Culture PowerPoint Presentation PDF

Chapter 4 Cultural Dynamics in Assessing Global Markets ©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written Definitions and Origins of Culture 2 o...

Chapter 4 Cultural Dynamics in Assessing Global Markets ©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written Definitions and Origins of Culture 2 of 11 Culture Sum of values, rituals, symbols, beliefs, and thought processes that are learned and shared by a group of people, then transmitted from generation to generation Resides in the individual’s mind Large collective of people can be like-minded Exhibit 4.4 Origins, Elements, and Consequences of Culture Jump to long description. Definitions and Origins of Culture Geography Includes climate, topography, flora. Impacts history, technology, economics, society Professor of Marketing, Philip Parker Geography has a strong influence on history, economics, and consumer behavior Definitions and Origins of Culture History Specific historical events have great impact Ripple effects of World War II Germany’s mistrust of propaganda; unusual limitations on marketing practices Definitions and Origins of Culture Social Institutions Family, religion, school, the media, government, corporations Definitions and Origins of Culture 9 of 11 Religion Affects value systems, habits, outlook on life, products bought School Affects all aspects of culture Literacy rates Performance of education systems is a leading indicator of economic competitiveness The Media Media time has replaced family time Definitions and Origins of Culture Government Less influential Governments try to influence the thinking and behavior of adults Use of propaganda, laws to influence Corporations Diffusion of innovation Dynamics of Global Population Trends Population Impacts Demand Current estimate: more than 7.5 billion people Projected by 2050: about 9.8 billion Almost all growth will occur in underdeveloped regions 85% of population will be concentrated in these regions Dynamics of Global Population Trends Aging Global life expectancy has increased greatly in last 50 years U.N. projects drastic increase in older population by 2050 65 to 84 years: 3x increase 85 years and over: 6x increase 100 years and over: 16x increase Leads to economic strain High pension and healthcare costs Elements of Culture 1 of 8 Five elements of Culture Values Rituals Symbols Beliefs Thought processes Elements of Culture 2 of 8 Cultural values reflect what a society believes is right or wrong. Hofstede’s dimensions Hofstede’s National Cultural Typology 4-13 Elements of Culture 3 of 8 Cultural Values and Consumer Behavior Can help predict consumer behavior patterns Consumption of luxury goods Consuming with immediate vs. long-term goals in mind Word-of-mouth communications Elements of Culture 4 of 8 Rituals Patterns of behavior and interaction that are learned and repeated Associated with major life events: marriage, funerals, graduation Elements of Culture 5 of 8 Symbols Anthropologist Edward T. Hall: culture is communication Language itself thought of as an important social institution Aesthetics as symbols Art, folklore, music, drama, dance, dress, cosmetics Elements of Culture 6 of 8 Beliefs Mainly stem from religious training, varies by culture Relationship between superstition and religion unclear Western aversion to the number 13 Important part of cultural fabric of a society Influence all manners of behavior Cultural Change Similarities: An Illusion Cultures can be distinct even with some commonalities Common language, race, heritage do not guarantee similarities The myth of globalisation | Peter Alfandary | TEDxAix Cultural Change Resistance to Change Consumers in different cultures display differing resistance Important for international marketers to understand Can’t wait a long time for acceptance of innovation Must gain acceptance within limits of financial resources and projected profitability periods  Marketing Implications of Social and Cultural Environments Cultural factors must be considered when marketing consumer and industrial products Environmental sensitivity reflects the extent to which products must be adapted to the culture-specific needs of different national markets 4-20 Environmental Sensitivity 4-21  Implications: Dietary Preferences Domino’s Pizza pulled out of Italy because its products were seen as “too American” with bold tomato sauce and heavy toppings. Subway had to educate Indians about the benefits of sandwiches because they do not normally eat bread. Although some food preferences are deeply rooted in culture, global dietary preferences are converging. Pasta, pizza, sushi, other ethic foods 4-22  Implications: The Meaning of Color Yellow indicates a merchant in India Red signifies good luck and celebration in China 4-23  Implications Universal aspects of the cultural environment represent opportunities to standardize elements of a marketing program Increasing travel and improved communications have contributed to a convergence of tastes and preferences in a number of product categories 4-24 Cultural Change Why do societies change? Adjusting to environmental and historical changes War, natural disasters Result of society seeking ways to improve and imitate developed/leading nations Americanization, McDonaldization, Golden Arches Theory?????? 4-26