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Ethics and Global Marketing. Lecture three: Ethics and Delivering Customer Value across Global Markets. Business perspective three:. Intents, means and ends When formulating marketing campaigns, marketers are responsible for: The intent of the action

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ethics and global marketing

Ethics and Global Marketing

Lecture three:

Ethics and Delivering Customer Value across Global Markets

business perspective three
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
the proportionality framework
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.
the marketing concept
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

marketing mix
Marketing mix
  • Product
  • Price
  • Place
  • People
  • Physical evidence
  • Process
  • Promotion
ethical place challenges
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
non ethical physical evidence
Non-ethical physical evidence
  • Fake bomb detectors:
    • http://www.bbc.co.uk/news/uk-22279095
slide15

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

abc model of consumer attitudes
ABC model of consumer attitudes
  • Affect
  • Behaviour
  • Cognition
essential components of culture
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.
essential components of culture1
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.
layers of culture
Layers of culture
  • Like an onion (Lee and Carter, 2012)
    • National culture
    • Business culture
    • Organisational culture
    • Individual culture
layers of culture1
Layers of culture
  • Hofstede (2003)
    • National level
    • Regional / ethnic / religious / linguistic affiliation level
    • Gender level
    • Generation level
    • Social class level
contextual continuum of culture
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))

hofstede s criteria 2001
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
danish culture according to geert hofstede
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

slide25

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.

self reference criterion
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.
assumptions to be questioned by international marketing managers
Assumptions to be questioned by international marketing managers
  • The consumer buying process is consistent across cultures
    • consumer involvement
    • perceived risk
    • cognitive style
cultural tightness looseness
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)

ethics and global marketing1

Ethics and Global Marketing

Lecture three:

Ethics and Delivering Customer Value across Global Markets

Tutor: Giovanna Battiston

 g.battiston@shu.ac.uk

activity
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.'