It is not just speaking a common language.

It is sharing a culture and understanding friendships in the same way Juan Villanonga Former Chairman of Telefonica

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Yuri Walter D. Akiate

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Study and understand the country cultures in which they will be doing business Incorporate this understanding into the marketing planning process

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Global consumer cultures are emerging

Persons who share meaningful sets of

consumption-related symbols Pop culture; coffee culture; fast-food culture

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Cultureways of living, built up by a group of human beings, that are transmitted from one generation to another Culture is acted out in social institutions Culture is both physical and nonphysical

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 Clothing

 Decorative Art

 Body Adornment

Homes

Religion Perceptions Beliefs Attitudes Values

The sense of what is beautiful and what is not beautiful What represents good taste as opposed to tastelessness

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

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In Ireland, the evening meal is called tea, not dinner. In Asia, when a person bows to you, bow your head forward equal or lower than theirs. A nod means "no" in Bulgaria and shaking the head side-to-side means "yes. The number 7 is considered bad luck in Kenya, good luck in the Czech Republic.

In Thailand, it is considered unacceptable to touch a person's head, or pass something over it. Red is a positive color in Denmark, but represents witchcraft and death in many African countries. Italians wave goodbye with palm up and fingers moving back and forth; but in Asia, waving with the palm down is not interpreted as goodbye, but rather, "come here. Offering gifts when you visit a home is expected in Japan, but in the Soviet Union it may be considered a bribe.

The world has more than 3,000 languages

When Kentucky Fried Chicken entered the Chinese market, to their horror they discovered that their slogan "finger lickin' good" came out as "eat your fingers off" Chinese translation also proved difficult for Coke. They first tried Ke-kou-ke-la because when pronounced it sounded roughly like Coca-Cola. It wasn't until after thousands of signs had been printed that they discovered that the phrase means "female horse stuffed with wax "Pepsi Brings you Back to Life. In Chinese, the slogan meant, "Pepsi Brings Your Ancestors Back from the Grave". "Salem Feeling Free," got translated in the Japanese market into "When smoking Salem, you feel so refreshed that your mind seems to be free and empty.

General Motors Chevy Nova in South America. Despite their best efforts, they weren't selling many cars. They finally realized that in Spanish, "nova" means "it won't go". Ford introduced the Pinto in Brazil. After watching sales go nowhere, the company learned that "Pinto" is Brazilian slang for "tiny male genitals." Coors put its slogan, "Turn It Loose," into Spanish, where it was read as "Suffer From Diarrhea. Scandinavian vacuum manufacturer Electrolux used the following in an American campaign: "Nothing sucks like an Electrolux" Colgate is a Spanish command that means go hang yourself

In Egypt, the country's national color of green is considered unacceptable for packaging, because religious leaders once wore it. In Japan, black and white are colors of mourning and should not be used on a product's package. Similarly, purple is unacceptable in Hispanic nations because it is associated with death.

- Religion can affect shopping patterns and products purchased, in addition to the consumers' values In the Philippines, Christmas time is a major sales period. But for other religions, religious holidays do not serve as popular times for purchasing products. Women do not participate in household buying decisions in countries whose religion serves as opposition to women's rights.

Halls High- Low context culture

Hofstedes Cultural Typology Diffusion Theory

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High Context Information resides in context Emphasis on background, basic values, societal status Less emphasis on legal paperwork Focus on personal reputation Saudi Arabia, Japan

Low Context Messages are explicit and specific Words carry all information Reliance on legal paperwork Focus on non-personal documentation of credibility Switzerland, U.S., Germany

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describes the effects of a society's culture on the values of its members, and how these values relate to behavior

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Power Distance
Individualism vs. Collectivism
Uncertainty Avoidance

Masculinity vs. Femininity

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the extent to which the less powerful members of organizations and institutions accept and expect that power is distributed unequally

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High Power Distance

People believe that

everyone has their rightful place and understand that not everyone is treated equally E.g. Philippines, Latin American Countries

Low Power Distance People believe that everyone should have equal rights and opportunity to change their position in society E.g. USA

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The degree to which individuals are integrated into groups

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Individualist
Individuals tend to

take care of themselves rather than relying on groups Individuals see themselves as somewhat independent of the organization
Children are taught to

Collectivist The in group becomes the major source of ones identity Interaction at work is expected and interaction and relationships prevail over tasks

be independent

Financial support of family is important and expected Employees tend to be dependent on the organization

E.g. USA

E.g. Philippines

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The extent to which the members of a culture feel threatened or uncomfortable dealing with uncertain or unknown factors

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High Uncertainty Avoidance

try to minimize the

occurrence of unknown and unusual circumstances by Creating laws embracing religion Adopting technology E.g. Philippines, Japan, Spain, Greece, Portugal and Peru

Low Uncertainty Avoidance Accept and feel comfortable in unstructured situations or changeable environments and try to have as few rules as possible E.g. USA, Norway, Great Britain, Sweden and Denmark
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The distribution of emotional roles between the genders

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 Aggressiveness Modesty Ambition and hard work are driven by necessity Sensitivity to insult Public criticism is considered unacceptable

Performance Emphasis on people and warm relationship Emphasis on material possessions Nurturance Achievement

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Masculine Culture
Masculine cultures'

Feminine Culture

values are:
Competitiveness Assertiveness Materialism Ambition and power E.g. US, Japan, Ireland

Feminine cultures place more value on relationships and quality of life E.g. Sweden, Denmark, Netherlands
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 the unconscious reference to one's own cultural values in comparison to other cultures
the influence of one's culture on the behavior in a given situation. When put in a situation people tend to respond in a way that is closely associated with their culture.

refers to the tendency of individuals, often unconsciously, to use the standards of ones own culture to evaluate others.
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hampers the ability to assess a foreign market in its true dimension.

To avoid disappointment for entering and remaining in foreign markets, it is important to have respect for cultural differences in each of the markets of different countries and it is really important to know the history, traditions and trends of potential markets.
the natural self-reference criterion - the unconscious reference to our cultural values - is the root of most international business problems. 4-34

Within the Muslim tradition, the dog is considered a dirty animal, so portraying it as mans best friend in an advertisement is counterproductive.
Packaging, seen as a reflection of the quality of the real product, is considerably more important in Asia than in the U.S., where there is a tendency to focus on the contents which really count.

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also known as the

theory

diffusion of innovations

a theory that seeks to explain how, why, and at what rate new ideas and technology spread through cultures.
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The 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 Trial Evaluation Adoption

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Innovation is something new factors that affect the rate at which innovations are adopted include:

Relative advantage Compatibility Complexity Trialability Observability

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Relative

advantage

The degree to which a product is perceived as superior to existing substitutes

Compatibility

The degree to which a product is consistent with existing values and product knowledge , past experiences and current needs. Incompatible products diffuse more slowly than compatible products E.g.

The introduction of contraceptives is incompatible in countries where religious beliefs discourages birth control

Complexity

The degree of difficulty involved in understanding and using a new product.

The more complex the product, the slower the diffusion

Observability
The degree to which the benefits or other results of using the product can be observed by others and communicated to target customers

Trialability
The degree to which a product can be tried on a limited basis E.g

It is much easier to try a new toothpaste or breakfast cereal than a new automobile or computer. Demonstrations in show rooms and test drives are different from in home trial use.

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 Cultural factors are so important they can sometimes raise the cost of doing business.
Example:

"Historically, class divisions were an important aspect of British Culture, and for a long time, firms operating in Great Britain found it difficult to achieve cooperation between management and labor. Class divisions led to a high level of industrial disputes... and raised the costs of doing business in Great Britain relative to the costs in other European countries..."

 Business organizations should understand the

processes of gradual cultural change and be prepared to satisfy the changing needs of consumers.
Example:

"The role of women in society is changing as men and women increasingly share expectations in terms of employment and household responsibilities. Examples of marketing responses include cars designed to meet the needs of career women and ready prepared meals, which relieve working women of their traditional role in preparing household meals."

 Marketers who intend to market products overseas must be

sensitive to foreign cultures. Marketers who ignore these differences risk failure in implementing marketing programs.
Example:

" Maxwell House advertised itself as the "great American coffee" in Germany. It found out that Germans have little respect for American coffee."

 Educate yourself about a new culture. Business

practices which are successful in one group of countries may be entirely inappropriate in another group of countries.
Example:

American Motors Matador brand had problems in Puerto Rico because matador means killer.

 Changes in cultural values can create new marketing opportunities.

Example:

Increasing health values have led many restaurants to add new healthy or heartconscious items (with reduced levels of fat, sugar, and cholesterol) to their menus. "

 Understanding the content of culture is useful for designing effective marketing strategies.
Example:

The Marlboro Company took its famous lone cowboy advertisement to Hong Kong in the early 1960's.However, the image of the cowboy riding off in the distance by himself led the Chinese to wonder what he had done wrong. "

 Although cross-cultural differences can be large and distinctive, in some cases people seem to have rather similar values and consumer product relationships.
Example:

MTV around the World At any given time, an estimated 2 million people are watching MTV, and 1.2 million of those viewers are located outside the United States.

 Acquire

factual and interpretive knowledge about the other culture, and try to speak their language

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Avoid

cultural bias

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Develop

cross-cultural

skills.

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