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Download Basic Business Statistics Concepts and Applicationsby 3rd Edition Berenson Solutions Manual all chapters
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Chapter 6
Contemporary environmental variables in
international marketing
Book Content
Learning Objectives
Learning objectives from the textbook per chapter
Discussion Questions
Sample answers to discussion questions from the textbook
Teaching Notes
Tutorials
Teaching ideas for tutorials and small groups
Lectures
Teaching ideas for lectures and similar learning spaces
Assignments
Ideas for individual or group assignments
Additional Questions
Further questions not in the textbook for assessment and quizzes
Copyright © 2014 Pearson Australia (a division of Pearson Australia Group Pty Ltd)
– 9781442560833/Fletcher/International Marketing/6e
1
Book Content
Learning objectives
After reading this chapter you should be able to:
Discussion Questions
Health-related issues fall into two broad categories – animal-related and human-
related. Animal-related issues include SARS, mad cow disease, bird flu and mercury
in fish. Examples of human-related issues in both developed and underdeveloped
countries include AIDS/HIV, malnutrition, ageing, obesity (lack of fitness and
correct diet) and flow-on impacts such as the increased incidence of diabetes.
These issues have created opportunities for Australian companies, especially for
food products. For example, concerns expressed about manufactured and
chemically enhanced foods and their perceived link to obesity have led to increased
demand for organics foods (e.g. Wholefoods in the US, the Macro line at
Woolworths in Australia). Consumers have become more concerned about the
provenance of their food and are willing to pay premium prices for food
accompanied by detailed information.
Despite the negative impacts of terrorism, there are opportunities for some
Australian industries e.g. producers of defence equipment, intelligence gathering
and security analysis and systems for infrastructure, personal and public safety.
This question gives an opportunity for a lot of debate. How students view
opportunities will depend on their beliefs about global warming and the level of
impact it will have. For example, some may agree with Oxford Professor Norman
Myers who believes that climate change may cause as many as 200 million ‘climate
refugees’ as higher sea levels and decreases in tourists amongst other flow-on
effects will make it physically and economically unviable to exist in low-lying areas
in particular, such as Tuvalu in the South Pacific. Others may believe that climate is
cyclical (longer term perspective and analysis needed) or may be ‘non-believers’.
Opportunities would exist, for example, in energy sources such as nuclear and wind
that emit no carbon (and the sale of carbon credits). Australia, with its uranium
stocks and sugar cane-produced ethanol, is well placed to capitalise. The debate
about the impact of ‘food miles’ may become problematic for Australian and New
Zealand producers given the distance to local markets but would provide
opportunities for more regional food trade.
Question 1
What are the negative impacts of unethical farming in West Africa on the global
chocolate brands mentioned in this case?
Answer
Media coverage (eg CNN), activist websites and protests will all have a negative
impact on the brand. With a global brand umbrella such as Nestlé, this may have a
negative impact on all of their brands (under the umbrella brand of Nestlé).
There are negative impacts on Brand Reputation. Combatting this negative
perception leads to public relations becoming a focus for the company and this is an
expensive expenditure for the firm. Further, the brand reputation may never
recover fully. As a consequence of the internet there will always be some trace of
the issue.
Question 2
Who is responsible for fair trade in the chocolate market?
Answer
Sub-questions that could be raised: Is it the responsibility of the company? Does
the chocolate company play a role in this change? If so, what role do you think they
should play?
Governments, industry and companies (all).
It is the responsibility (especially when so large) for these companies to play their
role to influence positive change.
Companies at a macro and micro level influence benchmarks in their industry. It is
imperative that the entire industry make a stand.
Question 3
What is CSR? Who are the global-conscious consumers and why do they matter?
Answer
CSR is the obligation the company has to society which falls beyond what is legally
required. Corporate social responsibility (CSR) for marketers means CSR success
translates into positive product evaluations, purchase intentions and customer
satisfaction. Essentially, CSR assists the firm and international marketer in building
a better, stronger brand (Hoeffler and Keller, 2002). Developing and maintaining
corporate social responsibilities within the firm has been shown to lead to a better
global brand and better global brand performances (Madden, Ross and Dillon,
2012).
The socially-conscious global consumer is a consumer who is willing to pay extra for
products or services from a company that has given back to the society. As
previously stated, “the socially conscious consumer” has been identified for some
time now (Anderson and Cunningham, 1972). It is incumbent on companies to
understand this complex set of assumptions consumers are making. Consumers
want companies to give back to the society. Further, this consumer perception of
corporate responsibility is somewhat void of geographical boundaries due to the
internet. For example, what the company does in one country where CSR is
considered appropriate may be perceived in another country as unethical.
Question 4
Answer
There would be many answers here, but highlight the company focus as you are the
international marketing manager, not the government.
We, as marketers, can influence change, but not actually make the change as this
is a regulatory setting in Africa.
What we can do is change the practices of the company related to sourcing of cocoa
and implement fair trade systems.
Concept
The IMEDGE section draws on materials covered in each chapter to give students
an opportunity to undertake a practical and hands-on exercise which covers a
specific international marketing topic. Using information from the chapter and other
extra sources, IMEDGE tasks can be done either as group or individual activities.
Students
• It requires students to apply theory to a real life scenario using information
from the sources identified in the chapter.
• It consolidates students’ understanding of key concepts covered beyond the
basic theory.
• Unlike case studies, the task involves collecting current on-going data and
applying it to concepts covered.
Instructors
Other examples
Students should be able to research online examples of how social media has been
used by consumers or other lobbyists to campaign against brands on a global basis.
A number of major international brands, such as KFC, Nike, McDonald’s and Wal-
Mart, have been subject to social media campaigns which encourage consumers to
boycott their products for a variety of reasons such as their contribution to obesity,
unfair labour practices or use of child labour. Another landmark example is that of
Addison Lee (one of the UK’s biggest minicab companies). The company faced a
social media backlash from cycle campaigners after its head had described deaths
and serious injuries among inner-city cyclists as inevitable and primarily the fault of
untrained riders. A vicious social media campaign was run by the cycle campaigners
which resulted in the company losing one of its biggest contracts with the
government.
The threat of social media campaigns can have diverse impact on brands. These
include:
• A threat on the value of the brand. In P&G’s case, the Pampers brand is
worth close to $9 billon a year and any backlash was viewed as a threat to
the value of the brand.
• Change of international marketing strategy in order to militate against the
negative impact of such campaigns.
• Additional, often unbudgeted costs for managing the damage done to the
brand.
• Loss of consumer confidence in the brand and the company which can also
be manifested in loss of sales. In the case of Addison Lee, the company lost
its biggest contract, which was with the British government, as a result of
the Facebook campaign.
Firms can use various strategies to combat the potential impact of social media
campaigns.
Teaching Notes
Tutorials
1. Have students bring in one article from an Australian or New Zealand newspaper
(hard copy or online) and one article from an international newspaper or business
publication (online) that illustrates how climate affects culture and consumption.
For example, students might bring in articles detailing the impact of extreme
weather conditions such as the Queensland floods on communities and their
economic base.
Assignments
1. DodgyAs offers to sell your company 1 million Chewy Choc Toddler Toys for only
$100,000. Due to questions about health and safety and what are viewed by
DodgyAs as ultra-cautious and business unfriendly standards, Chewy Choc Toddler
Toys are not being sold in New Zealand and Australia. DodgyAs advises, however,
that there is extremely high demand in Africa and the toys could easily be sold for
at least $3 each. How do you respond? Explain your answer using the relativist,
utilitarian and universalist perspectives.
Students are being asked to consider that, while it may be legal to sell this product
in Africa, it may not be ethical as there are questions about safety. Student
answers will vary but they should make an attempt to deal with the relativist
(looking at ethics in the host country), utilitarian (greatest good for greatest
number) and universalist (universal set of ethical behaviours regardless of country)
views which would likely lead them to different answers.
Additional Questions
Views of correct ethical behaviour differ according to whether the person holds a:
• relativist perspective – what is ethical is determined by the host country
• utilitarian perspective – what is ethical is that which delivers the greatest
benefit to the greatest number of people
• universalist perspective – there is a universal set of acceptable ethical
behaviours that should be applied to business wherever it occurs.
2. Terrorism and violent activities around the world have made the global
marketplace seem unsafe. How concerned should companies with
international operations be about such activities? Should they consider
abandoning some of their global markets? How should companies weigh
their concerns about terrorism against the need to help the economies of
developing countries?
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Language: Hungarian
A TÖMEGEK LÉLEKTANA
BUDAPEST
FRANKLIN-TÁRSULAT
MAGYAR IROD. INTÉZET ÉS KÖNYVNYOMDA
1913
A TÖMEGEK LÉLEKTANA
IRTA
GUSTAVE LE BON
FRANCIÁBÓL FORDITOTTA
Dr BALLA ANTAL
BUDAPEST
FRANKLIN-TÁRSULAT
MAGYAR IROD. INTÉZET ÉS KÖNYVNYOMDA
1913
FRANKLIN-TÁRSULAT NYOMDÁJA.
TH. RIBOT-NAK,
A REVUE PHILOSOPHIQUE SZERKESZTŐJÉNEK,
A COLLEGE DE FRANCE TANÁRÁNAK
ÉS AZ INSTITUT TAGJÁNAK
AJÁNLJA
G. LE BON.
A TÖMEGEK LÉLEKTANA
ELŐSZÓ.1)
A tömegek kora.
A jelenkor fejlődése. – A nagy kultúrváltozások a népek gondolkodásában
végbemenő átalakulások következményei. – A mai kor hite a tömegek
hatalmában. – Ez változtatja meg az államok hagyományos politikáját. –
Hogyan kerülnek felszínre az alsóbb néposztályok és mi módon gyakorolják
hatalmukat. – A tömegek elhatalmasodásának szükségszerű
következményei. – Hatásuk csak romboló lehet. – Ők semmisítik meg
végképen az elavult kultúrát. – A tömeglélektant általában nem ismerik. –
Törvényhozóknak és államférfiaknak mennyire fontos tanulmányozni a
tömegeket.
A TÖMEGLÉLEK.
ELSŐ FEJEZET.