of the people since most of these elements are reacted to automatically in a cultural system, (3) as factors with which the market interacts and which are basic in the understanding of the character of the marketing system of any society.
10. What is material culture? What are its implications for marketing? Give examples. 13.
11. Material culture consists of technology and economics. Technology is the techniques used to
make material goods; it is the ―know-how‖ possessed by the people of a society. Economics is the manner in which people employ their capabilities and the resulting benefits. Economics includes the production of goods and services, their distribution, consumption, means of exchange, and the income derived from the creation of utilities. The marketer must remember that material culture affects the level of demand, the quality and type of products demanded, their functional features, and the means of production and distribution of these goods. Examples of material culture would be the availability and cost of gasoline in regulating demand for and size of automobiles. The availability of electricity can regulate demand for any electrical product. 14.
12. Social institutions affect marketing in a variety of ways. Discuss, give examples.
Social institutions affect marketing because they regulate the consumer’s behavior and attitudes by organizing his activities and teaching him acceptable behavior. Examples of social institutions affecting marketing are the literacy rate as a function of education, the strength of the family unit, and political acceptance or hindrance of marketing activities.
13. ―Markets are the result of the triune interaction of a marketer’s efforts, economic conditions,
and all other elements of the culture.‖ Comment.
This statement emphasizes the point that markets evolve out of the interrelationship of three major factors. They are a marketer’s efforts, economic conditions and all the other elements of the culture. Marketers are constantly in the process of adjusting their efforts to cultural demands of the market, but they are also agents of change whenever the product or idea being marketed is innovative. Whatever the degree of acceptance and whatever level of culture is, the use of something new is the beginning of cultural change and the marketer becomes a change agent. This statement is important because it
emphasizes the fact that the marketer is not a passive influence in a culture and that, while the marketer attempts to react to cultural demands, in so doing the marketer also influences cultural change.
14. What are some particularly troublesome problems caused by language in foreign marketing?
Discuss.
Language poses some difficult problems in foreign marketing not merely because of the obvious differences in tongues, but because the idiomatic interpretations mean something different than what the marketer had intended. Examples of this are ―Body by Fisher‖
which translates to ―Corpse by Fisher‖ and ―Let Hertz Put You in the Drivers Seat‖ which translates to ―Let Hertz Make You a Chauffeur.‖
15. Suppose you were requested to prepare a cultural analysis for a potential market, what would
you do? Outline the steps and comment briefly on each.
The best procedure for making a cultural analysis for a potential market is to go through each of the elements of culture and evaluate each on the basis of how it could possibly affect a proposed marketing program.
a. Material Culture
1. Technology – the techniques and ―know-how‖ of producing material goods. 2. Economics – the employment of capabilities and the results. b. Social Institutions 1. 2. 3.
Social organizations – family life, status, age.
Education – literacy and intelligence and how informed the public is. Political structures – control over business.
c. Man and the Universe 1.
Belief systems – how do these affect product and promotional acceptance?
d. Aesthetics 1. 2. 3.
16. Cultures are dynamic. How do they change? Are there cases where change is not resisted but
actually preferred? Explain. What is the relevance to marketing?
Cultures change gradually with resistance to changes. The resistance varies inversely with the interest a society has in the change. Culture doesn’t resist change if the product is a status-valued imported item, a fashion item, or is given the advantage of inferior feelings about local products. Marketers can expect resistance to their products, with greater resistance to those products with the greatest deviation from the cultural norm or status quo.
Graphic and plastic arts – degree of modernization. Folklore – superstition, tradition, etc.
Music, drama, and the dance – promotional possibilities.
17. How can resistance to cultural change influence product introduction. Are there any
similarities in domestic marketing? Explain, giving examples.
15. Resistance to cultural change will affect new product introduction in the respect that the greatest resistance will confront products which are farthest from the status quo, but this resistance can be lowered by gaining public interest. Lowering resistance in this situation means shortening the duration of the resistance. Domestic marketing is subject to the same
resistance to change. Examples of this resistance in the domestic market are the introduction of contact lenses and using motorcycles as an acceptable means of recreation. 16.
18. Innovations are described as being either functional or dysfunctional. Explain and give
examples of each.
The consequences of diffusion of an innovation may be functional or dysfunctional depending on whether the effects of the social system are desirable. A dysfunctional innovation is one where the effects within the social system are undesirable. In most instances, the marketer’s concern is with perceived functional consequences, i.e., the
positive benefits of product use. For many products, such as the cake mix described in the chapter, there would be no dysfunctional consequences. However, it cannot always be assumed that an innovative product’s consequences will be functional. An example mentioned in the text was the introduction of condensed milk to the diet of babies in underdeveloped countries where protein deficiency is a health problem. On the surface it would appear that the consequences of the addition of condensed milk to the diet would result in better nutrition and health, stronger and faster growth, etc. However, evidence tends to indicate that in at least one situation there were dysfunctional consequences of the innovation. Instead of health benefits, a substantial increase in dysentery, diarrhea, and a high infant mortality rate resulted.
19. Defend the proposition that a MNC has no responsibility for the consequences of an
innovation beyond the direct effects of the innovations such as the product’s safety, performance, and so forth.
It would be difficult to defend this proposition since the dysfunctional consequences of an innovation may not only have negative consequences on the social system but may
ultimately impact on the success of the multinational concern. While most multinational companies have not concerned themselves with the consequences of an innovation beyond product safety, it appears that in the future there will be greater concern on the part of host countries in holding companies responsible for the consequences of their marketing activities. It would seem that from an enlightened self-interest viewpoint,
companies should attempt to determine the consequences of their innovations, and should they prove to be dysfunctional, include in their marketing strategies attempts to eliminate the negative aspects of the acceptance of diffusion of their product.
20. Find a product whose introduction into a foreign culture may cause dysfunctional
consequences and describe how the consequences might be eliminated and the product still profitably introduced. Library project.
Chapter 5Culture, Management Style, and Business Systems
2. ―More than a toleration of an alien culture is required . . . there is a need for affirmative
acceptance as different but equal.‖ Elaborate.
Adaptation is one of the key concepts for success in international marketing. Through this ―affirmative acceptance as different but equal,‖ adaptation becomes easier. One gains an appreciation of the outlook of those with whom one is dealing.
3. ―We should also bear in mind that in today’s business-oriented world economy, the cultures
themselves are being significantly affected by business activities and business practices.‖ Comment.
The business activities and the culture of a nation are intermixed. A change in one results in a change in another. When a foreign culture encounters the domestic culture, there is a mixing of cultures. When a foreign business encounters another, the result is the same because business and culture are inextricably intertwined. 4. ―In dealing with foreign businesses, the marketer must be particularly aware of the varying
objectives and aspirations of management.‖ Explain.
The marketer cannot judge what he feels that the objectives of management of a foreign firm are by what they are in a similar firms of his own country. With every firm in our country, the objectives and aspirations of management are different. Therefore, it is quite likely that they are quite different in foreign countries. The marketer must deal with a company in a way to correspond with the objectives of the company, or it is possible that he might lose his dealings with that company.
5. Suggest ways in which persons might prepare themselves to handle unique business customs
that may be encountered in a trip abroad. The businessman should:
a. Learn all he can about foreign cultures by reading, visiting with foreigners and those
who have traveled or lived in the countries he will visit. b. Condition and sensitize himself by projecting himself into possible situations and
analyzing his learned belief patterns. c. Seek advice from consultants, ambassadors, and others who can provide professional
guidance.
6. Business customs and national customs are closely interrelated. In what way would one
expect the two areas to coincide and in what ways would they show differences? How could such areas of similarity and difference be identified? COINCIDE
a. Language used
b. Methods of carrying on business must coincide with local customs c. Religious effect d. Political effect
1. Laws 2. Taxes
DIFFER
a. Subject matter
b. Degree of technicalities involved
c. Business customs are continually changing—national customs do not
d. Business customs cause some change in national customs
One would have to examine each possible difference and similarity to determine whether or not they exist.
7 Identify both local and foreign examples of cultural imperatives, adiaphora, and exclusives. Be prepared to explain why each example fits into the category you have selected.
Domestic examples:
a. Cultural imperatives: It is imperative that one pay income tax, license one’s car, or
wear a coat and tie to a fine restaurant, not belch in public, etc. b. Cultural adiaphora: One may or may not attend church, one may eat local foods, but
doesn’t have to. c. Cultural exclusives: An African wouldn’t join the KKK. A foreigner couldn’t sell
firearms for the purpose of overthrowing the government. Foreign examples:
a. Cultural imperatives: Not wearing shorts in Mazatlan, Mexico; not doing business on
Saturday in Israel. b. Cultural adiaphora: An American businessperson in Mexico may or may not drink
tequila or eat burritos. c. Cultural exclusives: It would be inappropriate for an American to go to Vietnam and
act like a Moslem.
7. Contrast the authority roles of top management in different societies. How will the differing
views of authority affect marketing activities?
There are three main different types of authority patterns: (1) top management decision making, (2) decentralized decision making, and (3) committee decision making. In
Europe, top management makes most of the major decisions. One of the reasons for this is their belief that subordinates are generally inadequate people. In the United States, the subordinates are given more responsibility and top management doesn’t have complete responsibility of decision making. This is what can be called more decentralized decision making. In the Far Eastern countries, group decision making predominates because of their culture.
The marketing approach to each of these different situations is quite varied. The problem is to determine what system is being used, and who is in authority.
8. Do the same for aspirational patterns.
In the United States, management tends to emphasize profit or high wages. In foreign countries, managers are more likely to emphasize security, good personal life, acceptance status, advancement, or power. Individual goals vary from country to country and from manager to manager. By knowing the goals of management, a marketing man can aim the marketing of his product toward these different goals. 9. What effects on business customs might be anticipated from the recent rapid increases in the
level of international business activity?