Stakeholder Conflict and TESCO

- conflict between employees (the drivers) , employers and internal stakeholder.

- According to the plan that drivers heard, their jobs are not safe anymore from transferring location from Wincanton to other place.

- boycotting which can give bad influence to the supplies from TESCO

- give some guarantees to them

Culture and International Business

1. Power Distance : This refers to how a society handles inequalities and the extent to which the less powerful members of organizations and institutions (like family) accept and expect that power is distributed unequally. ex1) In the United States, for example, the power distance index score is 40, while in the Czech Republic it is 57. The higher the distance between normal folk and the upper classes, and in fact, the more that division is respected by the average citizen.

ex2) http://www.youtube.com/watch v=JZqX0z3g5bE&lr=1&feature=mhsn

2. Uncertainty Avoidance : This refers to the level of need for structure. Cultures with low uncertainty avoidance tend to accept risk and change and prefer implicit or flexible rules and guidelines. ex)  According the Hofstede's research, Greece is the most risk-averse culture-Generally older countries/cultures with a long history, the population is more ethnically homogeneous, Low tolerance for innovation, prefer to stick to traditional routines, Citizens are often critical of their own nation, People tend to be more superstitious, and Singapore the least- The population tends to be ethnically diverse, Frequent innovations, Citizens are proud of nation, Foreigners or minorities are encouraged to assimilate. 

3. Individualism versus collectivism : Behavior towards community. The degree to which individuals are integrated into groups or are expected to look after themselves and self-actualize. ex) USA (Individualism)-Promotes individual goals, initiative and achievement, Rules attempt to ensure self-importance and individualism, Relying or being dependent on others is frequently seen as shameful;Russia (collectivism)-Each person is encouraged to be an active player in society, to do what is best for society as a whole rather than themselves, Rules promote unity, brotherhood, and selflessness, The rights of families, communities, and the collective supersede those of the individual.

4.  Masculinity versus Femininity : Masculine cultures’ values are competitiveness, assertiveness, materialism, ambition and power, whereas feminine cultures place more value on relationships and quality of life. In masculine cultures, the differences between gender roles are more dramatic and less fluid than in feminine cultures where men and women have the same values emphasizing modesty and caring. ex) UK (Masculine culture country) strives for a performance society; Sweden (feminine country) for a welfare society.

5. Long Term versus Short Term Orientation : How much society values long-standing, as opposed to short term, traditions and values. Cultures with high long-term orientation place strong importance on family, discipline and social obligations. ex) China(LTO)-persistence, thrift, ordering relationships by status, having a sense of shame; USA(Short)-personal steadiness and stability, reciprocation of greetings, favors, and gifts.

ex2) http://www.youtube.com/watch?v=zeZHyFxlrFQ&lr=1&feature=mhsn

6. Indulgence versus Restraint : Indulgence stands for a society that allows relatively free gratification of basic and natural human drives related to enjoying life and having fun.  Restraint stands for a society that suppresses gratification of needs and regulates it by means of strict social norms. ex) Pakistan, which scored a zero, and Venezuela– a 100 http://www.youtube.com/watch?v=PVbkjobD8ao&lr=1&feature=mhsn

One Ethical Issue

Marketing to Children: Accepting Responsibility by Gael O’Brien

McDonald’s Happy Meals for children with toys has come under attack, because selling toys with fast food for children exceed certain levels of salt, fat, calories and sugar. McDonald’s was accused of deceptive marketing practices to children, because they advertise using toys as an inducement to buy Happy Meals even though it can raise the rate of obesity in children. Also, burgers contain high sodium. Corporate Accountability International started a campaign to fire Ronald McDonald, the clown mascot for a long time, and encourage headquarters to stop marketing to children. In addition, a letter signed by 600 health professionals and organizations, critical of the link between fast food and obesity, was read at the shareholder meeting. Most people tended to oppose advertising to children, especially as related to the rate of obesity in children. For example, Susan Linn, director and co-founder of a national coalition of health care professionals, educators, parents and others called the Campaign for a Commercial-Free Childhood, said that marketing to children, whether the subject is food, toys, clothes or anything else raises enormous concerns. “There is no ethical, moral, social, or spiritual justification for targeting children in advertising and marketing, said Linn recently at a Conscious Capitalism Conference. Linn, who also teaches psychiatry at Harvard Medical School, cited obesity and a number of other issues impacting children and society that stem from targeting kids, including youth violence, sexualization, underage drinking and smoking, excessive materialism and the erosion of creativity. In this case, there should be no advertisement to children using toys as an inducement. It doesn't mean that targeting children in advertisement is not appropriate, but in here, according to health problem, especially obesity, child-directed advertising of unhealthful food to children has to be abated by law, because it can trigger the higher rate of diseases or death for children for future.

Market Research Company

Roy Morgan Research is an Australian market research company headquartered in Melbourne. It was founded in 1941 by Roy Morgan. Roy Morgan Research is a truly international market research company and the provider of the world’s most extensive and only true single source survey. Today annual turnover is more than $60 million, with offices in four mainland Australian States, Auckland, London, USA and Indonesia. The Australian Market Research Industry now comprises mainly overseas-owned market research companies with Roy Morgan Research being the main exception.  A proliferation of small local market research companies conducts mostly qualitative research. Roy Morgan is Australia’s best known public opinion and political polling organisation. The Morgan Poll is Australia’s only independent poll; i.e. not owned by a media. The results are published on their website and by newspapers, magazines, television, the Internet and radio. Because of the wide range of services offered, Roy Morgan Research is able to employ the most appropriate methodology to meet the requirements of each study, which in many cases, involves the use of a combination of research techniques. Roy Morgan Research is one of the few market research companies in the world who owns their own analysis software used for delivering survey data to clients and enabling clients to perform their own 'in-house' analysis.

Their services- customized research, online research, customer satisfaction surveys, communications and advertising research etc.

The Promotional Mix vs Product Life cycle

Promotional Mix: the combination of promotional techniques that a firm uses to communicate the benefits of its product to consumers.

8 stages in deciding on a promotional mix
1. Decide on the image of the product
2. Develop a profile of the target market
3. Decide on the messages to communicate
4. Set an appropriate budget
5. Decide on how the messages should be communicated
6. Establish how the success of the promotional mix is to be assessed
7. Undertake the promotional plan and the mix elements
8. Measure its success

Product life cycle: the stages through which a product or its category bypass.

4 stages to the product life cycle -> How would the promotional mix change at different stages of the product life cycle?

1. Introduction: This is the stage where a product is conceptualized and first brought to market. The goal of any new product introduction is to meet consumers' needs with a quality product at the lowest possible cost in order to return the highest level of profit. In this phase, sales may be slow as the company builds awareness of its product among potential customers while advertising is crucial, so the marketing budget is often substantial. 
2. Growth: At this stage, a company can decide if it wants to go for increased market share or increased profitability. The goal for any company is to stay in this phase as long as possible, because this is the boom time for any product. Production increases, leading to lower unit costs. Sales momentum builds as advertising campaigns target mass media audiences instead of specialized markets (if the product merits this). Competition grows as awareness of the product builds. 
3. Maturity: At this stage, sales growth has started to slow and is approaching the point where the inevitable decline will begin. Defending market share becomes the chief concern, as marketing staffs have to spend more and more on promotion to entice customers to buy the product. More competitors have stepped forward to challenge the product, some of which may offer a higher-quality version of the product at a lower price. This can touch off price wars, and lower prices mean lower profits, which will cause some companies to drop out of the market for that product altogether. The maturity stage is usually the longest of the four life cycle stages, and it is not uncommon for a product to be in the mature stage for several decades.
4. Decline: This occurs when the product peaks in the maturity stage and then begins a downward slide in sales. Eventually, revenues will drop to the point where it is no longer economically feasible to continue making the product. Investment is minimized. The product can simply be discontinued, or it can be sold to another company.

Ethics and Marketing

What does ethics mean in relation to business?
-Business ethics is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations.

Why is it important to a business?
-attract customers to the firm's products, thereby boosting sales and profits

-make employees want to stay with the business, reduce labor turnover and therefore increase productivity

-attract more employees wanting to work for the business, reduce recruitment costs and enable the company to get the most talented employees

-attract investors and keep the company's share price high, thereby protecting the business from takeover.

What is the issue in the article?

-decisions of Lance Armstrong and Nike for their  images

Why did Livestrong and Nike take the action they did?

-Since cancer-fighting charity became negative to people from illegal drugs, Lance Armstrong is seen in a negative light and thus Nike stopped sponsoring Lance Armstrong for brand image.

How do they hope this action will be beneficial to their business?
-People would become more positive about them

Promotion Case Studies

Lesson in motivation

-       Getting employees to participate online training programs, Microsoft used incentives to motivate them as they can enjoy sales after completed the education.

Blood donors respond

-       During the campaign, all donors receiveed a Route 56-logoed Red Cross keytag, and the chance to win a year's supply of gas. When people came in to give blood, they got a keytag and a scratch-off game piece that gave them a chance to win T-shirts, visors, coffee mugs, or the grand prize of $2,000 in gas money. This campaign helped increase blood donations during the summer, a time when levels are typically become dangerously low.

Bobbleheads create membership buzz

-       With a goal of recruiting 200 new members and boosting current ones, The Association Forum of Chicagoland(AFC) selected a direct-mail campaign featuring bobblehead dolls of Forum CEO Gary LaBranche and Board Chairman Pamela Williams. Because, "association work can make your head spin so much you feel like a bobblehead." This program successfully led to 228 new members.

Scratch-off promotion pays off BIG

-       Centimark, one of the nation's leading commercial roofing contractors, last year wanted to end its selling season on a high note. They elected to produce scratch-off game cards, a short-term promotion, that could handed out, on the spot, by its sales reps. The cards offered the chance to win up to $10,000 off a roof purchase or other valuable products or services.

Advertising techniques

- Glittering generalities: Words of praise for a product or person; using nice words like goodness or patriotism.ex) McDonald's is America's favorite.

 

- Name calling :  Trash-talking another product or person. ex)JibJab Parody Movies

- Slogan:  identifies product or service with an idea
ex)

- Logo:  identifies product or service with a symbol

ex)

- Plain Folks:  Appealing to regular people's values like family, patriotism. ex) It's Morning in America

- Bandwagon :  An appeal to be part of a group. ex) Old Soviet propaganda

- Emotional Appeal: uses emotion to sell a product or service (pity, fear, patriotism,  happiness,etc.) ex)"If you care about your children's success in school, and in fact if you care about your children's future at all, you will buy this set of encyclopedias." This argument appeals to your love of your children and guilt about what you do for them.

- Price Appeal:  consumers will be getting something extra for less money. ex)

- Testimonial:  someone endorses the product. ex)Britney Spears-Pepsi

- Transfer : A appeal which helps a person to image themselves as part of a picture.ex)Old cigarette televison commercial

International Marketing

-because of an increase in privatizations which have increased market liquidity.

-technological—because of improved transportation and communication opportunities today, trade is now more practical.

-global trade agreements such as the General Treaty on Trade and Tariffs, and trade organizations such as the World Trade Organization (WTO), North American Free Trade Agreement (NAFTA), and the European Union (EU).

Identify five reasons why companies may decide to sell their product or service in foreign markets.

- To increase the overall level of total profits

- To take advantage of an innovative to the world product or service

- To enjoy the corporate tax advantages offered in overseas countries

- To satisfy the goals of corporate management who might wish as a general matter of policy that the company should be committed to international operations

- Because the home market might be saturated

What considerations must a company have in these areas when undertaking international marketing?

- political differences : ex)oil companies which invested in Iraq or Libya became victims of these countries’ misconduct that led to bans on trade.

- economic differences: There are economic differences between the US and other countries. Some countries have much lower standards of living.

- social differences: ex) differences in family structure

- legal differences:  a different legal system in each country.

- cultural differences : ex) what is a pet in the United States might be food in another country. Pork is not eaten in many countries./ language differences

- differences in business practices:  In many countries, few households have a personal computer. In many parts of the world, a large number of households do not have electricity, telephones, or indoor plumbing.

Distribution Arrangement

-         In intensive distribution, the product is sold to as many appropriate retailers or wholesalers as possible. Intensive distribution is appropriate for products such as chewing gum, candy bars, soft drinks, bread, film, and cigarettes where the primary factor influencing the purchase decision is convenience.

-         In selective distribution, the number of outlets that may carry a product is limited, but not to the extent of exclusive dealing. By carefully selecting wholesalers or retailers, the manufacturer can concentrate on potentially profitable accounts and develop solid working relationships to ensure that the product is properly merchandised. The producer also may restrict the number of retail outlets if the product requires specialized servicing or sales support. Selective distribution may be used for product categories such as clothing, appliances, televisions, stereo equipment, home furnishings, and sports equipment.

-         Exclusive distribution occurs when a single outlet is given an exclusive franchise to sell the product in a geographic area. Products such as specially automobiles, some major appliances, certain brands of furniture, and lines of clothing that enjoy a high degree of brand loyally are likely to be distributed on an exclusive basis.

-    Integrated marketing is a strategy aimed at unifying different marketing methods such as mass marketing, one-to-one marketing, and direct marketing. Its objective is to complement and reinforce the market impact of each method, and to employ the market data generated by these efforts in product development, pricing, distribution, customer service, etc

Why is the choice of distribution channel so important? 

 1. It affects sales - if it's not available it can't be sold. Most customers won't wait.

 2.Distribution affects profits and competitiveness since it can contribute up to 50 percent of the final selling price of some goods. This affects cost competitiveness as well as profits since margins are squeezed by distribution costs.

 3.Delivery is seen as part of the product influencing customer satisfaction. Distribution and its associated customer service play a big part in relationship marketing. 

What issues must be considered when choosing a distribution channel?

- cost, nature of the product, distance

What are some of the things you must consider about selecting a channel partner?

- channel partner’s target market, their focus, their customer base and their marketing strategy

- business stability

- skills and experience