The data suggested in the cultural analysis include information that helps the marketer make marketing planning decisions.
However, its application extends beyond product and market analysis to being an important source of information for someone interested in understanding business customs and other important cultural features of the country.
According to A Cultural Framework, culture is comprised of language, religion, values and attitudes, aesthetics, education, law and politics, technology and material culture, social organizations.
Guideline for carrying out Cultural Analysis
I. Introduction
Include short profiles of the company, the product to be exported, and the country with which you wish to trade.
II. Brief discussion of the country’s relevant history
III. Geographical setting:
A. Location
B. Climate
C. Topography
IV. Social institutions:
A. Family:
1. The nuclear family
2. The extended family
3. Dynamics of the family:
a. Parental roles
b. Marriage and courtship
4. Female/male roles (changing or static?)
B. Education:
1. The role of education in society:
a. Primary education (quality, levels of development, etc.)
b. Secondary education (quality, levels of development, etc.)
c. Higher education (quality, levels of development, etc.)
2. Literacy rates
C. Political system:
1. Political structure
2. Political parties
3. Stability of government
4. Special TAXes
5. Role of local government
D. Legal system:
1. Organization of the judiciary system
2. Code, common, socialist, or Islamic-law country?
3. Participation in patents, trademarks, and other conventions
E. Social organizations:
1. Group behavior
2. Social classes
3. Clubs, other organizations
4. Race, ethnicity, and subcultures
F. Business customs and practices
V. Religion and aesthetics:
A. Religion and other belief systems:
1. Orthodox doctrines and structures
2. Relationship with the people
3. Which religions are prominent?
4. Membership of each religion
5. Any powerful or influential cults?
B. Aesthetics:
1. Visual arts (fine arts, plastics, graphics, public art, colors, etc.)
2. Music
3. Drama, ballet, and other performing arts
4. Folklore and relevant symbols
VI. Living conditions:
A. Diet and nutrition:
1. Meat and vegetable consumption rates
2. Typical meals
3. Malnutrition rates
4. Foods available
B. Housing:
1. Types of housing available
2. Do most people own or rent?
3. Do most people live in one-family dwellings or with other families?
C. Clothing:
1. National dress
2. Types of clothing worn at work
D. Recreation, sports, and other leisure activities:
1. Types available and in demand
2. Percentage of income spent on such activities
E. Social security
F. Health care
VII. Language:
A. Official language(s)
B. Spoken versus written language(s)
C. Dialects
VIII. Executive summary
After completing all of the other sections, prepare a two-page (maximum length) summary of the major points and place it at the front of the report. The purpose of an executive summary is to give the reader a brief glance at the critical points of your report. Those aspects of the culture a reader should know to do business in the country but would not be expected to know or would find different based on his or her experiences should be included in this summary.
IX. Sources of information
X. Appendixes
How does Cultural Analysis help to understand the market?
The information in this Cultural Analysis must be more than a collection of facts. Whoever is responsible for the preparation of this material should attempt to interpret the meaning of cultural information.
That is, how does the information help in understanding the effect on the market?
For example, the fact that almost all the populations of Italy and Mexico are Catholic is an interesting statistic but not nearly as useful as understanding the effect of Catholicism on values, beliefs, and other aspects of market behavior.
Furthermore, even though both countries are predominantly Catholic, the influence of their individual and unique interpretation and practice of Catholicism can result in important differences in market behavior.