primary dimensions of cultures of indian subcontinent

7/28/2019 Primary Dimensions of Cultures of Indian Subcontinent

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International Market AnalysisOn the basis of Cultural Values

Subject: International Marketing

Sub Code: MKT 423

Muhammad Hasan AL-MamunAssistant Professor( Head of Marketing Department)Business AdministrationStamford University Bangladesh

STAMFORD UNIVERSITY BANGLADESH

Rashed MahmudID: BBA 042 13292

Batch: 42 - A


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Letter of Transmittal

11th February, 2013

Muhammad Hasan AL-Mamun

Assistant Professor

(Head of Marketing Department)

Business Administration

Stamford University Bangladesh

Dear Sir,

I submit here the assignment that you asked for and gave us the authorization to work on selected topics

International Market Analysis On the basis of Cultural Values. The topic that you have given us is really an

important & interesting fact for the BBA students of Marketing. With the textual studies, acquiring practical

orientation is necessary of which you have created a big chance for us must help us to work with efficiency

in future.

Kindly accept my assignment and oblige me thereby.

Your sincerely,

Rashed Mahmud

BBA 042 13292


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AcknowledgementMaking an assignment is such a thing of pleasure. First of all I would like to thank the almighty

Allah who has given us the required knowledge and to finish this report. Then I would like to thank

the honorable instructorMuhammad Hasan AL-Mamunwho assigned us such an interesting task to

do. I am also very grateful to him because he helps us to the right way to complete a difficult task.

His assistance was remarkable and very fruitful. He provided sufficient information when needed.

Then I would like to thank the teachers of other and classmate who helped me in their respected

field. So I am also grateful to them.

Finally we would like to thank all the reader and user of this assignment


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Executive SummaryFrom this study I will learn that Prof. Geert Hofstede examined how values in the workplace are

influenced by culture. Authority cannot overlook the entire factor individually. Here I analyze the

market of Indian subcontinent (Bangladesh, India, and Pakistan) on the basis of Uncertainty

Individualism/Collective Index (IDV), Avoidance Index (UAV), and Power Distance Index (PDI).

Beside this Bangladesh, India and Pakistan carry different values of IDV, PDI, & UAI which

means different culture with their different values and norms but most of the cases Bangladesh &

Pakistan desire same marketing mix accept power distance index because of huge distance. It is also

said that it is easy to operate the market of both Bangladesh & Pakistan because there found

probable similarities between these two countries.

It helps to develop or build the perfect marketing strategy for perfect country. International

organizations fulfill their duties & put their contribution in respect of cultural values.


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Introduction:

Prof. Geert Hofstede discovered some index for measuring cultural values by observing 90,000 people from

50 different countries. He had need five years (1968 1972) to complete that study. And the total cost

bearded by IBM (28.9 billion dollars). And then he identifies four dimensions of cultural values. These

dimensions are described as follows-

Primary dimensions of cultures of some countries in Indian subcontinent:

Country IDV PDI UAI

Bangladesh = (B) 20 88 66

India = (I) 48 77 40

Pakistan = (P) 14 55 70

Primary dimensions of cultures can be described theoretically as follows:

1. Individualism/Collectivism Index: ( IDV )The Individualism/Collective Index refers to the preference for behavior that promotes ones self-

interest

High IDV cultures reflect an I mentality and tend to reward and accept individual initiative

Low IDV cultures reflect a we mentality and generally subjugate the individual to the group

Collectivism pertains to societies in which people from birth onward are integrated into strong,

cohesive groups, which protect them in exchange for unquestioning loyalty

2. Power Distance Index: ( PDI )The Power Distance Index measures power inequality between superiors and subordinates within

a social system

Cultures with high PDI scores tend to be hierarchical and value power and social status

High PDI cultures those who hold power are entitled to privileges

Cultures with low PDI scores value equality and reflect egalitarian views

3. Uncertainty Avoidance Index: ( UAI )The Uncertainty Avoidance Index measures the tolerance of uncertainty and ambiguity among

members of a society.

High UAI cultures are highly intolerant of ambiguity, experience anxiety and stress; accord a high

level of authority to rules as a means of avoiding risk.

Low UAI cultures are associated with a low level of anxiety and stress, a tolerance of deviance

and dissent, and a willingness to take risks.


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In this case: P B I

In this case: P B I

In this case: I

B

P

Executive Analysis of International MarketIn respect of Indian subcontinent

Innovativeness of proposed product or

service

Here need to analyze Uncertainty Avoidance

Index

In this case the Indian subcontinent Bangladesh & Pakistan carry the value of UAI which are so close to each

other and these are higher than the value of India. It means that Bangladesh & Pakistan follow risk averse

means low risk taking tendency and India follows risk prone means high risk taking tendency or willingness

to take risk.

So it can be concluded that innovation of something new or different in respect of product or service,

Bangladesh & Pakistan are not suitable but India is suitable.

As a resultthere must have to maintain different marketing mix for each country but same marketing mix

can be applied in Bangladesh & Pakistan.

Capital raising option:

Here also need to analyze Uncertainty

Avoidance Index.

So it can be concluded that India is suitable for the higher possibility of capital raising option than

Bangladesh & Pakistan. India prefers to invest quickly with risk and Bangladesh & Pakistan are less

preferable to invest so they are risk averse in Finance.

As a resultthere must have to maintain different marketing mix for each country but same marketing mix

can be applied for Bangladesh & Pakistan.

Types of products (Group consumption

Vs Individual consumption)

Here need to analyze Individualism/Collective

Index.

In this case India gets the highest value which is higher than values of both Bangladesh & Pakistan but the

values of Bangladesh & Pakistan are close to each other. Its means that India believes in individualism which

is the hope for a better quality of life. And high believes of collectivism where people have large extended

families, probably same in Bangladesh & Pakistan.

So it can be concluded that the advertising appeal must be prepared based on group consumption for

Bangladesh & Pakistan. And the mix of both group & self reference in advertising appeal can be applied

where the portion of group reference is greater than self reference for India.

As a resultalso there must have to maintain different marketing mix for each country but same marketingmix can be applied for Bangladesh & Pakistan. But in this condition to satisfy India there will be faced

something complex in making marketing mix because the value neither so high nor so low.

Country IDV PDI UAI


India = (I) 48 77 40

Pakistan = (P) 14 55 70

Country IDV PDI UAI


India = (I) 48 77 40

Pakistan = (P) 14 55 70

Country IDV PDI UAI


India = (I) 48 77 40

Pakistan = (P) 14 55 70


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In this case: I B P

In this case: B I P

Nature of Compensation package:

Here also need to analyze

Individualism/Collective Index.

So it can be concluded thatIndia peak up the nearest level of crossing the collectivism means India has much

preferable compensation policy based on individually performance measured. Bangladesh & Pakistan are

still believed in group achievement so the compensation policy used as group performance (achievement).

As a result the fluctuation of income level which differ from individually performance in India but the

income level still stable on group performance in Bangladesh & Pakistan (stability: P B). So different

marketing mix is required for each country but same marketing mix can be applied in Bangladesh &

Pakistan.

Organizational structures:

Here need to analyze Power Distance Index.

In this case Bangladesh & India are closely related with power inequality between superiors and

subordinates where social inequality is high means maintaining hierarchical from top level to low level with

value power and social status. Same thing can be measured in respect of Pakistan but same concept doesnt

be raised means value equality and reflect egalitarian views (non hierarchical). PDI value of Pakistan neither

so high nor so low but vast portion of people may prefer non-hierarchical maintenance.

So it can be concluded thatPakistan does not have a large gap between the wealthy and the poor, but have a

strong belief in equality for each citizen. In the case of Bangladesh & India totally opposite direction of

Pakistan but Bangladesh exhibits a more unequal distribution of wealth compared to Indian society.

As a resultthe participation in management practices possible for Pakistan but not possible for Bangladesh &

India because of different marketing organogram. So different marketing mix is required for each country

but same marketing mix can be applied in Bangladesh & India.

Summary of these analyses

Bangladesh, India and Pakistan carry different values of IDV, PDI, & UAI which means different culture

with their different values and norms but most of the cases Bangladesh & Pakistan desire same marketing

mix accept power distance index because of huge distance. It is also said that it is easy to operate the market

of both Bangladesh & Pakistan because there found probable similarities between these two countries.

Finally it can be concluded that there should be used Multi-domestic Market Orientation as strategic

orientation where following decisions are necessary-

Market success requires an almost independent program for each country

Separate marketing strategies

Subsidiaries operate independently of one another in establishing marketing objectives and plans Products are adapted for each market

Control is decentralized

Country IDV PDI UAI


India = (I) 48 77 40

Pakistan = (P) 14 55 70

Country IDV PDI UAI


India = (I) 48 77 40

Pakistan = (P) 14 55 70

primary dimensions of cultures of indian subcontinent

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