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Global Marketing Management Case Study: Skewed Sex Ratio

Global Marketing Management Case Study: Skewed Sex Ratio. MKTG 3231-001 Fall 2013 Mrs. Tamara L. Cohen. Class #7. Skewed Sex Ratio. Readings for this class: Course Pack reading # 11: “India’s Skewed Sex Ratio Puts GE Sales in Spotlight”

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Global Marketing Management Case Study: Skewed Sex Ratio

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  1. Global Marketing ManagementCase Study:Skewed Sex Ratio MKTG 3231-001 Fall 2013 Mrs. Tamara L. Cohen Class #7

  2. Skewed Sex Ratio Readings for this class: • Course Pack reading # 11: “India’s Skewed Sex Ratio Puts GE Sales in Spotlight” Peter Wonacott; Wall Street Journal, April 18, 1977 • Other resources of your own choice

  3. BACKGROUND • Abuse of GE & others’ ultrasound machines for gender selection in India • Cultural preference for boys in India • People abort female fetuses • Gender imbalance exacerbates social problems • India has laws prohibiting use of ultrasound for sex selection • Sex selection also in China

  4. ULTRASOUND • “An ultrasound exam is a procedure that uses high-frequency sound waves to scan a woman's abdomen creating a picture (sonogram) of the baby and placenta.” ??

  5. PROBLEMS • Use of ultrasound machines for sex selection • Aborting female fetuses (also female infanticide) • Illegal use of ultrasound machines by clinic and doctors in India • Cultural preference for boys rather than girls • Indian government failure to control problem over last 10 years • Growing economy results in increased disposable income, which results in many more people being able afford ultrasound testing. • GE and other manufacturers rely on sales in Indian market. • GE targeted small town doctors. • Activists say GE hasn’t done enough to prevent unlawful use of their machines in India. • Social problems result from an imbalance of the gender ratio, e.g. child marriage, sex trade. Rape? • China has a gender gap even wider than India’s. • GE sells 3 times as many ultrasound machines in China as it sells in India. • GE has been an agent of negative cultural change.

  6. Use ultrasound for sex selection Aborting female fetuses Illegal use of ultrasound Cultural preference boys > girls Indian government failure to control problem Growing economy & increased disposable income GE and other manufacturers rely on sales in Indian market. GE targeted small town doctors. GE hasn’t done enough to stop unlawful use of machines Social problems result from an imbalance of the gender ratio China’s gender gap > India’s GE sells 3 times as many ultrasound machines in China GE agent of negative cultural change. Educate opinion leaders/religious leaders/cultural icons. Increase severity of penalties. Motivate change by gov’t paying more to families when girls are born. Impose huge tax on sale of any and all ultrasound machines. Increase education & exposure to outside moralities. Raise tax and increase audit of GE. Strengthen laws and increase imposition of laws. Chinese population control effective due to draconian penalties. Increase activist & legal pressure COURSES of ACTION ACTIONS PROBLEMS

  7. RECOMMENDATIONS • Increase penalties and consequences in government program for practitioners to register machines and submit affidavits supporting ethical use. • Educate leaders • Pay families of female babies more than current program. Payments should be made to mothers only, and periodically (e.g. monthly). Payments funded by taxes on sales of new and old ultrasound machines.

  8. CONCLUSION Culture does not change unless there is strong motivation. Imposing foreign morality is unwelcome, naïve, and could be counter-productive. Popular Bollywood stars could be featured in public relations messages to encourage change.

  9. EXECUTIVE SUMMARY In India there is a cultural preference for boy babies. Technology and increased disposable income have facilitated parents using ultrasound to determine the gender of babies in utero. Female fetuses are frequently aborted. Indian society reflects a skewed sex ratio, which exacerbates multiple social problems. GE, a major manufacturer of ultrasound equipment in the Indian market, has been accused of not doing enough to prevent unlawful use of their machines. The Indian government has not succeeded in arresting the problem either.

  10. Next class: Exam # 1 Tuesday, Sept.17 Preparation: Review PPTs & your notes from classes 1 - 6 Review your notes from elevator speeches in class Review homework assignments & assigned readings

  11. Sample exam question

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