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Chapter 3 - Evaluating cultural and social environments. After reading the material in this chapter, you should be able to: Cultural diversity in the era of globalization, concept of national culture, culture & communication, global customers. | Chapter 3 - Evaluating Cultural and Social Environments “Ideally, as an international company we would like to think of ourselves as having one culture. But a company cannot transcend the cultures of nations. There are complex differences between East and West. We have had to accept and understand these differences. American companies doing business in China must learn about and understand Chinese culture. The same applies to the Chinese when they do business overseas.” Yang Yuanqing, Chairman, Lenovo Group McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Outline Cultural Diversity in the Era of Globalization What is culture? Why is it important to global marketing? Concept of National Culture Subcultures Hofstede’s 5 Dimensions Examples Schwartz’s Value Survey GLOBE Model Culture & Communication Nonverbal Communication Examples Global Customers China India Global Markets Products for Developing Countries Summary Cultural Diversity in the Era of Globalization While globalization is a strong force for the spread of ideas around the world, there still exists a great deal of cultural diversity among regions and individual countries and even within countries 3-3 What is Culture? Defined as: A shared meaning system, or the collective programming of the mind that distinguishes the members of one group or people from another. Broad view of culture is that it encompasses all value systems of a nation Cultural Concepts National Character Values Time Orientation Space Orientation Perception Thinking Language Non verbal communication Behavior Social groupings and relationships 3-4 Why is knowledge of culture important to global marketing? A country’s culture has been identified is a key environmental characteristic that underlies systematic differences in behavior Powerful force that shapes consumer behavior Ignoring cultural differences between countries has been the cause of business failures The Culture Iceberg Figure 3-1 The . | Chapter 3 - Evaluating Cultural and Social Environments “Ideally, as an international company we would like to think of ourselves as having one culture. But a company cannot transcend the cultures of nations. There are complex differences between East and West. We have had to accept and understand these differences. American companies doing business in China must learn about and understand Chinese culture. The same applies to the Chinese when they do business overseas.” Yang Yuanqing, Chairman, Lenovo Group McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Outline Cultural Diversity in the Era of Globalization What is culture? Why is it important to global marketing? Concept of National Culture Subcultures Hofstede’s 5 Dimensions Examples Schwartz’s Value Survey GLOBE Model Culture & Communication Nonverbal Communication Examples Global Customers China India Global Markets Products for Developing Countries Summary Cultural Diversity in the Era
