Transcript MT 219 Marketing Seminar

MT 219 Marketing
Unit Nine
The Global Marketplace
Social Responsibility and Ethics
Note: This seminar will be
recorded by the instructor.
Review of Unit Eight
• How did Unit 8 go? Questions or concerns?
• Instructor suggestions for Unit 9
• Additional questions?
Major International Marketing Decisions
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Evaluate the global marketing environment
Make the decision to market internationally
Select the markets to enter
Decide how to enter the selected markets
Decide and develop the marketing program
Decide on the marketing organization to support effort
The Global Marketing Environment
• Many aspects of the marketing mix must
often be changed to be successful in
international markets due to the new
actors in the microenvironment and
factors in the macroenvironment.
The Global Marketing Environment
• Economic
-Industrial structure- the type of economy that a country
has helps determine if products might be successful
-Even if the economy is not highly developed, marketer
may see opportunity. Clothes detergents in single use
sachets, for example
-Income distribution- How income is distributed can pose
challenges, but also develop opportunity if product can be
modified for lower (or higher) income earning groups.
The Global Marketing Environment
• Political-Legal Environment
-Legal requirements for operations and doing
business
-Government bureaucracy
-Regulations regarding money and domestic
participation
-Political stability
-Attitude of political and legal system towards foreign
companies
The Global Marketing Environment
• Cultural Environment- Extremely important – products that are socially or culturally
inappropriate are unlikely to be successful.
• Competitive Environment- Established competitors often understand the markets and are more
agile at thwarting new competition
• Technological Environment
- Will the local technology infrastructure be able to foster local operations
AND will the products you are planning on selling work with the local
technology?
Deciding to Expand Internationally
• Why companies expand internationally:
-Domestic or international competition might be very
high in domestic markets
-The domestic market might be saturated
-Business customers might be expanding globally
Deciding to Expand Internationally
• Risks in expanding internationally:
-Can the company adapt to consumer behavior, wants and
needs in other countries?
-Will their products be attractive to consumer sin other countries
or do they need to be modified?
-Will the firm be able to adapt to the new environment?
-Do the firm’s managers actually understand the international
environment?
-Have all aspects of the international environment been
considered?
Deciding Which Markets to Enter
• Requires a thorough environmental analysis
-Can the country provide the level of sales that is
required?
-Should one or more countries be considered?
-Are there particular types of countries that provide a
more attractive market segmentation than others?
Entering an International Market
• Exporting- Simplest and least risky way to get into
international markets. Export from the domestic market.
• Joint Venturing- Bring in a partner. More risky, but you
have a partner with experience and spread the risk
- Licensing and franchising
- Contract manufacturing and services
- Joint ownership
• Direct Investment- The company assumes all risk by
setting up operations in the country. Highest risk.
Sustainable Marketing- Ethics and
Social Responsibility
“Social responsibility is socially and
environmentally responsible marketing that
meets the present needs of consumers and
businesses while also preserving or enhancing
the ability of future generations to meet their
needs” (Kotler, 2010)
Social Criticism of Marketing
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Creation of wants and high levels of consumerism
Lack of social goods
Cultural contamination
Deceptive or too aggressive sales practices
Low quality products and planned obsolescence
Some markets with real needs underserved
Marketing Ethics
• Ethics is the study of moral choices and what is
considered to be right or wrong.
• Applies to individuals and any organization
• For marketers it refers to evaluating what is
right or wrong in the marketplace.
Unit 10- Written Exercise
• Don’t forget the written exercise in Unit 10.
• If you have any questions, please let me know.
Any Questions?
Thank you for attending!
It has been great having you in the
seminars!