1、Global Marketing ManagementChapter 3 Social and Cultural EnvironmentsKeegan:Global Marketing ManagementChapter 3/2OverviewzBasic Aspects of Society&CulturezAnalytical Approaches to Cultural FactorszImpact on Industrial ProductszImpact on consumer ProductszCross-Cultural ComplicationszSummaryKeegan:G
2、lobal Marketing ManagementChapter 3/3Learning ObjectiveszUnderstanding how important cultural&social differences are in global marketingzLearning fundamental concepts that provide an understanding of cultural differenceszUnderstanding where potential conflicts may arise in global business relationsz
3、Knowing how cultural differences impact the marketing of products and servicesKeegan:Global Marketing ManagementChapter 3/4Basic Aspects of Society and CulturezCulture as“ways of living”zConscious and unconscious values,ideas,attitudes,and symbols that shape human behaviourzCulture is learned,not in
4、natezCulture defines the boundaries between different groupszAll facets of culture are interrelatedKeegan:Global Marketing ManagementChapter 3/5The Search for Cultural UniversalszUniversal=Mode of behaviour existing in all cultureszUniversal aspects=opportunities to standardize some or all elements
5、of a marketing programzCultural universals:athletic sports,body adornment,religious rituals,musiczIncreasing travel&improving communications are leading to convergenceKeegan:Global Marketing ManagementChapter 3/6The Anthropologists StandpointzMust understand human experience from the local point of
6、view&become insiders with cultural empathyzNeed combination of tough-mindedness&generosityzTough-mindedness:be secure in your own convictions&traditionszGenerosity:Appreciate the integrity&value of other ways of lifeKeegan:Global Marketing ManagementChapter 3/7High-and Low-Context Cultures(1)zLow-co
7、ntext culture:zMessages are explicitzWords carry most of the information in communicationzUnited States,Switzerland,GermanyKeegan:Global Marketing ManagementChapter 3/8High-and Low-Context Cultures(2)zHigh-context culturezLess information is contained in the verbal part of the messagezMore informati
8、on resides in the context of communication(background,associations,basic values of communicators)zJapan,Saudi ArabiaKeegan:Global Marketing ManagementChapter 3/9High-and Low-Context Cultures(3)FactorsHigh-ContextLow-ContextLawyers-less important-very importantA persons word-his/her bond-get it in wr
9、iting Time-everything is dealt-time is money with in its own timeNegotiations-lengthy-quickCompetitive-infrequent-frequentBiddingKeegan:Global Marketing ManagementChapter 3/10Communication and NegotiationzChallenges in:zVerbal communication zNon-verbal communicationz Knowledge&understanding of cross
10、-cultural differences is crucial during negotiationsz“You can buy in your home-country language but you need to learn your customers language to sell.”Keegan:Global Marketing ManagementChapter 3/11Analytical Approaches to Cultural Factors(1)zMaslows hierarchy of needsSELF-ACTUALISATIONESTEEMSOCIAL N
11、EEDSSAFETY NEEDSPSYCHOLOGICAL NEEDSKeegan:Global Marketing ManagementChapter 3/12Analytical Approaches to Cultural Factors(2)zMaslows hierarchy of needs Asia EquivalentSTATUSADMIRATIONAFFILIATIONSAFETY NEEDSPSYCHOLOGICAL NEEDSKeegan:Global Marketing ManagementChapter 3/13Analytical Approaches to Cul
12、tural Factors(3)zHofstedes cultural typologyzCultures of different nations can be compared in terms of four dimensionszPower distancezIntegration into groupszMasculinityzUncertainty avoidanceKeegan:Global Marketing ManagementChapter 3/14Analytical Approaches to Cultural Factors(4)zSelf-reference cri
13、terion(SRC)and perceptionzPerception of market needs is framed by own cultural experiencezFour-step frameworkzDefine problem in terms of home country normszDefine problem in terms of host country normszIsolate SRC influence.See how it complicates problemzRedefine problem without SRC influence.Solve
14、for host country market situationKeegan:Global Marketing ManagementChapter 3/15Analytical Approaches to Cultural Factors(5)zEnvironmental SensitivityzThe extent to which products must be adapted to the culture-specific needs of different national marketszEnvironmental sensitive productszRequire sign
15、ificant adaptation to the environments of various global markets zEnvironmental insensitive productszDo not require significant adaptationKeegan:Global Marketing ManagementChapter 3/16Handling Cultural Diversity(1)zImpact of social&cultural environments on marketing industrial productszIndustrial pr
16、oducts might exhibit zLower levels of environmental sensitivity zHigher levels of environmental sensitivityKeegan:Global Marketing ManagementChapter 3/17Handling Cultural Diversity(2)zImpact of social&cultural environments on marketing consumer productszConsumer goods are usually more sensitive to c
17、ultural diversity than industrial goodszCulture is changing so rapidly that innovative marketing may be able to change established consumption patterns rooted in cultural differencesKeegan:Global Marketing ManagementChapter 3/18Handling Cultural Diversity(3)zExample:Consumption of Soft Drinks(Y)Y=f(
18、A,B,C,D,E,F,G)z A=influences of other beverages relative prices,quality,tasteB=advertising expenditure and effectiveness,all beverage categoriesC=availability of products in distribution channelD=cultural elements,tradition,custom,habitE=availability of raw materialsF=climatic conditions,temperature
19、,relative humidityKeegan:Global Marketing ManagementChapter 3/19Handling Cultural Diversity(4)zCulture always has been a major source for disagreement and misunderstandingszCross-cultural complications can lead to costly failureszCompanies realize the importance of training and supporting people in
20、cultural awarenessKeegan:Global Marketing ManagementChapter 3/20Cultural Diversity Why People Fail:Ethnocentric OrientationIgnoranceArroganceTime FactorKeegan:Global Marketing ManagementChapter 3/21Summaryz Culture has both a pervasive&changing influence on each national market environmentz Global marketers must recognize the influence of culture z Nations can be classified as high-or low-context cultures z Maslows hierarchy,Hofstedes typology,and the self-reference criterion can provide clues about cultural differences&similarities
