Transcript File - Foundation Studies @ AEMI webpage

Welcome Day 5
Marketing 100
October 2009
Ethics, Global Marketing
& Planning
Lecturer - Ms Jodie Hanson
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Review
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Lecture – 12 Marketing Ethics
1. Marketing Ethics
2. Definitions
3. Factors influencing the ethical decision
making process
4. Ethical issues in marketing
5. Improving ethical behaviour
6. Social Responsibility
3
Ethics in Marketing
Just because you can,
doesn’t mean you should
Macro view – the effects of the “marketing machine” on the community,
economy, values etc vs
Micro view – the ethics of individual marketing efforts and intiatives
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2. Definitions
• Ethics: values and choices, focusing on standards, rules and
codes of conduct that govern the behaviour of individuals.
• Marketing Ethics: refers to principles that define what is
acceptable conduct in marketing
• Marketers need to be aware of ethical standards and acceptable
behaviour in relation to - company, industry, consumers and
society.
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3.
Factors that Influence the Ethical
Decision-Making Process
• Individual Factors: individuals base their decisions
on their own concepts of right or wrong – learnt
through socialization by family members, social
groups, religion and formal education
This can be extremely relevant when operating in
markets outside your norm. ie international
markets have different cultural and therefore
ethical boundaries.
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Factors that Influence the Ethical DecisionMaking Process
• Organisational Relationships
– Significant others: superiors, peers, and subordinates in an
organisation who influence the ethical decision-making
process
– Organisational, or corporate culture: a set of values,
beliefs, goals, norms and rituals that members or
employees of an organisation share
• Opportunity: a favourable set of conditions that limit
barriers or provide rewards.
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Class Activity
• Identify a company or
organisation in your
community that has a
reputation for being
ethical. What activities
by the company account
for this image? Is the
company successful?
Why?
What
would
you do?
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4. Ethical Issues in Marketing
• An ethical issue is an identifiable problem, situation
•
or opportunity requiring an individual or organisation
to choose from among several actions that must be
evaluated as right or wrong, ethical or unethical
Promotion: can easily lead to a variety of situations
where ethical issues can be created ie false and
misleading advertising, manipulative or deceptive
sales promotions and tactics etc
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Ethical Issues in Marketing
• Pricing: price fixing, predatory pricing, failure
to disclose the full price associated with a
purchase.
• Distribution: relationships among producers
and marketing middlemen (wholesalers and
retailers)
• Production: use of under age labour, labour
conditions, pollution of landscape with
production by products.
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5. Improving Ethical Behaviour
• Listen and Learn
• Identify the ethical issues
• Create and analyse options
• Identify the best option from your point of
view
• Explain your decision and resolve any
differences that arise.
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Ethics Compliance
• Industry/company Codes of Conduct:
Formalized rules and standards that describe
what the company expects of its employees.
• Promote ethical behaviour by eliminating
opportunities for unethical behaviour
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7 Steps to Ethics Compliance
• Establish codes of conduct
• Appoint or hire high-level compliance manager
•
•
•
•
•
(ethics officer)
Take care in delegating authority
Institute a training programme and communication
system (ethics training)
Monitor and audit for misconduct
Enforce and discipline
Revise programme as needed
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Class Activity
• You own a local
•
company who
manufactures and sells
their own brand of
mobile phones.
Write your Codes of
Conduct (minimum of 6)
What
would
you do?
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6. Social Responsibility
• Dfn: An organisation’s obligation to maximise
the positive impact and minimize its negative
impact on society
• A vital factor in marketing strategy decisions
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Social Responsibility
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Social Responsibility Issues
• Consumer Movement: Activities undertaken by independent
individuals, groups and organisation to protest their rights as
consumers (the right to safety, be informed, choose, to be
heard)
• Community Relations: Society anxious to have marketers
contribute to its well-being, wishing to know what businesses
do to help solve social problems (ie equality issues, safety and
health, education, general welfare, disadvantaged members
of society)
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Social Responsibility Issues
• Green Marketing: Consumers insisting not only on the quality
of life, but also on a healthful environment so that they can
maintain a high standard of living during their lifetimes
(Conservation, water, air and land pollution)
• Diversity: Employees and consumers pressing for greater
awareness and acknowledgement of demographic and
lifestyle diversity issues whish are rising in importance for
organisations as diversity in the work force and general
population grows (EEO, integration, Appreciation of how
differences can contribute to success)
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Lecture 13 – Global marketing
1. Landscape in the 21st Century
2. Decisions in international marketing
3. Factors influencing decisions
–
–
–
–
terms of trade
economic development
political legal
cultural
4. Decide on a market
5. Entry options
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Global Marketing into the Twenty-First
Century
• The world is “shrinking” – faster
communication, transportation, financial flows
• Globalisation and technological revolution are
making it increasingly difficult for a firm to
maintain its competitive advantage.
• Elimination of some trade barriers
• Increased competition in domestic markets
• Changes to distribution & communications
methods due to technological advances
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Cont.
• To be competitive, many firms are becoming global
firms
– See the world as one market
– Operate in whatever countries offer the best production,
marketing, and financial advantages
• Firms who market internationally face several major
challenges
–
–
–
–
Unstable economies, currencies, governments
Protectionist trade barriers (tariffs, regulations, etc.)
Corruption
Unfamiliar cultures and business practices
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Major Decisions in International
Marketing
Analyzing the global marketing environment
Deciding whether to go international
Deciding which markets to enter
Deciding how to enter the market
Deciding on the global marketing program
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Considerations – terms of trade
Trade Restrictions Protectionism g Isolationism, Price Escalation
• Tariffs
taxes to raise revenue, protect domestic firms
• Quotas
response to trade deficits
•Embargo
ban
• Exchange controls blocked currencies
•Nontariff trade barriers
biases, restrictive product standards
Trade Agreements
• GATT 144 nations
China admitted in 2001
1948-1980s average tariffs 45% g<5%
1993 – tariffs i30% by 2002, set up WTO
• Regional Free Trade Zones – e.g., EU, NAFTA, MERCOSUR
(may result in isolation relative to nations outside the agreement)
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Marketing Environment:
Economic
Industrial Structure & Income Distribution
• Subsistence economies
• Raw materials exporting economies
e.g., Saudi Arabia, Nigeria, Zaire
• market for equipment, tools, supplies, trucks
• mostly low income, small upper class (luxury goods)
Differing
opportunities
• Industrializing economies
e.g., China, Mexico, Central and Eastern Europe, India, Malaysia, Thailand,
Indonesia, Chile, Brazil, Philippines, Egypt, etc. (e.g., Real Marketing 19.2)
• market for raw materials, equipment, etc.
• growing middle class
• Industrial g post-industrial economies
e.g., US, Canada, Japan, W Europe, Australia, Hong Kong, Taiwan, S Korea,
Singapore
• import & export goods, services, investment funds
• large middle class
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Marketing Environment: Political-Legal
Consider when deciding whether to enter a given country
Attitude towards international business
Bureaucracy – bribes & kickbacks
Political stability – unrest, civil uprising
Ban on currency – some countries favoured over others
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Marketing Environment:
Culture
Directly affects the marketing
program within a given
country – standardized
versus adapted program
How consumers
think about and use
specific products
Cultural traditions,
preferences, and
behaviors
Business norms
and behavior
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Deciding on the Global Marketing
Program
Adapted
Marketing Mix
Adjusts the elements of the
marketing mix to each
international target market
(e,g. Japanese Barbie,
cheeseless Cheetos)
Better targeting
to local markets
Not “all or
nothing”
“Think
globally,
act
locally”
Standardized
Marketing Mix
Uses basically the same
marketing mix in all the
company’s international
markets
(e.g., Black & Decker, Sony)
Saves $ and creates
consistent positioning
(if it works)
Standardize where you can, adapt where you should
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Deciding How to Enter the Market
Exporting
Joint venturing
Direct investment
• Indirect
• Licensing
• Assembly facilities
• Direct
• Contract manufacturing
• Manufacturing facilities
(host country partner)
• Management contracting
• Joint ownership
Amount of commitment, risk, and profit potential
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Lecture 14 – Planning process
1. Strategic planning context
•
•
Boston Consulting Matrix
Growth matrix
2. Marketing Process
3. References
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1. Strategic Planning Context
Strategic Planning is the process of developing and maintaining
a strategic fit between the organization’s goals and capabilities
and its changing marketing opportunities – for long-run survival
and growth
Strengths, Weaknesses fg Opportunities, Threats
Can be done at both a corporate level, business unit level, and product level
Strategic planning provides many benefits such as:


Encouraging management to think ahead systematically
Helping the company to anticipate and respond quickly to
environmental changes and sudden developments
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Steps in Strategic Planning
Corporate Level
Defining the
company
mission
Setting
company
objectives
and goals
Designing
the business
portfolio
Business unit,
product, and
market level
Planning
marketing,
and other
functional
strategies
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Boston Consulting Group Approach
“Growth-Share Matrix”
Low
High
Market Growth Rate
Relative Market Share
High
Stars
• High mkt. growth & share
• Profit potential
• Heavy investment needed
to finance rapid growth
hold
Cash Cows
• Low growth, high share
• Established, successful
• Produce cash
hold (or harvest)
SBU Life-Cycle
?, Star, Cash Cow, Dog
Low
Question Marks
?
• High mkt. growth, low share
• Build into Stars or phase out
• Very heavy investment
needed if to build share
build (or harvest or divest)
Dogs
• Low mkt. growth & share
• Low profit potential
hold (or harvest or divest)
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Growth Strategies
Product / Market Expansion Grid
Existing Products
1. Market Penetration
Existing
Markets
New
Markets
More usage among current
customer markets
Competitors’ customers
Nonusers in target market
2. Market Development
New demographic markets
New geographic markets
New Products
3. Product Development
Product extensions
New products
4. Diversification
Highest risk – lose focus
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• Marketing specialist should be involved at this
level where possible ie marketing director etc
• Once this organisational planning has taken
place, the strategic marketing planning
process can begin.
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2. The Marketing Process
TechnologicalEnvironment
Marketing
Intermediaries
Economic
- natural
Environment
Segmentation
Target Marketing
Positioning
Product
Suppliers
Place
Profitable
Customer
Relationships
Promotion
PoliticalLegal
Environment
Competitors
Price
Publics
SocialCultural
Environment
Leader, challengers,
followers, nichers
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Marketing planning process
• Conduct a situational analysis
– External market analysis using PEST & competitor analysis
Political/legal, economic/natural, social/demographic
technological - competitor analysis
- Internal analysis – assets and capabilities review, current
products, resources, plans, brand position, activity
- Review in terms of a SWOT
- Strengths and weakness – internal
- Opportunities and threats – external
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• Determine marketing objectives
– SMART – Specific, measurable, achieveable, realistic,
timely
• Determine your market segmentation (target
•
•
markets) and strategy
Position for competitive advantage
Consider strategies for your marketing mix elements
–
–
–
–
Product
Place
Price
Promotion
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• Create an implementation schedule - who,
what by when
• Tracking and measurement plan
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Evaluating Segments & Selecting
Which Markets to Target
• Segment Size and Growth
– “Right” size & growth characteristics ?
• Segment Attractiveness
– Competitors, needs to be serviced, market gap,
availability of substitute products, power of buyers,
power of suppliers ?
• Company Objectives and Resources
– Skills and resources needed to succeed in the
segment(s) ?
– Competitive advantages ?
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Positioning for Competitive Advantage
1. Identify Possible
Competitive Advantages
Positioning Strategy
( Years to build,
2. Select the Right
can be quickly lost )
Competitive Advantage
3. Communicating and
Points of differentiation
Delivering the Chosen
Product characteristics
Position
Meaningful
Services
Channel
“Unique selling proposition”
People
“Own a word or phrase”
Point of difference
Image
Avoid: Under-positioning
Marketing mix
Over-positioning
Confused positioning
“Value proposition”
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Positioning for Competitive Advantage
Positions that are meaningful/worthwhile:
• Important – target customers value the difference as a
meaningful benefit
• Distinctive – competitors don’t already position on it
• Superior – better than competitors
• Communicable – difference can be communicated,
made visible and understandable
• Preemptive – first, and competitors cannot easily copy
• Affordable – target market can afford to pay for it
• Profitable – the company can deliver it profitably
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Marketing Strategy g“Marketing Mix”
The “4 Ps” = controllable, tactical tools, integrated
Product (Customer Solution)
Variety
Quality
Design
Features
Brand name
Packaging
Services
Advertising
Personal Selling
Sales Promotion
Public Relations
Target
Customers
Intended
Positioning
Promotion (Communication)
Price (Customer Cost)
List price
Discounts
Allowances
Payment period
Credit terms
Channels
Coverage
Assortments
Locations
Inventory
Transportation
Logistics
Place or Distribution
(Convenience)
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• References
• www.tutor2u.net/business/marketing/planning
_setting_objectives.asp
• www.smallbusinessnotes.com
• www.business.vic.gov.au/busvic/standard/pc_
62518.html (writing a marketing plan)
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REVIEW core concepts
• Day 1
• Day 2
• Day 3
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• Day 4
• Day 5
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