MKTG 351 A Week 4 1 Chapter 3 Ethics a Pre convention Morality Child like behavior i No care for who gets hurt b Conventional Morality expectations of society i Rationalizing our behavior c Post conventional Morality Never break the rules regardless i Follow the rules more than most people ii Straight arrow behavior d Ethical Decision Making i What Is the extend of the ethical problems within the organization ii Top management actions are Ethical iii Potential Magnitude of the Consequences 1 Corporate embarrassment Big stock price hits iv Social Consensus v Probability of an harmful outcome vi Length of time between the decision and the onset of consequences 1 Don t wait to long to enforce rules you establish normalcy if you do not act quickly vii Number of people you will be affected e Ethical Guidelines i Guideline to help marketing managers and other employees make better decisions f Foreign Corrupt Practices Act FCPA enacted by Congress prohibits US corporations from making illegal payments to public officials of foreign governments to obtain business rights or to enhance their business dealings in those countries i Illegal to bribe for personal gain or corporate gain g Corporate Social Responsibility business s concern for society welfare i Pyramid of Corporate Social Responsibility 1 Philanthropic Responsibilities 2 Ethical Responsibilities 3 Legal Responsibilities 4 Economic h Sustainability i Viewing the worlds social problems and viewing them as opportunities to build profits and help the world at the same time ii Social Responsibility is a growing trend i Cause related Marketing i Any marketing effort for social and or charitable causes that 2 Chapter 4 Marketing Environment increases brand awareness a Environmental Management company implements strategies that attempt to shape the external environment within which it operates a Values country specific work ethic i Factors within 1 Social 2 Demographic 3 Economic 4 Technological 5 Political 6 Legal 7 Competitive b American Values i Self sufficiency ii Upward Mobility iii Work Ethic iv Conformity workforce ii Important for understanding corporate decision making important in staying ahead of competition c 1975 workplace changed as we know it women entering the i Huge increase in household income ii Increase in Retail Market Women now have money to go shopping iii Divorce rate increases 1 Single member households iv Openly Gay Couples d Component Lifestyles the way people decide to live their lives e Demographic Factors i Population ii Tweens iii Teens 1 Shopping has become a social occasion iv Generation Y born between 1979 1994 v Generation X born between 1965 1978 vi Baby Boomers born between 1946 1964 1 Aprox 40 million 1 Aprox 75 million f Economic Factors i Consumers Incomes ii Purchasing Power comparing income to the relative costs of a standard set of goods and services in different geographic areas Cost of living Inflation iii 1 Oil uncontrollable price constantly increasing iv Recession g Technological Factors i Research 1 Basic physics 2 Applied a Learning about topics such as high energy a Attempts to develop new or improved products b Research applied to a specific product ii Political and Legal Factors 1 Business needs government regulation to protect innovators of new technology the interests of society in general one business from another and consumers a Smog in Beijing 2 Primary US Laws Protecting Consumers a Federal Food and Drug Act of 1906 b Federal Hazardous Substance Act of 1960 c National Environmental Policy Act of 1970 i Dealt with issues of air pollution d Child Protection and Toy Safety Act of 1969 i Kennedy s attempt to save children h Consumer Privacy i Competitive Factors 3 Chapter 5 Developing a Global Vision a Importance of Global Marketing i GDP b Impact of Trade and Globalization i Millions of Americans have lost jobs due to imports production shifts abroad or outsourcing of tech jobs Some find new jobs but they often pay less ii Millions of others fear losing their jobs especially at those companies operating under competitive pressure iii Employers often threaten to outsource jobs if workers do not accept pay cuts iv Service and white collar jobs are increasingly vulnerable to operations moving offshore c Multinational Firms i A company that is heavily engaged in international trade beyond exporting and importing without regard to the country in which its headquarters is located 1 Capital intensive d Global Market Standardization All products in same language format pricing currency i Does NOT exist ii Global Harmony iii Multi domestic Strategy multinational firms enable individual subsidiaries to compete independently in domestic markets e External Environment Faced by Global Marketers i Culture ii Economic Factors Democracy Dictatorship iii The Global Economy 1 Doing business in China India Huge Economic Potential iv Political Structure 1 Legal Structures to either limit or encourage trade 2 New trade Organization World Trade Organization WTO 3 North American Free Trade Agreement NAFTA a Main impact open the Mexican market to US companies 4 World Bank Offers low interest loans to developing nations v Global Make up 1 Demographic Makeup 2 Natural Resources vi Global Marketing By the Individual Firm 1 Risk Levels For Five methods of entering the global marketplace Exhibit 5 3 vii Pricing 1 Counter Trade all of part of the payments for goods or services in the form of other goods or services 2 Exchange Rates 3 Floating exchange rates a Dumping b Counter trade viii Impact of the Internet 1 Going global is easier than it has ever been before