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CulturalDynamicsinAssessingGlobalMarketsChapter3ChapterLearningObjectives1.Theimportanceofculturetoaninternationalmarketer2.Theoriginsandelementsofculture3.Theimpactofculturalborrowing4.ThestrategyofplannedchangeanditsconsequencesIntroductionCulturerefersto“thehuman-madepartofhumanenvironment—thesumtotalofknowledge,beliefs,art,morals,laws,customs,andanyothercapabilitiesandhabitsacquiredbyhumansasmembersofsociety〞AsuccessfulmarketermustbeastudentofcultureCultureispervasiveinallmarketingactivities—inpricing,promotion,channelsofdistribution,product,packaging,andstylingImportanceofcultureininternationalmarketingUnderstandingculturecandeterminesuccessorfailureininternationalmarketingCulture’sPervasiveImpactCultureinfluenceseverypartofourlivesCulturesimpactonbirthratesinTaiwan,Japan,andSingaporeBirthrateshaveimplicationsforsellersofdiapers,toys,schools,andcollegesConsumptionofdifferenttypesoffoodinfluenceisculture:ChocolatebySwiss,seafoodbyJapanesepreference,beefbyBritish,winesbyFranceandItalyEvendiseasesareinfluencedbyculture:stomachcancerinJapan,andlungcancerinSpainDefinitionsandOriginsofCultureCulturehasbeenconceptualizedas:“Softwareofthemind〞cultureisaguideforhumansonhowtothinkandbehave;itisaproblem-solvingtool(Hofstede)Aninvisiblebarrier…acompletelydifferentwayoforganizinglife,ofthinking,andofconceivingtheunderlyingassumptionsaboutthefamilyandthestate,theeconomicsystem,andevenManhimself〞(Hall)A“thicket〞(U.S.AmbassadorHodgson)Cultureisthesumofthe“values,rituals,symbols,beliefs,andthoughtprocessesthatarelearned,sharedbyagroupofpeople,andtransmittedfromgenerationtogeneration〞OriginsofCulture:GeographyGeography,whichincludesclimate,topography,flora,fauna,andmicrobiology,influencesoursocialinstitutions2. Tworesearcherssuggestthatgeographyinfluenceseverythingfromhistorytopresent-dayculturalvaluesFirst,JaredDiamondstatesthathistoricallyinnovationsspreadfastereast-to-westthannorth-to-southSecond,PhilipParkerreportsstrongcorrelationsbetweenthelatitude(climate)andthepercapitaGDPofcountriesOriginsofCulture:HistoryTheimpactofspecificeventsinhistorycanbeseenreflectedintechnology,socialinstitutions,culturalvalues,andevenconsumerbehavior2. ThemilitaryconflictsintheMiddleEastin2003brednewcolabrands,MeccaCola,MuslimUp,andArabColaFore.g.,AmericantradepolicydependedontobaccobeingtheoriginalsourceoftheVirginiacolony’seconomicsurvivalinthe1600sOriginsofCulture:ThePoliticalEconomyFormostofthe20thCenturythreeapproachestogovernancecompetedforworlddominance:fascism,communism,anddemocracy/freeenterprise3. Necessarytoappreciatetheinfluenceofthepoliticaleconomyonsocialinstitutionsandculturalvaluesandwaysofthinking2. Fascismfellin1945;Communismcrumbledinthe1990sOriginsofCulture:TechnologyTechnologicalinnovationsalsoimpactinstitutionsandcultural2. Jetaircraft,airconditioning,televisions,computers,andtheinternethaveallinfluencedculture3. ArguablythegreatestimpactisthepillthathasallowedwomentohavecareersandfreedmentospendmoretimewithkidsOriginsofCulture:SocialInstitutionsSocialinstitutionsincludingfamily,religion,school,themedia,government,andcorporationsallaffectcultureThefamily,socialclasses,groupbehavior,agegroups,andhowsocietiesdefinedecencyandcivilityareinterpreteddifferentlywithineveryculture(1)Familybehavior

variesacrosstheworld,e.g.,extendedfamilieslivingtogethertoDadwashingdishes

(2)Religiousvaluesystemsdifferacrosstheworld,

e.g.,MuslimsnotallowedtoeatporktoHindusnotallowedtoconsumebeefOriginsofCulture:SocialInstitutions(3)Schoolandeducation,andliteracyratesaffectcultureandeconomicgrowth(4)Media(magazines,TV,theInternet)influencescultureandbehavior(5)Governmentpoliciesinfluencethethinkingandbehaviorscitizensofadultcitizens,e.g.,theFrenchgovernmentoffersnew“birthbonuses〞of$800giventowomenasanincentivetoincreasefamilysize(6)Corporationsinfluencecultureviatheproductstheymarket,e.g.,MTVElementsofCultureInternationalmarketersmustdesignproducts,distributionsystems,andpromotionalprogramswithdueconsiderationtoculture,whichwasdefinedasincludingfiveelements:CulturalvaluesRitualsSymbolsBeliefs,andThoughtprocessesElementsofCulture:CulturalValuesDifferencesinculturalvalues,whichisfoundtoexistamongcountries,affectsconsumerbehaviorHofstede,whostudiedover90,000peoplein66countries,foundthattheculturesdifferedalongfourprimarydimensions:Individualism/CollectiveIndex(IDV),whichfocusesonself-orientationPowerDistanceIndex(PDI),whichfocusesonauthorityorientationUncertaintyAvoidanceIndex(UAI),whichfocusesonriskorientation;andMasculinity/FemininityIndex(MAS),whichfocusesonassertivenessandachievementIndividualism/CollectivismIndexIndividualism/CollectivismIndex:TheIndividualism/CollectiveIndexreferstothepreferenceforbehaviorthatpromotesone’sself-interestHighIDVculturesreflectan“I〞mentalityandtendtorewardandacceptindividualinitiativeLowIDVculturesreflecta“we〞mentalityandgenerallysubjugatetheindividualtothegroupCollectivismpertainstosocietiesinwhichpeoplefrombirthonwardareintegratedintostrong,cohesivegroups,whichprotecttheminexchangeforunquestioningloyaltyPowerDistanceIndexPowerDistanceIndex:ThePowerDistanceIndexmeasurespowerinequalitybetweensuperiorsandsubordinateswithinasocialsystemCultureswithhighPDIscorestendtobehierarchicalandvaluepowerandsocialstatusHighPDIculturesthethosewhoholdpowerareentitledtoprivilegesCultureswithlowPDIscoresvalueequalityandreflectegalitarianviewsUncertaintyAvoidanceIndexUncertaintyAvoidanceIndex:TheUncertaintyAvoidanceIndexmeasuresthetoleranceofuncertaintyandambiguityamongmembersofasocietyHighUAIculturesarehighlyintolerantofambiguity,experienceanxietyandstress,accordahighlevelofauthoritytorulesasameansofavoidingriskLowUAIculturesareassociatedwithalowlevelofanxietyandstress,atoleranceofdevianceanddissent,andawillingnesstotakerisksElementsofCulture:Rituals,andSymbolsRitualsarepatternsofbehaviorandinteractionthatarelearnedandrepeatedvaryfromcountrytocountry,e.g.,extendedlunchhoursinSpainandGreeceFrenchattemptingtopreservethepurityoftheirlanguageLanguageasSymbols:the“l(fā)anguages〞oftime,space,things,friendships,andagreementsElementsofCulture:Rituals,andSymbolsInCanada,languagehasbeenthefocusofpoliticaldisputesincludingsecessionAestheticsasSymbols:thearts,folklore,music,drama,anddanceofacultureinfluencesmarketingDifferencesinlanguagevocabularyvarieswidelyFracturedTranslationsProductEquivalenttoJapaneseSpamToiletPaperReadytoEatPancakesAntifreezeSprayPediatrician’sSloganEnglishTranslationLiverPuttyMyFannyBrandStrawberryCrapDessertHotPissBrandSpecialistinDeceasedChildrenEnglishTranslationsmadebyJapanesefirmthatwereaddedtolabelstoincreaseprestigefortheirproductsbeingsoldinChinaSOURCE:“SomeStrawberryCrapDessert,dear?〞SouthChinaMorningPost,Dec9,1996p.12.ElementsofCulture:BeliefsandThoughtProcessesBeliefs,whichstemfromreligioustraining,varyfromculturetocultureInsummary,marketersmustconsiderlargerculturalconsequencesofmarketingactionsThoughtprocessesalsovaryacrossculturesExamples:Thewesternaversiontothenumber13orrefusingtowalkunderaladderJapaneseconcernaboutYearoftheFireHorseTheChinesepracticeofFengShuiindesigningbuildingsExamples:“AsianandWestern〞thinkingFactualversusInterpretiveCulturalKnowledgeTherearetwokindsofknowledgeaboutculturesbothofwhicharenecessaryFactualknowledgeisusuallyobviousandmustbelearned,e.g.,differentmeaningsofcolors,anddifferenttastes;itdealswithafactsaboutacultureInterpretiveknowledgeistheabilitytounderstandandappreciatethenuancesofdifferentculturaltraitsandpatterns,e.g.,themeaningoftime,andattitudestowardpeopleInterpretiveknowledgerequiresadegreeofinsightItisdependentonpastexperienceforinterpretationItispronetomisinterpretationifone’sSRCisusedCulturalChangeandCulturalBorrowingInternationalmarketersshouldappreciatehowcultureschangeandacceptorrejectnewideasHowcultureschange,e.g.,war(changesinJapanafterWorldWarII)orbynaturaldisasterHofstedehasshownthatconsumers’acceptanceofinnovationsvariesacrosscultures–innovationwasassociatedwithhigherindividualism(IDV),andlowerpowerdistance(PDI)anduncertaintyavoidance(UAI)InternationalmarketersshouldbeawaretheextenttowhichculturesborrowideasandlearnfromotherculturesHelpsinthemarketingofproductsfromoneculturetoadifferentcultureWhoseEnglish?UnitedStatesTrunkHoodConvertibleTopElevatorToiletBathroomVacuumUnitedKingdom

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