Iphone India Marketing Strategies - PowerPoint by xvc17347

VIEWS: 94 PAGES: 72

More Info
									Guest lectures



Marketing and CSR/Ethics




     Hans Zahn
     Lecturer Marketing, Management & Organization
     School of Economics
     Haarlem
     The Netherlands
     T. +31 (0)23 5412263
     E. hans.zahn@INHOLLAND.nl


                                                     1
Introduction


   My professional background


   12 years experience as marketing professional at:
        •      The publishers IDG Communications Netherlands
               and Elsevier Health Science
        •      De Baak – Management Center VNO-NCW
        •      Weten Foundation; public understanding of science
               & technology
   3 years lecturing at INHolland School of Economics
       Why do I lecture marketing?




It is a subject area related to many different disciplines:

Economics                 > „homo economicus‟
Psychology                > Consumer Behavior
Statistics                > Market research
Communication Sciences > Promotion
Business Organization > Operationalising the 4 P's
Creativity                > Respond to irrational consumers
Contents lectures this morning


  - 1st Short introduction to marketing + view of Tex
  Gunning (CEO of Akzo Nobel)

  - 2nd Sustainable Marketing: Marketing Ethics and Social
  Responsibility

  - 3rd CSR/ethics companies & marketing




                                                             4
Contents lecture 1


  - Introduction to marketing
  - Powerpoint presentation made by Tex Gunning (CEO of
  Akzo Nobel)




                                                          5
Action learning

Brainstorm

What is marketing?
Form project groups of max 5 persons
Start a brainstorm (10 minutes)
The result of your brainstorm must be at least 15 aspects
that are related to marketing
Write these aspects on a paper and hand them over to me
if you are finished
Lecture 1




Introduction tomarketing

based on Philip Kotler
Preview



- Discuss core concepts of marketing
- See the evolution of marketing thought and discuss
  various orientations toward marketplace
- Focus on modern marketing concept, identify four pillars
  of modern marketing
- Describe 4Ps and 4C‟s of marketingmix
- Discuss modern marketing concept comparing it with
  selling concept
 What is Marketing?




Latest definition by Philip Kotler:

  Marketing is a social and managerial process by which
  individuals and groups obtain what they need and want
  through creating and exchanging value with others

  Marketing is managing profitable customer relationships
   •    Attracting new customers
   •    Retaining and growing current customers
Once again….



Marketing is
   •    Satisfying customer needs
   •    Meeting needs profitably
   •    Generating customer value at a profit


        Managing profitable customer relationships
        by delivering superior value to customers
What do they need?




                     Iphone?
 So marketing is….

No single correct definition or approach…
Common subject matters:

     •    The ability to satisfy customers

     •    The identification of favorable marketing opportunities

     •    The need to create an edge over competitors

     •    The capacity to make profits to enable a viable future for
          the organization

     •    The use of resources to maximize a business‟ market
          position

     •    The aim to increase market share mainly in target markets
What the customer realy needs….
Core Concepts of Marketing



                      Needs, wants,
                      and demands



        Markets                            Products
                                          and services




         Exchange,                    Value and
       transactions,                  satisfaction
      and relationships
Core Concepts of Marketing


                            Products
Anything that can be Offered to a Market to Satisfy a Need or Want



  Experiences                 Persons                   Places


 Organizations             Information                  Ideas


                             Services
     Activities or Benefits Offered for Sale That Are Essentially
     Intangible and Don’t Result in the Ownership of Anything
Market Offerings - examples




                          Marketing places :
                          Creating positive attitudes or
                          maintaining attitudes &
                          behavior toward particular
                              places
Market Offerings - examples




                       Marketing products:


                       Replay Eye Wear
                       Connecting with lifestyle elements
                       Seduction….




                                                        17
Market Offerings- examples




                                 Marketing ideas
                                 (social marketing)
                                   This is the watch
                                   Stephen Hollingshead, Jr.
                                   was wearing when he
                                   encountered a drunk driver.
                                   Time of death 6:55 p.m.


                             “Friends Don’t Let Friends
                             Drive Drunk”
Core Concepts of Marketing

           Value Gained From Owning a Product and
               Costs of Obtaining the Product is
                     “Customer Value”



      Product’s Perceived Performance in Delivering Value
              Relative to Buyer’s Expectations is
                 “Customer Satisfaction”


    Total Quality Management Involves Improving the Quality of
           Products, Services, and Marketing Processes
Simple Marketing System



                  Communication




    Industry      Products/services      Market
  (a collection                       (a collection
    of sellers)                         of Buyers)
                          Money


                     Information
 Marketing Management


Marketing management the art and science of
choosing target markets and building profitable
relationships with them

  This definition must include answers to 2 questions:
  •   What customers will we serve?
  •   How can we serve these customers best?

 Marketing management involves managing demand,
involves managing customer relationships
Marketing and Sales Concepts Contrasted


    Starting
     point       Focus       Means            Ends

                Existing   Selling and   Profits through
     Factory    products   promotion      sales volume

                 The selling concept
    Starting    Focus
     point                  Means           Ends

               Customer    Integrated    Profits through
     Market     needs      marketing       customer
                                          satisfaction

               The marketing concept
Marketing Concept - The 4 P’s
Marketing Concept - The 4 P’s + The 4 C’s



                       Marketing
                         Mix

                                               Place
 Product


Customer                                    Convenience
 Solution
               Price            Promotion


        Customer Cost           Communication
Selling – Marketing...




                         “There will always be need for
                     some selling. But the aim of marketing
                   is to make selling redundant. The aim of
                      marketing is to know and understand
                    the customer so well that the product or
                     service fits him and sells itself. Ideally,
                     marketing should result in a customer
                               who is ready to buy.”
                                              Peter Drucker
Modern Marketing Concept


   Concept
   Traditional Organization


                                 Top
                              Management

                     Middle Management

                       Front-line people


                              Customers
Modern Marketing Concept


         Customer-Oriented Organization Chart


                     Customers

                  Front-line people


                Middle management


                         Top
                       manage-
                        ment
 Societal Marketing Concept

Why?
- Companies negative effects on society
- Conflicts between consumer wants and long-term social welfare
- Marketing managers should be concerned with social
responsibility

  The societal marketing concept
     •     Company’s task is to determine needs and wants of target markets
           and to satisfy them more effectively and efficiently than
           competitors - in a way that preserves or enhances the consumer’s
           and society’s well-being
Societal Marketing Concept


                          Society
                       (Human Welfare)




                         Societal
                        Marketing
                         Concept

   Consumers                             Company
 (Want Satisfaction)                     (Profits)
Marketing Landscape change(d)




    Challenges             Growth of the Internet!

Digital age                Advances in
                           -Telecommunications
Globalization              - Information technology
                           -Transportation
Ethics and social
responsibility             -Customer research and tracking
                           -Product development
Not-for-profit marketing   -Distribution
                           -New advertising tools
                           -24/7 marketing through the Internet
Marketing relationships
Marketing Landscape




    Challenges
                           Geographical and cultural
Digital age                distances have shrunk:
Globalization              - Greater market coverage
Ethics and social          - More options for purchasing
responsibility              and manufacturing
Not-for-profit marketing   - Increased competition from

Marketing relationships      foreign competitors
Marketing Landscape




    Challenges
                      Marketers need to take
Digital age
                      great responsibility for
Globalization
                      the impact of their
Ethics and social
                      actions
responsibility
Not-for-profit
marketing
Marketing Landscape




    Challenges               Many organizations are
                           realizing the importance of
Digital age                strategic marketing
Globalization                   •    Performing arts
Ethics and social               •    Government agencies

responsibility                  •    Colleges, Universities
                                •    Hospitals
Not-for-profit marketing
Marketing relationships
Marketing Landscape




    Challenges
                            Profits through managing
Digital age
                            long-term customer equity (value
Globalization               in the eye of the customer)

Ethics and social
responsibility             - Improve customer knowledge

Not-for-profit marketing   - Target profitable customers

Marketing relationships    - Keep profitable customers
Video Tex Gunning (CEO Akzo Nobel)




                                     35
Contents lecture 2


  - Brainstorm (action learning)
  -Lecture CSR/Ethics




                                   36
Lecture 2




   Sustainable Marketing: Marketing Ethics
   and Social Responsibility
                                             37
CSR




  „Corporate Social Responsibility (CSR)
  also mentioned „Sustainable entrepreneurship‟
  or „Sustainability‟
  „Corporate social responsibility is the continuing
  commitment by business to behave ethically and
  contribute to economic development while improving the
  quality of life of the workforce and their families as well as
  of the local community and society at large‟

  Tripple P: People, Planet, Profit (prosperity)
CSR and People

People Domain
The companies performance on social-ethical themes
     •   How does the company treat its employees?
     •   What is achieved in the areas of social cohesion?
Themes:
    •      Human rights
    •      Corruption and fraud
     •     Child Labor
     •     Man-Woman relationships
     •     Diversity and discrimination
     •     Employee councils
     •     Codes of conduct
     •     Social and ethical accounting
CSR and Planet


Domain Planet
The performance of the company in the
field of environment in the broadest sense
How a company addresses its responsibilities regarding the
taxation of the environment, nature and landscape
      Themes:
      Environmental issues
      Supply Chain
      Eco-efficiency (cleaner production, sustainable technology)
      Sustainable business
      Ecodesign
CSR and Profits (prosperity)

Domain Profit (Prosperity)
Not the pure financial performance include the company
It is more about economic issues
       Themes:
       Employment
       Investments in infrastructure
       Location Policy
       Political involvement
       Outsourcing
       Economic impact of services and products
       Sponsorship
       Employee Participation
       Links Triple P and the financial performance of the company
CSR and Marketing




 Sustainable Marketing: Marketing
 Ethics and Social Responsibility
Learning Goals



  1. Know the major social criticisms of marketing
  2. Be able to define consumerism and
      environmentalism and know how they affect
      marketing strategies
  3. Learn the principles of socially responsible
      marketing
  4. Learn the role of ethics in marketing
Case Study: Nike




•   Nike has been criticized       •   Nike took the charges seriously
    lately about NOT being             and commissioned a study of
    socially responsible               Nike factories abroad
•   Accusations of overseas        •   Nike donates more than $30
    sweatshops, child labor, and       million in cash and products to
    exploiting lower income U.S.       sports programs and 3% of
    families                           earnings to charity
                                   •   CEO Knight – “not sure how we
                                       measure good performance in
                                       corporate responsibility”
Social Criticisms of Marketing




Marketing‟s Impact on Individual Consumers
    •   High Prices
                  • High costs of distribution
                  • High advertising and promotion costs
                  • Excessive markups
Social Criticisms of Marketing



  Marketing‟s Impact on Individual Consumers
       •    Deceptive Practices (misleading)
                      • Pricing
                      • Promotion
                      • Packaging
       •    High-Pressure Selling
Social Criticisms of Marketing




  Marketing‟s Impact on Individual Consumers
       •    Shoddy or unsafe products (cheap stuff)
       •    Planned obsolescence (in-built aging)
       •    Poor service to disadvantaged consumers
Social Criticisms of Marketing




Marketing‟s Impact on Society as a Whole
    •    False wants and too much materialism
    •    Too few social goods
    •    Cultural pollution
    •    Too much political power
Social Criticisms of Marketing




  Marketing‟s Impact on Other Businesses
       •    Acquisitions of competitors
       •    Marketing practices that create barriers to entry
       •    Unfair competitive marketing practices
Actions to Regulate Marketing


  Consumerism
       •   Traditional seller‟s rights
       •   Traditional buyer‟s rights
       •   Additional rights proposed by consumer advocates
Actions to Regulate Marketing


Environmentalism
   •   An organized movement of concerned citizens,
       businesses and government agencies to protect and
       improve people‟s living environment
   •   Environmental Sustainability
               • Pollution prevention (C2O foothprint)
               • Product stewardship (concept whereby
                 environmental protection centers around the
                 product itself, and everyone involved in the
                 lifespan of the product is called upon to take up
                 responsibility to reduce its environmental impact)
                 >> Philips Africa
                • New environmental technology
                • Sustainability vision
Short video’s


  Companies have started to take their responsibilities



  Unilever‟s
  Dove Self Esteem Fund


  Reaction Greenpeace
Contents lecture 3


  - CSR/ethics companies & marketing




                                       53
Trends


- The focus on CSR/ethics illustrates an important shift in
thinking about entrepreneurs/managers, corporate
governance and business


- CSR highlights companies simultaneously from an
economic and a social dimension and that a unilateral
focus on profits or shareholders no longer sufficient in the
modern business environment
           Company CRS example



Coca-cola’s five strategic CRS focus areas and goals:
-   Water stewardship (the use of one liter water for one liter product – water
    neutrality)

-   Sustainable packaging/recycling (maximize use of renewable, reusable,
    and recyclable resources, ultimately recycling the equivalent of 100% of our
    packaging)

-   Energy conservation/climate change (reduce carbon emissions)
-   Product portfolio/well-being (right product, right package, right moment)
-   Diverse and inclusive culture (sustainability trough employee commitment)

Source: Coca-Cola CSR report 2007


                                                                                   55
Company example



CSR commitments Dell 2008

-   Be the greenest technology company on the planet and the first
    computer company to achieve carbon-neutral operations by the end
    of 2008
-   Continue leadership with our climate strategy and global recycling
    programs
-   Partner with our customers in energy-efficiency and climate-protection
    initiatives
-   Broaden our Global Citizenship commitment
-   Recommit our efforts to improve sustainability governance
Source: Dell CSR report 2008
                                                                         56
Greenwashing
Financial crisis and CSR

Question: Is CSR always an extra cost factor?




Mr F. Briët, was member of executive board of Corus in 2001
  “Reasearch shows that companies with strong CSR/sustainability
  strategies do perform better than those without. With Corus I have
  seen that our margins were higher, in spite of a strict
  environmental policy, than our merging partner Brittish Steel.”




                                                                       58
Financial crisis and CSR II


     “The financial crisis offers companies unprecedented
     chances if we are talking about investments in social
     innovation, to make organizations and consumption
     patrons more sustainable.”


   Pauline van der Meer
   Supervisory Boardmember ASML




                                                             59
Globa Corporate Companies unite




                                  60
CSR reports




              61
Business ethics


Changing social role of business:
- Limits of steering government in sight
- Increased deregulation calls on companies to
increase self regulation
- Globalization (increasing international business, also
brings responsibilities with it ....)
- Technological developments
- Democratization of moral authority (role church,
government, science background to be contacted)

                            Ethiek/MVO   H.Zahn
Ethics


  What are ethics?
    - Difference between good and bad ...
    - Norms and values
    - Moral: acts and behavior in a social context
    as correct and desirable to be seen




                     Ethiek/MVO   H.Zahn
Ethics


Ethics is based on the assumption that people are
  rational creatures are free to make choices
  - Are we really free?
  - What is freedom?
  - How far you lived?
  - What do we need to make free choices?
  - Freedom has to do with fear ...
  - Can we have a free choice if we are afraid to
  lose our jobs?
Stakeholder


Definition Freeman
  Any party whose interests may be affected by the
  activities of the company, or even affect the interests
  of the company can exercise


Definition business ethics (moral justification)
  Each party owner whose interests may be affected by
  the activities of the company, or even affect the
  interests of the company owner may exercise

                          Ethiek/MVO   H.Zahn
Stakeholders Cadburyschweppes)
 Business ethics




  Key is social responsibility!


Important aspects:
  - Strategy: responding to social issues is
  increasingly a condition for continuity
  - Public Relations: external communication, image
  - Marketing: CSR as Unique Selling Point (USP)
  - Personnel: involvement of employees and company pride

                            Ethiek/MVO   H.Zahn
Acting Ethically




Can you do business with ethical conduct?


Profits are self-interest
Uh, oh yes there are others ....
Profit and Principles!




                            Ethiek/MVO   H.Zahn
Company example CRS/Ethics




 Nokia in China - a multinational inspection
 - Is it possible to make profits while acting ethically correct?
 - This question is becoming acute for western companies, especially
    when the production in low wage countries is made
 - Even the world's largest manufacturer of mobile phones Nokia is
    struggling with CSR
 - In the Nokia video two (female) inspectors are followed during their
    visit in a Chinese factory
 - They are trying to achieve the collision of Western values to with a
    European (UK) and a Chinese (male) director
                                                                          69
Ethics & profits



   Bad examples:
   - Financial crisis (bonus focused Bank-system)
   - Madof (50 bilion of debts)
   - ENRON (greed in „optima forma‟)
   - Parmalat (robbed Italian pensioners)
   - Societé Generale (The bank of Jerome K.)



                      Ethiek/MVO   H.Zahn
Unilever



           - Unilever is doing business in India
           -   Lifebuoy's handwashing awareness
               programme, Swasthya Chetna, is now
               the largest private hygiene education
               initiative in the world
           - Bides that Unilever changed the
               business model: by selling soap in
               one-time use sachets instead of big
               portions….



                                                     71
The End…




Thanks for your attention!




PS. Consider studying at INHolland University 

                                                  72

								
To top