1. Ethics in Global Brand Management Lecture three: Ethics and Delivering Customer Value across Global Markets

2. Essential components of culture Beliefs –Mental and verbal processes that reflect our knowledge and assessment of products/services. Values –Indicators consumers use as guides for what is appropriate behaviour. –Usually enduring and widely accepted within the market.

3. Essential components of culture Customs –Overt modes of behaviour that constitute culturally approved or acceptable ways of behaving in specific situations. –Customs are evident at major events in one’s life, e.g. birth, marriage, death, and at key events in the year, e.g. Christmas, Easter, Ramadan.

4. Layers of culture Like an onion (Lee and Carter, 2012) –National culture –Business culture –Organisational culture –Individual culture

5. Layers of culture Hofstede (2003) –National level –Regional / ethnic / religious / linguistic affiliation level –Gender level –Generation level –Social class level

6. Contextual continuum of culture Swiss Germans Scandinavians North Americans English Italians/Spanish Latin Americans Arabs Japanese Low Context High ImplicitExplicitMessages French Source: Usiner et al (2005))

7. Hofstede’s criteria (2001) Individualism –Affects the way people live together Power distance –Dealing with human inequality Uncertainty avoidance –Managing future uncertainty Masculinity –Male / female stereotyping Time orientation/Confucian dynamism –Long-term or short-term orientation

8. Danish Culture – According to Geert Hofstede Source: www.geert-hofstede.comwww.geert-hofstede.com Very low power distance Quite high individualism Very low ”masculinity” – more ”feminine” values Very low uncertainty avoidance Business culture traits: - Quite informal, relaxed - Punctuality is very important - A very direct, no-nonsense communication (may be considered rude) - High gender equality - Not too flashy dress-code

9. In a European context the Danish culture differs from being more ”feminine” and with a very low power distance compared to other European countries. But in a global context the contrasts are even bigger. This can be risky in dealing with e.g. China.

10. A viral marketing campaign gone horribly wrong… side 10

11. Self-reference criterion The process of gaining empathy within an international country market requires: Cultural empathy –The ability to place yourself in the position of a buyer from another country. Neutrality –The ability to identify the differences that exist without making value judgements about ‘better’ or ‘worse’ cultures. –The focus should be placed on differences rather than superiority.

12. Assumptions to be questioned by international marketing managers The consumer buying process is consistent across cultures –consumer involvement –perceived risk –cognitive style

13. Cultural tightness-looseness Refers to the extent to which an individual shows strong adherence to social norms and whether severe sanctions are imposed on those who deviate from these norms. (Gelfand, Nishii, and Raver, 2006)

14. Business perspective three: Intents, means and ends –When formulating marketing campaigns, marketers are responsible for: The intent of the action The means or method by which the practice was implemented The end or outcomes of the strategy or tactic

15. The proportionality framework Adapted from Garrett (1966) –The principle of proportionality: Marketers are responsible for whatever they intend as a means or an end. If both are 'good', they may act, accepting a certain (i.e. minor) risk of side effects.

16. The marketing concept Segmentation Targeting Positioning High price Low price Narrow range Wide range Tesco Marks & Spencer Harrods Market stalls Convenience stores Delicatessens Discount stores

17. Marketing mix Product Price Place People Physical evidence Process Promotion

18. Vaseline example

19. Ethical product challenges

20. Ethical pricing challenges

22. Further reading on the Rana Plaza incident: 'The Shirt on your Back': http://www.theguardian.com/world/ng- interactive/2014/apr/bangladesh-shirt-on-your-backhttp://www.theguardian.com/world/ng- interactive/2014/apr/bangladesh-shirt-on-your-back

23. Ethical place challenges Whose responsibility? The government and the retailers? http://www.bbc.co.uk/news/uk-politics-21388628 Individuals? http://www.bbc.co.uk/news/uk-21392004 The supply chain? http://www.bbc.co.uk/news/uk-21394451

24. The Car in Front is a Toyota http://www.theguardian.com/business/2010/mar/09/toyota-prius-brakes- accelerator

25. Toyota's response http://news.bbc.co.uk/1/hi/business/8533352.stm?asid=f3bda1ab

26. Ethical people challenges

27. Non-ethical process and physical evidence Fake bomb detectors: http://www.bbc.co.uk/news/uk-22279095

28. Ethical promotional challenges

29. Ethics in Global Brand Management Lecture three: Ethics and Delivering Customer Value across Global Markets Tutor: Giovanna Battiston  g.battiston@shu.ac.ukg.battiston@shu.ac.uk

30. Did Hyundai go too far?