Cultural Environment - Meaning, Importance & Components

Published in Marketing and Strategy Terms by MBA Skool Team

What is Cultural Environment?

Cultural environment is a business concept which helps to understand the customs and collective beliefs of a set of people or society based on their culture, religion, region, nationality, language etc. The study of social hierarchy, social norms and customs, regional / religion based groups and their behavior helps us to understand the cultural environment of a place. This helps a marketer to position the products appropriately.

Importance of Cultural Environment

To understand the customers of a particular region, studying their social and cultural environment is very important. The environment shapes the values, behaviors, attitudes and aspirations of people. Cultural environment is the behavior or beliefs of a certain group of people based on factors influencing their culture. Studying cultural environment is very important for any business to thrive as it helps them make the right product for the right people at the right place at the right time & right price.

Components of Cultural Environment

There are many elements which need to be evaluated to understand the socio-cultural environment. The key factors which define the culture, customs and beliefs of a group of people or society are as follows:

1. Nationality

The values, history and beliefs of every country defines the cultural environment amongst the citizens of a country.

2. Religion

Religious practices and beliefs defines various factors on how a business should operate and communicate as it must be accurate about religion as well as be careful of handling sensitive issues.

3. Language

The preferred language or mother tongue of a region, town, city, state or country can define the cultural environment.

4. Region

Regional factors like geography, terrain, climate etc. also creates a collective group or segment of people which marketing firms can address to.

5. Demographics

Age, gender, marital status etc. also define cultures, beliefs and attitude of people.

6. Education

Cultural environment is also classified and segmented based on education, social status, income levels etc.

Hence, this concludes the definition of Cultural Environment along with its overview.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.

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