Ethics and Global Marketing

1. Ethics and Global Marketing Lecture three: Ethics and Delivering Customer Value across Global Markets

2. Business perspective three: • Intents, means and ends • When formulating marketing campaigns, marketers are responsible for: • The intent of the action • The means or method by which the practice was implemented • The end or outcomes of the strategy or tactic

3. Did Hyundai go too far?

4. The proportionality framework • Adapted from Garrett (1966) • The principle of proportionality: • Marketers are responsible for whatever they intend as a means or an end. If both are 'good', they may act, accepting a certain (i.e. minor) risk of side effects.

5. The marketing concept High price  Harrods • Segmentation • Targeting • Positioning Marks & Spencer Delicatessens Tesco Convenience stores Narrow range Wide range Market stalls Discount stores Low price

6. Marketing mix • Product • Price • Place • People • Physical evidence • Process • Promotion

7. Vaseline example

8. Ethical product challenges

9. Ethical pricing challenges

10. Ethical pricing challenges

11. Ethical place challenges • Whose responsibility? • The government and the retailers? • http://www.bbc.co.uk/news/uk-politics-21388628 • Individuals? • http://www.bbc.co.uk/news/uk-21392004 • The supply chain? • http://www.bbc.co.uk/news/uk-21394451

12. Ethical people challenges

13. Non-ethical physical evidence • Fake bomb detectors: • http://www.bbc.co.uk/news/uk-22279095

14. Ethical promotional challenges

15. Word-of-mouth communications Personal needs Past experience Expected service CUSTOMER Gap 5 Perceived service Service delivery Gap 4 External communications to customers Gap 3 PROVIDER Service quality specifications Gap 1 Gap 2 Management perceptions of customer expectations Service Quality Framework

16. ABC model of consumer attitudes • Affect • Behaviour • Cognition

17. Purchase decision making framework

18. Essential components of culture • Beliefs • Mental and verbal processes that reflect our knowledge and assessment of products/services. • Values • Indicators consumers use as guides for what is appropriate behaviour. • Usually enduring and widely accepted within the market.

19. Essential components of culture • Customs • Overt modes of behaviour that constitute culturally approved or acceptable ways of behaving in specific situations. • Customs are evident at major events in one’s life, e.g. birth, marriage, death, and at key events in the year, e.g. Christmas, Easter, Ramadan.

20. Layers of culture • Like an onion (Lee and Carter, 2012) • National culture • Business culture • Organisational culture • Individual culture

21. Layers of culture • Hofstede (2003) • National level • Regional / ethnic / religious / linguistic affiliation level • Gender level • Generation level • Social class level

22. Contextual continuum of culture High Japanese Arabs Latin Americans Italians/Spanish Context French English North Americans Scandinavians Germans Low Swiss Explicit Messages Implicit Source: Usiner et al (2005))

23. Hofstede’s criteria (2001) • Individualism • Affects the way people live together • Power distance • Dealing with human inequality • Uncertainty avoidance • Managing future uncertainty • Masculinity • Male / female stereotyping • Time orientation/Confucian dynamism • Long-term or short-term orientation

24. Danish Culture – According to Geert Hofstede • Verylow power distance • Quitehighindividualism • Verylow ”masculinity” – more ”feminine” values • Verylowuncertaintyavoidance • Business culturetraits: • Quiteinformal, relaxed • Punctuality is veryimportant • A verydirect, no-nonsensecommunication (maybeconsidered rude) • Highgenderequality • Not tooflashydress-code Source: www.geert-hofstede.com

25. In a European context the Danish culturediffers from being more ”feminine” and with a verylow power distance compared to other European countries. But in a global context the contrastsareevenbigger. Thiscanberisky in dealingwithe.g. China.

26. A viral marketing campaigngonehorriblywrong…

27. Self-reference criterion • The process of gaining empathy within an international country market requires: • Cultural empathy • The ability to place yourself in the position of a buyer from another country. • Neutrality • The ability to identify the differences that exist without making value judgements about ‘better’ or ‘worse’ cultures. • The focus should be placed on differences rather than superiority.

28. Assumptions to be questioned by international marketing managers • The consumer buying process is consistent across cultures • consumer involvement • perceived risk • cognitive style

29. Cultural tightness-looseness • Refers to the extent to which an individual shows strong adherence to social norms and whether severe sanctions are imposed on those who deviate from these norms. (Gelfand, Nishii, and Raver, 2006)

30. Ethics and Global Marketing Lecture three: Ethics and Delivering Customer Value across Global Markets Tutor: Giovanna Battiston  g.battiston@shu.ac.uk

31. Activity Congratulations! You have just graduated from university and you have been offered an interview with Starbucks for a position as Marketing Officer at their head office in the US. To prepare for the interview you have been asked to deliver a 20-minute presentation in response to the following question: 'Evaluate the reasons why Starbucks has been unsuccessful in demonstrating its ethical and environmental credentials and outline the marketing measures the company could undertake to increase awareness of its CSR activities.'