02-Global Marketing & Ethics
By: Aviram Vijh
Tags: Marketing, Models, Framework, Ethics, Innovation

Concepts

High-Tech as the Backbone for Global Competitiveness

High-Tech as the Backbone for Global Competitiveness Creating, exploiting and commercializing new technologies is essential in the global race for competitiveness and high-tech sectors and enterprises are key drivers of economic growth, productivity and social protection, and generally a source of high value-added and well-paid employment. High-tech can be defined according to three different approaches:

the sector approach looks at the high-tech manufacturing sector, medium high-tech manufacturing sector, and high-tech knowledge-intensive service sector, focusing on employment, and economic indicators;

approach looks at the high-tech manufacturing sector, medium high-tech manufacturing sector, and high-tech knowledge-intensive service sector, focusing on employment, and economic indicators; the product approach considers whether a product is high-tech or not and examines trade in high-tech products;

approach considers whether a product is high-tech or not and examines trade in high-tech products; the patent approach distinguishes high-tech patents from others.

Types of globalisation

Cultural

Financial

Technological

Educational & Sociological

Economic

Ten percent globalisation

Pankaj Ghemawat is the major proponent who supports the so-called “Ten-Percent Presumption,” arguing that the world is by no means flat. He illustrated this by looking at a variety of international activities, such as telephone calls, tourists, foreign direct investment, and showed that the internationalisation level of those activities was rather ten than 100 percent.

Standardisation vs. Localisation-Adaptation

Economic Systems

The world’s economic systems fall into one of the four main categories:

Traditional economic system

Market economic system

Command economic system

Mixed economic system

What is culture?

National character

Values

Time orientation

Space orientation

Architecture

Perception

Thinking

Language

Colors

Non-verbal communication

Behavior

Social groupings and relationships

Greenwashing (CSR criticism)

Positive gains can accrue through environmentally friendly marketing strategies (Cronin et al., 2011), but insincere CSR may become greenwashing, i.e. tactics designed to mislead consumers regarding the pro-environmental stance of an organisation or the environmental benefits of a product or service it markets

Pricing related ethical issues

Price gouging

Price skimming

Price discrimination

Price collusion

Market Segmentation

At least five are the criteria for a good segmentation. For the company, each segment must be:

Homogeneous within the segment: to guarantee a similar response to marketing mix variables. Heterogeneous between segments: different enough to warrant changes in the marketing mix for different segments. Measurable: it is possible to calculate market potential. Substantial: large enough to be profitable. Operational: the segmenting dimensions should allow the identification of customers and the formulation of effective marketing mix decisions.

Global Segmentation

Global segmentation is more complex. First of all there is the necessity to segment and identify target countries (macro segmentation and prioritisation). Secondly, it is important to go in-depth when analysing segments in each country or across a group of countries (micro-segmentation).

Market Selection Process (Donata et al, 2012)

Second screening

Example of second screening for segmentation

Positioning

Positioning is a process that is, for the most part, out of the hands of marketers, since it represents “the way consumers, users, buyers, and others view competitive brands or types of products. Thus, as marketers devise their positioning strategies (planned positioning), the goal is to influence the position their brands have in the minds of consumers (perceived positioning).

Brand Positioning Strategy

Relationship Marketing

RM emphasizes a long-term interactive relationship between the provider and the customer, and long-term profitability. RM recognizes that everyone is a part-time marketer and that marketing is not confined to the full-time marketers of the marketing and sales departments

Relationship Marketing Paradigm

Goods vs. Service Centered Businesses

Goods vs. Service businesses

Brand Identity Prism

Brand Identity Prism

Dimensions of corporate reputation

Brand positioning

Brand promise

Brand performance

Consumer Perception of Ethicality

There is a disparity between how business and consumer perspectives on CPE. 6 domains of CPE:

Consumers: How companies sell goods to consumers.

Employees: How they treat their employees.

Environment: What do they do to mitigate damage?

Overseas community: Exploitation of labour in cheap countries etc.

Local community & economy: Investing in charities, libraries etc.

Business community: Suppliers, trade partners, competitors

Countermarketing

Countermarketing refers to the use of marketing techniques and channels to counter the effect of commercial advertising that is deemed to run counter to the interests of individuals and to the detriment to society as a whole. Cigarette advertising is one area that has been targeted in this way.

Triple Bottomline

The triple bottom line measures not just the economic but also the social and environmental performance of companies. Elkington (1998) suggested that organisations should be measuring not just the profitability of their operation but also the use of ‘natural’ capital such as timber and whether that comes from a sustainable source or not and social capital such as skills, health and well-being.

Typology of Ethical Consumption

Peattie (2012) offers a typology of seven major reasons and motivators for consumers to consume in unselfish ways. The motivators suggested by Peattie are pious, patriotic, green, socially conscious, responsible, citizenship-based and mindful consumption.

Models

The EPRG Framework

The EPRG framework was developed by Perlmutter in 1969.45 It is based on management’s worldview of the firm, which determines the way in which its foreign market activities are organized. These approaches or orientations also reflect different stages in the internationalization of the firm, from solely a domestic player to a world competitor.

Ethnocentric Orientation : In this stage, the focus is on the home market. Firms holding this view believe that domestic strategies are superior to foreign ones, and therefore are applied in overseas operations as well

: In this stage, the focus is on the home market. Firms holding this view believe that domestic strategies are superior to foreign ones, and therefore are applied in overseas operations as well Polycentric Orientation : Unlike ethnocentric firms, those following this approach use decentralized management, allowing affiliates to develop their own marketing strategy.

: Unlike ethnocentric firms, those following this approach use decentralized management, allowing affiliates to develop their own marketing strategy. Regiocentric Orientation : A regiocentric orientation tries to overcome the disadvantages of a polycentric view by bundling countries into regions; a particular region is viewed as comprising a single market.

: A regiocentric orientation tries to overcome the disadvantages of a polycentric view by bundling countries into regions; a particular region is viewed as comprising a single market. Geocentric Orientation: Firms adopting this approach view the world as a potential market. In these markets, an attempt is made to implement global marketing by integrating worldwide operations.

4As of Emerging Markets

Some of the traditional marketing mix instruments (the 4Ps: Product, place, price, promotion) do not fully comply with the characteristics of emerging markets. Therefore, they are often complemented or substituted by the 4As:

Affordability : Focus on selling products and price points that are affordable. Unilever’s shampoo sachets in India is a great example.

: Focus on selling products and price points that are affordable. Unilever’s shampoo sachets in India is a great example. Availability : Traditional reliance of strong distribution networks and infrastructure might not work in the developing world.

: Traditional reliance of strong distribution networks and infrastructure might not work in the developing world. Acceptability : Further important issue for marketers is to have their products or services accepted. This is sometimes difficult given the extended product life cycles in emerging markets, where everything is fixed and reused across generations

: Further important issue for marketers is to have their products or services accepted. This is sometimes difficult given the extended product life cycles in emerging markets, where everything is fixed and reused across generations Awareness: In countries where illiteracy is high, television is non-existent, and electricity is lacking, modern media is unlikely to survive. Creating awareness often means using word-of-mouth communication or advertising at the place of purchase.

Marketing in the developed and emerging markets

Global Marketing Framework

Global marketing framework (Donata et al, 2012)

PESTEL Analysis

Helps to systematically guide the analysis and can be used as a framework for the audit of a company’s external environment. Its findings can be used as a major input for a multiple-decision-criteria-analysis where you weigh a set of criteria and support strategic marketing planning.

PESTEL analysis guidance (Donata et al, 2012)

Hodstede’s Six Dimensions of National Culture

Six dimensions of culture (Donata et al, 2012)

McDonald’s Marketing Planning Process

Marketing planning process

Kano Model

Kano model helps separate characteristics that cause dissatisfaction, satisfaction and delight. Three characteristics are: must be, more is better, & delighters.

Nine Strategic Windows

Nine strategic windows (Solbeg, 1997)

Providing a CX

Types of CX

Consumer Typology

Peattie (2012) offers a typology of seven major reasons and motivators for consumers to consume in unselfish ways. The motivators suggested by Peattie are pious, patriotic, green, socially conscious, responsible, citizenship-based and mindful consumption (Eagle, 20150915, p. 118)

Why consumers behave differently?

Calculating Market Size

Potential market

The potential market is defined as the size of a general market that might be interested in buying a type of product (eg 1.72 mobile phones sold worldwide 2018).

Total available market

The total available market is the size of the market that might be interested in buying a particular product (eg 1.38m smartphones sold worldwide in 2018)

Served available market

This looks at the number of people and values of sales within a particular customer grouping that the organisation is interested in serving (eg number of over 65s that bought a smartphone in 2018)

Target sales

This defines how much the organisation already supplies to the target market by value and/or quantity and the organisation’s aspirations for future sales.

Calculating Market Size (Burns 2016)

Sustainable Marketing Orientation

Conceptual for implementing SMO:

Implementing SMO

4+3 Ps of Marketing

7 Ps of Marketing

Books to read