Svend Hollensen

GLOBAL MARKETING
4th Edition

Lecture by Ewa Baranowska-Prokop, Ph.D.

The sociocultural environment

Tchibo: A case study

Which market analysis should be made in the
United Kingdom in order to target the right
promotion campaign to the right customer group?
How would you estimate the potential market for
coffee shops in Europe?

Requires web access

Hollensen, Global Marketing 4e, Pearson Education 2008

5-2

Learning objectives
Discuss how the sociocultural environment
will affect the attractiveness of a potential
market
Define culture and name some of its
elements
Explain the 4+1 dimensions in Hofstedes
model

Hollensen, Global Marketing 4e, Pearson Education 2008

7-3

Learning objectives (2)

Discuss the strengths and weaknesses of
Hofstedes model
Discuss whether the worlds cultures are
converging or diverging

Hollensen, Global Marketing 4e, Pearson Education 2008

7-4

Culture
Culture is the collective
programming of the mind which
distinguishes the members of one
human group from another.
It is the learned ways in which a
society understands, decides and
communicates.

Hollensen, Global Marketing 4e, Pearson Education 2008

7-5

Figure 7.2 Layers of culture

National culture
Business/industry culture
Company culture
Individual behaviour/
decision maker

Hollensen, Global Marketing 4e, Pearson Education 2008

7-6

Halls Communication
Context

Low-context
cultures

High-context
cultures

Hollensen, Global Marketing 4e, Pearson Education 2008

7-7

Comparing lowand high-context cultures (1)

Characteristic

Low-context

High-context

Communication

Explicit, direct

Implicit, indirect

Sense of self
and space

Informal handshakes

Formal hugs, bows,

and handshakes

Hollensen, Global Marketing 4e, Pearson Education 2008

7-8

Comparing lowand high-context cultures (2)

Characteristic

Low-context

High-context

Dress
and appearance

Varies widely,
dress for success

Indication of
position in society,
religious rule

Food
and eating habits

Eating is a
necessity, fast food

Eating is social event

Hollensen, Global Marketing 4e, Pearson Education 2008

7-9

Comparing lowand high-context cultures (3)

Characteristic

Low-context

High-context

Time
consciousness

Linear, exact,
promptness is valued,
time = money

Elastic, relative,
time = relationships

Family and
friends

Nuclear family,
self-oriented,
value youth

Extended family,
other oriented,
loyalty

Hollensen, Global Marketing 4e, Pearson Education 2008

7-10

Comparing lowand high-context cultures (4)

Characteristic

Low-context

High-context

Values and norms

Independence,
confrontation
of conflict

Group conformity,
harmony

Beliefs and
attitudes

Egalitarian,
challenge authority,
gender equity

Hollensen, Global Marketing 4e, Pearson Education 2008

Hierarchical,
respect for authority,
gender roles

7-11

Comparing lowand high-context cultures (5)

Characteristic

Low-context

Mental process
and learning

Linear, logical,
sequential,
problem solving

Business/
work habits

Deal oriented, rewards

based on achievement

Hollensen, Global Marketing 4e, Pearson Education 2008

High-context

Lateral, holistic,
accepting
lifes difficulties
Relationship oriented,
rewards based
on seniority

7-12

Figure 7.3 The contextual

continuum of differing cultures

Hollensen, Global Marketing 4e, Pearson Education 2008

7-13

Elements of culture
Language
Manners and
customs
Technology and
material culture
Social institutions

Education
Values and attitudes
Aesthetics
Religion

Hollensen, Global Marketing 4e, Pearson Education 2008

7-14

The role of language in

global marketing
Language is important in information
gathering and evaluation efforts
Language provides access to local society
Language capability is important to
company communications
Language enables the interpretation of
context

Hollensen, Global Marketing 4e, Pearson Education 2008

7-15

What is this?
_____ includes time, space, material
possessions, friendship patterns, and
business agreements. It is more
important in high-context than lowcontext cultures.

Non-verbal language

Hollensen, Global Marketing 4e, Pearson Education 2008

7-16

Exhibit 7.2 Sensuality and

touch culture in Saudi Arabian
versus European advertising

Hollensen, Global Marketing 4e, Pearson Education 2008

7-17

What is this?
What term refers to attitudes toward
beauty and good taste in the art, music,
folklore, and drama of a culture?

Aesthetics

Hollensen, Global Marketing 4e, Pearson Education 2008

7-18

Major religions
Christianity
Islam
Hinduism
Buddhism
Confucianism

Hollensen, Global Marketing 4e, Pearson Education 2008

7-19

Hofstedes model of
national cultures
Power distance
Uncertainty avoidance
Time perspective
Individualism
Masculinity

Hollensen, Global Marketing 4e, Pearson Education 2008

7-20

What is this?
What term refers to ones unconscious
reference to ones own cultural values
when attempting to understand another
culture?

Self-reference criterion (SRC)

Hollensen, Global Marketing 4e, Pearson Education 2008

7-21

Approaches
to eliminate SRC
Define problem or goal in terms of home country
culture, traits, habits, and norms
Define problems or goals in terms of the foreign
culture
Isolate the SRC influence and examine it
carefully to see how it complicates the problem
Redefine the problem without the SRC influence
and solve for the foreign market situation

Hollensen, Global Marketing 4e, Pearson Education 2008

7-22

Convergence of
worlds cultures

Source: http://www.mtv.co.uk

Hollensen, Global Marketing 4e, Pearson Education 2008

7-23

Figure 7.4 Ethical

decision making
Most ethical

Spirit of morality

Practical standard

Adherence to law
plus common sense

Least ethical

Just adherence
to law

Not ethical

Not even
following law

Hollensen, Global Marketing 4e, Pearson Education 2008

7-24

The code of ethics for

the most ethical include
Organizational relations
Economic relations
Employee relations
Customer relations
Industrial relations
Political relations

Hollensen, Global Marketing 4e, Pearson Education 2008

7-25

What is this?
What term refers to planning, execution
and evaluation of programmes to
influence the voluntary behaviour of
target audiences in order to improve
their personal welfare?

Social marketing

Hollensen, Global Marketing 4e, Pearson Education 2008

7-26

For discussion
According to Hofstede and Hall, Asians
are (a) more group oriented, (b) more
family oriented and (c) more concerned
with social status. How might such
orientations affect the way you market
your product to Asian consumers?

Hollensen, Global Marketing 4e, Pearson Education 2008

7-27

For discussion

What role does the self-reference criterion play

in international business ethics?
How do the roles of women in different cultures
affect womens behaviour as consumers and as
business people?

Hollensen, Global Marketing 4e, Pearson Education 2008

7-28

Communicating in the global world

What steps can a company take to
minimize language barriers across borders?
What characteristics of a countrys culture
need to be researched to ensure business
success across borders?
What method is most effective for gathering
useful, accurate and up-to-date information
regarding cultural issues?

Hollensen, Global Marketing 4e, Pearson Education 2008

7-29

IKEA Catalogue: are there any

cultural differences?
Discuss the advantages and disadvantages
of having the same catalogues around the
world?
The catalogue is the most important
element in IKEAs global marketing
planning. Discuss if there could be some
cultural differences in the effectiveness of
the catalogue as a marketing tool?

Hollensen, Global Marketing 4e, Pearson Education 2008

7-30