UBI-GM-Presentation04.050112-culture pptx

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UBI-GM-Presentation04.050112-culture pptx

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Cultural Dynamics in Assessing Global Markets Chapter 4 McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. PowerPoint presentation prepared by: Alfred Lowey-Ball Associate Professor of Marketing UBI-United Business Institutes Brussels, Belgium MERRIL LYNCH in Japan McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. • Liberalization of Japan’s capital markets gives more freedon of choice to private citizens • Freeing of capital from time deposits held by the postal system • Opportunity for equities? Merrill rushed in. • No  No stock owning risk-taking culture in Japan 9% households invested in stocks vs 50% in US No boost from internet connectivity • Merrill now cutting back in Japan. • Similar hesitancy in Europe Chapter Learning Objectives 1. The importance of culture to an international marketer 1. The importance of culture to an international marketer 2. The origins and elements of culture 2. The origins and elements of culture 3. The impact of cultural borrowing 3. The impact of cultural borrowing 4. The strategy of planned change and its consequences 4. The strategy of planned change and its consequences Introduction Culture is the “the human-made part of human environment—the sum total of knowledge, beliefs, art, morals, laws, customs, and any other capabilities and habits acquired by humans as members of society” Culture is the “the human-made part of human environment—the sum total of knowledge, beliefs, art, morals, laws, customs, and any other capabilities and habits acquired by humans as members of society” A successful businessman/marketer must be a student of culture A successful businessman/marketer must be a student of culture Culture is pervasive in all marketing activities— in pricing, promotion, channels of distribution, product, packaging, and styling Culture is pervasive in all marketing activities— in pricing, promotion, channels of distribution, product, packaging, and styling Critical importance of culture in international business and marketing Critical importance of culture in international business and marketing Culture’s Pervasive Impact • Culture influences every part of our lives • Cultural impact on birth rates in Taiwan, Japan, and Singapore Year of the dragon (1976, 1988)  good luck Year of the Fire horse (1966, 60 year cycle)  bad luck • Culture influences every part of our lives • Cultural impact on birth rates in Taiwan, Japan, and Singapore Year of the dragon (1976, 1988)  good luck Year of the Fire horse (1966, 60 year cycle)  bad luck • Birthrates have implications for sellers of diapers, toys, schools, and colleges etc. • Birthrates have implications for sellers of diapers, toys, schools, and colleges etc. • Consumption of different types of food influence is culture: Chocolate by Swiss and Belgians, seafood by Japanese preference, beef by British, wines by France and Italy • Even diseases are influenced by culture: stomach cancer in Japan, and lung cancer in Spain • Consumption of different types of food influence is culture: Chocolate by Swiss and Belgians, seafood by Japanese preference, beef by British, wines by France and Italy • Even diseases are influenced by culture: stomach cancer in Japan, and lung cancer in Spain Birthrates in developed countries Patterns of Consumptions in the West Consequences of consumption Definitions and Origins of Culture Culture has been conceptualized as: 1. “Software of the mind” culture is a guide for humans on how to think and behave; it is a problem-solving tool (Hofstede) 2. An invisible barrier… a completely different way of organizing life, of thinking, and of conceiving the underlying assumptions about the family and the state, the economic system, and even Man himself” (Hall) 3. A “thicket” (U.S. Ambassador Hodgson) 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” 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” Influence of culture on business behaviour

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