Ethical Challenges in Global Marketing - Case Study Example

Student’s Name Instructor’s Name: Course: Date of submission: Table of Contents Ethical challenges in global marketing 3 1Background 3 2Ethical issues in the research papers 4 3Marketing theories in the articles 5 4Major findings 6 5Implications for marketing managers 8 6Key issues and recommendations 11 7Conclusion 12 Ethical challenges in global marketing 1 Background As economies open up and embrace the concept of doing business at the global level, challenges present themselves in the same rate that opportunities present themselves for businesses [Joy09]. One such challenge is staying within the limits of ethical conduct while conducting marketing activities in different global market [Car05]. What is acceptable in one market is clearly not acceptable in another market. How can this reality be established and how can businesses be creative and informative in their marketing activities while also being ethical [Arm90]. Some of the challenges connected with ethical issues in marketing include such matters as marketing in Christian and Islamic markets which need different approaches especially when it comes to advertising [Gib08]. It is also important to understand how different communities perceive communication in advertisements [Bor]. How products are marketed and what is actually delivered need to be same if at all the marketing efforts are to be considered ethical [Joh01]. Customer satisfaction in terms of responding to queries and complaints is also an important part of ethical marketing at global level [Sin99]. These issues and obviously more that present themselves in the five reviewed papers, may present a great challenge to a business already operating at the global level or targeting to do business at the global level. Ethics are viewed differently in different communities because they are always connected to national or community cultures in the particular markets. It is vital to understand this reality to ensure ethical conduct is upheld even as businesses strive to excel in the international markets [Car05]. In light of these, the purpose of this paper is to review the relevance of the findings and analyses in the following papers covering ethics in marketing: [Arm90] [Gib08] [Bru07] [Car05] [Sin99] 2 Ethical issues in the research papers There are several ethical issues that are the subject of study in the five reviewed articles. Ethics are defined differently depending on the context in which the marketing activities are being conducted. There emerges to be conflict of national cultures especially between western cultures predominantly composed of Christian majority and nations with predominantly Islamic populations. Ethics are defined narrowly on the realm of what religion and practices endorse. One marketing strategy especially in advertising cannot be used in another context [Gib08]. Marketing in itself is getting out of a businesses position to aggressively market a product in a market by introducing it and getting the customer interested in the product [Bro93]. This calls for creativity and unique imagery and sound to attract the attention of the consumer [Bar12]. It is at this point that marketers go wrong if they don’t understand what culture and norms dictate in a particular society contends Borgerson & Schroeder (2002). Direct marketing has also been critically analysed in light of the growing debate on ethical marketing. Direct marketing has been brought out as an invasion on private space of consumers. In fact many view it as a nuisance and it could actually work to cause consumer indifference to the product being marketed through this means [Bru07]. One limitation with these research papers on ethical marketing is that ethics is almost entirely related to culture and norms of a society. The papers have narrowly covered ethics in the context of what is right and what is wrong without asking the question: where is it wrong and where is it right since different things have deferring meaning in different societies? 3 Marketing theories in the articles The study by Murphy, Laczniak, & Wood (2007) actually points out to the need by marketing managers to consider differences in cultures and ethical practices in different societies. Sticking to strict ethical standards may not yield much in cultures such as Chinese markets where dealing in counterfeit products such as pirated DVDS is not necessarily viewed as unethical. This is different in other western cultures [Car05]. Advertising and the kind of imagery made in western countries is also different from what is used particularly in Islamic societies where religion and cultural practices are by far very different. Marketing should be specific to a particular market [Sin99]. It is practically a failing tactic to rely on a strategy developed in a particular market to all other markets that a company operates [Sus01]. Every market has its own set of dynamics and they should be well researched, analyzed and the information gathered used to conduct an appropriate marketing campaign that will be within the limits of ethical standards as per the expectation of the society [Nan96]. The consumer is however portrayed as unpredictable and a difficult to completely fulfill person. The efforts of the marketer should then be to sell the product to a consumer that has been made to believe they need the product [Bla03]. It is difficult to fully satisfy all the expectations of a society and at the same time advance the intentions of a marketer and in extension the business in a market [Ing08]. It is at this juncture where the interest of the business and the society conflict that the need to regulate the market by a third party comes in. ethical marketing standards are mostly set and implemented by an authorized entity in a particular market. The society itself may choose to rebel product that is ethically irresponsible but then this is very rare and the society only reacts when the effects of an unethical marketing campaign have already happened [Sve01]. 4 Major findings One common agreement As regards ethics in international marketing is that different societies have different expectations as far as ethical marketing is concerned. Gibbs & Ilkan (2008) found out that in Islamic societies, the society expects very high degree of fairness and is of the opinion that benefit at the disadvantage of the society is highly unethical. This is particularly important when a marketer says what a product can deliver to a consumer and also how the marketer goes about marketing the product. In Islamic societies unlike the Christian and other religions, every aspect of life seems to be dictated by the Koran, anything that seems to conflict with the rules set out by the Islamic holy book is not only unethical but also unacceptable [Rob10]. Direct marketing has also come under criticism for invading the private space. Many consumers have reported being offended by pop up adverts on online platform and have actually sought software solutions to prevent the pop up on their browsers. Direct marketing involves use of messages targeted for an individual potential consumer with a message that is very aggressive in the sense that it targets to reach the consumer wherever they he/she is instead of randomly sending out a message and hope it will be received by a potential consumer [Bru07]. In poorly performing economies, the issue of ethical marketing even though largely of concern to consumers, attracts less negative implication to businesses. This can be attributed to low bargaining power on the side of the consumers and also lack of legal frameworks that may prohibit unethical marketing practices. Consumers just take what businesses market to them and take in all the advertisement messages without protesting since they lack bargaining power. Multinationals in these economies don’t adhere to ethical marketing like they do in developed economies [Nan96]. It is common for cigarette manufacturers to market their products on billboards and also conduct promotions in communities without regard to the fact that children are being exposed to the messages and may thus be induced to smoking indirectly by the appealing message. This kind of practice is largely Machiavellian since businesses seek to prosper without regard to the damage they are inflicting on the society [Car05]. In developed world though, consumers may have less bargaining power but have quite a high degree of sovereignty which is enshrined in strict consumer laws meant to protect the consumers. This forces businesses to adhere to ethical marketing practices to avoid legal battles with consumer protection bodies and possibly huge fines due to flouting the rules of marketing in such countries [Mur07]. In the 21st century, consumers are more aware and educated about their rights [GRi09]. It emerges as a challenge therefore for marketers to sell their goods and services in a largely ethical era where every activity is subjected to the ethical tests. It is important though to note that, the scope of marketing ethics is rather broad and in as much as businesses may strive to adhere to marketing ethics, it is very likely that a business will fail some ethical tests in its course to pursue profits in a largely free economy [Bor]. Regulations therefore emerge as a key issue in ensuring ethical marketing but communication is also part of the ethical debate in the world of marketing. It has been more of theoretical suggestions than practical realities since multinationals always find their way about regulations and cultures to penetrate a society unethically for their profitability [Bru07]. 5 Implications for marketing managers While all the articles agree that marketing in the realm of ethical conduct can be somewhat challenging especially in cross-cultural societies, each and every article has specific ethical issue they have tackled in relation to marketing efforts particularly at the global level. This is to further reinforce the assertion that ethics in marketing is a particularly broad field that can only be approached in specific perspectives and subjects in order to exhaustively bring out the pertinent issues in the study. Cultural differences seemed to influence how ethics are perceived in different contexts. It is vital to note that ethics stem from cultural beliefs, norms and practices. The two seem inseparable at some point [Car05]. Businesses need to take very keen notice of cultural differences in all markets that they seek to penetrate. It is only through understanding the local cultures that a business can be able to stay within the limits of ethically approved marketing practices including advertising and products promotion [Coh10]. Businesses may find themselves getting into problems with authorities due to unethical conduct which is surprisingly ethical in another completely different culture. Consumers may also feel abused or take it as unethical if a foreign business behaves in a manner not appropriate to them and proceed to disapprove of a company’s products due to this perception [Pay13]. Authorities in developing world seem to have very lenient laws concerning ethical business marketing. Multinationals have been blamed for promoting unethical behavior such as smoking in minors, materialization of female body and more through unethical advertising usually promoting socially unacceptable behavior. The societies in these parts of the world have very low bargaining power due to lack of information and education as regards their rights as consumers. It can be argued also that corruption seems to protect such companies from harsh legal penalties that they would have received in the developed world. Consumers may also be willing to demand ethical behavior but are mostly preoccupied in serious matters of earning daily living than what they may take as of little concern to them such as demanding ethical marketing from businesses [Car05]. Religion also seems to be at the very core of ethics when it comes to marketing. It is mostly from religious quarters that businesses receive criticism on unethical marketing especially when it comes to advertising. Marketers are also faced with a challenge of differentiating between how to do marketing in secular, Christian and Islamic societies. All the societies have values that they cherish which ultimately determine what is ethical and what is unethical. Secular and Christian societies which are more benevolent seem to be lenient to some extent about marketing conduct but Islamic societies rely on strict interpretation of Koran in all aspects of life including marketing where honesty is greatly valued in communicating and also in business practices [Gib08]. Unfair advertising targeted to benefit the producer and not the consumer or to harm the other players is greatly abhorred in Islamic societies and as such marketers should know their limits when conducting marketing in such a society [Bor]. The internet has also played a very big role in growing the trade between nations as business rely on online platforms to promote their products, sell them and track their distribution [Fer10]. However, ethical conduct in regards to use of online platform to market products has emerged as a major issue to be considered by authorities all over the world. Direct marketing in for of sending emails to consumers or using pop ups in browsers and social media pages has been criticized for intruding into private spaces of consumers [Eli01]. Many consumers try every means possible to prevent the advertisements as they are nuisance to them. It is a tough balancing act between passing information and appearing a nuisance to consumers [Bru07]. Companies therefore need to understand just how much information becomes a nuisance to consumers in regards to direct marketing. It is also vital to let consumers consent to receiving such messages on their own by first requesting tem to agree to regular emails or messages from a business and offering an opportunity to opt out incase one feels it’s too much [Bru07]. Apart from the recommendations given by the reviewed papers, it is very important for businesses to appreciate that as globalization intensifies, businesses change very rapidly including market dynamics, however, ethics and in extension culture, don’t change automatically as they may take years or even decades to become somehow homogenous. Then and only then can businesses use a common approach to marketing with the same cultural consideration everywhere a business operates. Otherwise, the businesses have to take time to understand ethics and culture of different societies in which they operate. 6 Key issues and recommendations Some of the key issues that have been extensively covered by the reviewed articles have a large implication on marketing managers as highlighted in the previous section. The managements therefore need to take practical steps towards ensuring they respond appropriately to ethical challenges to marketing activities especially in the global level. It is particularly vital for managers to know how different cultures have previously responded to marketing advances in their society. This will help in understanding how such societies perceive certain actions or inactions on the side of businesses. Marketing departments need to understand what is expected of them by regulatory bodies in every economy since it is only by abiding by the marketing code of ethics that a company can avoid a scenario where it engages in unproductive conflict with authorities in different regions [Sus01]. Authorities have to therefore make it clear what is their position as far as ethics in marketing is concerned. Some societies are also show different characteristics even though the government’s position may support the actions of a business. in emerging countries and underdeveloped economies, counterfeits are seen as the only way society can fulfill their wishes and as such dealing in counterfeits is not seen as unethical but tactical in the eyes of the society but not so in the eyes of the government [Car05]. A business therefore needs to devise market specific strategies to competing and also staying close to the ethical debate. 7 Conclusion From the review of the five articles reflecting on the ethical challenges of marketing n the global platform it is clear that business are in more, than one way being affected by differences in culture and ethical perceptions [as they seek to extend their markets into global markets. Issues such as direct marketing which intrudes into consumers’ privacy, offensive imagery and messages especially in religiously different cultures and morality have emerged as the main factors influencing the ethical debate in as far as marketing is concerned. It is vital then for businesses to understand how their marketing activities impact on ethical issues in the society which may actually work to the disadvantage of the business. References Joy09: , (Joyner, 2009), Car05: , (Carrigan, Marinova, & Szmigin, 2005), Arm90: , (Armstrong, Stening, & Mayo, 1990), Gib08: , (Gibbs & Ilkan, 2008), Bor: , (Borgerson & Schroeder, 2002), Joh01: , (Strydom, 2001), Sin99: , (Singhapakdi, Rawwas, Marta, & Ahmed, 1999), Bru07: , (Brubaker, 2007), Bro93: , (Brown, 1993), Bar12: , (Barker, Michael, & Shimp, 2012), Sus01: , (Briggs, 2001), Nan96: , (Nantel & Weeks, 1996), Bla03: , (Blackwell, 2003), Ing08: , (Edvardsson, 2008), Sve01: , (Svensson, 2001), Rob10: , (Schultz, 2010), Mur07: , (Murphy, Laczniak, & Wood, 2007), GRi09: , (Rigby, 2009; Percy, 2012), Bru07: , (Brubaker, 2007; Payne & Pressley, 2013), Coh10: , (Cohen, 2010), Pay13: , (Payne & Pressley, 2013), Fer10: , (Ferell & Hartline, 2010; Fifield, 2012), Eli01: , (Chell, 2001; Slater & Sengupta, 2009), Read More