Cross Cultural Marketing - High and Low Context Cultures

Globalisation has led to a “shift towards a more integrated and interdependent world economy” (Hill, 2012). As companies expand from National to Multinational and even into Global Corporations, we must have a further understanding of how to market products ‘in context’ to personalise messages to different countries and regions. All size businesses are looking to expand overseas as it provides benefits such as “Spreading risk across different regions” (Haberberg and Rieple, 2008) and opportunity to benefit from economies of scale due to the increase in users which equates to larger financial benefits. Many businesses are simply partaking in ‘Herd Mentality’ following similar businesses who have had success in overseas markets. This may cause issues due to company’s insufficient knowledge of the market and trading in an unfamiliar environment. 

Phrases or words in one language usually have a precise or implied meaning, the understanding of this meaning may only be grasped by someone from that culture. Messages may also be passed on through “gestures, gesticulations or attitudes”, which can cause problems for companies attempting to expand into unknown markets.

There are two types of context cultures: High and Low Context. Learning Economies suggest that knowledge is the crucial resource and learning is the most important process. It is therefore essential that companies with a current or future global strategy incorporate education about different types of context cultures in order to engage in business overseas.

Low Context Cultures: (Germanic/Scandinavian/North American)

“The Swiss have a reputation for speaking literally with explicit messages and low context” (Usunier, 2009). Information expressed explicitly, to be taken literally without any hidden meaning.

High Context Cultures: (Asia, Latin America and Middle East)

Information is transmitted in the physical context or internalized in the person, very little is transmitted through explicit coded messages. According to Hall (1976) “In HC culture the meaning signalled via an individual’s actions or in the dialogue during interpersonal communication is implicit.”

The internet allows Marketers to customise information to target each differing culture. In a non-verbal culture the use of viral video marketing can be very effective as it can cancel out the use of language to convey the message, to convey personal attributes to each culture, i.e. the use of the colour blue in English culture signifies sadness, whereas in Japan it represents hope and wisdom. Companies can build a bond with countries by understanding and using their symbolism in their advertising.

Companies should consider Usunier’s Contextual Continuum of differing cultures and study the market they are currently in or planning to enter, to see what adaptations they may need to apply to their products and marketing strategy in order to achieve success in the market.

References:

Haberberg, A & Rieple, A (2008) Strategic Management: Theory and Application. New York: Oxford University Press, p. 515

Hill, Charles W.L (2007): International Business. Competing in the Global Marketplace International, 6th Ed., New York: McGraw-Hill. 

Usunier, J & Lee, J (2009). Marketing Across Cultures . 5th ed. Essex: Pearson Education Ltd. 

Usunier, J.C. (2005) International Marketing, Harlow, Pearson Education