The power distance index (PDI) reflects “the extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally” (Hofstede, 2011, p. 9). A high PDI implies that there is a clearly established hierarchy in a country, while a low PDI signifies that the society undertakes attempts to distribute power among its members.
First of all, when entering a market in another, a marketing manager should remember that it is essential to adapt the goods or services produced by a company to the habits and traditions of another culture (de Mooij, & Hofstede, 2010). As it has already been mentioned, countries with large PDI are characterized by strong hierarchy, and, hence, powerful leadership. Therefore, a marketing manager should find a way to ensure the influential actors that the suggested products or services would improve the public image of a leader through bringing benefits to the entire community, family, or company.
A marketing manager should also be concerned with the acknowledgment of a leaders status. Since the ruler is the most influential figure in the nations with high PDI, the managerial personnel of the new-coming firm should admit that the thoughts and ideas of the local leader are of great importance. Companies that come from outside should not explicitly oppose the central power and show disrespect to the people at the top of the hierarchy. Undoubtedly, the newcomer might try to bypass this authority, but it would be wrong to contempt it or treat it as equal.
Another essential point concerning marketing is that people at the bottom of the hierarchy tend to listen to the views proposed by those at the top. Consequently, a manager should develop a marketing strategy that would target not all potential consumers but rather wealthy and influential individuals. In case they become interested in a product or a service promoted by a company, they would be willing to purchase it. Thus, these reputable people would motivate the rest of society to follow their choice. The disappointment of a local leader is highly likely to harm the performance of the company.
References
de Mooij, M., & Hofstede, G. (2010). The Hofstede model: Applications to global branding and advertising strategy and research, International Journal of Advertising, 29(1), 85–110.
Hofstede, G. (2011). Dimensionalizing cultures: The Hofstede model in context. Online Readings in Psychology and Culture, 2(1), 3-26.