Ethnic Subcultures and International Marketing

Agenda

• The agenda for an International Marketing lecture includes introducing international marketing, market selection, and market entry.
• It also covers the role of culture, marketing decisions on product and brand, international pricing, international distribution, and international communication and advertising.
• The lecture further details the importance and elements of culture, dimensions of culture, and other cultural variables such as stereotypes and ethnocentrism.

Insensitivity to Cultural Differences

• Insensitivity to cultural differences can have harmful consequences.
• Euro Disney, a Walt Disney subsidiary, faced resistance in France due to concerns about cultural imperialism linked to American multinationals.
• The French press and intellectuals viewed Euro Disney as a threat.

Culture Eats Strategy for Breakfast

• This quote by Peter Drucker highlights the crucial role of culture in international business.
• Culture significantly impacts business strategies.

Tasks of International Marketers

• International marketers must study and understand the cultures of business destinations.
• Understanding their own cultural influences on perceptions is also critical.
• This knowledge should be incorporated into marketing planning.

What is Culture?

• Culture is defined as the collective programming of the mind that distinguishes one group of people from another (~Geert Hofstede)

Other Definitions of Culture

• Culture encompasses knowledge, beliefs, art, morals, law, custom, and any other capabilities and habits. (Taylor, 1871)
• It includes the distinctive way of life of a group of people, the complete design for their living. (Kluckhohn, 1951)
• It also encompasses a society's personality (Solomon, 2009)

Society and Culture

• Culture encompasses ways of living built up by human beings, transmitted between generations.

• Culture includes conscious and unconscious values, norms, attitudes, symbols, and is manifested in social institutions.

• Culture encompasses both physical elements (clothing, tools) and non-physical aspects (religion, beliefs).

Culture in B2B Relationships

• Different cultures have various recommended and problematic behaviors in business relationships.
• US, British, French, Russian, and Chinese customers have specific communication styles, negotiation tactics, levels of formality, and other relevant details.

Guanxi - Chinese Business Mentality

• Guanxi is a crucial Chinese business concept.
• It signifies any type of relationship, important in Chinese business networks.
• Favors are exchanged as expected gestures in business dealings.
• This relationship-driven approach often differs significantly from Western approaches to business.

Material and Non-Material Culture

• Culture encompasses diverse physical elements like clothing, tools, and decorative art.
• There are also abstract aspects like attitudes, beliefs, values, norms, and body adornment, along with aspects like houses.
• Internal cultural elements include practices, materials, social interactions, aspects like religion, aesthetics, upbringing, and the language (both verbal and nonverbal).

Values and Norms

• Values are beliefs about desirable behavior or outcome.
• Norms dictate right and wrong, acceptable versus unacceptable behaviors.
• Enacted norms are explicitly decided.
• Crescive norms are embedded within a culture, including customs, mores, and conventions.

Ignoring Values

• Ignoring cultural values can have negative consequences.
• For example, Adidas canceled a shoe design with shackles after consumers viewed it as a slavery symbol.

Cultural Differences: Example of Different Value Systems

• The United States prioritizes wealth, consumption, and individuality, with emphasis on individual motivation, a decline in Protestant work ethic, and less emphasis on close social ties.
• East Asian countries emphasize equity over wealth, saving, group values, respect for age, and cohesive family ties.

Dietary Preferences

• Domino's Pizza's withdrawal from Italy was attributed to their products being perceived as "too American" in terms of tomato sauce and heavy toppings.
• Dunkin' Donuts’ success in India was after introducing a local burger option.

Subcultures

• Subcultures represent smaller groups within larger cultures sharing common values, attributes, and beliefs (e.g., vegetarians).

Subcultures and Ethnicity

• Ethnic subcultures form self-perpetuating consumer groups united by cultural or genetic ties rooted in common origins.
• Members tend to reside within enclaves, intermarry, share common cultural values, and display shared senses of belonging.
• Ethnic groups present possibilities for effective marketing segmentation by understanding their ethnic preferences.

Meeting the Needs of Ethnic Subcultures

• There are ethnic media specific to ethnic groups (e.g., magazines) addressing their particular needs.

De-Ethniticization

• This is the process where a product initially associated with a particular ethnic group is marketed to a wider range of subcultures beyond that initial context.

Culture Appropriation

• The example of Dior demonstrates how cultural appropriation should be considered.

Aesthetics and Color

• Colors represent different connotations in various cultures.
• Red can represent witchcraft or death in some African countries, while being viewed positively in other cultures.
• White represents purity, but can also signify death; grey signifies low quality or affordability in some cultures.

The Number 7

• The number 7 carries different cultural meanings (lucky or unlucky) depending on the culture.

Music

• Music exists across all cultures.
• Many cultures use music that varies by the region or country, with strong cultural associations.

Education

• Literacy levels vary significantly among countries.
• Advertisers must adapt media and content based on literacy levels and cultural practices.

Language Fails

• Issues arise when translating product names/campaigns across languages.
• The product name might not carry the intended message because of cultural difference.

Language and Communication

• Certain word pronunciations or symbolic representations can carry different meanings or connotations, which must be considered in international business contexts.

Avoiding Cultural Fails

• Understanding one's own cultural norms is crucial.
• Using the self-reference criterion is dangerous and should be avoided.
• Defining problems in terms of the host country culture is important, avoiding judgments based on own culture.
• Isolate influences of the self-reference criterion to solve the host-country situation.

Disney in France & Tokyo

• Disney's experiences in France and Tokyo highlight cultural differences in consumer preferences.
• Adapting to local cultural norms helps in achieving successful marketing strategies.

Hofstede’s Cultural Typology

• Hofstede's cultural typology presents 5 cultural dimensions (Power Distance, Individualism/Collectivism, Masculinity/Femininity, Uncertainty Avoidance, and Time Orientation) to understand international market differences.

Power Distance

• The extent to which less powerful members of a society accept inequality.
• In high-power-distance cultures, such as South America, India, and China, there is wide acceptance of inequality, while low-power-distance cultures such as Denmark, the Netherlands, Great Britain, and the United States often actively challenge this inequality.

Individualism vs. Collectivism

• Individualism promotes personal achievement over group interests, whereas collectivism emphasizes group harmony and social obligations.

Masculinity vs. Femininity

• Masculinity emphasizes achievement, competitiveness, and material success, whereas femininity emphasizes solidarity and quality of life.

Uncertainty Avoidance

• The extent to which people in a society feel threatened by ambiguity and uncertainty. In high-uncertainty-avoidance cultures, rules and regulations are highly valued.

Long-Term Orientation

• The degree to which a society encourages thrift and perseverance.

Indulgence vs. Restraint

• Indulgence favors freedom of gratification, whereas restraint emphasizes strict social norms in managing basic and natural desires.

Country Differences (Example)

• Analyzing the IKEA catalog demonstrates how cultural interpretations can vary.

The World Value Survey

• The dimensions of the WVS map of the world show values vary.

Using Stereotypes Positively

• Brand information from the country of origin can impact consumer perceptions favorably—assuming it will produce products similar to their quality.

Ethnocentrism

• The belief that one's own culture is superior guides purchasing behavior.
• Strength of ethnocentrism is seen in promotional campaigns ("Made in America").
• Ethnocentrism is reflected in targeted advertising in specific locations.

References

• Specific references are not included due to the nature of the request.