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Ethics in Global Brand Management

Ethics in Global Brand Management. Lecture three: Ethics and Delivering Customer Value across Global Markets. Essential components of culture. Beliefs Mental and verbal processes that reflect our knowledge and assessment of products/services. Values

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Ethics in Global Brand Management

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  1. Ethics in Global Brand Management Lecture three: Ethics and Delivering Customer Value across Global Markets

  2. Essential components of culture • Beliefs • Mental and verbal processes that reflect our knowledge and assessment of products/services. • Values • Indicators consumers use as guides for what is appropriate behaviour. • Usually enduring and widely accepted within the market.

  3. Essential components of culture • Customs • Overt modes of behaviour that constitute culturally approved or acceptable ways of behaving in specific situations. • Customs are evident at major events in one’s life, e.g. birth, marriage, death, and at key events in the year, e.g. Christmas, Easter, Ramadan.

  4. Layers of culture • Like an onion (Lee and Carter, 2012) • National culture • Business culture • Organisational culture • Individual culture

  5. Layers of culture • Hofstede (2003) • National level • Regional / ethnic / religious / linguistic affiliation level • Gender level • Generation level • Social class level

  6. Contextual continuum of culture High Japanese Arabs Latin Americans Italians/Spanish Context French English North Americans Scandinavians Germans Low Swiss Explicit Messages Implicit Source: Usiner et al (2005))

  7. Hofstede’s criteria (2001) • Individualism • Affects the way people live together • Power distance • Dealing with human inequality • Uncertainty avoidance • Managing future uncertainty • Masculinity • Male / female stereotyping • Time orientation/Confucian dynamism • Long-term or short-term orientation

  8. Danish Culture – According to Geert Hofstede • Verylow power distance • Quitehighindividualism • Verylow ”masculinity” – more ”feminine” values • Verylowuncertaintyavoidance • Business culturetraits: • Quiteinformal, relaxed • Punctuality is veryimportant • A verydirect, no-nonsensecommunication (maybeconsidered rude) • Highgenderequality • Not tooflashydress-code Source: www.geert-hofstede.com

  9. In a European context the Danish culturediffers from being more ”feminine” and with a verylow power distance compared to other European countries. But in a global context the contrastsareevenbigger. Thiscanberisky in dealingwithe.g. China.

  10. A viral marketing campaigngonehorriblywrong…

  11. Self-reference criterion • The process of gaining empathy within an international country market requires: • Cultural empathy • The ability to place yourself in the position of a buyer from another country. • Neutrality • The ability to identify the differences that exist without making value judgements about ‘better’ or ‘worse’ cultures. • The focus should be placed on differences rather than superiority.

  12. Assumptions to be questioned by international marketing managers • The consumer buying process is consistent across cultures • consumer involvement • perceived risk • cognitive style

  13. Cultural tightness-looseness • Refers to the extent to which an individual shows strong adherence to social norms and whether severe sanctions are imposed on those who deviate from these norms. (Gelfand, Nishii, and Raver, 2006)

  14. Business perspective three: • Intents, means and ends • When formulating marketing campaigns, marketers are responsible for: • The intent of the action • The means or method by which the practice was implemented • The end or outcomes of the strategy or tactic

  15. The proportionality framework • Adapted from Garrett (1966) • The principle of proportionality: • Marketers are responsible for whatever they intend as a means or an end. If both are 'good', they may act, accepting a certain (i.e. minor) risk of side effects.

  16. The marketing concept High price  Harrods • Segmentation • Targeting • Positioning Marks & Spencer Delicatessens Tesco Convenience stores Narrow range Wide range Market stalls Discount stores Low price

  17. Marketing mix • Product • Price • Place • People • Physical evidence • Process • Promotion

  18. Vaseline example

  19. Ethical product challenges

  20. Ethical pricing challenges

  21. Ethical pricing challenges

  22. Further reading on the Rana Plaza incident: • 'The Shirt on your Back': • http://www.theguardian.com/world/ng-interactive/2014/apr/bangladesh-shirt-on-your-back

  23. Ethical place challenges • Whose responsibility? • The government and the retailers? • http://www.bbc.co.uk/news/uk-politics-21388628 • Individuals? • http://www.bbc.co.uk/news/uk-21392004 • The supply chain? • http://www.bbc.co.uk/news/uk-21394451

  24. The Car in Front is a Toyota http://www.theguardian.com/business/2010/mar/09/toyota-prius-brakes-accelerator

  25. Toyota's response http://news.bbc.co.uk/1/hi/business/8533352.stm?asid=f3bda1ab

  26. Ethical people challenges

  27. Non-ethical process and physical evidence • Fake bomb detectors: • http://www.bbc.co.uk/news/uk-22279095

  28. Ethical promotional challenges

  29. Ethics in Global Brand Management Lecture three: Ethics and Delivering Customer Value across Global Markets Tutor: Giovanna Battiston  g.battiston@shu.ac.uk

  30. Did Hyundai go too far?

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