Svend Hollensen

GLOBAL MARKETING
4th Edition

7 The sociocultural environment

 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 7-2

 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 7-3

 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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 Characteristics of culture

Culture is learned
Culture is interrelated
Culture is shared

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 Figure 7.1 The visible
and invisible parts of culture

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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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 Halls Communication
Context

Low-context High-context
cultures cultures

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 Comparing low-
and high-context cultures (1)
Characteristic Low-context High-context

Communication Explicit, direct Implicit, indirect

Sense of self Formal hugs, bows,

Informal handshakes
and space and handshakes

Hollensen, Global Marketing 4e, Pearson Education 2008 7-9

 Comparing low-
and high-context cultures (2)
Characteristic Low-context High-context

Indication of
Dress Varies widely,
position in society,
and appearance dress for success
religious rule

Food Eating is a
Eating is social event
and eating habits necessity, fast food

Hollensen, Global Marketing 4e, Pearson Education 2008 7-10

 Comparing low-
and high-context cultures (3)
Characteristic Low-context High-context

Linear, exact,
Time Elastic, relative,
promptness is valued,
consciousness time = relationships
time = money

Nuclear family, Extended family,

Family and
self-oriented, other oriented,
friends value youth loyalty

Hollensen, Global Marketing 4e, Pearson Education 2008 7-11

 Comparing low-
and high-context cultures (4)
Characteristic Low-context High-context

Independence,
Group conformity,
Values and norms confrontation
harmony
of conflict

Hierarchical,
Egalitarian,
Beliefs and respect for authority,
challenge authority,
attitudes gender roles
gender equity

Hollensen, Global Marketing 4e, Pearson Education 2008 7-12

 Comparing low-
and high-context cultures (5)
Characteristic Low-context High-context

Linear, logical,
Lateral, holistic,
Mental process sequential,
accepting
and learning problem solving
lifes difficulties

Relationship oriented,
Business/ Deal oriented, rewards
rewards based
work habits based on achievement
on seniority

Hollensen, Global Marketing 4e, Pearson Education 2008 7-13

 Figure 7.3 The contextual
continuum of differing cultures

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 Elements of culture

Language Education
Manners and Values and attitudes
customs Aesthetics
Technology and Religion
material culture
Social institutions

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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 low-
context cultures.

Non-verbal language

Hollensen, Global Marketing 4e, Pearson Education 2008 7-17

 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

Hollensen, Global Marketing 4e, Pearson Education 2008 7-19

 Major religions

Christianity

Islam

Hinduism

Buddhism

Confucianism

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 Hofstedes model of
national cultures

Power distance

Uncertainty avoidance
Time perspective
Individualism

Masculinity

Hollensen, Global Marketing 4e, Pearson Education 2008 7-21

 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)

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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

Hollensen, Global Marketing 4e, Pearson Education 2008 7-23

 Convergence of
worlds cultures

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

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 Figure 7.4 Ethical
decision making

Most ethical Spirit of morality

Adherence to law
Practical standard plus common sense
Just adherence
Least ethical to law

Not even
Not ethical 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 (1)

Because English is the world language of

business is it necessary for UK managers
to learn a foreign language?
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 7-28

 For discussion (2)

Do you think that cultural differences

between nations are more or less
important than cultural variations within
nations? Under what circumstances is
each important?
Identify some constraints in marketing to a
traditional Muslim society. Use some of the
examples in the chapter.

Hollensen, Global Marketing 4e, Pearson Education 2008 7-29

 For discussion (3)

What layers of culture have the strongest

influence on business peoples behavior?
The focus of this chapter has been the influence
of culture on marketing. What is the influence of
marketing on culture?
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 7-30

 Communicating in the
global world: A case study
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?

Requires web access

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