The Sociocultural Environment Global Marketing Ethics and Culture

Learning objectives • Discuss how the sociocultural environment will affect the attractiveness of a potential market • Define culture and name some of its elements • Explain the ‘ 4+1’ dimensions in Hofstede’s model Reading: Core Text Ch 3 p 63 Hollensen Ch 7 Usunier Marketing Across Cultures Muhlbacher Ch 5 Lee and Carter Ch 3 Global Marketing Ethics and Culture 7 -2

Learning objectives (2) • Discuss the strengths and weaknesses of Hofstede’s model • Discuss whether the world’s cultures are converging or diverging Global Marketing Ethics and Culture 7 -3

Self-reference criterion (SRC) Refers to one’s unconscious reference to one’s own cultural values when attempting to understand another culture? Global Marketing Ethics and Culture 7 -4

Approaches to eliminate SRC • Define problem or goal in terms of home country culture, traits, habits, and norms • Define problems or goals in terms of the foreign culture • Isolate the SRC influence and examine it carefully to see how it complicates the problem • Redefine the problem without the SRC influence and solve for the foreign market situation Global Marketing Ethics and Culture 7 -5

The Meaning of Culture The Johari Window Things they see Things I see My blind spot Open for Discussion My Blind Spot Insight Things they do not see Their Blind Spot Shared Blind Spot Unconscious (Source adapted from S Jourard (1964) The transparent self, Nostrand Reinhold, Princeton N. J) (1964) The (Source adapted from S Jourard transparent self, Nostrand Reihold, Princeton NJ. ) Global Marketing Ethics and Culture 6

Culture is the collective programming of the mind which distinguishes the members of one human group from another. It is the learned ways in which a society understands, decides and communicates. Hofstede (1980) Global Marketing Ethics and Culture 7 -7

Characteristics of culture • Culture is learned • Culture is interrelated • Culture is shared Global Marketing Ethics and Culture 7 -8

The visible and invisible parts of culture Global Marketing Ethics and Culture 7 -9

A Cultural Framework - Terpstra and Sarathy (2000) Language Aesthetics Law and Politics Religion Values and Attitudes Cultures Education Technology and Material Culture Social Organisation Global Marketing Ethics and Culture 10

Layers of culture National culture Business/industry culture Company culture Individual behaviour/ decision maker Global Marketing Ethics and Culture 7 -11

Understanding Culture and Consumer Behaviour Global Marketing Ethics and Culture 12

Approaches to the Study of Culture • • Maslow (1970): Hierarchy of Needs Lee (1966): Self Reference Criteria Hall’s (1977): High and Low Context Cultures Hofstede (2001, 1997): The four dimensions of power distance, individualism and masculinity and uncertainty avoidance Global Marketing Ethics and Culture 7 -13

Hall’s Communication Context Low-context cultures High-context cultures Global Marketing Ethics and Culture 7 -14

Comparing low- and high-context cultures (1) Characteristic Low-context High-context Communication Explicit, direct Implicit, indirect Sense of self and space Informal handshakes Formal hugs, bows, and handshakes Global Marketing Ethics and Culture 7 -15

Comparing low- and high-context cultures (2) Characteristic Low-context High-context Dress and appearance Varies widely, dress for success Indication of position in society, religious rule Food and eating habits Eating is a necessity, fast food Eating is social event Global Marketing Ethics and Culture 7 -16

Comparing low- and high-context cultures (3) Characteristic Low-context High-context Time consciousness Linear, exact, promptness is valued, time = money Elastic, relative, time = relationships Family and friends Nuclear family, self-oriented, value youth Extended family, other oriented, loyalty Global Marketing Ethics and Culture 7 -17

Comparing low- and high-context cultures (4) Characteristic Low-context High-context Values and norms Independence, confrontation of conflict Group conformity, harmony Beliefs and attitudes Egalitarian, challenge authority, gender equity Global Marketing Ethics and Culture Hierarchical, respect for authority, gender roles 7 -18

Comparing low- and high-context cultures (5) Characteristic Low-context Mental process and learning Linear, logical, sequential, problem solving Business/ work habits Deal oriented, rewards based on achievement Global Marketing Ethics and Culture High-context Lateral, holistic, accepting life’s difficulties Relationship oriented, rewards based on seniority 7 -19

The contextual continuum of differing cultures Global Marketing Ethics and Culture 7 -20

The role of language in global marketing • Language is important in information gathering and evaluation efforts • Language provides access to local society • Language capability is important to company communications • Language enables the interpretation of context Global Marketing Ethics and Culture 7 -21

Sensuality and touch culture in Saudi Arabian versus European advertising Global Marketing Ethics and Culture 7 -22

Hofstede’s model of national cultures Power distance Uncertainty avoidance Time perspective Individualism Masculinity Global Marketing Ethics and Culture 7 -23

Convergence of world’s cultures Source: http: //www. mtv. co. uk Global Marketing Ethics and Culture 7 -24