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International marketing and

culture

By Huib Wursten and Tom Fadrhonc

Summary:

International marketers struggle to find the best way to tailor pieces of the marketing mix to each country or region. Customising to each

market is effective yet prohibitively costly, and standardising one approach across the world is efficient and mostly ineffective. An

approach based on cultural differences offers the solution, i.e. efficiency and effective impact.

Extensive research of cultural differences among nations has revealed 5 dimensions explaining cultural differences and their implications

for marketing. Packaging the dimensions into six regional culture clusters, this article introduces a new approach to segment the globe so

marketing efforts are effective, relevant, focussed, and yet efficient.

Globalization of markets; the

debate Since the early 1960s participants in the

discussion about the effects of globalisation have

assumed that economic development would lead

to converging needs and tastes of consumers,

which would facilitate standardisation of

marketing and advertising. Economies of scale in

production would lead to low price/high quality

ratios, which consumers would prefer over the

products/brands they were used to.

Itim trained Marieke de Mooij did extensive

research on this subject (2). She notes: “Without

empirical evidence, numerous statements about

this effect of globalisation were published in

renowned journals (3). It was particularly Harvard

professor Ted Levitt's (1983) article (4) “The

globalisation of markets'' which has been widely

quoted.” Without evidence statements were made

like “The world's needs and desires have

irrevocably homogenised. Everywhere everything

gets more and more like everything else as the

world's preference structure is relentlessly

homogenised. Ancient differences in national

tastes or modes of doing business disappear''.

Only a few scholars thought differently. Craig et

al., 1992, stated: “rather than converging in terms

of macro-environmental characteristics as

hypothesised, industrialised countries are

becoming more divergent.” (5)

Since then an abundance of articles and

publications appeared to complicate the issue

further. The aim of this article is to address 3 key

questions for global marketers:

Are markets converging or diverging; and

1. What to centralise / decentralise, what are

the essential rules for global marketing and

advertising campaigns?

2. How to group countries and regions for

efficiency and impact.

Are markets converging or

diverging? The purest way is of course to tailor everything to

the local consumer, product, packaging,

communication etc. However pure, it is

unrealistic. Besides, brands cannot control

messages to reach only the intended targets. So

what should be universally the same and what

should be localised? For cost considerations we

clearly want to standardise as much as possible,

but for reasons of relevance, impact, credibility,

effectiveness in the market, i.e. revenues, we want

to adapt to local markets. The issue is not if there

are differences, but if focussing on the differences

is paying off, is producing greater market share,

revenues, margins etc.

What we know and what

still need to know We know there are global brands, e.g. Coke, Apple,

Nike, Google and that up to a certain level

consumer desires become homogenised as a

result of globalisation. Over time and with

increasing income they wish the same luxury and

convenience. This is true up to a certain level of

income. We also know there is no global consumer

with identical values. In fact, the latest research is

showing evidence of convergence of economic

systems, but no evidence of convergence of

peoples' value systems. On the contrary, there is

evidence that with increasing incomes, people's

habits tend to diverge. More discretionary income

will give people more freedom to express

themselves and they will do that according to

their own, specific cultural value patter

words, the cultural differences become more

pronounced as income increases (see: 2, 3)

Puzzles: income, price and

preferences. The example of

water and watches. Bottled water is a relatively

compared to tap water so one would think that

wealthier countries consume more. Here are five

countries with relatively similar income levels. Yet,

looking at consumption, we see it is not at all

correlated to income.

Watches are more expensive and thus focus on

wealthy countries is even more logical.

should be localised? For cost considerations we

clearly want to standardise as much as possible,

but for reasons of relevance, impact, credibility,

effectiveness in the market, i.e. revenues, we want

to adapt to local markets. The issue is not if there

are differences, but if focussing on the differences

is paying off, is producing greater market share,

and what we

We know there are global brands, e.g. Coke, Apple,

Nike, Google and that up to a certain level

consumer desires become homogenised as a

result of globalisation. Over time and with

increasing income they wish the same luxury and

ience. This is true up to a certain level of

income. We also know there is no global consumer

with identical values. In fact, the latest research is

showing evidence of convergence of economic

systems, but no evidence of convergence of

ms. On the contrary, there is

evidence that with increasing incomes, people's

habits tend to diverge. More discretionary income

will give people more freedom to express

themselves and they will do that according to

their own, specific cultural value patterns. In other

words, the cultural differences become more

pronounced as income increases (see: 2, 3).

Puzzles: income, price and

preferences. The example of

costly product

compared to tap water so one would think that

wealthier countries consume more. Here are five

countries with relatively similar income levels. Yet,

looking at consumption, we see it is not at all

nsive and thus focus on

wealthy countries is even more logical.

Between Finland and Portugal the first is far more

prosperous based on GDP per capita. And yet, the

penetration of expensive watches is twice as high

in Portugal than in Finland. So what e

difference?

The answer is culture. And to understand how

powerful it is in marketing around the world, it is

essential to understand each cultural dimension.

In the case of water the determining factor is UAI,

Uncertainty Avoidance Index, an indicator of how

comfortable a culture

uncertainty. The higher the score the more

certainty that culture requires. In the case of

watches the determining factor

Distance Index. After an explanation of the

dimensions the puzzles above and answers bel

will make sense:

Bottled Water

GDP Capita

Source: ¹ OECD 2003 ² www.beveragemarketing.com

l/ capita

PDI

MAS

UAI

IDV

$30238

135 ²

Belgium

Between Finland and Portugal the first is far more

prosperous based on GDP per capita. And yet, the

penetration of expensive watches is twice as high

in Portugal than in Finland. So what explains the

The answer is culture. And to understand how

powerful it is in marketing around the world, it is

essential to understand each cultural dimension.

In the case of water the determining factor is UAI,

Uncertainty Avoidance Index, an indicator of how

le a culture is in coping with

uncertainty. The higher the score the more

certainty that culture requires. In the case of

watches the determining factor is PDI, Power

Distance Index. After an explanation of the

dimensions the puzzles above and answers below

$28568¹ $24745¹

130² 120²

$29845¹ $30330¹

18² 15²

65 86

67 51

35 29

89 71

30238¹

Belgium Germany Spain UK Sweden

PDI

MAS

Luxury Watches

UAI

IDV

104

Theory of the 5 dimensions. Cultural differences can be seen as an onion with

different layers. The outside layers of the onion

(symbols, heroes and rituals are more visible, but

are also more superficial and as such subject to

change, for instance by fashion. The

onion represents values, and is more fundamental

in understanding worldwide diversity. This level is

also difficult to grasp immediately because, in

contrast to the other layers, these values are

invisible. They are the piece of the iceberg below

the surface. The most extensive research done on

cultural values is done by Geert Hofstede, one of

the 20 most influential business thinkers

according to a Wall Street Journal ranking.

Hofstede distinguishes five dimensions of

national culture: power distance (PDI)

individualism/collectivism (IDV), masculinity/

femininity (MAS), uncertainty avoidance (UAI) and

long-term orientation (LTO). The dimensions are

measured on a scale from 0 to 100, although

countries may have a score above 100, because

they were measured after the original scale was

defined. Original data were based on an extensive

IBM study of 116,000 questionnaires in 72

countries and in 20 languages. The results were

validated and re-validated against

subsequent studies from a variety of disciplines.

The scores for each country on the 5 dimensions

Theory of the 5 dimensions. Cultural differences can be seen as an onion with

different layers. The outside layers of the onion

(symbols, heroes and rituals are more visible, but

are also more superficial and as such subject to

change, for instance by fashion. The core of the

values, and is more fundamental

in understanding worldwide diversity. This level is

also difficult to grasp immediately because, in

contrast to the other layers, these values are

invisible. They are the piece of the iceberg below

ensive research done on

cultural values is done by Geert Hofstede, one of

the 20 most influential business thinkers

according to a Wall Street Journal ranking.

Hofstede distinguishes five dimensions of

national culture: power distance (PDI),

(IDV), masculinity/

avoidance (UAI) and

term orientation (LTO). The dimensions are

measured on a scale from 0 to 100, although some

countries may have a score above 100, because

original scale was

defined. Original data were based on an extensive

questionnaires in 72

countries and in 20 languages. The results were

validated against over 40

subsequent studies from a variety of disciplines.

scores for each country on the 5 dimensions

explain variations in behaviour of people and

organisations.

For each of the 5 single dimensions follows a short

description and consequences for marketing and

advertising.

Uncertainty avoidance is the extent

people feel threatened by uncertainty and

ambiguity and try to avoid these situations. In

cultures of strong uncertainty avoidance, there is

a need for rules and formality to structure life.

Competence is a strong value resulting in belief in

experts, as opposed to weak uncertainty

avoidance cultures with belief in the generalist. In

weak uncertainty-avoidance cultures people tend

to be more innovative and entrepreneurial.

In masculine cultures the dominant values are

achievement and success. The dominant values in

feminine cultures are caring for others and quality

of life. In masculine cultures performance and

achievement are important. Status is important to

show success. Feminine cul

orientation, small is beautiful and status is not so

important. In masculine cultures there is large role

differentiation between males and females, in

feminine cultures there is small role

differentiation.

explain variations in behaviour of people and

For each of the 5 single dimensions follows a short

description and consequences for marketing and

is the extent to which

people feel threatened by uncertainty and

ambiguity and try to avoid these situations. In

cultures of strong uncertainty avoidance, there is

a need for rules and formality to structure life.

Competence is a strong value resulting in belief in

erts, as opposed to weak uncertainty-

avoidance cultures with belief in the generalist. In

avoidance cultures people tend

to be more innovative and entrepreneurial.

cultures the dominant values are

achievement and success. The dominant values in

cultures are caring for others and quality

of life. In masculine cultures performance and

achievement are important. Status is important to

show success. Feminine cultures have a people

orientation, small is beautiful and status is not so

important. In masculine cultures there is large role

differentiation between males and females, in

feminine cultures there is small role

Power distance is the extent to which less powerful

members of a society accept that power is distributed

unequally. In large power-distance cultures everybody

has his/her rightful place in society, there is respect for

old age, and status is important to show power. In

small power-distance cultures people try to look

younger and powerful people try to look less powerful.

In individualistic cultures people look after

themselves and their immediate family only; in

collectivist cultures people belong to in

look after them in exchange for loyalty. In

individualist cultures, values are in the person, in

collectivist cultures identity is based in the social

network to which one belongs. In individualist

nt to which less powerful

members of a society accept that power is distributed

distance cultures everybody

has his/her rightful place in society, there is respect for

old age, and status is important to show power. In

distance cultures people try to look

younger and powerful people try to look less powerful.

cultures people look after

themselves and their immediate family only; in

cultures people belong to in-groups who

look after them in exchange for loyalty. In

individualist cultures, values are in the person, in

collectivist cultures identity is based in the social

network to which one belongs. In individualist

cultures there is more

communication in collectivist cultures

communication is more implicit.

The Long Term Orientation

which a society has a pragmatic future

perspective rather than a near term point of view.

Low scoring countries are usually those under the

influence of monotheistic religious systems, such as

the Christian, Islamic or Jew

in these countries believe there is an absolute truth.

In high scoring countries, e.g. cultures practicing

Buddhism, Shintoism or Hinduism, truth depends on

time and context.

more explicit, verbal

in collectivist cultures

communication is more implicit.

Long Term Orientation index is the extent to

which a society has a pragmatic future-oriented

perspective rather than a near term point of view.

Low scoring countries are usually those under the

influence of monotheistic religious systems, such as

the Christian, Islamic or Jewish systems, and people

eve there is an absolute truth.

In high scoring countries, e.g. cultures practicing

ism or Hinduism, truth depends on

Re. IV: Solving the dilemma.

Organising markets around

culture clusters.

The indications are we are moving towards

greater differentiation, towards a situation where

individuals want to profile themselves and be

seen for what and who they are. No one size fits

all global consumers. At the same time in

countries where economic wealth is growing,

people aspire to have the same products as people

in developed economies.

What does all this mean for a brand, a product

which has the potential to be a global brand?

What are the do’s and don’ts for getting there? To

maximise sales requires the brand appeals to the

values of the consumer, thus adapt its

communication. Yet, segmenting communication,

marketing and sales messages is costly. While for

a young brand early in its life cycle it may be the

right decision to postpone segmentation, the

issue is to build a long term brand across cultures,

And long term, segmenting is the right decision.

But what needs to be segmented and what needs

to be consistent?

The desired result is that we have a brand that is

thought of the same or similarly in China and in

Germany, in the US and in Argentina, that when

consumers from various countries meet and they

discuss the brand, they play back the same

positioning and brand image. And because there

are many definitions, here are the ones we use:

Positioning: Represents the very carefully chosen promises that the company makes about its

product and that it is willing to keep and defend

over time.

Brand image: A positive brand image is the result

of kept promises, and a negative image is the

result of broken or inconsistent promises over

time.

And that positioning, those carefully chosen

promises must be consistent across cultures. For

Brand managers it means they must be held to

strengthen and amplify those promises.. They

must do it in a way that is believable, impactful,

and relevant. And that again depends on culture.

For advertising and PR it means that is essential to

have local copywriters and art directors create

from a central brief, instead of translating a

copywriter’s text from one culture into another.

For PR this is even more important, as often

difficult messages have to be transferred from

one culture into another. And yet we cannot

afford 100+ executions, one for each culture. We

need economies of scale, and still be culturally

relevant and end up with maybe 10 different

executions.

How to organize for cost effectiveness and

maximum impact across cultures?

Based on more than 20 years experience in

intercultural management, itim advocates to

segment markets according to Six Culture

Clusters© (1). A culture cluster is a group of

countries, which share specific cultural

characteristics based on Hofstede’s 5-D Model.

Culture clusters are fundamental social structures

in our minds. They transcend all types of activities

and run deeper than differences in an

organization’s culture. Both in the private and

public sector, among those employed in the

uniformed services and in welfare departments,

people from the same culture have a similar

image of the way society works. The Six Culture

Clusters© have an impact on issues such as

negotiations, decision-making, customer behavior,

entrepreneurship, motivation, and teamwork. And

to communicate and motivate and convince.

Segmenting according to Culture Clusters

provides the following benefits:

· Economies of scale. Fewer executions than

one per culture.

· Overcomes the internal marketing dilemma,

centralization versus decentralization.

· More credibility with workforce.

· Trust, rapport, relevance with consumers.

In the Contest Cluster (i.e. the Anglo

countries); the key is well-understood self

interest. The cultures involved all share a low

score for Power distance high

Individualism, a high score for masculinity a low

More credibility with workforce.

Trust, rapport, relevance with consumers.

(i.e. the Anglo-Saxon

understood self-

interest. The cultures involved all share a low

distance high score for

Individualism, a high score for masculinity a low

score for UAI and a low score for LTO.

This leads to following marketing preferences:

1. Competition is seen as positive. Showing

winners is perceived as positive. It is

motivational to show testimonials by

successful people. Success breeds success.

It is not seen as “bragging” to say: I’m the

best

2. Showing people taking risks to be

successful is positive. Entrepreneurial

behavior is highly appreciated. Status

symbols are seen as motivational

3. Statements by practitioners are more

appreciated than statements by

The thinking is “inductive”. By analyzi

practical examples one can conclude about

a ”best practice” Experts are less credible”

too “academic”. Zagat approach is more

popular than the “Michelin” approach

In the Network Cluster (i.e. the Netherlands and

Scandinavia), the approach to marketing

messages and advertising should be different. The

combination they share is: low PDI, High IDV, Low

MAS, low to middle on UAI and low on LTO

Marketing approach:

1. Sympathy for the underdog

suspicious of “winners” It is quickly seen as

bragging. It is preferred to show humorous

situations around “underdogs”.

score for UAI and a low score for LTO.

to following marketing preferences:

Competition is seen as positive. Showing

winners is perceived as positive. It is

motivational to show testimonials by

successful people. Success breeds success.

It is not seen as “bragging” to say: I’m the

eople taking risks to be

successful is positive. Entrepreneurial

behavior is highly appreciated. Status

symbols are seen as motivational

Statements by practitioners are more

appreciated than statements by experts –

The thinking is “inductive”. By analyzing

practical examples one can conclude about

a ”best practice” Experts are less credible”

too “academic”. Zagat approach is more

popular than the “Michelin” approach

(i.e. the Netherlands and

Scandinavia), the approach to marketing

messages and advertising should be different. The

combination they share is: low PDI, High IDV, Low

MAS, low to middle on UAI and low on LTO

Sympathy for the underdog – People are

suspicious of “winners” It is quickly seen as

bragging. It is preferred to show humorous

situations around “underdogs”.

2. Cooperation is preferred

behavior is uneasy. What is liked is to show

successful people behaving “normal”, being

modest in their statements.

3. Practical evidence is more credible than

expert testimonials – testimonials by

people that are like “you and me” are more

appreciated than academic “evidence”

4. Status symbols are disliked: in realit

is a tendency to make people with too

obvious status symbols the bait of cynical

jokes

The Well-Oiled Machine Cluster (e.g. Germany and

Austria), the most important issue is the

combination between a low score for PDI in

combination with a high score for UAI. This leads

to an internalized need for structure Even more

than in the Pyramid system there is an emphasis

on expertise and experts Reliability is very

important which puts an emphasis on structure

and accuracy. The approach towards the custo

should be precise, factual and structured. The key

in these cultures is to build up credibility in the

eyes of the customer, which requires the product

or service to be supported by experts. Quality

defects should be dealt with in an immediate,

structured, professional and assuring way.

Marketing implications:

1. Expert approach – people think deductive,

The highest esteem is given to experts.

That means that evidence from people with

academic titles is more credible than

statements from laymen or

Cooperation is preferred – Competitive

behavior is uneasy. What is liked is to show

ople behaving “normal”, being

modest in their statements.

Practical evidence is more credible than

testimonials by

people that are like “you and me” are more

appreciated than academic “evidence”

Status symbols are disliked: in reality there

is a tendency to make people with too

obvious status symbols the bait of cynical

(e.g. Germany and

Austria), the most important issue is the

combination between a low score for PDI in

core for UAI. This leads

to an internalized need for structure Even more

than in the Pyramid system there is an emphasis

on expertise and experts Reliability is very

important which puts an emphasis on structure

and accuracy. The approach towards the customer

should be precise, factual and structured. The key

in these cultures is to build up credibility in the

eyes of the customer, which requires the product

or service to be supported by experts. Quality

defects should be dealt with in an immediate,

red, professional and assuring way.

people think deductive,

The highest esteem is given to experts.

That means that evidence from people with

academic titles is more credible than

statements from laymen or practitioners.

The white coat as a symbol of scientific

evidence is appreciated. An experienced

“user” of a certain product however can be

used as a credible source.

2. Keyword is systematic. Internalized need

for structure is what defines this cluster.

People highly appreciate systematic

approaches.

3. Status is important to show success: status

symbols like expensive watches, clothing,

fast cars are appreciated.

In the Pyramid cluster (e.g. Mexico, Portugal,

Russia) the “shared values”

distance, low on IDV, and high on UAI. Mas and

LTO can vary.

Marketing implications:

1. Style is appreciated

in general people are impressed by

standards for behavior. As a result formality

and stylish behavior is seen as positive.

2. Expert approach – people think deductive,

the highest esteem is given to experts. That

means that evidence from people with

academic titles is more credible than

statements from laymen or practitioners.

Scientific evidence is appreciated

3. Older people are more credible that

younger people – Age is equal to wisdom

4. Indirect messages are appreciated

Prevention of losing face is a real issue.

The white coat as a symbol of scientific

evidence is appreciated. An experienced

“user” of a certain product however can be

used as a credible source.

Keyword is systematic. Internalized need

for structure is what defines this cluster.

e highly appreciate systematic

Status is important to show success: status

symbols like expensive watches, clothing,

fast cars are appreciated.

(e.g. Mexico, Portugal, and

” are High on Power

stance, low on IDV, and high on UAI. Mas and

Marketing implications:

Style is appreciated – in high UAI countries

in general people are impressed by

standards for behavior. As a result formality

and stylish behavior is seen as positive.

people think deductive,

highest esteem is given to experts. That

means that evidence from people with

academic titles is more credible than

statements from laymen or practitioners.

Scientific evidence is appreciated

more credible that

Age is equal to wisdom

Indirect messages are appreciated –

Prevention of losing face is a real issue.

That’s why indirect messages are seen as

more civilized.

5. Hierarchy is important. Messages from

important people are having high status

The Family Cluster (e.g. China, India), is in many

aspects like the Pyramid cluster, The big difference

is the low score in UAI

This translates to the following implications for

marketing:

1. Older people are more credible that

younger people – Age equals wisdom

2. Indirect messages are appreciated

Preventing to lose face is critical. That’s

why indirect messages are seen as more

civilized.

3. Hierarchy is important. Messages from

important people have status

In the Solar Cluster (e.g. France and Belgium), the

big difference with the Pyramid and Family

Cultures is the high score for IDV. The implications

are:

1. Style is highly appreciated –

countries people are impressed by

50,0

100,0family pyramid

That’s why indirect messages are seen as

Hierarchy is important. Messages from

e having high status

(e.g. China, India), is in many

aspects like the Pyramid cluster, The big difference

This translates to the following implications for

Older people are more credible that

Age equals wisdom

Indirect messages are appreciated –

Preventing to lose face is critical. That’s

why indirect messages are seen as more

Hierarchy is important. Messages from

le have status

(e.g. France and Belgium), the

and Family

Cultures is the high score for IDV. The implications

– in high UAI

countries people are impressed by

standards for behavior. As a result formality

and stylish behavior is valued.

2. Expert approach – people think deductive,

the highest esteem is given to experts. That

means that evidence from people with

academic titles is more credible than

statements from laymen or

The white coat as a symbol of scientific

evidence is valued.

3. Intellectual approach is appreciated.

The thinking process is deductive,

“Cartesian” People like intellectual role

models.

Summary:

the influence of culture and of the five dimensions

visible and tangible. To segment marketing

according to culture clusters enables a brand to

address more homogenous customer segments

and focus on similar cultural values. In other

words, using culture clusters enables relevant and

targeted marketing, whatever the component of

the mix. And doing so efficiently.

Segmenting according to culture makes it possible

to divide heterogeneous, multicultural markets

into homogenous segments and to allocate

resources effectively and efficiently across

countries and regions.

References:

0,0

50,0

100,0

P D

ID V

M A

U A

for behavior. As a result formality

and stylish behavior is valued.

people think deductive,

highest esteem is given to experts. That

means that evidence from people with

academic titles is more credible than

statements from laymen or practitioners.

The white coat as a symbol of scientific

Intellectual approach is appreciated.

The thinking process is deductive,

“Cartesian” People like intellectual role

the influence of culture and of the five dimensions

visible and tangible. To segment marketing

according to culture clusters enables a brand to

address more homogenous customer segments

and focus on similar cultural values. In other

ture clusters enables relevant and

tever the component of

And doing so efficiently.

Segmenting according to culture makes it possible

to divide heterogeneous, multicultural markets

into homogenous segments and to allocate

esources effectively and efficiently across

Huib Wursten based on research of Professor

Geert Hofstede. See: Wursten H., (2002) Mental

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Regional Governance and Sustainable

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ST/ESA/PAD/SER.E46.

Wursten H., (2003) Internal Marketing. Cross-

cultural Marketing. Thomson learning, ISBN 1-

86152-801-9

Marieke de Mooij, “Global Marketing and

Advertising; Understanding Cultural Paradoxes”;

Sage / 2e druk / 2005; ISBN-13: 97814129147653.

De Mooij, M. “The future is predictable for

international marketers: converging incomes lead

to diverging consumer behavior” International

Marketing Review. Vol. 17 No. 2, 2000, pp. 103-113

(University Press)

Levitt, T. “The globalization of markets”. Harvard

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Craig et al.,1992 Reassessment of convergence and

divergence dynamics: implications for

international HRM The International Journal of

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8039-7223-3

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Organization studies, 15, 447-45