importance of culture in marketing

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    CULTURAL

    INFLUENCESON CONSUMER

    BEHAVIOR

    Consumer Behavior

    Lecture 9

    MBA 2K13

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    Lecture Outline

    Understanding culture

    Functional areas in culture

    Cultural dimensions

    Cultural forms

    Cross cultural consumer analysis

    orld !rands

    Frame"or# for glo!al strategy

    $i% glo!al consumer segments

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    What is Culture?

    Culture is the accumulation of shared

    meanings& rituals& norms& and traditions

    Culture is a society's (ersonality

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    Understanding Culture

    Consumers are more li#ely to "ant (roducts

    that resonate "ith a culture's (riorities at any

    given time

    )roducts can reflect underlying cultural

    (rocesses of a (articular (eriod

    Cosmetics made of natural materials "ithout

    animal testing

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    Functional Areas in a CulturalSystem

    *cology

    $ocial structure

    +deology

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    Cultural Dimensions

    Power

    Distance

    UncertaintyAvoidance

    Masculine

    versus

    Feminine

    Individualism

    versus

    Collectivism

    Way members perceive differences in power

    when they form interpersonal relationships

    Degree to which people feel threatened byambiguous situations

    Degree to which gender roles are clearly

    delineated

    !tent to which culture values the welfare of the

    individual versus that of the group

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    Cultural Forms

    ,orms

    Myths

    $tories

    -ituals

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    Norms in Culture

    Enacted norms are

    s(ecifically decided

    on

    Crescive norms are

    discovered as "e

    interact

    Customs"norms

    handed do"n from the

    (ast that control !asic

    !ehavior

    Mores.custom "ith a

    strong moral overtone

    Conventions.normsregarding the conduct of

    everyday life

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    Cultural Stories & Myths

    *very culture

    develo(sstoriesand ceremonies that

    hel( mem!ers ma#esense of the "orld$u(erstitious !eliefs

    Magic remedies

    Myths are stories

    "ith sym!olic

    elements that

    re(resent the sharedemotions/ideals of a

    culture

    $tory characteristicsConflict !et"een o((osing forces

    0utcome is moral guide for (eo(le

    Myth reduces an%iety !y (roviding

    guidelines

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    Rituals

    -ituals are sets of multi(le&sym!olic !ehaviors that occur

    in a fi%ed seuence and that

    tend to !e re(eated

    (eriodically Many consumer activities are

    ritualistic

    *veryday tri(s to $tar!uc#s$unday !runch

    aving coffee "ith a colleague at

    the same time everyday

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    Rituals and rands

    e all have everyday

    rituals that tend to !e

    !rand.s(ecific

    o" do you feel "hen

    your favorite !rands arenot availa!le4

    Consider these rituals5

    6etting ready for !ed

    Chec#ing e.mail

    $having

    )utting on ma#eu(

    Fortress!rands are

    those thathave !ecome

    em!edded in

    our

    ceremonies

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    Ritual Arti!acts

    Many !usinesses !enefit !ecause they

    su((ly ritual artifacts to consumers

    eddings

    Birthdays

    6raduations

    olidays

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    "rooming Rituals # "i!t$"i%ing Rituals

    7ransition from(rivate to (u!lic self

    7ransition from "or#

    self to leisure self

    ,atural state to

    social "orld

    Consumers (rocure the(erfect o!8ect& meticulously

    remove the (rice tag&

    carefully "ra( it& then

    deliver it to reci(ient

    6ift giving is a form of5*conomic e%change

    $ym!olic e%change

    $ocial e%(ression

    *very culture (rescri!es

    certain occasions and

    ceremonies for giving gifts

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    oliday Rituals

    olidays are !ased on a myth "ith acharacter at center of storyChristmas

    $t )atric#'s ay

    Mar#eters find "ays to encourage gift giving

    -etailers elevate minor holidays to ma8orones to (rovide merchandising o((ortunities

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    Rites o! 'assage

    -ites of (assage5 s(ecial times mar#ed !y achange in social status

    $e(aration

    Liminality

    Aggregation

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    Sacred and 'ro!ane Consum(tion

    $acred consum(tion5involves o!8ects and events

    that are set a(art from

    normal activities that are

    treated "ith res(ect or a"e

    )rofane consum(tion5

    involves consumer o!8ectsand events that are ordinary

    and not s(ecial

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    Desacrali)ation

    esacrali:ation5 "hen a sacred

    item/sym!ol is removed from its s(ecial

    (lace or is du(licated in mass uantities

    ;!ecomes (rofane of

    Issues

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    Com(arisons o! Chinese andAmerican Cultural *raits

    Chinese

    Cultural Centered on

    Confucian doctrine $u!missive to

    authority

    Ancestor "orshi(

    ?alues a (erson'sduty to family and

    state

    American

    +ndividual centered

    *m(hasis on self.

    reliance

    )rimary faith inrationalism

    ?alues individual

    (ersonality

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    Cross$Cultural ConsumerAnalysis

    $imilarities and

    differences among

    (eo(le

    7he gro"ing glo!al

    middle class

    7he glo!al teen

    mar#et

    Acculturation

    6ro"ing in Asia& $outh

    America& and *astern

    *uro(e Mar#eters should focus

    Issues

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    Cross$Cultural ConsumerAnalysis

    $imilarities and

    differences among

    (eo(le

    7he gro"ing glo!al

    middle class

    7he glo!al teen

    mar#et

    Acculturation

    7here has !een gro"th inan affluent glo!al teenage

    and young adult mar#et 7hey a((ear to have

    similar interests& desires&and consum tion !ehavior

    Issues

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    Cross$Cultural ConsumerAnalysis

    $imilarities and

    differences among

    (eo(le

    7he gro"ing glo!al

    middle class

    7he glo!al teen mar#et

    Acculturation

    Mar#eters must learn

    everything that is

    relevant a!out the

    usage of their (roductand roduct cate ories

    Issues

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    Alternati%e MultinationalStrategies+ "lo,al -ersus Local

    Favoring a orld Brand

    Are 6lo!al Brands ifferent4

    Multinational -eactions to Brand

    *%tensions

    Ada(tive 6lo!al Mar#eting

    Frame"or#s for Assessing Multinational

    $trategies

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    WorldBrands

    Products that are

    manufactured,

    packaged, and

    positioned the same

    way regardless of the

    country in which they

    are sold.

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    Why Does One o! the World.s Most ighly RegardedWrist/atch rands Use a Single "lo,al Ad%ertising

    Strategy 0Only -arying the Language1?

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    *hey S(ea2 to *hem in *heir O/n Languageto Ma3imi)e their 4Com!ort 5one67

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    Are "lo,al randsDi8erent? According to a survey @ yes

    6lo!al !rands have5uality signal (consumers belief)

    6lo!al myth (citizen of the world)

    $ocial res(onsi!ility (sales revenue and

    investments)

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    Multinational Reactions torand 93tensions

    A glo!al !rand does not al"ays have

    success "ith !rand e%tensions

    *%am(le Co#e !rand e%tension @ Co#e

    (o(corn*astern culture sa" fit and acce(ted the

    !rand e%tension

    estern culture did not see fit

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    Ada(ti%e "lo,alMar2eting Ada(tation of advertising message to s(ecific

    values of (articular cultures

    Mconald's uses locali:ation

    *%am(le -onald Mconald is onald Mconald ina(an

    a(anese menu includes corn sou( and green teamil#sha#es

    0ften !est to com!ine glo!al and local mar#etingstrategies

    McDonalds, Levis, and Reebok, prefer to usemulti-local strateies

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    Frame/or2 !or AssessingMultinational Strategies

    6lo!al

    Local

    Mi%ed

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    COMMUNICATON

    STRATEGY

    STANDARDIEDCOMMUNICATIONS

    !OCA!IEDCOMMUNICATIONS

    STANDARDIED

    "RODUCT

    Glo#al strate$y%

    Uniform Product/ Uniform

    Message

    Mi&ed Strate$y%

    Uniform Product/

    Customized Message

    !OCA!IED

    "RODUCT

    Mi&ed strate$y%

    Customi'ed "rodu(t)

    Uni*orm Messa$e

    !o(al Strate$y%

    Customized Product/

    Customized Message

    "RODUCTSTRATEGY

    A Frame/or2 !or Alternati%e"lo,al Mar2eting Strategies

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    Cross$Cultural'sychogra(hic Segmentation

    7he only ultimate truth (ossi!le is that

    humans are !oth dee(ly the same and

    o!viously different

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    Si3 "lo,al Consumer Segments

    Stri+ers De+outs

    Altruists Intimates

    ,unSeeers

    Creati+es

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    #triversare am!itious and materialistic

    evoutsare res(onsi!le and res(ectful

    Altruistsunselfish in their concern for others Intimates focus on social relationshi(

    Fun see$ers are young in age and outloo#

    and value a good time Creativessee# #no"ledge and have

    interests in !oo#s and ne" media