Ethics in Global Brand Management Lecture two: Ethics and Global Marketing Planning What is marketing? • Marketing involves: – Focusing on the needs and wants of customers – Identifying the best method of satisfying those needs and wants – Orienting the company towards the process of providing that satisfaction – Meeting organisational objectives What is global marketing? • Notion of a 'borderless' global marketplace • Marketing operations that cross political and cultural boundaries • Maximising opportunities in the search for global competitive advantage • Adding to stakeholder value • Exporting / International marketing / global marketing Global Marketing management Lee and Carter, 2012 The whole brand model How I would describe the Brand What the Brand does for me Facts & Symbols RATIONAL CORE EMOTIONAL How the Brand makes me look Brand Personality How the Brand makes me feel The whole brand model What the Brand does for me “Verbs that describe what the Brand physically delivers” RATIONAL Washes whiter Refreshes How I would describe the Brand Facts & Symbols Nourishes Saves Energy CORE EMOTIONAL How the Brand makes me look Brand Personality How the Brand makes me feel The whole brand model What the Brand does for me “Verbs that describe what the Brand physically delivers” RATIONAL Washes whiter Refreshes How I would describe the Brand Smooth Facts & Symbols Nourishes “Adjectives that help articulate and position the Brand physically” Triangular Expensive Healthy Saves Energy Green CORE EMOTIONAL How the Brand makes me look Brand Personality How the Brand makes me feel The whole brand model What the Brand does for me “Verbs that describe what the Brand physically delivers” Washes whiter Refreshes Smooth Facts & Symbols Nourishes “Adjectives that help articulate and position the Brand physically” Triangular Expensive Healthy Saves Energy RATIONAL How I would describe the Brand Green CORE EMOTIONAL Stylish Naive How the Brand makes me look “What other people would say about you were you to be seen talking with this Brand“ Powerful Brand Personality Cheap How the Brand makes me feel The whole brand model What the Brand does for me “Verbs that describe what the Brand physically delivers” Washes whiter Refreshes How I would describe the Brand Smooth Facts & Symbols Expensive Nourishes Healthy Saves Energy RATIONAL “Adjectives that help articulate and position the Brand physically” Triangular Green CORE EMOTIONAL A good mother Stylish Naive How the Brand makes me look “What other people would say about you were you to be seen talking with this Brand“ Powerful Brand Personality Cheap Dynamic Vibrant Sophisticated How the Brand makes me feel “How I feel emotionally when I interact the brand. The elements that reinforce what I truly feel about myself“ The whole brand model What the Brand does for me “Verbs that describe what the Brand physically delivers” Refreshes Arrogant Childish Naive Powerful Expensive Ferrari Red CORE Caring “What the brand would be like if it were a person” Green A good mother Charming Brand Personality Cheap “Adjectives that help articulate and position the Brand physically” Triangular Golden arches Healthy Nike Tick Stylish “What other people would say about you were you to be seen talking with this Brand“ Facts & Symbols Coke Bottle Saves Energy How the Brand makes me look Smooth “Iconic brand elements that trigger recognition“ Nourishes RATIONAL EMOTIONAL Washes whiter How I would describe the Brand Dynamic Vibrant Sophisticated How the Brand makes me feel “How I feel emotionally when I interact the brand. The elements that reinforce what I truly feel about myself“ The marketing concept • Segmentation • Targeting • Positioning Building sustainable competitive advantage New products and processes for international markets The product lifecycle The International Product Lifecycle Sales Home country Country A Country B Time Building sustainable competitive advantage Product portfolio management High Market Growth Rate STAR ? QUESTION MARK Growth stage Introduction stage Build market ? Maturity stage Decline stage Harvest market Divest market CASH COW DOG Low High Relative Market Share Low BCG/ Boston matrix Ethical brand challenges Ethical brand challenges Definition of ethical marketing 'Ethical marketing refers to practices that emphasise transparent, trustworthy, and responsible personal and / or organisational marketing policies and actions that exhibit integrity as well as fairness to consumers and other stakeholders.' Murphy et al, 2012, Ethics in Marketing: International Cases and Perspectives An ethical perspective • Ethical marketing puts people first – Create products and services that have a perceived and real social benefit. – Essential for sustainable competitive advantage. • Ethics is an applied discipline. Seven basic perspectives: Approach from Murphy et al, 2012 1. Ethical marketing puts people first. 2. Ethical marketers must achieve a behaviour standard above the law. 3. Marketers are responsible for whatever they intend as a means or end with a marketing action. 4. Marketing organisations should cultivate better (i.e. higher) moral imagination in their managers and employees. 5. Marketers should articulate and embrace a core set of ethical actions. 6. Adoption of a stakeholder orientation is essential to ethical marketing decisions. 7. Marketing organisations ought to delineate an ethical decision making protocol. Business perspective one: • Societal benefit: Ethical marketing puts people first • Do not treat people as a means to a profitable end. • Flouting this can add costs to the average marketing transaction. Net benefit to who? • Society or the individual consumer? – – – – – Tobacco Credit cards Alcohol Video games Food • These are the second-order, or even third-order effects of marketing practice that can raise ethical questions Business perspective two: • Ethical expectations for marketing must exceed legal requirements – The law represents the lowest common denominator of expected behaviour for marketers. – The formalisation of restrictions by law typically lags behind public opinion. • Ethics and the law are connected but are not the same thing Political / Legal environment • Three dimensions: – The home country – The host country – The international trading environment Ethics and the law • Legal systems in some areas may be underdeveloped. • Country may not have a democratic system – Legal system may reflect the interests of the ruling class. Ethics and the law • Ethics embodies higher standards than law. • Ethics assumes more duties than law. • Those companies that view themselves as ethical marketers aspire to a higher standard. • Even in democracies, the legal system cannot be a substitute for personal and organisational responsibility. Ethics in Global Brand Management Lecture two: Ethics and Global Marketing Planning Tutor: Giovanna Battiston g.battiston@shu.ac.uk Role play activity Activity You have just graduated from university and you have been appointed as a Marketing Officer at Starbucks. As part of your training scheme, you have been asked by senior management to work with other new marketers in your team to deliver a 20-minute presentation in response to the following question: Advise Starbucks on whether its brand is currently considered to be ethical in the marketplace and what measures it can take to improve its position.