Global culture

This slide is about different aspects of global culture.

1. Global Culture

2. Material culture Material culture is also referred to as the physical culture or physical component. It consists of concrete and tangible objects like clothing, books, movies, foods, cars, music, fashion, buildings, furniture etc. This tangible and concrete items are man made.

3. Non material culture Non material culture is also known as subjective or abstract culture. It includes intangibles such as attitudes, beliefs, values, religion, perceptions, tradition, habits, customs, art, law etc.

4. Comparison between material and nonmaterial culture Material culture includes things that have a physical existence and these are created by human himself . Tangible things Computers, Tv’s , cars, buildings, phone, foods, movies, clothing etc. are examples of material culture. Non-material culture represents a community’s values, norms and attitudes and these do not have a material existence. They are not human made. Thoughts and ideas Language, beliefs, values, rules of behavior, family patterns, and political systems are examples of nonmaterial culture.

5. Comparison between material and nonmaterial culture Items of material culture begin as raw materials such as iron ore, trees, and oil. They are transformed through technology. Sociologists define technology as knowledge, techniques, and tools that make it possible for people to transform resources into usable forms, and the skills required to use them after they are developed. A central component of nonmaterial culture is beliefs. They are not transferable through technology. Beliefs, rules, customs, family system, tradition etc. can not be transferred thorough technology. It remains in a persons mind.

6. Comparison between material and nonmaterial culture Material culture includes the physical objects that can be seen, touched and felt by others. The material culture represents humans’ relationship with the nature also. The man may build a house in order to protect him from the sunlight and this process of survival has led the mankind to create a lot of material things, adding value to their own culture as well. Nonmaterial culture includes abstract intangibles that can not be seen, touched. The material things have a symbolic value related to the nonmaterial things. T he non-material faith is embedded in the material object. For Example: The wedding ring has a material existence and it may reflect love, care and faith to each other between couples.

7. Importance of understanding relationship between material culture and nonmaterial culture for global marketers: Material and nonmaterial aspects of culture are linked, and physical objects often symbolize cultural ideas. For example: A metro pass is a material object, but it represents a form of nonmaterial culture, namely, capitalism, and the acceptance of paying for transportation. Clothing, hairstyles, and jewelry are part of material culture, but the appropriateness of wearing certain clothing for specific events reflects nonmaterial culture. Material and nonmaterial aspects of a culture has a great impact on global marketing . A global marketer must have to understand about the relationship aspects of material and nonmaterial culture in depth of the countries in which they will be doing business before offering a product to them. Because they have to develop product. Price ,promote and distribute the product and communicating product feature to the customers according to that culture and influence customers to buy it.

8. To have an effective communication one must send the message according to the receiver's culture, customs and learning process. There are some major barriers by which effective communication can be hampered. Self Reference Criterion (SRC) and Ethnocentrism can make the effort worthless. So global marketers have to understand this relationship. Another reason is some countries nonmaterial culture( beliefs, norms, values) and material culture emphasis on ethnocentrism( thinks their products are superior). Before entering into a country global marketers have to aware of this. Different countries have different cultural mix ( material and nonmaterial relationship) that affects global marketing strategy. Poor understanding of this relationship may costs even billion dollars to a company. Good understanding of this relationship can help to make billion dollars profit. Examples: India is a country where most of the people follows Hinduism. So typical M cdonald’s can not run business there as it will hurt their religion values as beef is prohibited in this country. So Mcdonald’s understand this and launched new Chicken Maharaja mac burger specially for I ndia..

9. They also launched green corner in theie kitchen for their vegetarian fare this includes vegetabke items such as spicy Mcaloo tikka potato mac burger, pizza mcpuff , paneer salsa Mcwrap etc Meat items are prepared in red area of the kitchen. Even the mayonnaise is made without eggs. In I ndia, food is a material thing but nonmaterial beliefs( not eating beef) has made global marketers to think differently and run business here. So, if global marketers does not understand the relationship between this two they will not be able to run their business profitably and will face criticism and loss. For all these reasons, it is important for global marketers to understand the relationship between material and nonmaterial culture. -------------------

10. Low- context culture A low-context culture is described as open, rule-oriented, individualized, detail-oriented in communication, problem-oriented, proactive and productive. In a low context culture messages are, messages are explicit and specific, words carry most of the communication power. The United States is an example of a primarily low-context culture, though it is important to point out that virtually no nation's culture is exclusively high or low-context.

11. High- Context culture A high context culture is one where most of the communication is done indirectly and more dependence is on non-verbal communication and gestures. In a high context culture, relationships are built slowly which are generally long term and stable and are dependent on trust and loyalty. High context culture is mostly found in Asian, African, Latin American and central European countries. In high context culture less information is contained in the verbal part of the message. Much more information resides in the context of communication, background, associations, and basic values of the communicators.

12. Difference between High context and Low context culture High context culture Low context culture In this culture less information is contained in the verbal part of the message. Much information resides in the context of communication, background, associations and basic values of communicators. High context culture deals with much less legal paperwork. They place a great deal of emphasis on a persons values and positions or place in society. Lawyers are less important here. In this culture messages are explicit and specific; words carry most of the communication power. Most information is contained in the verbal part of the message. In low context culture deals are made with more legal paperwork and less with values, status, background and information about participants. Lawyers are very important in this culture.

13. Difference between High context and Low context culture High context culture Low context culture Negotiations are lengthy- a major purposes is to allow the parties to get to know each other. Competitive bidding is infrequent. A persons word his or her bond. Responsibility for organizational error is taken by the highest level. Because of lower power distance index employees can easily communicate with their boss about the problem. Negotiations are proceed quickly here because people relies in legal documents more here. Competitive bidding is common here. A persons words is not to be relied upon; “ get it in writing”. Responsibility for organizational error is pushed to the lowest level because of the highest level of power distance index.

14. Difference between High context and Low context culture High context culture Low context culture In high context cultures, communication is done primarily through nonverbal mediums and gestures. In high context cultures , social structure and authority are centralized; responsibility is on the top. Person at top works for the good of the group. Space is communal; people stand close to each other and share the same space. In low context cultures, information is vested explicitly so that there is no risk of confusion. In low context cultures social structure is decentralized; responsibility goes further down ( is not concentrated on the top) Space is compartmentalized and privately owned. Privacy is important so people are farther apart.

15. Difference between High context and Low context culture High context culture Low context culture Ones identity is rooted in the group they are in ; family, work, culture etc. High context culture emphasis on high commitment of long term relationship. Example: In Saudi Arabia for granting of a business loan, they depend on the applicants character, background, status, position in society, associations to different groups and values. They will give the loan based on “ who you are” than on formal analysis of formal financial documents. Ones identity is rooted in oneself and ones accomplishments. Low context culture emphasis on low commitment to relationship. Example: By contrast, Japanese companies such as sony traditionally paid a great deal of attention to the u niversity background of a new hire; preference would be given to graduates of Tokyo university. Specific elements on a resume were less important.

16. A country that is an example of both low context culture and high context culture are discussed below with evidence : Countries are classified as high or low context in their overall tendency but there are exceptions to the general tendency. These exceptions are found in subcultures. There are countries which contains both high and low context culture. For example: The United States. The united states is a low context culture with subculture that operate in the high- context mode. The world of the central banker, for example is a gentlemen’s world that is a high context culture. Even during the most hectic day of the trading in the foreign exchange market a central bankers word is sufficient for him or her to borrow millions of dollars.

17. Hofstede’s cultural Typology Hofstede’s Cultural Dimensions Theory, developed by Geert Hofstede, is a framework used to understand the differences in culture across countries and to discern the ways that business is done across different cultures. In other words, the framework is used to distinguish between different national cultures, the dimensions of culture, and assess their impact on a business setting. Hofstede identified six categories that define culture: Power Distance Index Collectivism vs. Individualism Uncertainty Avoidance Index Femininity vs. Masculinity Short-Term vs. Long-Term Orientation Restraint vs. Indulgence