Culture And Ethics: What Is Ethical Behavior In Marketing

Culture And Ethics1 What Is Ethical Behavior In Marketing And What Is

Identify ethical behavior in marketing: truthfulness, transparency, respect for consumer rights, avoiding deceptive practices.

Non-ethical behavior: false advertising, bribery, exploitation, misleading conduct, cultural insensitivity.

Example: Advertising a product with exaggerated benefits without proof (unethical) vs. honest claims supported by evidence (ethical).

Marketers need ethics to build trust, maintain reputation, comply with laws, avoid legal penalties, foster long-term sustainability.

Major ethical dilemmas in marketing:

• Use of misleading advertising
• Targeting vulnerable groups
• Environmental impact of products
• Data privacy and consumer information
• Product safety and quality

International marketing research

Definition: The process of gathering, analyzing, and interpreting information relevant to international markets to guide business decisions.

Problems encountered in different cultures at each research stage:

• Language barriers causing misinterpretation
• Cultural differences affecting survey responses
• Legal restrictions on data collection
• Different consumer behaviors influencing data validity
• Inconsistent data quality standards

Emerging markets: The Asia Pacific region

Factors limiting Chinese economic growth:

• High debt levels
• Environmental degradation
• Trade tensions
• Over-reliance on export markets
• Labor market inefficiencies

Steps for China's future growth:

• Innovation and technology development
• Moving up the value chain
• Improving domestic consumption
• Environmental sustainability measures
• Legal and institutional reforms

Challenges in doing business in India:

• Complex regulations and bureaucracy
• Corruption issues
• Infrastructure gaps
• Legal system delays
• Cultural diversity and language barriers

Opportunities in India:

• Large consumer market
• Growing middle class
• Technology and startup ecosystem
• Government reforms encouraging FDI
• Cost-effective manufacturing

Products and services for consumers

Importance of country-of-origin effect:

• Influences consumer perception and trust
• Impacts purchase decisions
• Signifies quality based on reputation

Major components of tangible products:

• Core product
• Augmented features
• Packaging
• Branding

Modification based on culture:

• Design aesthetics
• Color preferences
• Packaging language and symbols
• Brand messaging style

Adapting services globally:

• Localization of language and culture
• Customizing service delivery methods
• Training staff in cultural sensitivity
• Offering region-specific features or options

Examples: Fast-food chains localizing menu items; hotel chains offering local cultural experiences.

Marketing communication

What is IMC and its elements:

• Integrated Marketing Communication (IMC): Coordinated promotion using multiple channels.
• Elements:
• Advertising: TV, print ads (e.g., Coca-Cola campaigns)
• Sales Promotion: discounts, coupons (e.g., seasonal sales)
• Public Relations: press releases, events (e.g., product launches)
• Personal Selling: direct communication (e.g., door-to-door)
• Digital Media: social media, content marketing (e.g., influencer campaigns)

Major reasons for IMC failure, especially internationally:

• Lack of consistent messaging
• Cultural misinterpretation
• Insufficient coordination across channels
• Ignoring local media behaviors
• Resource constraints

Marketing personnel

Criteria for selecting effective marketing personnel:

• Communication skills
• Cultural sensitivity
• Adaptability
• Technical knowledge
• Problem-solving ability

Difficulties motivating staff overseas and solutions:

• Language and cultural barriers → Cross-cultural training
• Distance and isolation → Regular communication and support
• Different motivational factors → Recognize diverse needs
• Limited local understanding → Hire local managers

Skills for future marketers:

• Digital literacy
• Cultural intelligence
• Data analytics skills
• Creativity and innovation
• Strategic thinking

Changes in marketing work due to international context:

• More digital and remote work
• Greater emphasis on cultural adaptation
• Need for multilingual skills
• Shift toward data-driven decision making

Pricing strategies and economic decline

Pricing strategies with conditions:

• Price escalation: When costs increase; e.g., rising raw material prices
• Inflation pricing: When economy inflates; increase prices to maintain margins
• Deflationary pricing: During recession; lower prices to boost sales
• Administrative pricing: Set by regulation; e.g., utility tariffs
• Dumping: Export below cost; often to gain market share
• Fixed pricing: Stable prices; suitable in competitive markets

Factors contributing to Japan's 1990s economic decline:

• Asset price bubble burst
• Slow consumption growth
• Banking crisis
• Deflationary spiral
• Lack of structural reforms

References

• Kotler, P., & Keller, K. L. (2016). Marketing Management. Pearson.
• Czinkota, M. R., & Ronkainen, I. A. (2013). International Marketing. Cengage Learning.
• Hollensen, S. (2015). Marketing Management: A Relationship Approach. Pearson.
• O'Guinn, T. C., Allen, C. T., & Semenik, R. J. (2014). Advertising and Integrated Brand Promotion. Cengage.
• Keegan, W. J., & Green, M. C. (2017). Global Marketing. Pearson.
• Samli, A. C. & Michman, R. D. (Eds.). (1993). International Marketing: Theory and Practice. Quorum Books.
• Manrai, L. A., & Manrai, A. K. (2011). Cross-cultural marketing: Opportunities and challenges. Journal of Business Strategies, 28(1), 45-65.
• De Mooij, M. (2019). Consumer Behavior and Culture: Consequences for Global Marketing and Advertising. Sage Publications.
• Sharma, S. (2018). Emerging Markets: Opportunities and Challenges. Harvard Business Review.
• Yusuf, S. (2017). Challenges and Opportunities in Chinese Economic Growth. Asian Development Review, 34(2), 102-118.