This thesis aims at analysing cultural differences and their effect on marketing
products internationally. The United States of America and Germany are used to
exemplify this issue. Today’s science provides numerous approaches to making
cultural differences visible and tangible. All of these solutions and dimensions
give companies, and people in general, a guide to becoming aware of and understand
differences and how to cope with them appropriately.
Trompenaars, a famous consultant for intercultural communication, uses the allegory
of a fish and its habitat, water, to explain the characteristics of culture: “A
fish only discovers its need for water when it is no longer in it.”2 Accordingly,
culture can be seen as the substance that surrounds a human being and makes him
unable to distinguish between different and normal. Therefore, this thesis uses the
cultural theories of Edward T. Hall and Geert Hofstede, who both developed approaches
to cultural differences by using either a four- or five-dimensions model.
These cultural dimensions will be applied to the special circumstances and conditions
which a marketer has to deal with in the United States and Germany and
thus draws connections between those two different fields of science.
As already mentioned in section 1.1, cultural differences play an important role in
today’s international marketing. It is therefore important to examine if and how
cultural differences, according to Hall and Hofstede, affect parts of the marketing
mix for companies selling products in the United States as well as in Germany.
The following questions can help to identify the necessary steps: What cultural
differences, in both the United States and in Germany, could have an impact on
marketing the products of companies selling in those countries? What impact do
cultural differences have on parts of the marketing mix? Which adaptions should marketers make to their marketing mix due to the cultural differences? Is standardisation
a successful method in both international markets? The answers should
help the marketer make the right choice between adapting products to local circumstances
or selling and marketing the same product all around the world. This
thesis will attempt to answer these questions by applying the above-mentioned
cultural theories, and will provide suggestions for how companies from the USA
or Germany should conceive parts of their marketing mix. It will further provide
examples of culture–related marketing efforts.
Table of Contents
1. INTRODUCTION
1.1. PROBLEM DESCRIPTION
1.2. OBJECTIVES AND SCOPE OF WORK
2. THEORETICAL FUNDAMENTALS OF CULTURES
2.1. ORIGIN OF CULTURE AND DEFINITION OF DIFFERENT TERMS
2.2. GENERAL OVERVIEW OF CULTURAL THEORIES
2.3. CULTURE-RELATED BARRIERS TO INTERNATIONAL MARKETING
3. CULTURAL THEORIES AS A TOOL TO VISUALISE CULTURAL DIFFERENCES
3.1. USE OF MODELS AND DIMENSIONS IN INTERCULTURAL STUDIES
3.2. HALL’S CROSS-CULTURAL COMMUNICATION MODEL
3.2.1. Scope of Hall’s model
3.2.2. Cross-cultural communication dimensions
3.2.2.1. Context
3.2.2.2. Space
3.2.2.3. Time
3.2.2.4. Speed of Information
3.3. HOFSTEDE’S 5 DIMENSIONS MODEL
3.3.1. Scope of Hofstede’s 5 dimensions model
3.3.2. The 5 dimensions
3.3.2.1. Power distance index
3.3.2.2. Individualism versus Collectivism
3.3.2.3. Masculinity versus Femininity
3.3.2.4. Uncertainty avoidance
3.3.2.5. Long-term orientation
3.4. THE AMERICAN AND GERMAN CULTURES ACCORDING TO HALL AND HOFSTEDE
3.5. CRITIQUE OF THE THEORIES OF HALL AND HOFSTEDE
4. MARKETING ACROSS CULTURES
4.1. CONCEPT OF INTERNATIONAL MARKETING
4.1.1. Distinction between different geographical marketing terms
4.1.2. Standardisation vs. adaptation
4.2. CULTURAL DIFFERENCES AND THEIR EFFECT ON THE MARKETING MIX
4.2.1. Scope of cultural influences on parts of the marketing mix
4.2.2. Influence of culture on advertising
4.2.3. Examples of culture-related American and German advertising
4.2.4. Influence of culture on distribution
4.2.5. Wal-Mart as a negative example of cross-cultural distribution
5. CONCLUSION
5.1. ACHIEVEMENT OF GOALS
5.2. OUTLOOK AND PERSPECTIVES
Objectives and Topics
This thesis aims to analyze the influence of cultural differences on the marketing mix of international companies, specifically focusing on the United States and Germany. By utilizing the cultural theories of Edward T. Hall and Geert Hofstede, the study seeks to determine how these differences impact marketing strategies, advertising, and distribution, and whether standardisation or adaptation is the more effective approach for companies operating in these diverse environments.
- The application of Edward T. Hall's cross-cultural communication model in marketing.
- The utilization of Geert Hofstede’s five-dimensional cultural model for business strategy.
- A comparative analysis of American and German cultural norms and their marketing implications.
- The identification of successful versus unsuccessful cross-cultural marketing strategies, including a case study on Wal-Mart.
Excerpt from the Book
Wal-Mart as a negative example of cross-cultural distribution
Although the results of the cultural analysis of the United States and Germany show significant similarities in their attitude towards the dimensions of Hall and Hofstede, there remain differences which, at first glance, seem to be minor compared to the similarities. However, companies that try to enter one of these markets often seem to struggle. An example is the American retail company Wal-Mart Inc.. Wal-Mart has been a success in the United States for several decades, mainly because of their unique distribution system. However, their approach to the German market ended in a pull-out in 2006.
Emrich identified two different groups of issues that caused this unsuccessfully market entry. On the one hand, there were problems in their overall internationalisation strategy of takeovers, underestimation of the German competition as well as possibilities to expand. On the other hand, some problems had a cultural background, like their ignorance of German legislation power, failed human resource management and the existence of language barriers, a standardised American corporate culture and ignorance of cultural values of German employees and customers. According to the findings of the analysis presented here, failures were to be expected due to Hall’s dimensions of space and speed of message as well as Hofstede’s UAI dimension.
Wal-Mart offered the German customers the service that an employee packed their groceries into a bag at the cashier’s and carried them to their cars. Because of Germans attitude towards privacy and personal space, customers perceived this special service as an invasion of their personal space and privacy. The same problem arose with the so-called Greeters. These were employees who were responsible for greeting customers with a smile at the entrance to inform them about special offers. As stated earlier, Germans also feel uncomfortable when strangers smile a lot at them.
Summary of Chapters
1. INTRODUCTION: Outlines the problem of globalization and the necessity for companies to understand cultural differences to achieve international marketing success.
2. THEORETICAL FUNDAMENTALS OF CULTURES: Defines culture through various academic perspectives and introduces key concepts like the Self-Reference Criterion and Consumer Ethnocentrism.
3. CULTURAL THEORIES AS A TOOL TO VISUALISE CULTURAL DIFFERENCES: Provides a deep dive into the models of Edward T. Hall and Geert Hofstede, detailing their specific cultural dimensions.
4. MARKETING ACROSS CULTURES: Examines how these cultural models can be applied to marketing strategies, advertising campaigns, and distribution channels, using concrete examples.
5. CONCLUSION: Synthesizes the findings, confirming that cultural awareness is essential for international marketing, and provides an outlook on future trends in a globalized world.
Keywords
Cultural Differences, International Marketing, Marketing Mix, Edward T. Hall, Geert Hofstede, Cross-Cultural Communication, Globalisation, Adaptation, Standardisation, Consumer Ethnocentrism, Power Distance, Individualism, Uncertainty Avoidance, Advertising Strategy, Wal-Mart.
Frequently Asked Questions
What is the primary focus of this work?
The work focuses on analyzing cultural differences between the United States and Germany and their specific impacts on marketing activities such as advertising and distribution.
What are the core thematic areas?
The core themes include cross-cultural communication theory, the application of cultural dimensions in business, and the strategic dilemma between standardizing and adapting marketing efforts internationally.
What is the central research question?
The research investigates how the cultural theories of Hall and Hofstede can explain the success or failure of international marketing campaigns when comparing American and German markets.
Which scientific methods are employed?
The paper uses a qualitative, theory-based comparative approach, applying Hall's and Hofstede's dimensional models to analyze practical business examples and corporate case studies.
What is the main subject of the main part?
The main part covers the detailed exploration of cultural dimensions (context, space, time, PDI, IDV, etc.) and their practical influence on the components of the marketing mix.
Which keywords best describe this study?
Key terms include International Marketing, Cultural Dimensions, Marketing Mix, Cross-Cultural Communication, and Global Strategy.
Why did Wal-Mart fail in the German market according to this study?
The study concludes that Wal-Mart failed by ignoring German cultural preferences regarding personal space, privacy, and social interaction, specifically by imposing American corporate rituals that clashed with German values.
How do German and American attitudes toward uncertainty differ?
Germany scores higher on the Uncertainty Avoidance Index (UAI), meaning they prefer security and detailed information, while the U.S. is more comfortable with uncertainty and innovation.
- Citation du texte
- Matthias Boeing (Auteur), 2012, Analysis of Cultural Differences and their Effects on Marketing Products in the United States of America and Germany with a Focus on Cultural Theories of Hall and Hofstede, Munich, GRIN Verlag, https://www.grin.com/document/199863
