Cultural Dynamics in

Assessing Global
Markets
 The International Marketing Task
Foreign environment
(uncontrollable)
Political/legal 1 Economic
forces forces
Domestic environment
(uncontrollable)
2
7 Competitive
1-5 Political/
legal (controllable) structure Competitive
Cultural Forces
forces
forces Environmental
Price Product
uncontrollables
7 3 country market A
Channels of
Promotion Environmental
distribution
6 uncontrollables
country
market B
Geography Level of
Economic climate Technology Environmental
and
Infrastructure uncontrollables
4
5 country
Structure of market C
distribution

Irwin/McGraw-Hill Copyright©2002 by The McGraw-Hill Companies, Inc. All rights reserved.

 4

Elements of Culture
 Material Culture
 Technology  Economics

4-2 Ž Social Institutions

 Family  Political Structure
 Education  The Media
Ž Humans and The Universe
 Belief Systems
Ž Aesthetics
 Graphics and Plastic Arts  Music, Drama, and Dance
 Folklore or
 Language

Irwin/McGraw-Hill Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
 Fractured Translations
English Translations made by Japanese firm that were added to
labels to increase prestige for their products being sold in China.
4-3
Product English Translation
Equivalent to Japanese Spam Liver Putty
Toilet Paper My Fanny Brand
Ready to Eat Pancakes Strawberry Crap Dessert
Antifreeze Spray Hot Piss Brand
Pediatrician’s Slogan Specialist in Deceased
Children

SOURCE: “Some Strawberry Crap Dessert, dear?” South China Morning Post,
Irwin/McGraw-Hill December 9, 1996 p. 12.
 4

It’s Not the Gift That Counts, but How Your Present It

Japan Do not open a gift in front of a Japanese

counterpart unless asked, and do not expect the
4-4
Japanese to open your gift.
Avoid ribbons and bows as part of the gift wrapping.
Bows as we know them are considered unattractive,
and ribbon colors can have different meanings.
Do not offer a gift depicting a fox or badger. The fox
is the symbol of fertility; the badger, cunning.

Europe Avoid red roses and white flowers, even numbers,

and the number 13. Do not wrap flowers in paper.
Do not risk the impression of bribery by spending
too much on a gift.

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Copyright©2002 © 2002
The by The McGraw-Hill
McGraw-Hill Companies,
Companies, Inc. rights
Inc. All All rights .
reserved.
reserved
 4

It’s Not the Gift That Counts, but How Your Present It…

Arab World Do not give a gift when you first meet someone. It
may be interpreted as a bribe.
Do not let it appear that you contrived to present the
4-5 gift when the recipient is alone. It looks bad unless
you know the person well. Give the gift in front of
others in less –personal relationships.
Latin America Do not give a gift until after a somewhat personal
relationship has developed unless it is given to
express appreciation for hospitality.
Gift should be given during social encounters, not in
the course of business.
China Never make an issue of a gift presentation—publicly
or private.
Gifts should be presented privately, with the
exception of collective ceremonial gifts at banquets.
Irwin/McGraw-Hill Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
 Cultural Factors
 Never touch the head of a Thai or pass an object over
it
The head is considered sacred in Thailand.
4-7  Avoid using triangular shapes in Hong Kong,
Korea and Taiwan. It is considered a negative shape.
 The number 7 is considered bad luck in Kenya, good
luck in the Czech Republic and has a magical
connotation in Benin.
 The number 10 is bad luck in Korea.
 The number 4 means death in Japan.
 Red represents witchcraft and death in many African
countries.
 Red is a positive color in Denmark.

Irwin/McGraw-Hill SOURCE: Business America, July 12, 1993

 4

Whose English?
United States United
Kingdom
4-8 Trunk Boot
Hood Bonnet
Convertible Top Hood
Elevator Lift
Toilet W.C.
Bathroom Tub or Shower
Vacuum Hoover
??? Shag
Bloody ???

Irwin/McGraw-Hill Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
 Cultural Change
Pas de Franglais

4-9 Old New

Prime Time Heures de grande ecoute
(hours of largest audience)
Air Bag Coussin gonflable de
protection (Inflatable cushion
of protection)
Cookie Sable americain
Trans. (American cookie)

Irwin/McGraw-Hill SOURCE: Adapted from “La Guerre Franglaise,” Fortune, June 13, 1994, p. 14.
 The Matrix of Culture
How the cultural values are
Deep
HELD

Shallow
Narrow Wide
Shared
 The Nature of Assumptions

 Humanity’s Relationship to the

Environment
 The Nature of Human Nature
 The Nature of Human Relationships
 The Nature of Human Activity
 The Nature of Reality and Truth
 4

Cultural Values Four Dimensions

 Individualism/Collective Index (IDV)

4-6
 Power Distance Index (PDI)
 Uncertainty Avoidance Index (UAI)
 Masculinity/Femininity Index (MAS)

Irwin/McGraw-Hill Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Impact of Culture on Managerial Behaviour
 Communication
High Context Low context
Explicit Implicit
 Negotiation – 5 stages

1. Planning
2. Non-Task time
3. Exchanging Information
4. Attempts to Influence the Other Party.
5. Mutually acceptable Exchange is agreed upon
Decision Making
Decision Making
on Making
1. Who Makes the Decision

2. How Decisions are Made

3. Decisions in Uncertain Environment

Cross Cultural Analysis to Isolate
the SRC Influences
 Step 1: Define the business problem or goal in
home-country cultural traits, habits, or norms.
 Step 2: Define the business problem or goal in
foreign-country cultural traits, habits, or norms.
Make no value judgements.
 Step 3: Isolate the SRC Influence in the problem and
examine it carefully to see how it complicates
the problem.
 Step 4: Redefine the problem without the SRC
influence and solve for the optimum business
goal situation.*