1. Social and Cultural Environments
Krizelle A. Dinlasan
MBA6
Mrs. Priscilla Mendoza

2. Why study social and cultural
environments?
The task of global marketer is twofold:
1. Marketers must study and understand the country cultures in which they will be
doing business.
2. This understanding must be incorporated into the marketing planning process.
People must overcome the prejudices that are a natural result of human
tendency toward ethnocentricity. Although “culture shock” is normal human reaction to
the new and unknown, successful global marketers strive to comprehend human
experience from the local point of view.

3. Culture - ways of living, built up by a group of human beings, that are transmitted by one
generation to another.
A culture acts out it ways of living in the context of social institutions:
Social, Culture, and Global
Consumer Culture
Culture includes both conscious and unconscious values, ideas, attitudes, and symbols that
shape human behavior and that are transmitted from one generation to the next.
Organizational anthropologist Geert Hofstede defines culture as “the collective
programming of the mind that distinguishes the members of one category of people from
those of another.”

4. Social, culture, and global conSumer culture, cont…
- physical component or physical culture and
includes physical objects and artifacts
created by humans such as clothing and
tools.
- also known as subjective or abstract
culture includes tangibles such as religion,
perception, attitudes, beliefs, and values.
Interrelated and interactive
Cultural anthropologist George P. Murdock identified “culture universals”:
athletic sports, body adornment, cooking, courtship, dancing, decorative art,
education, ethics, etiquette, family feasting, food taboos, language, marriage, mealtime,
medicine, mourning, music, property rights, religious rituals, residence rules, status
differentiation, etc.
Persons who identify with cultures share meaningful sets of consumption-related symbols,
some of these associated with specific product categories: fast-food culture, credit card
culture and coffee culture, and so on.

5. - a learned tendency to respond in a consistent way to a given object or entity and are
clusters of interrelated beliefs
- an organized pattern of knowledge that an individual hold to be true about the world.
- an enduring belief or feeling that a specific mode of conduct is personally or socially
preferable to another ode of conduct.
- represent the deepest level of a culture and are present in the majority of the
members of a particular culture.

6. - favors Western fashion (e.g. American brands)
- unique in the world
- strive to achieve, cooperation, consensus, self-denial, and harmony

7. With any large, dominant cultural group, there are likely to be subcultures, that is, smaller
groups of people with their own shared subset of attitudes, beliefs, and values. They often
represent attractive niche marketing opportunities.
Globalization can result in situations that challenge BAV:
attitudeS, beliefS, and valueS, cont…
A case in point is the 1998 merger of
Germany’s Daimler-Benz and American Chrysler
Corporation. Many American Jews shun
products from German company in an effort to
honor the memory of Holocaust victims. Young
people were taught by their parents not to by
German products.
There is a sense of betrayal among this
group that Chrysler joined forces with a German
company.
Volkswagen, the “people’s car” was
designed on Hitler’s orders.

8. Within every culture, there is shared sense of what is beautiful as opposed to ugly and
what represents good taste as opposed to tastelessness.
Embodied in the color or shape of a product, label or package
Various degrees of complexity
There is nothing inherently “good” or “bad” about any color of
the spectrum; all associations and perceptions regarding color
arise from culture.

9. -besides being color of blood, tied to centuries-old viticulture and wine
making
-associated with active, hot, vibrant, emotional, sharp
-with positive connotation in many societies but poorly received in some
African countries
aeStheticS, cont…
-connotes purity and cleanliness in the West but is associated with death
in parts of Asia
-connotes inexpensive in China and Japan, while associated with high
quality and expensive in the United States
Associations for soft drinks and good tasting:
Chinese South Korean and Japanese American

10. aeStheticS, cont…
- an aesthetic component of cultures, accepted as form of artistic expression and source of
entertainment.
Bossa nova rhythms = Argentina
Samba = Brazil
Salsa = Cuba
Reggae = Jamaica
Blues, rock, hip hop, rap = America
National identity derives in part from a country’s indigenous or popular music; a unique
style that can “represent the uniqueness of the cultural entity and of the community”.
Music provides an interesting example of “think global, act local”.
Because music plays an important role in advertising, marketers must understand what
style is appropriate in a given national market.

11. Cultural influences are also quite apparent in food preparation and consumption patterns
and habits.
Russians eat caviar from sturgeon harvested in the Caspian Sea. In Finland, reindeer is on the menu.
French considers rabbit to be a delicacy. Rice and grilled fish are regularly eaten for breakfast in Japan.
Hindus in India serve themselves with the right hand rather than use utensils; they prepare food with
spices that create a level of hotness that many Westerners would find unpalatable.
A solid understanding of food-related cultural preferences is important for any company
that markets food or beverage products globally. Companies that lack sensitivity are
bound to make marketing mistakes.
Attempted to market corn in Europe where the
prevailing attitude that corn is a grain fed to hogs and
not to people.

12. Notwithstanding these facts, there is plenty of evidence that global dietary preferences
are converging.
dietary preferenceS, cont…
Fast food culture
Le Big Mac
Vs.

13. The diversity of cultures around the world is also reflected in language. A person can learn
a great deal about another culture without leaving home by studying its language and
literature; such study is the next big thing to actually living in another country.
1. SYNTAX (rules of sentence formation)
- English has relatively fixed word order; Russians have fee word order.
2. SEMANTICS (system of meaning)
- Japanese words convey nuances of feeling for which other language lack exact correlation;
“yes “ or “no” can be interpreted differently than in other languages
3. PHONOLOGY (system of sound patterns)
- Japanese does not distinguish between the sounds “l” and “r”. English and Russian both
have “l” and “r” sounds.
4. MORPHOLOGY (word formation)
- Russian is a highly inflected language, with six different case endings for nouns and
adjectives; English has fewer inflections.

14. language and communication, cont…
Unspoken or nonverbal communication (also called as silent language) includes gestures,
touching, and other forms of body language that supplement spoken language.
Both the spoken and unspoken aspects of language are included in the broader linguistic
field of semiotics, which is the study of signs and their meanings.
In global marketing, language is a crucial tool for communicating with customers, channel
intermediaries, and others. The marketing literature is full of anecdotal references to
costly blunders caused by incorrect or inept translations of product names and advertising
copy.
Marketers must also be aware of subcultures created by intranational language or dialect
differences.
In Switzerland, in addition to Swiss German dialects, there are communities of French,
Italian, and Romansch speakers. In addition, Swiss German and standard German iffer in significant
ways.
American English and British English provides another illustration of how the same
language in different countries can be characterized by linguistic differences.

15. language and communication, cont…
Means “go hang yourself” in Spanish
Former name was factory outlet
Consumers from Italy, France, and
Germany had trouble pronouncing
company’s name
Word chosen by Renzo Rosso since it is
pronounced the same in every language
The closest word in Japanese “kaji” denotes
“domestic duties” not appealing to housewives

16. language and communication, cont…
Technology is providing interesting new opportunities for exploiting linguistics in the name
of marketing.
In Korea, the phonetic pronunciation of numerical sequence 8282 means “hurry up” and 7170 sounds
like “close friend”; also, on most keypads, 4 5683 968 can be interpreted as “I love you”.
One impact of globalization on culture is the diffusion of English language around the
globe.
For Americans in particular, Language can help individuals develop rapport with persons
who speak English as a second language. Rather than belittling or mocking persons who
mispronounce English words, those who have studied another language have insights to
the underlying linguistic sources of those mistakes.

17. language and communication, cont…
In Japan many consumer packaged goods - including some that are not imported – have
English, French or German on the labels to suggest a stylish image and Western look.
Product Written message Intended message
Coffee
Ease Your Bosoms. This coffee has
carefully selected high quality beans
and roasted by our all experience.
Drinking the coffee provides a
relaxing break and “takes a load
of your chest”
Jacket Vigorous throw up. Go on a journey.
Sports bag
A drop of sweat is the precious gift
for your guts.
Notebook
Be a man I recommend it with
confidence as like a most intelligent
stationary of basic design.
Many Western languages lack exact equivalents for the rich variety of Japanese words
that convey feelings.

18. language and communication, cont…
The challenges presented by nonverbal
communication are perhaps even more formidable.
West tends to be
verbal, while East
tends to exhibit
non verbal.
Communication issues – sequencing or phasing

19. language and communication, cont…
Verbal Cues Underlying Reality Adaptation Required
1. “I can go it
alone.”
Americans are typically outnumbered in
negotiations. Reflects culture of individualism.
Greater reliance on teamwork and division
of negotiating labor, especially in collectivist
culture.
2. “Just call me
‘John’.”
Americans place a high value on informality and
equality of participants in negotiations. This may
conflict with customs and class structures of
foreign cultures.
Respect the cultures, hierarchies, and class
structure of other cultures. Learn more via
self study; ask country nationals to explain
local attitudes and values.
3. “Pardon my
French.”
Americans are culturally monolingual.
Ignore the conventional wisdom about how
difficult it is o learn a foreign language; if you
have ongoing business in a country, make
the effort to study their language. At a
minimum develop a good working
relationship with an interpreter.
4. “Get to the
point.”
Americans’ short term orientation manifests itself
as a tendency to be blunt and impatient.
Understand that people from other cultures
need to develop a sense of connection and
personal trust in order to feel comfortable
about doing business. This takes time.
5. “Lay your card
on the table.”
Americans like to state the case up front, and are
not accustomed to “feeling out” prospective
partners.
Slow down, and recognize the need to
rephrase the question, several times, if
necessary. Prepare to spend double the
time you think is need to get the information
you seek.

20. Language and Communication, American Communication
StyleS cont…
Verbal Cues Underlying Reality Adaptation Required
6. “why doesn’t
somebody say
something?”
Americans are uncomfortable with silence during
negotiations and often deal with their discomfort
by continuing to speak.
Recognize that silence is golden in many
cultures. It can be detrimental – to keep a
constant stream of chatter. If there is silence,
let it be. Reflect. Take in nonverbal
information. Value the silence. Take
advantage of it.
7. “Don’t take ‘no’
for an answer.”
Tenacity and the hard sell are highly valued in the
United States.
If the answer is “no,” stop selling and find
out why. Respond for the reasons for the
answer “no.”
8. “One thing at a
time.”
Many Americans favor the linear, organized, “left
brain” negotiation style. “Point One, Point Two”
– style sequencing is not a universal approach.
Recognize your own right brain capability.
Embrace a more holistic approach towards
negotiations. Be patient if the discussion
seems to proceed in loops and spirals.
9. “A deal is a
deal.”
Expectations and perceptions may not be shared
by all parties. Have you agreed on all points in
the contract, or have you agreed to work
together?
Accept a more gradual, supplemental view
of negotiations and joint effort.
10. “I am what I
am.”
Americans have a tendency to see things in black-
and-white terms.
Adopt a more flexible standpoint. Be willing
to change your mind and manner and to
adapt to your opposite.

21. Universal aspects of the cultural environment represents opportunities for global
marketers to standardize some or all elements of a marketing program.
Widespread share preference for convenience foods, disposable products, popular music,
and movies in US, Europe and Asia suggests that many consumer products have broad,
even universal, appeal.
Slow Food is about the idea that things
should not taste the same everywhere.
McDonaldization of culture
“Eating is the heart of most cultures and for many it is
something on which much time, attention, and money are
lavished. In attempting to alter the way people eat,
McDonaldization poses a profound threat to the entire cultural
complex of many societies.” – George Ritzer, sociologist

22. Edward T. Hall, has suggested that the concept of high and low context as a way of
understanding different cultural orientations.
High-and Low-Context
Cultures
• Information resides in context
• Emphasis on background, basic
values, societal status
• Less emphasis on legal paperwork
• Focus on personal reputation
Countries: Saudi Arabia, Japan
• Messages are explicit and specific
• Words carry all information
• Reliance on legal paperwork
• Focus on non-personal
documentation of credibility
Countries: Switzerland, United
States, Germany

23. High-and low context cultureS, cont…
Factors/Dimensions High-Context Low-Context
Lawyers Less important Very important
A person’s word Is his/her bond Is not reliable—get it in writing
Responsibility for
organizational error
Taken by highest level Pushed to the lowest level
Space People breathe on one another Private space maintained
Time
Polychronic – everything in life must
be dealt with in terms of its own
time
Monochronic – time is money.
Linear- one thing at a time.
Negotiations
Are lengthy – a major purpose is to
allow to the parties to get to know
each other
Proceed quickly
Competitive bidding Infrequent Common

24. Cultures of different nations can be compared in terms of five dimensions. Hofstede notes
that the three of the dimensions refer to the expected social behavior, the fourth
dimension is concerned with “man’s search for truth,” and a fifth reflects the importance
of time.
hofStede’S Cultural
Typology
1. Power Distance – extent to which the less powerful members of the society accept –
even expect – power to be distributed unequally.
To paraphrase Orwell, all societies are unequal, but some are more unequal than others. Hong
Kong and France are both high-power distance cultures; low-power distance characterizes
Germany, Austria, the Netherlands, and Scandinavia.
2. –Reflection of the degree to which individuals in a society are integrated into groups.
Individualist – each member of society is primarily concerned with his or her own interest and
those of the immediate family. (US and Europe)
Collectivist – all society’s members are integrated into cohesive in-groups. (Japan and other Asian
countries)

25. 3. Masculinity - describes the society in which men are expected to be assertive,
competitive, and concerned with material success, and women fulfill the role of a
nurturer and are concerned with issues such as welfare of children. (Japan and
Austria)
Femininity - describes the society in which social roles of men and women overlap,
with neither gender exhibiting overly ambitious or competitive behavior.
4. Uncertainty avoidance - extent to which the members of a society are uncomfortable
with unclear, ambiguous, or unstructured situations.
Members of some cultures express strong uncertainty avoidance by resorting to
aggressive, emotional and intolerant behavior; they are characterized by belief in
absolute truth.
Hofstede’s research convinced him that, although these four dimensions yielded
interesting and useful interpretations, they did not provide sufficient insight into possible
cultural bases for economic growth.
hoSftede’S Cultural Typology, five dimensions of culture,
cont…

26. These problem was remedied by a Chinese Value Survey (CVS) developed by Chinese social
scientists in Hong Kong and Taiwan.
5. Long-term Orientation (LTO) vs. short-term orientation – concerning the society’s
search for virtue, rather than search for truth. It assesses the sense of immediacy
within a culture, whether gratification should be immediate or deferred.
Long term values include:
a. Persistence (perseverance) – general tenacity in pursuit of a goal.
b. Ordering relationships – reflects the presence of societal hierarchies.
c. Observing this order – indicates the acceptance of complementary relations.
d. Thrift – manifests itself in high savings rate.
e. Sense of shame – leads to sensitivity in social contacts.
Because of this 5-D, researcher Martin Ross described three types of brand images:
functional, social, and sensory.
Functional brand image – orientation toward problem solving and problem prevention.
Social brand image – fufill consumers’ needs for group membership and affiliation.
Sensory appeal – provides novelty, variety, and sensory gratification.
hoSftede’S Cultural Typology, five dimensions of culture,
cont…

27. hoSftede’S Cultural Typology, five dimensions of culture,
cont…
hierarchical society
collectivistic society
masculine society
low preference
short term

28. As previously shown, a person’s perception of market needs is framed by his or her own
cultural experience. Unconscious reference to one’s own cultural values is termed by
James Lee as self-reference criterion (SRC). To reduce cultural myopia, Lee proposed a
systematic four-step framework.
The Self-Reference
Criterion and Perception
1. Define the problem or goal in terms of home country cultural traits, habits, and norms.
2. Define the problem in terms of host-country cultural traits, , habits, and norms. Make
no value judgments.
3. Isolate the SRC influence and examine it carefully to see how it complicates problem.
4. Redefine the problem without the SRC influence and solve for the host-country
market situation.

29. Three concepts: The adoption process, characteristics of innovation, and adopter
categories (Everett Rogers)
Diffusion Theory
The mental stages through which an
individual passes from the time of
his/her first knowledge of an innovation
to the time of product adoption or
purchase. Different stages:
a. Awareness
b. Interest
c. Evaluation
d. Trial
e. Adoption

30. Five major factors affecting the rate at which innovations are adopted:
a. Relative advantage. How a new product compares with existing products or methods
in the eyes of customers.
b. Compatibility. The extent to which a product is consistent with existing values and past
experiences of adopters
c. Complexity. The degree to which an innovation or new product is difficult to
understand and use.
d. Divisibility. The ability of a product to be tried and used on a limited basis without
great expense.
e. Communicability. The degree to which benefits of an innovation or the value of a
product may be communicated to a potential market.
diffuSion theory, cont…

31. - Classifications of individuals within a market on the basis of their innovativeness.
diffuSion theory, cont…

32. Environmental sensitivity reflects the extent to which products must be adapted to the
culture-specific needs of different national markets.
Marketing Implications of Social and
Cultural Environments

33. Personal relationships are an essential ingredient for international business person.
Managers must learn to question their own beliefs, overcome SRC, an to adapt the way
they communicate, solve problems and even make decisions.
Multicultural managers must learn to question and reevaluate their feelings concerning
such rudimentary management issues such as leadership, motivation and teamwork; this
means an examination of some extremely fundamental and personal systems of belief.
Lastly, managers must learn to overcome stereotypes they hold regarding individuals of
various races and religion from other countries; managers must also diplomatically deal
with stereotypes others may have about them.
Training in Cross-Cultural
Competency

34. THANK YOU!!!
End of Presentation...