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Understanding Role Culture International Marketing

UNDERSTANDING CULTURE To understand consumers consumption choices, we have to be aware of the cultural background to that activity. Need to understand local cultures, lifestyles and ideologies Reflect local culture and local values, culture by culture Culture & Consumer Behaviour

Cultur Culture e & Mark Marketing eting Implic Implicaati tions ons A consumer's culture exerts a large influence on their consumption habits and consumption patterns Understand as much about cultural differences, norms & preferences, to understand the local marketplace.

Avo Avoiid Costly Mista stakkes People’s roots, local values, beliefs, cultures, iconography and language, ignore it at your peril. Avoid advertising that is culturally too neutral: not offensive to any culture, not interesting to any either. Avoid the disconnect between local teams and global HQ.

What is Culture A society’s personality. Character of a whole society. A way of life. Laws, music, language, art, religion, knowledge... all the factors that give society its personality. The accumulation of shared meanings, rituals, norms and traditions among the members of a society. Shared system of beliefs & value, each culture has its own set of core values & beliefs.

Lens in which we see the world

What is Culture? Culture includes both conscious and unconscious values, ideas, attitudes, symbols which shape behaviour. Habitual acting, feeling, thinking channelled by a society. Culture acts to guide us in our relations to our surroundings and to other people. Culture is adaptive and may change rapidly or slowly. Culture responds to the physical and social environment

Cultur Culture e is not st static, atic, it is ev evolving. olving. Ecology: the way people adapt to their habitat. Social Structure: the way orderly social life is maintained. Ideology: the mental characteristics of the people and the way they relate to their environment. Worldview, Ethos.

Cultu Culturre is Learned The process of learning one’s culture is called enculturation Culture is transferred from older to younger generations. Socialisation Socialisation Agents: family, education systems, institutions Life experiences, learned behaviours Task of learning a new culture, acculturation, is the process of movement and adaptation from one culture to another. Increased globalisation we encounter other cultures

Globalisation The Rise of the G Globa loba loball Co Consumer nsumer The rise of the global consumer, convergence of cultures Levitt 1983 “Globalisation of Markets’

Glo Globali bali balisatio satio sation n Convergence of cultures Homogenisation of consumers needs and wants Emergence of a global cultural system Emergence of a global society Economic, cultural, political, media connectivity Cultures become amalgamated into a global whole Uniformity and standardisation

Global Consumer Rise of The Global Consumer Positively disposed to foreign brands and foreign cultures. Global teenager: similar values regardless of country of origin. Global brands as symbols of cultural ideals. Global brands as expression of citizens of the world. .

Convergence & Divergence of Consumer Behavior

Con Conver ver verggence & Div Diver er erggence of Consumer Beha Behavior vior Diversity remains Globalisation doesn’t cancel out cultural differences. Understanding culture key to understanding these difference Adaptation V Standardisation Convergence V Divergence “GLOCAL” and glocal consumers Local consumers, Glocal Consumers, Global Consumers

Thin Thinkk Globally Globally.. Act Loc Locally ally Globalisation. Think global: global mindset and consider opportunities beyond borders. Act refers to actions. Localisation. Act Local: give attention to issue at local level and complexities at local levels. Act refers to actions. Local values, norms, CULTURE.

Under Underst st stan an andi di ding ng Cul Culture ture Challenge for international and global brands! Balance: maintain universal brand promise AND stay culturally appropriate& culturally relevant Global brands can provide locally relevant expressions of their brand. Global brands can make relevant and meaningful connections with consumers.

The Power of Global brands need to master the power of culture Achieve cultural relevance in all territories and resonate in every culture it operates in Forge deep connection with the culture ‘competing for cultural share” Global brands as icons in every culture they play in

The Power of How can our brand resonate with a new country / territory? Know the dominate values of that culture Know the unique cultural characteristics to be considered To what extent to those cultural dimensions vary from home culture

Under Undersstan anding ding Com Compon pon ponents ents of Cultu Culturre Values Norms Myths Hero’s Rituals Symbols

Compon Componen en ents ts of Cultur Culture e Values Core beliefs / standards used to judge one’s own behaviour and the behaviour of others. Ideas about good and bad goals. Norms From values flow norms or rules Beliefs regarding how to behave and not to behave Create expectations and criteria regarding the conduct of others

Compon Componen en ents ts of Cultur Culture e Myths & Stories Stories containing symbolic elements that express the shared ideals of a culture. Values are defined in terms of what they are and what they are not. Stories & Myths to express and transfer culture. Help make sense of the world around us Help express values and ideals Provide consumer with guidelines about their world.

Compon Componen en ents ts of Cultur Culture e HERO’S Identify Cultural Hero’s Who they admire, revere and look up to Celebrity, Historical Figures, Sport Hero’s Everyday Hero’s, Fictional Hero’s Provides an insight into what a culture values. Dominant Values of that society. Consider Hero’s among subcultures.

Compon Componen en ents ts of Cultur Culture e Rituals A ritual is a set of multiple, symbolic behaviours, which occur in a fixed sequence and tend to be repeated periodically. Rituals & Rites of Passage

Compon Componen en ents ts of Cultur Culture e Symbols Shared symbols Used to communicate with each other Verbal (languages, localisms) or non verbal Sacred Symbols

Cultur Culture e & IIn nterna ternatio tio tional nal Mark Marketing eting The Hofstede Model to understand cultural differences

Cultur Cultures es dif difffer in ttheir heir emphas emphasiis The Hof Hofsstede Model 1. 2. 3. 4. 5. 6.

Power Distance Individualism V Collectivism Masculinity V Femininity Uncertainty Avoidance Pragmatism Indulgence

Po Pow wer Distance Extent to which the less powerful members of society accept and expect that power is distributed unequally. Equality with society. How power is distributed. Societies with low power distance, people strive to equalize the distribution of power and demand justification for inequalities of power. How a society handles inequalities Low Power Distance, strive to equalize the distribution of power.

Ind Individualism ividualism V Collec Collectivism tivism Degree of interdependence a society maintains. ‘I’ or ‘we’ Individual societies people look after themselves and their direct family. Individual uniqueness and self determination is values. Collectivist society, people belong in ‘groups’ that take care of them in exchange of loyalty and compliance. Tend to accept different groups have different values.

Mas Mascul cul culiinit ityy V Femi emini ni nin nity Masculinity: society is driven by competition, achievement, assertiveness and success being defined by winning. Society at large is more competitive.

Femininity: dominant values in society are cooperation, caring for others and quality of life. Quality of life is a sign of success. Society at large is more consensus –orientated.

Uncer Uncertain tain taintty Avoid idance ance Degree to which a society feels uncomfortable with uncertainty or ambiguity.

Long TTerm erm O Orien rien rienttati tion on V Sho Short rt Term Norma Normativ tiv tive e Extent to which a society maintains links to its past while dealing with challenges in the future. Low indicates a society that prefers to maintain traditions. More pragmatic approach to modernization. Extent to which the two goals are values. Long term orientation V short term normative orientation.

Ind Indulg ulg ulgence ence V R Re estr traaint Extent to which those try to control their desires and impulses. Societies that are classified by indulgence priorities desire to have fun. Tend to be optimistic and place a high priority on leisure time.

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Under Undersstanding Pow ower er of o off Some Consider Consideraations! • Which cultural dimensions may be applicable as the best first guess about your host country? • How do they differ from your brand’s home market? • Which of them could inform your marketing strategy? • What imagery should be avoided? Promoted? • What are the dominant values? • Are there any latent values that are important to your specific segment, or in your industry of choice? • What unique cultural characteristics need to be taken into account in order to increase appeal for your target audience?...