M302_06_lecture6a

International Marketing : 

1 International Marketing Tim Beal Lecture 6 18 August 2006

TODAY : 

2 TODAY Where we’re at Housekeeping Culture Country study: India

Where we’re at : 

3 Where we’re at Been looking at aspects of the international marketing environment Don’t forget that diagram Economic, political, social and technological aspects Last week –Services and specifically education Research project Country study: Japan

HOUSEKEEPING : 

4 HOUSEKEEPING Wine assignment due today Box on mezzanine floor Top left corner If late, hand in to office Don’t forget Name Tutor Tutorial

CULTURE : 

5 CULTURE What is culture? Categories of cultures Why is important for international marketing? Role of language What are the implications of culture?

What is culture? : 

6 What is culture? Many definitions the set of values, assumptions and beliefs shared in common by a group

Definition : 

7 Definition values prestige? Money? Respect of parents, peers, boss?… Assumptions time appointment at 5 means 5, or 5-6, during evening Beliefs 4 is an unlucky number, white is symbol of purity…death

Boundaries of culture : 

8 Boundaries of culture Boundaries are fuzzy Sometimes conterminous with country Samoa, Japan.. NZ Samoans? Many countries are multicultural Strong linkage with language Chinese, German What about English?

Culture only part of story : 

9 Culture only part of story Class Ethnic background Religion Gender

Class : 

10 Class Rich tend to be more ‘cosmopolitan’ May have more in common with rich of other cultures than poor of own

Ethnic background : 

11 Ethnic background Lots of people are members of multiple cultures eg Americans - Afro-Americans, Asian-Americans, Hispanics, WASPS WASP white Anglo-Saxon protestants New Zealand Maori, Pakeha, Asian, Islander ..all NZ

Religion : 

12 Religion Nationality no longer much guide to religion Only small % of Moslems are Arabs Fastest growing religion Christians strong in Africa, South Korea... Christianity was ‘’white, European’ soon most ‘non-white, non-European’

Multiple groups - multiple cultures : 

13 Multiple groups - multiple cultures Cultural studies started with small, relatively isolated cultures Pacific islands (Margaret Meade in Samoa) IM deals with customers subject to diffuse and complex cultural influences Multiple layers of culture eg Chinese NZer, Jewish American… Mixed ethnicity

Change : 

14 Change Culture changes affected by other cultures American values strong influence in IM Contact with foreigners Education Marketing

Categorising cultures : 

15 Categorising cultures Hofstede’s four primary dimensions Hall’s High and Low context cultures

Hofstede : 

16 Hofstede Individualism - collective Power distance social inequality Uncertainty avoidance tolerance of ambiguity Masculinity/femininity assertiveness….caring for others Later added ‘Confucian dynamism’

High context - low context cultures : 

17 High context - low context cultures Analysis originated by Hall Relative importance of spoken and silent languages the more important the silent, the higher the context

low and high : 

18 low and high Low context rely on spoken and written language for meaning high context use and interpret more of the elements surrounding explicit message Swiss, Germans, ..US..Brits...Italians...Arabs...Japanese

Japanese : 

19 Japanese Japanese language varies with age, sex and social position of speaker and listener same sentence will vary depending on- boy with boy woman with woman child to parent junior to senior or superior

Language : 

20 Language Strong connection between language and culture Spoken (written; explicit) Silent (understood)

Languages in IM (I) : 

21 Languages in IM (I) Some countries have one official language England, France, Germany, Japan Some have two Wales, Canada, Belgium, NZ Some have three or more Switzerland, China, Russia

Languages in IM (II) : 

22 Languages in IM (II) Difference between spoken and written language most marked with Chinese separation between written and spoken language also a factor in English UK, USA have strong regional dialects that are not reflected in standard written language could be an issue in TV adverts

Languages in IM (III) : 

23 Languages in IM (III) Official status may be important reflection of large number of speakers legal requirements (eg Canada) Official status may reflect political situation rather than commercial realities Welsh, Maori, Irish

Who speaks what? : 

24 Who speaks what? First language (mother tongue) Chinese 1000 English 350 Spanish 250 Bahasa Indonesia 225 Hindi 200 Arabic 150 Bengali 150

International languages : 

25 International languages English is main business language Used as lingua franca often ‘second best’ not mother tongue of either person may mask miscommunication English now comes in many forms American, British, Indian, Singapore... Importance of global English Avoid slang

English as international language : 

26 English as international language Challenged by German (Eastern Europe, Turkey) Spanish Chinese (Pacific Asia) Hindi (India) vernacular renaissance Vernacular websites

Danger of using English : 

27 Danger of using English May mask substantial differences in business practice and culture May give English native speaker false sense of superiority and security

Problems of translation : 

28 Problems of translation Translation is a skilled business In general, translation should be done INTO mother tongue Need to verify translations Cultural nuances can be crucial More from Ken Muramatsu 29 September

Silent language : 

29 Silent language non-verbal communication what actions, signs and symbols communicate Hall claims that 90% of message in high-context cultures is communicated silently

Aspects of silent language (I) : 

30 Aspects of silent language (I) Time importance of being ‘on time’ varies Space distance between people Things material possessions. Flaunting wealth

Aspects of silent language (I) : 

31 Aspects of silent language (I) Friendship importance of personal relationships differ Agreements based on laws or informal customs? Contract US, NZ..contract result of negotiation and fixes relationship China, Japan, etc. contract’ is beginning of relationship Self-reference criterion Automatically refer to our own cultural values Need to step aside and identify cultural aspect

James Lee - 4 step approach : 

32 James Lee - 4 step approach Define problem/goal in own cultural traits, habits norms Define in foreign terms Isolate the SRC aspect Redefine the problem

Cultural sensitivity : 

33 Cultural sensitivity Some goods and services are more sensitive to culture than others Closer to religious and family practices less likely to be changed by marketing

Examples : 

34 Examples Food and drink often culturally sensitive eg forbidden foods such as pork, beef, dog Korea, dogs Two articles on links page under culture Four Eateries That Make a Delight of Sheep Dog Meat Still Hot Potato in Korea manufactures less culturally sensitive TV, cars, etc

Cross-cultural analysis (I) : 

35 Cross-cultural analysis (I) Determine relevant motivations what needs are fulfilled? Determine behaviour patterns how frequently are these products purchased? Determine what cultural values are relevant to product is product in conflict with cultural values?

Cross-cultural analysis (II) : 

36 Cross-cultural analysis (II) Decision-making who makes decisions? consensus? autocratic? Determine appropriate promotion what is valued? what is taboo? eg dogs in Islamic cultures (NZ education video) Determine appropriate distribution What is available, what is expected?

Culture and communication : 

37 Culture and communication Humour often doesn’t carry over cultural boundaries Attitudes towards sex vary Humour and/or sex are key components of advertising and communication Example: this ad works in India and NZ, not in China or Pakistan. Why?

Slide 38: 

38

Culture and IM : 

39 Culture and IM Don’t assume anything Every aspect of marketing mix must be re-examined Utilise members of target culture But don’t assume that they are typical

INDIA : 

40 INDIA Geography and history Social profile History and Liberalisation Aspects of Indian market Readings

Geography : 

41 large area - 3.2 million sq kms Large population: 984 million Compared to NZ, US, China? Geography

Compared to NZ : 

42 Compared to NZ

India vs China : 

43 India vs China India comparable to China in area and population Will overtake China as world’s largest country soon Compare statistics and attributes Read ‘Asian Titans’ for more on this

Languages and ethnicity : 

44 Languages and ethnicity China 92% Han Use same written Chinese India more diverse Indo-Aryan 72% Dravidian 25% result of successive invasions from North

Indian languages : 

45 Indian languages Hindi (National, 30%) 14 Official languages: Bengali, Telugu, Marathi, Tamil, Urdu, Gujarati, Punjabi..... Unofficial: Hindustani (variant of Hindi/Urdu) common in north also further 24 spoken by 1 million plus Numerous other languages and dialects

English : 

46 English English - ‘associate status’ but widely used in commerce and as ‘lingua franca’ Indian English is different Legitimate Much of best writing in English comes from India

Literacy : 

47 Literacy China: 82% India: 52% Gender imbalance worse than China

Gender and literacy : 

48 Gender and literacy

Life expectancy and growth : 

49 Life expectancy and growth

Result? : 

50 Result? Differences in age structure of population

Age structure : 

51 Age structure

History : 

52 History Successive invasions from north Brought Islam Europeans British Portuguese (Goa) French (Pondicherry) 1947 Independence and partition

Economic strategy : 

53 Economic strategy Initially inward looking import substitution ‘Hindu rate of growth’ 90’s - liberalisation current political crisis but liberalisation will continue

Aspects of Indian market : 

54 Aspects of Indian market British heritage language, law...cricket Diversity Languages Religions: 80% Hindu, 14% Moslem Sikhs, Christians, Buddhists, Jains.. Moslems - 140 million

Social structure : 

55 Social structure

India : 

56 India Big and growing Some things are familiar Diversity is the key Literacy rate of 52% BUT Bangalore is one of world centres for software development Challenging but necessary market

Photos from India : 

57 Photos from India

Readings : 

58 Readings Economist forecast Beal & Lindsay: Opportunities for NZ business in India Coursepage

Programme : 

59 Programme Today Culture India After the break Entry strategies Distribution