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Ethics and Global Marketing
Lecture two:
Ethics and Global Marketing Planning
What is marketing?
• Marketing involves:– Focusing on the needs and wants of customers– Identifying the best method of satisfying those
needs and wants– Orienting the company towards the process of
providing that satisfaction– Meeting organisational objectives
What is global marketing?
• Notion of a 'borderless' global marketplace• Marketing operations that cross political and cultural
boundaries• Maximising opportunities in the search for global
competitive advantage• Adding to stakeholder value• Exporting / International marketing / global marketing
Global Marketing management
Lee and Carter, 2012
The marketing concept
• Segmentation• Targeting• Positioning
New products and processes for international markets
The International Product Lifecycle
Sales
Time
Home countryCountry A
Country B
Building sustainable competitive advantage
Product portfolio managementM
arke
t Gro
wth
Rat
e
Relative Market Share
High
High
Low
Low
STAR
CASHCOW DOG
?QUESTION
MARK
Growth stage
Build market
Introduction stage
?
Maturity stage
Harvest market
Decline stage
Divest market
BCG/ Boston matrix
Ethical brand challenges
Ethical brand challenges
Definition of ethical marketing
'Ethical marketing refers to practices that emphasise transparent, trustworthy, and responsible personal and / or organisational marketing policies and actions that exhibit integrity as well as fairness to consumers and other stakeholders.'
Murphy et al, 2012, Ethics in Marketing: International Cases and Perspectives
An ethical perspective
• Ethical marketing puts people first– Create products and services that have a
perceived and real social benefit.– Essential for sustainable competitive
advantage.
• Ethics is an applied discipline.
Seven basic perspectives:Approach from Murphy et al, 2012
1. Ethical marketing puts people first.
2. Ethical marketers must achieve a behaviour standard above the law.
3. Marketers are responsible for whatever they intend as a means or end with a marketing action.
4. Marketing organisations should cultivate better (i.e. higher) moral imagination in their managers and employees.
5. Marketers should articulate and embrace a core set of ethical actions.
6. Adoption of a stakeholder orientation is essential to ethical marketing decisions.
7. Marketing organisations ought to delineate an ethical decision making protocol.
Business perspective one:
• Societal benefit:Ethical marketing puts people first
• Do not treat people as a means to a profitable end.• Flouting this can add costs to the average
marketing transaction.
Net benefit to who?
• Society or the individual consumer?– Tobacco– Credit cards– Alcohol– Video games– Food
• These are the second-order, or even third-order effects of marketing practice that can raise ethical questions
Business perspective two:
• Ethical expectations for marketing must exceed legal requirements– The law represents the lowest common denominator
of expected behaviour for marketers.– The formalisation of restrictions by law typically lags
behind public opinion.
• Ethics and the law are connected but are not the same thing
Political / Legal environment
• Three dimensions:– The home country– The host country– The international trading environment
Ethics and the law
• Legal systems in some areas may be underdeveloped.
• Country may not have a democratic system– Legal system may reflect the interests of the
ruling class.
Ethics and the law
• Ethics embodies higher standards than law.• Ethics assumes more duties than law.• Those companies that view themselves as
ethical marketers aspire to a higher standard.• Even in democracies, the legal system cannot
be a substitute for personal and organisational responsibility.
Ethics and Global Marketing
Lecture two:
Ethics and Global Marketing Planning
Tutor: Giovanna Battiston
g.battiston@shu.ac.uk
Role play activity
Role play scenarioYou work for a PR agency that specialises in handling accounts for firms with
products in multiple, global markets. Your firm prides itself on its ethical position
and has a code of ethics that it publishes on its website.
Your firm has grown rapidly in recent years and your Chief Executive, who is
also the founder of the business, has recently managed to secure an opportunity
to handle the PR for Unilever in the Far East.
You have been invited to an internal planning meeting to discuss this
opportunity.
You will assume one of the roles on the following slide and then prepare for the
meeting.
Roles• Chief Executive (you will also chair the meeting)
• Finance Director
• Chairman
• Company Secretary
• Business Development Director
• HR Director
• Marketing Director
• Head of Internal PR
• Key Accounts Director
• Regional Account Manager for the Far East
• Head of Creative Design