Marketing has always been recognized as an economic activity involving the exchange of goods and services. Only in recent years, however, have social cultural influences been identified as determinants of marketing behavior, revealing marketing as a cultural as well as economic phenomenon. Because our understanding of marketing is culture bound we must acquire knowledge of diverse cultural environments in order to achieve successful international marketing.

We now know that it is not enough to say that consumption is a function of income. Consumption is a function of many other cultural influences as well.

A review of consumer durables ownership in EU countries with similar income levels shows the importance of non-income fac

However, this is by no means to suggest that nowadays all marketers should focus on cultural differences only to adjust marketing programs to make them accepted by the consumers in various markets. In contrast, it is suggested that successful marketers should also seek out cultural similarities, in order to identify opportunities to implement a modified standardized marketing mix. To be able to skillfully manipulate these similarities and differences in the worldwide marketplaces is one of the most important marketing strategies for businesses in this Century.

There are also several levels of culture. On the material level a culture has an economy that provides a way to produce and exchange material goods in order to survive. A material culture provides humans a way to feed, shelter, and clothe themselves. On the social level a culture gives humans a way to organize themselves. Social culture involves kinship and family. It also gives societies a work life and political structure. The last level of culture involves the ideological. It gives a group of people a unique way of thinking about beliefs, values, and ideals. All of these different aspects of culture give humans an understanding of how the world works and how they live and act in their own environment.

Researchers indicate that culture can be characterized as a continuum between two extremes: tradition-based versus modern-based. This classification is further defined along with two interrelated dimensions: economic and cultural boundedness. Economically, modern-based cultures are characterized as market-driven, competitive, post-industrialized economic systems. The United States, Canada, and other Westernized societies are categorized as modern-based. In contrast, Africa, Asia, and Middle Eastern societies are typically categorized as tradition-based which is featured with centralized, cooperative, agrarian, pre-industrialized systems.

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