MARK201BB Week 12 Slides - Global Marketing PDF

MARK201BB Introduction to Marketing! Week 12, November 28th  Today’s agenda Chapter 14: The Global Marketplace Chapter 15: Sustainable Marketing, Social Responsibility and Ethics In-class Activity (1 credit) Final Exam Preparation eer Evaluation!...

MARK201BB Introduction to Marketing! Week 12, November 28th  Today’s agenda Chapter 14: The Global Marketplace Chapter 15: Sustainable Marketing, Social Responsibility and Ethics In-class Activity (1 credit) Final Exam Preparation eer Evaluation! Available on Moodle (~ Nov.29 10am) Please complete this by Dec 3rd, 5:00 PM Failure to do so will result in a 2-point deductio Chapter 14: Learning Objectives 14.1 Define global marketing, and the questions companies must ask in deciding whether and how to go global. 14.5 Explain how companies adapt their marketing strategies and marketing mixes for global markets. Global Marketing Today The rapid expansion of global marketing is due to the explosion of global trade, the sales of products and resources produced in one country and sold in another Total volume of global trade has grown over the past three decades, from about U S$3.5 trillion in 1990 to about U S$25 trillion in 2020 If companies were counted as economies, about half of the world’s largest 150 economies would be multinational corporations.  Global marketing: The full process of marketing products and services within and across multiple countries. Global company: A company that, by operating in more than one country, gains marketing, production, research and development (R&D), and financial advantages that are not available to purely domestic competitors. The Global Marketing Process Deciding on the Global Marketing Program Standardized global marketing – Using the same marketing strategy and mix in all of the company’s international markets Adapted global marketing – Adjusting the marketing strategy and mix elements to each international target market  Creates more costs  Produces a larger market share and return Standardized & Adapted Marketing Strategies for Global Markets No matter where you shop at I K E A, you will find huge stores, the familiar blue-and-yellow brand logo and Lou Linwei/Alamy Stock signage, large selections of Photo contemporary Scandinavian-design furnishings, and affordable prices At the same time, I K E A carefully adapts its merchandise assortments, store operations, and marketing to cater to the unique needs of local customers IKEA Headquarter in the Netherlands Matilida the musical It is based on children's novel of the same name by Roald Dahl (1988) The story is about a genius 5- year-old girl, who overcomes obstacles caused by her family and school It premiered on 24th November 2011 in London Won seven 2012 Olivier Awards It is the sixth longest running musical in the West End and has been seen by over 10 million people worldwide  What are the key similarities and differences? Australia Korea Broadway New Original (NYC) Zealand (UK) Produ ct How much should a company standardize or adapt its products and marketing across global markets? Five Global Product and Communications Strategies Produ ct Straight Product Extension: Selling the same product in foreign markets without changes Product Adaptation: Modifying a product to fit local conditions or preferences Communication Adaptation: Tailoring advertising messages to local markets; adapting to media availability and regulations Product Invention: Developing a new product to meet specific needs in a foreign market. Promotion Global companies often have difficulty crossing the language barrier. Communication adaptation: a global communication strategy of fully adapting advertising messages to local markets Communications Adaptation In China, L E G O offers robotics classes for kids. Says one Chinese mother who pays monthly to enroll her daughter, “She’s learning to think more logically and improving her motor skills. The classes are so worth the cost.” A l Seib/Los Angeles Times/Getty Images Price Pricing Considerations Set a uniform price globally Set according to the customers Use a standard markup of the company’s costs everywhere *applying a consistent percentage increase to the cost of goods or services to determine the selling price.  Global Pricing To compete with low-end competitors in emerging economies, Samsung developed its low-priced Galaxy A line, which carries the Galaxy name and style but with few high-end features. Rawpixel/123R F Distribution Channels Whole-Channel Concept for Global Marketing  Whole-Channel View: Designs international channels by integrating the global supply chain and marketing channel into an effective value delivery network.  Key Links: The figure highlights the two major connections between the seller and the final buyer. Chapter 15: Learning Objectives 15.1 Define sustainable marketing and discuss its importance. 15.2 Identify the major social criticisms of marketing. 15.3 Understand how consumer, societal, and corporate forces drive sustainable marketing strategy. 15.4 Understand how to build a sustainable marketing organization. Sustainable Marketing  The sustainable marketing concept calls for socially and environmentally responsible actions that meet both the immediate and future needs of customers and the company.  McDonald’s sustainability initiatives also address  Ben & Jerry’s missions environmental issues. Michael Neelon(misc)/Alamy Stock Photo Social Criticisms of Marketing Social critics claim that certain marketing practices hurt: Individual consumers Society as a whole Other business firms  High Prices A heavily promoted national brand sells for much more than a virtually identical non- branded or store-branded product. Critics state that promotion adds only psychological value to the product rather than functional value. Valentino Visentini/Alamy Stock Photo Planned Obsolescence Apple was accused of deliberately slowing down older iPhones through software updates to encourage customers to upgrade to newer models. Ground Picture/Shutterstock  Deceptive Practices The Competition Bureau of Canada accused Ticketmaster of deceptive pricing practices in 2019 and the online ticket seller paid $4.5 million in penalties. Timon Schneider/Alamy Stock Photo Unsafe Products Is the soft-drink industry being irresponsible by promoting harmful products in emerging markets, or is it simply serving the wants of consumers while letting them make their own consumption choices? Center for Science in the Public Interest Marketing’s Impact on Individual Consumers Poor Service to Lower-Income Consumers Fresh Routes, a not-for-profit social enterprise, uses retrofitted city buses as mobile grocery stores that bring healthy, fresh, and affordable food into underserved neighbourhoods throughout Calgary. Azin Ghifari/PostMedia Calgary  Statistics Canada has estimated that in 2022, 18.4 percent of Canadians in the ten provinces, or 6.9 million people, were members of a food-insecure household. Marketing’s Impact on Society Cultural Pollution: critics argue that marketing and advertising create constant sensory and mental intrusions, such as over consumption Examples Commercials interrupt serious programs. Pages of ads obscure magazines. Billboards mar scenic beauty. Spam floods email inboxes. Flashing ads invade online and mobile screens.  These interruptions continually pollute people’s minds with messages of materialism, sex, power, or status. Some critics call for sweeping changes. Marketing’s Impact on Other Businesses  France has set a minimum €3 delivery fee for online book orders under €35 to support local bookstores against giants like Amazon.  Previously, Amazon charged as little as €0.01 for delivery, leveraging a loophole in the 2014 "anti-Amazon law" that banned free shipping on Marketing’s Impact on Other Businesses Competitive Marketing Practices The European Commission recently fined Google for using its search dominance to unfairly promote its own shopping services over competitors in Google Shopping. Alexandros Michailidis/Shutterstock Marketing’s Impact…  What are your thoughts on this ad? What would be the impact of using AI in Coca-Cola’s advertising? (e.g., its effects on society, consumers, other businesses, etc.) novative Technology can save Many Lives But… Positive: Reducing inequalities, increasing accessibility to healthcare, enhancing gender equality Negative: Creating high amounts of waste, cannot be recycled, pollution of air  Overconsumption harms the environment  A carbon footprint is the total amount of greenhouse gases (GHGs) that are emitted by an individual, organization, event, or product.   Your fashion carbon footprint is the amount of greenhouse gas emitted from all of your fashion-related activities—including the design, manufacturing, shipping, buying, wearing, cleaning, and eventual disposal of your clothing. The thredUp fashion footprint calculator answers the question, “How dirty is your closet?” Based on 12 questions, it identifies your personal fashion footprint and compares it to the national average (1620 kilograms of carbon per year). It then provides tips on how to reduce your fashion footprint. Ilnur Khisamutdinov/Alamy Stock Photo Consumer Actions to Promote Sustainable Marketing Seller has more power! Seller’s rights Buyer’s rights To introduce any product To buy a product that in any size and style with is offered for sale The right to know proper warnings and controls, if necessary key details about the To charge any price for To expect the product product. the product without any to be safe The right to be safe from discrimination harmful products and To spend any amount to To expect the product dishonest marketing. promote the product if to perform as claimed The right to shape competing fairly products and marketing to To use any product Blank message that is not enhance quality of life. misleading or dishonest The right to consume responsibly for the benefit To use buying incentive Blank programs that are not of future generations. unfair or misleading Consumer Actions to Promote Sustainable Marketing  Now people view businesses as the cause of many economic and social ills the concept of consumerism & environmentalism have emerged Consumerism is an organized movement of citizens and government agencies designed to improve the rights and power of buyers in relation to sellers.  The Rise of Consumerism Consumer desire for more information led to package labels with loads of useful facts, from ingredients and nutrition facts to recycling and country of origin information. The Rise of Environmentalism Environmentalism: an organized movement of concerned citizens, businesses, and government agencies designed to protect and improve people’s current and future living environment. Calls for doing away with “mindless consumption” Key Environmental Concerns  Ecosystem damage (e.g., global warming, resource depletion).  Pollution (e.g., toxic/solid wastes, litter, water, and air pollution).  Loss of recreational areas.  Health issues from polluted resources and chemically treated food. Impact and Responses  Laws/regulations address industrial and commercial practices.  Companies increasingly accept environmental responsibility. Environmental Sustainability  Strategy to balance environmental protection with profitability. Business Actions toward Sustainable Marketing Environmental Sustainability and Sustainable Value Source: Based on Stuart L. Hart, “Sustainable Value,”  This figure shows a grid that companies can use to gauge their progress toward environmental sustainability. Business Actions toward Sustainable Marketing Corporate Environmental Sustainability Initiatives Adidas sets ambitious goals for sustainable products and operations. Its Parley shoes and apparel are created with yarn made from recycled plastic waste intercepted from the world’s beaches and coastal communities before it reaches the ocean. Vijit Bagh/Shutterstock Business Actions toward Sustainable Marketing Approaches to Reducing Environmental Harm Reimagine material choices Source materials from sustainable suppliers Simplify product design and other processes Shift to sustainable energy sources Rethink packaging Construct closed-loop value chains *A closed-loop value chain refers to a system where materials and products are reused, recycled, or repurposed at the end of their lifecycle rather than being discarded as waste.  Brands that source solely from Rainforest Alliance-certified suppliers earn the right to use the coveted Rainforest Alliance certification seal on their products. Patrick Pleul/dpa picture alliance/Alamy Stock Photo PUMA's Clever Little Bag supports sustainability by using less cardboard, cutting out plastic, and reducing waste. It lowers carbon emissions and shows how companies can innovate to protect the environment. Getty Images for Puma Building the Sustainable Marketing Organization Under the sustainable marketing concept, a company’s marketing should be guided by five sustainable marketing principles: 1. market with ethics 2. be consumer-centric 3. build long-term customer value 4. embrace a sense of mission 5. do no harm Market with Ethics Corporate marketing ethics policies should be developed by firms as guidelines for handling various issues and dilemmas. Distributor relations Advertising standards Customer service Pricing Product development General ethical standards Market with Ethics Principles are needed to guide companies and marketing managers on issues of ethics and social responsibility. The free market and the legal system should decide such issues. Responsibility is in the hands of individual companies and managers. Addressing ethics helps build strong customer relationships based on honesty and trust. Do No Harm—Inspire Socially Responsible Outcomes Companies should: be aware that neglecting consumer and societal long-run interests is a disservice to consumers and society minimize the undesirable impacts of their products and processes work to find and inspire positive solutions  Do No Harm—Inspire Socially Responsible Outcomes Societal Classification of Products The goal is to create desirable products that provide both immediate customer satisfaction and long-term benefits.  For example, Method products are eco-friendly, made with non-toxic ingredients, biodegradable materials, and sustainable packaging, cleaning effectively without harming people, animals, or the planet. Are we truly consuming out of genuine desire, or is our desire being created? hat is the shared characteristic among these compani Let’s calculate the following: 1. How many subscription fees do you pay each month? 2. How much money do you spend on delivery each month? 3. In 2024, have you purchased products online that you didn’t like but never returned? k recommendations to enhance your understanding of AI and Social media Book recommendations for personal growth : ) Thank you all for being such an amazing class! I truly enjoyed teaching you this semester. Best of luck with your studies!