Social Institution: Social institutions include family, religion, school, media, government and corporations all affect the ways in which people relate to one another, organize their activities to live in harmony with one another, teach acceptable behavior to succeeding generations and govern themselves. The roles and status positions found within a society are influenced by the dictates of social institutions.
a. Family: Family forms and functions very substantially around the world and around the country. For example, where nepotism is seen as a problem in American organizations, it is more seen as an organizing principle in Chinese and Mexican firms. The living pattern and family values differ from country to country which lead directly to differences in how children think and behave.
b. Religion: In most cultures the first social institution infants are exposed to outside the home takes the form of a church, mosque, shrine or temple. The impact of religion on the value systems of a society and the effect of value systems on marketing must not be underestimated. Because religion clearly does affect peoples habits, their outlook on life, and the products they buy, they way they buy them and even the newspaper they read. The influence of religion is often quite strong, so marketing with little or no understanding of a religion may readily offend deeply. Ones own religion is often not a reliable guide to another’s beliefs.
c. School: Education, one of the most important social institutions, affects all aspects of the culture, from economic development to consumer behavior. The literacy rate of a country is a potent force in economics development. Because communicating with a literate market is much easier than communicating to one in which the marketer must depend on symbols and pictures.
d. Media: Media affects on the consciousness of the people and there for have direct impacts on marketing.
e. Government: Government formation pattern, policies made by the government also affects the culture. Government tries to influence the thinking and behaviors of adult citizen.
f. Corporation: Multinational firms changed consumer belief through the efficient distribution of new products and services.