Marketing Across Cultures (2013) Exam Notes PDF

Marketing Across Cultures (2013) Exam Notes 1. Culture and Self-Understanding Concepts a) Culture Shock The feeling of disorientation when exposed to an unfamiliar culture with diCerent norms and practices. Definition: Disorientation or discomfort experienced when entering a diCerent...

Marketing Across Cultures (2013) Exam Notes 1. Culture and Self-Understanding Concepts a) Culture Shock The feeling of disorientation when exposed to an unfamiliar culture with diCerent norms and practices. Definition: Disorientation or discomfort experienced when entering a diCerent cultural environment. Examples: A manager working in Japan struggling with indirect communication norms compared to direct Western styles. Misinterpreting silence as agreement, leading to business missteps. A businessperson from the US working in Japan might struggle with indirect communication styles, which contrast sharply with the direct approaches they are used to. b) Self-Shock The realization that one’s own cultural norms may not be universally accepted or eCective in another context. Definition: Disorientation when one’s own cultural norms are questioned or invalidated. Examples: A salesperson in a collectivist society realizing their usual individualistic pitch doesn’t resonate. A Western executive adapting to collective decision-making processes. A Western marketer discovering that emphasizing individual achievement in advertisements doesn’t resonate with collectivist cultures like China. c) Ethnocentrism The belief that one’s own culture is superior to others, leading to biased judgments. Definition: Belief that one’s own culture is superior to others. Examples: Assuming Western marketing styles (e.g., flashy advertisements) work globally. Dismissing local traditions, leading to consumer alienation. A company that insists on using Western imagery in its advertisements globally, alienating audiences in non-Western markets. 2. Cultural Barriers and Their Impacts a) Cultural Hostility Negative attitudes or resistance toward another culture. Definition: Active resistance or negative attitudes toward another culture. Examples: Avoidance of foreign brands due to political or cultural conflicts. Boycotts of Western products in Middle Eastern countries. Political tensions leading to boycotts of foreign brands, such as the rejection of US products in some Middle Eastern countries. b) Racism Definition: Discrimination based on race or ethnicity. Examples: A hiring manager overlooking qualified candidates due to racial bias, causing talent loss. Advertising campaigns failing due to lack of diversity sensitivity. An advertising campaign that lacks diversity in its models, sparking backlash in multicultural markets. c) Self-Reference Criterion (SRC) Judging other cultures through the lens of one’s own cultural norms. Definition: Tendency to interpret other cultures through the lens of one’s own culture. Examples: Assuming certain symbols (e.g., colors) carry the same meaning globally (e.g., white for purity vs. mourning). Misjudging a product’s appeal in another country due to personal biases. A company assuming that the color white symbolizes purity worldwide, not realizing it represents mourning in some Asian countries. 3. Dimensions of Culture (Hofstede’s Framework) a) Individualism vs. Collectivism - Individualism: Emphasis on personal goals and independence. - Collectivism: Focus on group harmony and shared goals. Examples: Marketing tailored to “stand out” works better in the US; in Japan, it’s better to emphasize family values. In the US, ads highlighting personal success are eCective, whereas in Japan, family- oriented messages resonate more. b) High Power Distance vs. Low Power Distance Definition: High Power Distance: Acceptance of hierarchical structures. Low Power Distance: Preference for equality and flat structures./Preference for equality and collaborative decision-making. Examples: Decision-making centralized in high power distance cultures like India, whereas decentralized in Scandinavian countries.  In India, managers often make decisions top-down (high power distance), while in Sweden, teams collaborate on decisions (low power distance). c) High Context vs. Low Context Communication - High Context: Relies on implicit messages and non-verbal cues. - Low Context: Focuses on clear, direct communication. Definition: High Context: Communication relies on implicit cues and context (e.g., Japan). Low Context: Direct and explicit communication (e.g., USA). Examples: Misinterpreting vague feedback in high-context cultures as approval, leading to errors. In Japan, subtle body language is important (high context), while in the US, verbal clarity is valued (low context). 4. Cultural Dimensions (Hofstede’s Framework) a) Masculinity vs. Femininity Definition: Masculinity: Emphasis on competition and achievement. Femininity: Emphasis on quality of life, nurturing relationships. and cooperation. Examples: Aggressive advertising in masculine cultures like Japan vs. cooperative tones in feminine cultures like Sweden. Aggressive sales strategies work well in masculine cultures like Japan, while community-focused marketing resonates in feminine cultures like Sweden. b) Strong vs. Weak Uncertainty Avoidance Definition: Strong: Preference for rules and predictability. Weak: Comfort with ambiguity and flexibility. Examples: Risk-averse decision-making in Germany (strong UA) vs. tolerance for risk in the USA (weak UA). Germans often require detailed contracts (strong uncertainty avoidance), while Americans adapt quickly to changes (weak uncertainty avoidance). c) High Context vs. Low Context Communication Definition: High Context: Relies on implicit communication and non-verbal cues. Low Context: Focuses on clear, explicit messages. Example: Japanese business meetings emphasize subtle cues (high context), whereas US meetings value straightforward communication (low context). 5. International Marketing Strategies a) Standardization vs. Adaptation Definition: - Standardization: Using a uniform strategy globally.Same strategy across markets. Adaptation: Tailoring strategies to local cultures and markets. Pros and Cons: Standardization reduces costs but risks cultural mismatch. Adaptation increases local appeal but raises costs. Example: Coca-Cola maintains consistent branding worldwide but adapts product flavors to suit regional preferences. b) Geographical Concentration vs. Dispersion Definition: Concentration: Focus on specific markets. Focusing resources on fewer key markets. Dispersion: Spread across diverse markets.Spreading resources across many markets for global reach. Pros and Cons: Concentration builds deep market knowledge but limits reach. Dispersion diversifies risks but can dilute resources. Example: A company might focus on developed markets for eCiciency but enter multiple countries to build a global presence. c) Integration vs. Independence Definition: Integration: Coordinating global strategies across markets. Unified global strategy. Independence: Allowing local oCices to adapt strategies./ Allowing subsidiaries autonomy. Pros and Cons: Integration ensures consistency but reduces flexibility. Independence allows local innovation but may lack cohesion. Example: McDonald’s integrates its global branding but adapts menus locally (e.g., McSpicy Paneer in India). 6. Advertising Influences a) Language Definition: Variations in language and meaning can lead to misunderstandings in messaging. Example: Pepsi’s slogan "Come Alive" was misinterpreted in China as "Bring your ancestors back to life." b) Humor Definition: Humor is culture-specific and may not translate well across regions. Example: Sarcasm in US advertisements might fail in Japan, where politeness is emphasized. c) Characters Represented Definition: Preferences for characters depend on cultural values. Example: Family-oriented characters work well in collectivist cultures like India, while heroic individual characters appeal in the US.