Lecture 3 & 4: Ch. 3–4 | Int'l Marketing-MKTG 335-G | Chad Jardine, Utah Valley University, 2015–2017

International Marketing: MKTG 335-G
Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners.
International Marketing
MKTG 335-G

Quote of the Week
“Don’t bunt. Aim out of the ballpark.
Aim for the company of immortals.
• —David Ogilvy

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
History and Geography:
The Foundations of Culture
Chapter 3

Takeaways Chapter 3
What You Need to Know:
• The importance of history and geography in understanding
international markets
• The effects of history on a country’s culture
• How culture interprets events through its own eyes
• How long-past U.S. international policies still affect customer
attitudes abroad
• The effect of geographic diversity on economic profiles of a country
• Why marketers need to be responsive to the geography of a country
• The economic effects of controlling population growth and aging
populations
• Communication infrastructures are an integral part of international
commerce

The basis for world trade is the differences between countries

Where does
culture come
from?

Culture evolves as people live in a place over time.

History
What is history?

Events over time = history.

History
Historical events between nations influence
business and history

History
Any nation’s business and political culture
are shaped by history
Mount Nemrut, Turkey

“History is a set of lies agreed upon.”
—Napoleon Bonaparte

History
History is subjective

Like the map is subjective

Historical Context
1192–1867
700 years under
the shogun
feudal system

Historical Context
1853
The arrival of
Commodore Perry
opening relations
with the U.S.
1192–1867
700 years under
the shogun
feudal system

Historical Context
1800–1900s
Threat of
domination by
colonial powers, rise
of new social
classes, undefeated
wars with neighbors.
1192–1867
700 years under
the shogun
feudal system
1853
The arrival of
Commodore Perry
opening relations
with the U.S.

Historical Context
1800–1900s
Threat of
domination by
of new social
classes, Undefeated
1945
Japanese surrender to
Allied forces at the
end of WWII
1192–1867
700 years under
the shogun
feudal system
1853
The arrival of
Commodore Perry
opening relations
with the U.S.

Historical Context
1800–1900s
Threat of
domination by
of new social
classes, Undefeated
1945
Japanese surrender to
Allied forces at the
end of WWII
1945 +
Increasing influence
of Western culture
1192–1867
700 years under
the shogun
feudal system
1853
The arrival of
Commodore Perry
opening relations
with the U.S.
Gyaru Youth, Japan

Case in Point: Japan
▪ Why do the Japanese have such strong loyalty
toward their companies?
▪ Why is a distribution system so difficult for an
outsider to develop?
▪ Why are decisions made by consensus?
▪ Why are they loyal to family, to country, to
company, and to social group?

Manifest Destiny
▪ Manifest Destiny and Monroe Doctrine
were the basis of U.S. foreign policy in
the 19th and 20th centuries
▪ Manifest Destiny meant that Americans
were a chosen people ordained by God
to create a model society. It referred to
the territorial expansion of the United
States from the Atlantic to the Pacific
John O’Sullivan
First coined Manifest Destiny 1839

President James Monroe, originator
of the Monroe Doctrine—a defining
moment in U.S. foreign policy.

Three premises under the Monroe
Doctrine:
• No further colonization of the New World
by Europe
• U.S. abstains from European political
affairs
• Nonintervention by Europe in the
governments of the Western Hemisphere

26
Exhibit 3.1. Source: Oxford Atlas of the World, 18th ed., 2002 Preprinted with permission of Philip Maps 3-7

The environment or place = geography.
Events over time = history.

Why study
Geography in
International
Marketing?

One does not simply launch…
…a product in Uzbekistan.

Geography and Global Markets
Climate & Topography Geography, Nature and
Economic Growth
Social Responsibility &
Environmental Management Resources

Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. 3-11
Climate & Topography

Knowledge about geography,
the climate and physical terrain
when appraising a market…
Mount Athos, Greece

…influences marketing from
product adaptation to the
development of marketing
systems.
Mount Athos, Greece

Climactic features affect uses and function
of products and equipment.

Products may require special cooling or lubrication
to function properly in tropical zones

Climate differences in Europe caused Bosch-Siemens
to alter its washing machines.
Heidelberg, Germany

Geographic terrain, such as mountain ranges in a country,
can influence transportation of products
Yangshuo, China

Geography, Nature & Economic Growth

There is a correlation between geographic location
and economic growth.
Eastern Mongolia

Hostile climates are associated with economic stagnation.
Africa

Haiti
Countries that suffer the most from major calamities are
among the poorest in the world, which influences ability to
market products.

Resources

Resources
Natural
resources key to
manufacturing &
production;
supply not
endless
Human labor
provides much
of the energy in
many countries
Importance of
oil & gas in
world energy
consumption

47
Exhibit 3.3 Source: EuroMonitor International, 2012; Intergovernmental Panel on Climate Change
3-15

Source: Key World Energy Statistics 2015, International Energy Agency

49
Exhibit 3.4 Source: Data compiled from Energy Information Administration (EIA), International Energy
Outlook 2011 (Washington, D.C. 2012), http://www.eio.doe.gov/ 3-16

Social Responsibility & Environmental Mgt

Environmental protection is an essential part of
the complex process of doing business.

Of special concern to governments
and businesses are ways to stem the
tide of pollution and clean up
decades of neglect.
China

Many governments are drafting new
regulations and enforcing existing ones.

It’s motivating to realize that
pollution is on the verge of getting
completely out of control.
China

Global Population Trends

Important to know population trends/shifts.

Rural to urban shifts, growth rate, age levels,
population control, population aging and decline,
worker shortage and immigration

Exhibit 3.5 Source: World Population Prospects, The 2011 Revision, United Nations Economic and Social Affairs, www.unpopulation.org. 2012.
Africa
N. America
Latin America
Europe
Asia
Oceania
2011 (=100M people)
2050 estimate
Life expectancy
?
79.3
73.4
75.1
54.1
76.2
68.9
77.1 Developed 65.6 Less Developed 55.9 Least Developed

1-‹#›
Population Control Issues
▪ Adequate Incomes
▪ High literacy levels
▪ Education for women
▪ Health care
▪ Family planning
▪ Cultural attitudes
▪ Political reasons

Trade Routes & Communication
Silk Road Trade Route Between India and China

Photo Credit: Business Insider
“The best way to predict the
future is to create it.”
—Peter Drucker
Author & Management Consultant
Quote of the Week

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Cultural Dynamics in
Assessing Global Markets
Chapter 4

Takeaways Chapter 4
What You Need to Know:
• The importance of culture to an international
marketer
• The origins of culture
• The elements of culture
• The impact of cultural borrowing
• The strategy of planned change and its consequences

Culture influences every part of our lives
Culture’s pervasive impact

Culture influences every part of our lives

Culture impacts birth rates

Birth rates impact sellers of
diapers, toys, schools and colleges

Consumption of different foods impacts culture

Chocolate by the Swiss

Beef by the British

Wines by the French and Italians

Even diseases are influenced by culture

Such as stomach cancer in Japan

liver disease in Germany

and lung cancer in Spain

Exhibit 4.2 Patterns of Consumption (annual per capita) Source: EuroMonitor International, 2010, 2012

Three definitions of culture:
1. Culture is the sum of the
“values, rituals, symbols,
beliefs, and thought
processes that are
learned, shared by a
group of people, and
transmitted from
generation to generation”

2. “software of the mind,
problem-solving
tool” (Hofstede)

3. “An invisible barrier… a
completely different way
of organizing life, of
thinking, and of conceiving
the underlying
assumptions about the
family and the state, the
economic system, and
even Man himself” (Hall)

Consequences
Origins, Elements, and Consequences of Culture
Origins
History
Geography
(climate, topography, flora, fauna, microbiology)
Social Institutions
(family, religion , school, media, government, corporations)
Technology & Political Economy
Peers Elements of Culture
(values, rituals, beliefs, thought processes)
Imitation
Management Styles
Consumption
Decisions & Behaviors
Adaptation/Innovation
Application
Socialization/
Acculturization

Eastern Mongolia
Geography, which includes climate, topography, flora, fauna, and
microbiology, influences our social institutions
Origins of Culture: Geography

Eastern Mongolia
Jared Diamond states that historically innovations
spread faster east-to-west than north-to-south

Eastern Mongolia
Philip Parker reports strong correlations between the latitude
(climate) and the per capita GDP of countries

Origins of Culture: History
▪ The impact of specific events in
history can be seen reflected in
technology, social institutions,
cultural values, and even
consumer behavior
▪ The military conflicts in the
Middle East in 2003 bred new
cola brands, Mecca Cola, Muslim
Up, and Arab Cola

For example, American trade policy depended on tobacco
being the original source of the Virginia colony’s economic
survival in the 1600s
Origins of Culture: History

Origins of Culture: The Political Economy
For most of the 20th Century, three approaches to
governance competed for world dominance:
• Fascism
• Communism
• Democratic Free Enterprise

Fascism fell in 1945

Communism crumbled in the 1990s

The oldest system still stands

Socialism?

Origins of Culture: Technology
Technological innovations influence cultural values
Jet aircraft, air conditioning, televisions, computers, and
the Internet have all influenced culture

Religious 
Value 
Systems
School 
& 
Education
Government 
Policies
Social 
Institutions
Family 
Behaviors
Corporations
Media
4-15

Origins of Culture: Social Institutions
Social institutions including family, religion,
school, the media, government, and
corporations all affect culture

The family, social classes, group behavior,
age groups, and how societies define
decency and civility are interpreted
differently within every culture

1. Family behavior varies across the
world, e.g., extended families
living together to Dad washing
dishes
2. Religious value systems differ
across the world, e.g., Muslims
not allowed to eat pork to Hindus
not allowed to consume beef
3. School and education, and
literacy rates affect culture and
economic growth

4. 4. Media (magazines, TV, the Internet) influences culture and
behavior

5. Government policies
influence the thinking and
behaviors citizens of adult
citizens, e.g., the French
government offers new “birth
bonuses” of $800 given to
women as an incentive to
increase family size

6. Corporations influence culture via the products
they market, e.g., MTV

Rituals
Thought 
Processes
Beliefs
Cultural 
Values
Symbols
Elements 
of 
Culture
4-19

1-‹#›
Cultural Values
▪ Hofstede, who studied over 90,000 people in 66 countries,
found that the cultures differed along four primary
dimensions
• Individualism/Collective Index (IDV), which focuses on self-
orientation
• Power Distance Index (PDI), which focuses on authority
orientation
• Uncertainty Avoidance Index (UAI), which focuses on risk
orientation; and
• Masculinity/Femininity Index (MAS), which focuses on
assertiveness and achievement

1-‹#›
Individualism/Collectivism Index
• The Index refers to preferences for self-interested behaviors
• High IDV reflects an “I” mentality, tends to reward individual
initiative
• Low IDV reflects a “we” mentality and subjugates the
individual to the group
• Collectivism=from birth onward people are integrated into
strong, cohesive groups, which protect them in exchange for
unquestioning loyalty

1-‹#›
Power Distance Index
• PDI measures power inequality between superiors and
subordinates
• High PDI tend to be hierarchical and value power and status
• High PDI favors those who hold power are entitled to
privileges
• Low PDI value equality and reflect egalitarian views

1-‹#›
Uncertainty Avoidance Index
• UAI measures tolerance of uncertainty and ambiguity
• High UAI are highly intolerant of ambiguity, experience anxiety
and stress, accord a high level of authority to rules as a means
of avoiding risk
• Low UAI are associated with low anxiety and stress, a
tolerance of deviance and dissent, and a willingness to take
risks

111
Exhibit 4.7 Hofstede's Indexes, Language, and Linguistic Distance Source: Geert Hofstede,
Culture's Consequences (thousand Oaks CA: Sage, 2011). 4-24

1-‹#›
Masculinity/Femininity Index
• Measures extent to which a society stresses achievement or
nurture.
• Masculinity is seen to emphasize ambition, acquisition of
wealth, and differentiated gender roles.
• Femininity is seen to stress caring and nurturing behaviors,
sexual equality, environmental awareness, and more fluid
gender roles.

1-‹#›
Masculinity/Femininity Index

Rituals & Symbols

Rituals are patterns of behavior that are learned and repeated vary
from country to country
e.g., extended lunch hours in Spain and Greece

Language as Symbols: the “languages” of time,
space, things, friendships, and agreements

In Canada, language has been the focus of political disputes
Differences in language vocabulary varies widely, even
English is different in different countries

Aesthetics as Symbols: the arts, folklore, music,
drama, and dance of a culture influences
marketing

Whose English?
American English
Hood
Trunk
Elevator
Flashlight
Vacuum
Eraser
Apartment
Cookies
Chips
Fries
Vacation
Yard
Subway
Can
Faucet
Closet
Candy
Stroller
Pacifier
Diaper
British Standard English
Bonnet
Boot
Lift
Torch
Hoover
Rubber
Flat
Biscuits
Crisps
Chips
Holiday
Garden
Underground (Tube)
Tin
Tap
Wardrobe
Sweets
Pram
Dummy
Nappy

Whose English?
American English
Color
Neighbor
Jail
Aluminum
Program
Eon
Airplane
Armor
Canceled
Check
Economize
Encyclopedia
Meter
Filet
Traveler
Fetus
Mold
Filter
Story
Ton
British Standard English
Colour
Naighbour
Gaol
Aluminium
Programme
Aeon
Aeroplane
Armour
Cancelled
Cheque
Economise
Encyclopaedia
Metre
Fillet
Traveller
Foetus
Mould
Philtre
Storey
Tonne

122
Exhibit 4.8 Metaphorical Journeys through 23 Nations
Source: Martin J. Gannon, Understanding global Cultures, Metaphorical Journeys through 23 Nations,
2nd ed. Copright 2001.
4-29

Beliefs, which mainly stem from religious
training, superstition, or tradition, vary from
culture to culture
• The western aversion to the number 13 or
refusing to walk under a ladder
• Japanese concern about Year of the Fire
Horse
• The Chinese practice of Feng Shui in
designing buildings
Beliefs

1-‹#›
Thought Processes
▪ Thought processes also vary across cultures
• “Asian and Western” thinking
• Other examples?

Western vs. Traditional Chinese Medicine

Malcolm Gladwell
Malcolm Gladwell
Author: Outliers
 
Rice paddies and math tests

Malcolm Gladwell
English vs. Chinese
Language of Numbers
Length of number words
Special names(i.e. eleven, twelve
vs. one-one, one-two)
Order e.g., decade first (fifteen
vs. one-five)

Malcolm Gladwell
English vs. Chinese
Language of Numbers
Avg. 4-year old in China counts to 40
vs. 15 in America
Language translation to numbers
adds to the difficulty of doing math for
English-speakers

1-‹#›
Cultural Sensitivity and Tolerance
▪ Successful foreign marketing begins with cultural
sensitivity —being familiar with nuances
▪ A new culture can be viewed objectively,
evaluated, and appreciated.

1-‹#›
Cultural Sensitivity Has to Be Cultivated
▪ Cultural sensitivity can be developed by
acquiring knowledge about a culture including:
• Different meanings of colors, and different tastes
• General facts about a culture
▪ It can also be developed by learning the more in-
depth meaning of cultural facts:
• The meaning of time, and attitudes toward
people
• Developing a degree of insight

This Solo show East meets West by Yang
Liu, which was placed at ministry of foreign
affairs in Germany, is poster art that
compares German / Western culture with
Chinese culture in a way that humorously
captures some societal differences.
Needless to say blue represents Western
culture and red Chinese?
East meets West

Standard of beauty 美丽的标准

Way to solve
problems
处理问题

Senior’s daily life 老人的日常生活

Image of each other 想像中的对方

1-‹#›
Resistance to Change
▪ Although some cultures
embrace change others are
resistant to it
• Working women in masculine
societies like Saudi Arabia
• Lack of acceptance of GM
foods (or “Frankenfood”) in
Europe

http://www.slideshare.net/MarkZatta/nestle-baby-formula-case-study
http://www.nestle.com/aboutus/ask-nestle/answers/nestle-boycott?gclid=CO-
dteq0iMgCFURlfgodhXgH9Q
Nestle: Bottle vs. Breast

For Next Class
Due by Next Class (Feb 1, 2017):
• Case 1 Nestlé (Individual)
• Exam #1 (Chapters 1–4)

Lecture 3 & 4: Ch. 3–4 | Int'l Marketing-MKTG 335-G | Chad Jardine, Utah Valley University, 2015–2017

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Lecture 3 & 4: Ch. 3–4 | Int'l Marketing-MKTG 335-G | Chad Jardine, Utah Valley University, 2015–2017