4.3.3 Cultural & Social Factors

Culture

🔗 The dominant set of values, behaviours and beliefs in a social group.

📝 Examples of Cultural Differences

• Body language
• Language
• Meaning of certain colours
• Sense of humour
• Time differences

Importance of Cultural Consideration

Cultural Considerations in a Non-Global Organization

• Businesses, especially if entering new markets, must take into account the cultural differences between their home country and the country
• It ensures they generate positive PR rather than negative PR for being insensitive, out of touch or unaware
• It also helps strengthen the brand image of a business, as it increases customer satisfaction and improves its reputation for being ethical as well as understanding

Importance of Culture

• Businesses may need to avoid being ethnocentric as it can result in major marketing mistakes in branding and advertising
• Non-verbal communication plays an important role
• Personal space
• Gestures and mimics
• Stereotypes could be used about a culture (can be beneficial or detrimental)
• A local agent could be useful when doing business

Stereotypes

• China – Principles and values over money. Get to know people before business
• Russia – Give gifts
• India – Punctuality, no personal questions

Language

• English is frequent in business
• A basic grasp of a language is beneficial