Transcript ch07 Hollensen - Warsaw School of Economics

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
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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 Hofstede’s
model
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Learning objectives (2)
Discuss the strengths and weaknesses of
Hofstede’s model
Discuss whether the world’s cultures are
converging or diverging
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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.
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Figure 7.2 Layers of culture
National culture
Business/industry culture
Company culture
Individual behaviour/
decision maker
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Hall’s Communication
Context
Low-context
cultures
High-context
cultures
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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
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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
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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
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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
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Hierarchical,
respect for authority,
gender roles
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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
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High-context
Lateral, holistic,
accepting
life’s difficulties
Relationship oriented,
rewards based
on seniority
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Figure 7.3 The contextual
continuum of differing cultures
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Elements of culture
 Language
 Manners and
customs
 Technology and
material culture
 Social institutions




Education
Values and attitudes
Aesthetics
Religion
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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
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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
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Exhibit 7.2 Sensuality and
touch culture in Saudi Arabian
versus European advertising
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What is this?
What term refers to attitudes toward
beauty and good taste in the art, music,
folklore, and drama of a culture?
Aesthetics
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Major religions
Christianity
Islam
Hinduism
Buddhism
Confucianism
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Hofstede’s model of
national cultures
Power distance
Uncertainty avoidance
Time perspective
Individualism
Masculinity
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What is this?
What term refers to one’s unconscious
reference to one’s own cultural values
when attempting to understand another
culture?
Self-reference criterion (SRC)
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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
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Convergence of
world’s cultures
Source: http://www.mtv.co.uk
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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
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The code of ethics for
the ‘most ethical’ include
Organizational relations
Economic relations
Employee relations
Customer relations
Industrial relations
Political relations
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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
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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?
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For discussion
 What role does the self-reference criterion play
in international business ethics?
 How do the roles of women in different cultures
affect women’s behaviour as consumers and as
business people?
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Communicating in the global world
 What steps can a company take to
minimize language barriers across borders?
 What characteristics of a country’s 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?
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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 IKEA’s global marketing
planning. Discuss if there could be some
cultural differences in the effectiveness of
the catalogue as a marketing tool?
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