‘l’ and ‘r’; English and Russian both have ‘l’ and ‘r’ sounds.

Morphology-

word formation

Russian is a highly inflected language, with six different case endings for nouns and adjectives; English has fewer inflections.Slide18

4-18

Language and CommunicationSpeaking English around the GlobeThere are more people who speak English as a foreign language than native speakers

85% of European teens study English

Sony, Nokia, Matsushita require managers to speak English

Nonverbal Communication

Westerners tend to be verbal; Asians value nonverbal communicationIn Japan, bowing has many nuancesIn the Mideast, Westerners should not show the soles of shoes or pass documents with the left handSlide19

4-19

Marketing’s Impact on CultureUniversal aspects of the cultural environment represent opportunities to standardize elements of a marketing programIncreasing travel and improved communications have contributed to a convergence of tastes and preferences in a number of product categoriesSlide20

4-20

Controversy Surrounding Marketing’s Impact on Culture“McDonaldization of culture”

“Eating is at the heart of most cultures and for many it is something on which much time, attention, and money are lavished. In attempting to alter the way people eat,

McDonaldization

poses a profound threat to the entire cultural complex of many societies.”

-George Ritzer

Protest against the opening of McDonald’s in Rome led to the establishment of the Slow Food movementSlide21

4-21

High- and Low-Context CulturesHigh ContextInformation resides in contextEmphasis on background, basic values, societal status

Less emphasis on legal paperwork

Focus on personal reputation

Saudi Arabia, Japan

Low ContextMessages are explicit and specificWords carry all informationReliance on legal paperwork

Focus on non-personal documentation of credibilitySwitzerland, U.S., GermanySlide22

4-22

High- and Low-Context Cultures

Factor/Dimension

High Context

Low Context

Lawyers

(pengacara)

Less Important

Very Important

A person’s word

Is his/her bond

Is not reliable–get it in writing

Responsibility for

Organizational error

Taken by highest level

Pushed to the lowest level

Space

People breathe on each other

Private space maintained

Time

Polychronic

Monochronic

Competitive Bidding

Infrequent

CommonSlide23

4-23

High- and Low-Context Cultures

Factor/Dimension

High Context

Low Context

Lawyers

(pengacara)

Less Important

Very Important

Kata-kata

seseorang

Is his/her bond

Apakah

ikatan

nya

Is not reliable–get it in writing

Tidak

dapat

diandalkan

,

mendapatkannya

secara

tertulis

tanggung

jawab

Kesalahan

organisasi

Taken by highest level

Diambil

oleh

tingkat

tertinggi

Pushed to the lowest level

Didorong

ke

Pesan

tingkat

awal

Ruang

Orang bernapas satu sama lain

Ruang

pribadi

dipertahankan

Time

Polychronic

Monochronic

Penawaran

Pembelian

Kompetitif

Infrequent

(jarang)

Common

(umum)Slide24

4-24

Hofstede’s Cultural TypologyPower DistanceIndividualism/Collectivism

Masculinity

Uncertainty Avoidance

Long-term OrientationSlide25

4-25

Self-Reference Criterion and PerceptionUnconscious reference to one’s own cultural values; creates cultural myopia

How to Reduce Cultural Myopia:

Define the problem or goal in terms of home country cultural traits

Define the problem in terms of host-country cultural traits; make no value judgments

Isolate the SRC influence and examine itRedefine the problem without the SRC influence and solve for the host country situationSlide26

4-26

Diffusion Theory: The Adoption ProcessThe mental stages through which an individual passes from the time of his or her first knowledge of an innovation to the time of product adoption or purchase

Awareness

Interest

Evaluation

TrialAdoptionSlide27

4-27

Diffusion Theory:Characteristics of InnovationsInnovation is something new; five factors that affect the rate at which innovations are adopted include:

Relative advantage

Compatibility

Complexity

DivisibilityCommunicabilitySlide28

4-28

Diffusion Theory:Adopter CategoriesSlide29

4-29

Marketing ImplicationsCultural factors must be considered when marketing consumer and industrial productsEnvironmental sensitivity reflects the extent to which products must be adapted to the culture-specific needs of different national marketsSlide30

4-30

Environmental SensitivitySlide31

4-31

Environmental SensitivityIndependent of social class and income, culture is a significant influence on consumption and purchasingFood is the most culturally-sensitive category of consumer goods

Dehydrated

Knorr

Soups did not gain popularity in the U.S. market that preferred canned soups

Starbucks overcame cultural barriers in Great Britain and had 466 outlets by 2005Slide32

4-32

Looking Ahead to Chapter 5The Political, Legal, and Regulatory Environments of Marketing