MBB4723

International Marketing

Topic 3
Topic 1 & 2 recap
 International marketing

 Controllable elements

 Uncontrollable elements

 Domestic environment uncontrollable

 Foreign environment uncontrollable

 Self-reference criterion

 Global awareness
Topic 1 & 2 recap
 The Impact of Culture on the
International Marketing
Chapter 3

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives

LO1 The importance of culture to an international

marketer

LO2 The origins of culture

LO3 The elements of culture

LO4 The impact of cultural borrowing

LO5 The strategy of planned change and its
consequences
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What Is Culture?

What is it?

Why is it
important in
international
marketing?
Three Definitions of Culture
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”

“software of the mind, problem-solving tool” (Hofstede)

“An invisible barrier… a completely different way of

organizing life, of thinking, and of conceiving the
underlying assumptions about the family and thestate, the
economic system, and even Man himself” (Hall)

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The Importance of Culture in International
Marketing

a) Markets constantly evolves

• Adaptation
• Marketers act as agent of change

b) Communication purposes
Culture’s Pervasive Impact
 Culture influences every part of our lives
 Birthrates have implications for sellers ofdiapers, toys, schools, and
colleges

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Culture’s Pervasive Impact
Consumption of different types of food influences culture

Exhibit 4.2 Patterns of Consumption (annual per capita) Source: EuroMonitor International, 2010,
2012
Culture’s Pervasive Impact
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Origins of Culture: Geography

 Geography, which includes climate, topography,

flora, fauna, and microbiology, influences our social
institutions
 Jared Diamond states that historically innovations
spread faster east-to-west than north-to-south
 Philip Parker reports strong correlations between the
latitude (climate) and the per capita GDPof countries

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Origins of Culture: History
 The impact of specific events in history can beseen
reflected in technology, social institutions, cultural
values, and even consumer behavior

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Origins of Culture: History

For e.g., American trade policy depended ontobacco

being the original source of the Virginia colony’s
economic survival in the 1600s

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Origins of Culture:
The Political Economy
 For most of the 20th Century, four approachesto
governance competed for world dominance:

• Colonialism
• Casualty of World War II
• Fascism
• Fascism fell in 1945
• Communism
• Communism crumbled in the 1990s
• Democracy/free enterprise

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Origins of Culture: Technology
 Technological innovations influence cultural values
 Jet aircraft, air conditioning, televisions, computers,
and the internet have all influenced culture

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Dutch Flowers
 Family
Behaviors

Religious School
Value &
Systems Education
Social
Institutions

Government
Media
Policies

Corporations

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Origins of Culture: Social Institutions

 Social institutions including family, religion,

school, the media, government, and
corporations all affect culture

 The family, social classes, group behavior, age

groups, and how societies define decency
and civility are interpreted differently within
everyculture

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Origins of Culture: Social Institutions

1. Family behavior varies across the world, e.g.,

extended families living together to Dad washing
dishes.

2. Religious value systems differ across the world,

e.g., Muslims not allowed to eat pork to Hindus
not allowed to consume beef.

3. School and education, and literacy rates affect

culture and economic growth.
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Origins of Culture: Social Institutions

4. Media (magazines, TV,the Internet) influences

culture and behaviour.

5. Government policies influence the thinking and

behaviors citizens of adult citizens, e.g., theFrench
government offers new “birth bonuses” of $800 given to
women as an incentive to increase family size.

6. Corporations influence culture via the products they

market, e.g., MTV

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 Cultural
Values

Thought
Rituals
Processes
Elements
of
Culture

Beliefs Symbols

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Cultural Values
 Hofstede, who studied over 90,000 people in
66 countries, found that the cultures differed
along four primary dimensions:
• Individualism/Collective Index (IDV), which focuses
on self-orientation.

• Power Distance Index (PDI), which focuses

on authority orientation.

• Uncertainty Avoidance Index (UAI), which focuses

on risk orientation; and

• Masculinity/Femininity Index (MAS), which

focuses on assertiveness and achievement
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Hofstede’s Cultural Dimensions Theory

https://www.youtube.com/watch?v=eV04Msn-
1GY&t=298s
Individualism/Collectivism Index
1. The Individualism/Collective Index refers to the
preference for behavior thatpromotes one’s self-
interest
2. High IDV cultures reflect an “I” mentality and tend to
reward and accept individual initiative
3. Low IDV cultures reflect a “we” mentality andgenerally
subjugate the individual to the group
4. Collectivism pertains tosocieties in which people from
birth onward are integrated into strong, cohesive
groups, which protect them in exchange for
unquestioning loyalty

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Power Distance Index
1. The Power Distance Index measures power
inequality between superiors and subordinates
within a social system
2. Cultures with high PDI scores tend to behierarchical
and value power and social status
3. High PDI cultures the those who hold power are
entitled to privileges
4. Cultures with low PDI scores value equality and
reflect egalitarian views

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Uncertainty Avoidance Index
1. The Uncertainty Avoidance Index measures the
tolerance of uncertainty and ambiguity among
members of a society
2. High UAI cultures are highly intolerant of ambiguity,
experience anxiety and stress, accord a high level of
authority to rules asa means of avoiding risk
3. Low UAI cultures are associated with a low level of
anxiety and stress, a tolerance of deviance and
dissent, and a willingness to take risks

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Masculinity/Feminity Index
• A high MAS (Masculine) on this dimension
indicates that the society will be driven by
competition, achievement and success, with
success being defined by the “winner” or “best-
in-the-field”.

• Low MAS (Feminine) on the dimension means

that the dominant values in society are caring for
others and quality of life.
Source:
https://www.hofstede-insights.com/country-comparison/the-usa/
Exhibit 4.7 Hofstede's Indexes, Language, and Linguistic Distance Source: Geert Hofstede,
Culture's Consequences (thousand Oaks CA: Sage, 2011). 4-24
Rituals and Symbols

 Rituals are patterns of behavior and

interaction that are learned and repeated

 This vary from country to country.

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Rituals and Symbols

 Language as Symbols: the “languages” of time, space,

things, friendships, and agreements

 In Canada, language has been the focus of political

disputes.

 Differences in language vocabulary varies widely,

even English is different in different countries.

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Whose English?

• •
United States

United Kingdom
Trunk Boot
• Hood • Bonnet
• Convertible Top • Hood
• Elevator • Lift
• Toilet • W.C.
• Bathroom • Tub or Shower
• Vacuum • Hoover

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Aesthetics as Symbols.
• The arts, folklore, music, drama, and dance ofa culture
influences marketing
Exhibit 4.8 Metaphorical Journeys through 23 Nations
Source: Martin J. Gannon, Understanding global Cultures, Metaphorical Journeys through 23 Nations,
2nd ed. Copright 2001.
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Beliefs

 Beliefs, which mainly stem from religious training,

vary from culture to culture

• The western aversion to the number 13 or refusing to walk

under a ladder

• Japanese concern about Year of the FireHorse

• The Chinese practice of Feng Shui in designing buildings

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Thought Processes
 Thought processes also vary across cultures
• “Asian and Western” thinking
• Other examples?

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How Cultural Differences Affect Businesses

https://www.youtube.com/watch?v=zQvqDv4vbEg
Cultural Sensitivity and Tolerance
 Successful foreign marketing begins with cultural
sensitivity —being familiar with nuances of
culture.
 A new culture can be viewed objectively, evaluated,
and appreciated.

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Cultural Sensitivity Has to Be Cultivated

 Cultural sensitivity can be developed by acquiring

knowledge about a culture including:
• Different meanings of colors, and different tastes
• General facts about aculture

 It can also be developed by learning the morein-

depth meaning of cultural facts:
• The meaning of time, and attitudes towardpeople
• Developing a degree of insight

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Cultural borrowing

“ A responsible effort to learn from others’

cultural ways in the quest for better solutions
to a society’s particular problem.”

(Cateora & Pervez 2013)

Resistance to Change
 Although some cultures embrace change others are
resistant to it

• Working women in masculine societies like SaudiArabia

• Lack of acceptance of GM foods (or“Frankenfood”) in

Europe

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Planned & Unplanned Cultural Change

1. Cultural Congruence
- This strategy involves marketing products similar to
ones already on the market in a manner as
congruent as possible with existing cultural norms,
thereby minimising resistance.

2. Planned change
- Deliberately set out to change those aspects of the
culture offering resistance to predetermined
marketing goals.
McDonald’s Food Throughout the World

https://www.youtube.com/watch?v=9ORiKlpasOw
Discussion Questions

1) Discuss how McDonald adapts to the cultures of

the country of your own choice (eg: Language,
consumer lifestyles, etc) for its menu adaptation
strategy.

2) Choose three foreign uncontrollable elements

that can impact McDonald’s menu adaptation
strategy and assess these elements based on
the country of your own choice.
End

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