Cultural dynamics in assessing global markets

1. " In The Name of Allah, The Most Beneficent, The Most
Merciful, The Most Kind. "

2. CULTURAL DYNAMICS IN
ASSESSING GLOBAL
MARKETS
A Presentation By,
Fahmeed Hanif
To,
Sir Faheem Ali.

3. OVERVIEW
 The importance of Culture to an International Marketer,
 Definition and Origins of Culture.
 The Elements of Culture.
 Cultural knowledge and Cultural change.

4. CULTUR E ’ S P E RVA S I V E
IMPACT
 Culture affects every part of our lives, every day, from birth to
death, and everything in between.
 As countries move from agricultural to industrial to services
economies’ birthrates decline.
 Consequences of consumption
 Culture not only affects consumption, it also affects production

5. DEFINITIONS AND
ORIGINS OF CULTURE
 Most traditional definitions of culture state that 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.
 Humans make adaptations to changing environments through innovation.
 Individuals learn culture from social institutions through:
• Socialization (growing up)
• Acculturation (adjusting to a new culture)

6. DEFINITIONS AND
ORIGINS OF CULTURE
 Geography
 History
 Technology
 The political and economic systems
• Three approaches to governance competed for world dominance:
• Fascism
• Communism
• Democracy/Free Enterprise
• Islamic Law

7. DEFINITIONS AND
ORIGINS OF CULTURE
 Social institutions
• Family
• Favoritism of boys in some cultures
• Religion
• Misunderstanding of beliefs
• School
• No country has been successful economically with less than
50% literacy.
• Corporations
• Most innovations are introduced to societies by companies

8. DEFINITIONS AND
ORIGINS OF CULTURE
 The media
• Media time has replaced family time
 Government
• Governments try to influence the thinking and behaviors of adult
citizens.
 Cultural values
• Individualism/Collectivism Index
• Power Distance Index
• Uncertainty Avoidance Index
• Cultural Values and Consumer Behavior
 Rituals
• Marriage
• Funerals

9. ELEMENTS OF CULTURE
 Social Organization
 When a culture organizes its members into smaller groups
 What might some smaller groups be in a culture?
• Families
• Friends
• Religious groups
• Social classes
• Occupation
• Interest groups

10. ELEMENTS OF CULTURE
 Social Organization, cont.
 - family: the most important unit of social organization
• Nuclear family- husband, wife, children
• Extended family- several generations in one household
 - respect for elders is usually strong in extended fams.
social classes: a way to rank people in order of status
• What can social class be based on?
• Money
• Occupation
• Education
• Race
• Etc.

11. ELEMENTS OF CULTURE
 Customs and Traditions
• Rules of behavior (written and unwritten)
 Language
• Important for communication and passing on traditions and beliefs
 Arts and Literature
• Teach about a culture’s values
• Promote cultural pride and unity
• Could include technology and entertainment

12. ELEMENTS OF CULTURE
 Religion
• Monotheism: belief in one god
• Polytheism: belief in more than one god
 Major World Religions
• Judaism, Christianity, Islam, Hinduism, Buddhism
 Forms of Government
• People form governments to provide for their common needs ; Types
• Democracy: people have supreme power
• Republic: people choose leaders to represent them
• Dictatorship: a ruler or group holds power by force

13. ELEMENTS OF CULTURE
 Economic Systems
• Resources a community has
• Four types
 1. Traditional: people produce most of what they need to survive
 2. Market: basic economic questions are answered by buying/selling goods
and services
 3. Command: government controls answers to economic questions
 4. Mixed: individuals make some economic decisions, the government
makes others

14. CULTURAL KNOWLEDGE
 Factual knowledge vs. interpretive knowledge
• Has meaning as a straightforward fact about a culture but assumes
additional significance when interpreted within the context of the
culture.
 Cultural sensitivity and tolerance
• Being attuned to the nuances of culture so that a new culture can be
viewed objectively and appreciated.
• Cultures are not right or wrong, better or worse, they are simply
different.
• The more exotic the situation, the more sensitive, tolerant, and
flexible one needs to be.

15. CULTURAL CHANGE
 Cultural borrowing:
• Effort to learn from other cultures for better solutions to a
society’s particular problems.
 Similarities: an illusion
• A common language does not guarantee a similar
interpretation of word or phrases.
 Resistance to change:
• Cultural growth does not occur without some resistance.
• Resistance to genetically modified (GM) foods