MT 219 Marketing Unit NineThe Global MarketplaceSocial Responsibility and Ethics

Note: This seminar will be recorded by the instructor.

Review of Unit Eight

• How did Unit 8 go? Questions or concerns?

• Instructor suggestions for Unit 9

• Additional questions?

Major International Marketing Decisions

• Evaluate the global marketing environment• Make the decision to market internationally• Select the markets to enter• Decide how to enter the selected markets• Decide and develop the marketing program• Decide on the marketing organization to support effort

The Global Marketing Environment

• The International Trading System-GATT- Group of countries that agree to certain rules and agree to a process for settling trade disputes so they do not spiral out of control. The WTO was created in the Uruguay Round of GATT to promote free trade.

-Trade alliances and agreements-European Union- Higher form of agreement that joins member states in trying to develop a common economic partnership.

-NAFTA- Trade agreement between Mexico, Canada and the US,

-UNASUR- South American trade agreement-APEC- Asian alliance focused only on trade cooperation

The Global Marketing Environment

• Many aspects of the marketing mix must often be changed to be successful in international markets due to the new actors in the microenvironment and factors in the macroenvironment.

The Global Marketing Environment

• Economic-Industrial structure- the type of economy that a country has helps determine if products might be successful

-Even if the economy is not highly developed, marketer may see opportunity. Clothes detergents in single use sachets, for example

-Income distribution- How income is distributed can pose challenges, but also develop opportunity if product can be modified for lower (or higher) income earning groups.

The Global Marketing Environment

• Political-Legal Environment-Legal requirements for operations and doing business

-Government bureaucracy-Regulations regarding money and domestic participation

-Political stability-Attitude of political and legal system towards foreign companies

The Global Marketing Environment

• Cultural Environment- - Extremely important – products that are socially or culturally inappropriate are unlikely to be successful.

• Competitive Environment-- Established competitors often understand the markets and are more agile at thwarting new competition

• Technological Environment- Will the local technology infrastructure be able to foster local operations AND will the products you are planning on selling work with the local technology?

Deciding to Expand Internationally

• Why companies expand internationally:

-Domestic or international competition might be very high in domestic markets

-The domestic market might be saturated

-Business customers might be expanding globally

Deciding to Expand Internationally

• Risks in expanding internationally:-Can the company adapt to consumer behavior, wants and needs in other countries?

-Will their products be attractive to consumer sin other countries or do they need to be modified?

-Will the firm be able to adapt to the new environment?-Do the firm’s managers actually understand the international environment?

-Have all aspects of the international environment been considered?

Deciding Which Markets to Enter

• Requires a thorough environmental analysis

-Can the country provide the level of sales that is required?

-Should one or more countries be considered?

-Are there particular types of countries that provide a more attractive market segmentation than others?

Entering an International Market

• Exporting- Simplest and least risky way to get into international markets. Export from the domestic market.

• Joint Venturing- Bring in a partner. More risky, but you have a partner with experience and spread the risk

- Licensing and franchising- Contract manufacturing and services- Joint ownership

• Direct Investment- The company assumes all risk by setting up operations in the country. Highest risk.

Specific Marketing Program Decisions

• Standardized or adapted global marketing?

• Considerations apply to the entire marketing mix.-Product-Promotion-Price -Place

Sustainable Marketing- Ethics and Social Responsibility

“Social responsibility is socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs” (Kotler, 2010)

Social Criticism of Marketing

• Creation of wants and high levels of consumerism• Lack of social goods• Cultural contamination• Deceptive or too aggressive sales practices• Low quality products and planned obsolescence • Some markets with real needs underserved

Promotion of Sustainable Marketing by Consumers

• Development of organized consumer activities

• Recognition that sellers have rights in an open market

• Making sure that consumers have rights to safe products and clear marketing practices

Promotion of Sustainable Marketing by Regulators

• Many laws and regulations limit the ability of marketers to sell their products

• These can vary depending on the location where business is being done

• There are sometimes overlapping jurisdictions- National, state, county, local, etc.

Promotion of Sustainable Marketing by Businesses

• Principles of Sustainable Marketing-Consumer orientation-Integrating consumer values into marketing-Innovative marketing-Developing a sense of mission in marketing-Societal marketing

Marketing Ethics

• Ethics is the study of moral choices and what is considered to be right or wrong.

• Applies to individuals and any organization

• For marketers it refers to evaluating what is right or wrong in the marketplace.

Unit 10- Written Exercise

• Don’t forget the written exercise in Unit 10.

• If you have any questions, please let me know.

Any Questions?

Thank you for attending!

It has been great having you in the seminars!