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Chapter sustainable marketing in the global marketplace. After studying this chapter you will be able to understand: The problems associated with cultural stereotypes, how culture influences behaviors at the negotiation table, common kinds of problems that crop up during international business negotiations, the similarities and differences in communication behaviors in several countries,...
GLOBAL MARKETING MANAGEMENT Seventh Edition MASAAKI KOTABKE | KRISTIAAN HELSEN Chapter 20 PowerPoint Sustainable Marketing in the Global Marketplace Chapter Overview Global Corporate Citizenship Major Areas of CSR The Case for Sustainability Challenges for Sustainability Strategies Sustainable Marketing and Global Consumers Developing and Implementing a Sustainable Strategy Global Stakeholder Engagement Programs Sustainable Marketing Mix Policy for the Global Marketplace Copyright © 2017 John Wiley & Sons, Crisis Management andInc.Consumer Boycotts Chapter 20 Introduction • Companies recognize that they must consider the impact of their decisions and policies on a wide range of stakeholders besides their shareholders in order to have sustainable business • While the idea that a company has societal obligations has been around for decades, corporate social responsibility (CSR) has never been more prominent on the corporate agenda Chapter 20 Copyright © 2017 John Wiley & Sons, Inc Global Corporate Citizenship • Corporate social responsibility (CSR) is “the company’s status and activities with respect to its perceived societal obligations.” • The European Commission defines CSR as “a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.” • The United Nations Global Compact (UNGC) is a framework that the UN established in 2000 to help companies in adopting sustainable and socially responsible strategies It stipulates 10 principles in the areas of human rights, labor, the environment, and anticorruption Copyright © 2017 John Wiley & Sons, Chapter 20 Inc Exhibit 20-1: The UN Global Compact’s Ten Principles Chapter 20 Copyright © 2017 John Wiley & Sons, Inc Global Corporate Citizenship • The ISO 26000 provides a template for social responsibility in areas such as: – – – – – – Human rights Labor practices Environmental issues Fair operating practices Consumer issues Community involvement and support Chapter 20 Copyright © 2017 John Wiley & Sons, Inc Exhibit 20-2: The Nestlé Creating-Shared-Value (CSV) Pyramid Chapter 20 Copyright © 2017 John Wiley & Sons, Inc Major Areas of CSR • Corporate social responsibility includes: – Corruption and Bribery – Environmental Concerns • • • • Energy consumption Basic brand attributes Desire to buy green/green big-ticket items Attention to packaging – Supply Chain Accountability – Commitment toward customers – Community Support Chapter 20 Copyright © 2017 John Wiley & Sons, Inc Exhibit 20-4: Examples of Water Saver Initiatives Chapter 20 Copyright © 2017 John Wiley & Sons, Inc Exhibit 20-5: Interbrand 2014 Green Brands Chapter 20 Copyright © 2017 John Wiley & Sons, Inc 10 Exhibit 20-7: Conflicting CSR Images Chapter 20 Copyright © 2017 John Wiley & Sons, Inc 15 Sustainable Marketing and Global Consumers • With the rise of social media, consumers are rapidly alerted when a global brand has a harmful impact at the other end of the planet Consumer behaviors are also affected by: – – – – – Lack of Awareness Negative Perceptions Distrust Low Availability Product price, particularly green products and organic produce Chapter 20 Copyright © 2017 John Wiley & Sons, Inc 16 Exhibit 20-8: GFK Roper’s Global Segmentation of Environmental Consumers Chapter 20 Copyright © 2017 John Wiley & Sons, Inc 17 Exhibit 20-9: The Biggest Challenges to Buying Green Products/Services Chapter 20 Copyright © 2017 John Wiley & Sons, Inc 18 Developing and Implementing a Sustainable Strategy • To create a suitable CSR strategy, a company must: – – – – – Set objectives and targets Understand the operating environment Specify strategic sustainability initiatives Implement Develop metrics for monitoring Chapter 20 Copyright © 2017 John Wiley & Sons, Inc 19 Exhibit 20-10: Highlights of H&M’s Conscious Actions in 2012 Chapter 20 Copyright © 2017 John Wiley & Sons, Inc 20 Exhibit 20-11: Colgate-Palmolive’s Key Performance Sustainability Indicators Chapter 20 Copyright © 2017 John Wiley & Sons, Inc 21 Exhibit 20-12: Starbuck’s Global Responsibility Plan – Goals and Progress (2014) Chapter 20 Copyright © 2017 John Wiley & Sons, Inc 22 Global Stakeholder Engagement Programs • Monitoring stakeholder priorities and perceptions is crucial – Forms of stakeholder engagement firms could adopt • • • • • Chapter 20 Information provision Standard setting Input on decision-making Implementation Monitoring Copyright © 2017 John Wiley & Sons, Inc 23 Sustainable Marketing Mix Policy for the Marketplace • Meeting consumer needs and desires creates corporate challenges for global companies in areas of: – Sustainable packaging – Sustainable pricing Chapter 20 Copyright © 2017 John Wiley & Sons, Inc 24 Exhibit 20-13: Coca-Cola Billboard in the Philippines Absorbs Air Pollution Chapter 20 Copyright © 2017 John Wiley & Sons, Inc 25 Sustainable Marketing Mix Policy for the Marketplace • Developing sustainable products and services – Sustainable products or services often suffer from a poor image in the mind of consumers – Some multinationals have focused on making their product development and testing more sustainable – Some steps focus on the ways products are made by striving to save energy and lower water use at manufacturing facilities – Sustainable packaging initiatives focus on the three Rs of remove, reduce, and recycle Chapter 20 Copyright © 2017 John Wiley & Sons, Inc 26 Sustainable Marketing Mix Policy for the Marketplace • Sustainable Pricing: a major obstacle for many customers – Highlight to consumers the overall savings potential of products during their lifespan – Premium pricing as a prestige signal • Communication and Sustainability – Inform the public about the firms’ firm’s sustainability achievements – Persuade that products offer good value – Educate consumers • Sustainability and Distribution Channels – Support small-scale distributors Chapter 20 Copyright © 2017 John Wiley & Sons, Inc 27 Exhibit 20-15: Percentage of Consumers Not Willing to Pay a Price Premium for Green Products Chapter 20 Copyright © 2017 John Wiley & Sons, Inc 28 Crisis Management and Consumer Boycotts • Crisis can damage a company’s reputation – Have a crisis management team • • • • • Monitor all situations Handle crisis vigorously Build a reputation to protect it Communicate with stakeholders during a crisis Be prepared to rebuild brand reputation after the crisis is resolved – Consumer boycotts • Companies should stay out of these issues if possible Chapter 20 Copyright © 2017 John Wiley & Sons, Inc 29 ... monitoring Chapter 20 Copyright © 201 7 John Wiley & Sons, Inc 19 Exhibit 2 0- 10: Highlights of H&M’s Conscious Actions in 201 2 Chapter 20 Copyright © 201 7 John Wiley & Sons, Inc 20 Exhibit 2 0- 11: Colgate-Palmolive’s... company’s global image Chapter 20 Copyright © 201 7 John Wiley & Sons, Inc 14 Exhibit 2 0- 7: Conflicting CSR Images Chapter 20 Copyright © 201 7 John Wiley & Sons, Inc 15 Sustainable Marketing and Global. .. Saver Initiatives Chapter 20 Copyright © 201 7 John Wiley & Sons, Inc Exhibit 2 0- 5: Interbrand 201 4 Green Brands Chapter 20 Copyright © 201 7 John Wiley & Sons, Inc 10 Exhibit 2 0- 6: Overall Access