International Marketing - Part 3

International Marketing - Part 3

• Guanxi (Chinese Business Mentality): A network of relationships among cooperating parties, emphasizing pre-existing relationships and reciprocal favors. Two approaches to business relationships exist:
  • Guanxi-based: Building relationships first, then transactions.
  • Western-style: Transactions first, developing relationships over time.

Abstract Culture - Values and Norms

• Values: Beliefs about desirable behaviors or outcomes.
• Norms: Rules dictating acceptable/unacceptable actions.
  • Enacted norms: Explicitly defined rules.
  • Crescive norms: Deeply embedded, unwritten rules (Examples: customs like giving red envelopes, or mores like avoiding cheating on a spouse).
  • Conventions: Everyday behavioral expectations (e.g., shaking hands in Western cultures).

Cultural (Internal) Elements - (Ethnic) Subgroups

• Subcultures: Smaller groups within a larger society sharing unique values and attitudes (e.g., vegetarians).
• Ethnic subcultures: Self-perpetuating groups with shared heritage or genetic ties. Characteristics include common ancestry, tendency to live in close-knit groups, marrying within the group, and shared cultural identity.

Cultural (Internal) Elements - Aesthetics

• The perception of beauty and tastelessness.
• Visuals: Color, shape, and packaging designs convey different meanings across cultures.
• Style: Different degrees of complexity are perceived differently.
• Color examples: Red has different meanings; considered auspicious in some cultures or representative of death in others, white often associated with purity in the West but with death elsewhere; Gray could mean inexpensive in certain places but signify high quality in others.

Cultural (internal) elements - Music

• Music styles are associated with specific regions or countries. Understanding cultural appropriateness in advertising is crucial.

Cultural (internal) elements - Religion

• Organizational strategy needs to consider the potential offense, illegality or disapproval of products, services or campaigns that could be disrespectful to local religious beliefs.

Cultural (internal) elements - Upbringing and Education

• Widespread illiteracy influences advertising material and communication strategies. Countries with the lowest literacy rates are highlighted.
• Advertising methods must be adapted to low literacy levels via audio or visual messages.

Cultural (internal) elements - Language (verbal and nonverbal)

• Understanding cultural language subtleties and nonverbal communication is key.
• Self-reference criterion: unconsciously referring to one's own cultural values.
• Reduction of cultural myopia includes separating the home country/host country perspectives.

Typologies of Culture - High vs. Low Context Cultures (Hall)

• High-context cultures: Information is implicit, context-dependent, and nonverbal cues are important.
• Low-context cultures: Information is explicit, direct, and verbal communication is primary.

Typologies of Culture - The Cultural Dimensions of Hofstede

• Power Distance: The degree to which inequality is accepted in society.
  • High power distance: Cultures accept unequal power distribution.
  • Low power distance: Cultures prefer equality in power distribution.
• Individualism vs. Collectivism: The degree to which individuals are integrated into groups.
  • Individualistic Cultures: prioritize individual needs and goals.
  • Collectivist Cultures: emphasize group needs and goals.
• Masculinity vs. Femininity: The distribution of roles between genders.
  • Masculine Cultures: focus on achievement and competition.
  • Feminine Cultures: emphasize cooperation and quality of life.
• Uncertainty Avoidance: The preference for structured situations.
  • High uncertainty avoidance: Prefer clear rules and structure.
• Long-Term Orientation: The focus on the future or the past.
  • Long-term orientation: emphasize future rewards and planning.
  • Short-term orientation: prioritize present needs and obligations.
• Indulgence vs. Restraint: The degree to which desires are regulated. 
  • Indulgent Cultures: encourage gratification of desires.
  • Restrained Cultures: regulate gratification of desires.

Cultural Differences in Brand Perception

• Cultural differences greatly affect how brands are perceived.
• Standardized products may vary in how they're received depending on cultural values.
• Local marketing is often necessary for brands to effectively resonate in distinct cultures.

Typologies of Culture- Inglehart's World Value System

• Two Key Dimensions:
  • Secular-Rational vs. Traditional Values.
  • Self-Expression vs. Survival Values.

Market Selection & Segmentation

• Understanding value orientations helps in identifying ideal market segments based on cultural preferences.