Global and Domestic Marketing Paper
Global and Domestic Marketing Paper Essay Sample
When marketing a business, it is important to recognize what types of things can have a negative impact on sales in the future. There are a number of external environmental issues that can have a large effect on how well a company does in business, some of which are difficult to detect. Business ethics are very important because they create a public image for the company and that will determine how the public perceives the company. Technological issues can also come into play, as a company must have the same, if not better, technologies than its competitors or any marketing strategies that are implemented are bound to fail. Thirdly, environmental issues are becoming increasing important, as corporations that are labeled as being bad for the environment can also face negative public opinion.
As with anything in life, business has ethical implications that are often an issue. For a multinational corporation, these ethical questions are on a much larger scale than a small business, so there is a much larger risk involved. For example, multinational corporations are known to have their goods manufactured in China and other Third World nations, while paying the workers much less than they would have to pay them at an American plant. This raises the ethical question of whether or not this is acceptable, as the workers often work very long hours in substandard working conditions. This ethical question could cause problems for the corporation if the public sees it as a huge negative, which can impact marketing strategies, and, therefore, decisions must be made about whether or not this is an ethical thing to continue doing, as “business leaders were blamed for their role in the presumed ethical decline, and business schools were criticized for failing to provide ethical training to future leaders” (Bazerman, 2006, p.121).
If the public begins to boycott a corporation due to its unethical practices, then there will be a lot of money lost, so these decisions are very important to the survival of a company. Therefore, strategic managerial decisions must incorporate ethics into them, to ensure that the public will not be discouraged from using the corporation’s goods or services. Small businesses are not on that large of a scale, so any ethical problems that they might run in to will not be as magnified, but they also must realize that any business that they lose is very important. A multinational corporation can afford to lose customers, as there will always be other customers to replace them, but small businesses rely on repeat customers to keep the business afloat, so they must keep them happy. When developing a strategy, small businesses must appeal to the values of the community, because they do not have the large marketing budget that multinationals do. Therefore, they must develop roots within the community, and the only way to do that is to understand the community’s ethical background and follow it.
Cingular’s attempt to become the leading wireless company in the United States will be helped by the channel-based strategy that they are currently using. Under this strategy, their products will be sold in a number of different distribution channels, including some major retail outlets like Best Buy and Wal-Mart. They have also reached an agreement with Barnes and Noble to sell their products on a large number of university campuses all across the country. This marketing strategy will help them to break into the very lucrative university market, as many university students are in the market for cell phones.
What this marketing strategy does it make Cingular products available in a larger number of locations. This makes obtaining their products more convenient than it otherwise would have been. Wal-Mart is an especially big deal in this series of channels, as it is one of the largest retailers in the country. By having its products available in such a high number of locations, they are nearly certain to generate much more in terms of sales than they otherwise would. Cingular has also focused on small businesses and government organizations in recent times, as these are also very lucrative markets. This, however, does not hide that fact that singular is known to have a significant number of dropped calls along its network. This technological defect could be significant in negatively impacting its marketing strategies because people will not spend money on an inferior product. One thing that Cingular could do to improve this strategy would be to focus more on improving their service rather than simply making their products more readily available.
Maquiladoras are simply manufacturing plants in Mexico that are owned by American, Europeans, and Japanese corporations. Most of these plants are right along the Mexico/U.S. border, to cut down on transportation costs. One of the negative aspects of maquiladoras is the environmental issues that come up as a result of these factories. First of all, the water supply in the region is greatly damaged, as things such as “raw sewage, agricultural runoff, and industrial and hazardous waste pollution” are dumped into the water on a regular basis. It has been reported that “each day, 130 million gallons of industrial waste, agricultural runoff, slaughterhouse remains and raw sewage enter the New River from the Mexicali Valley”. They also do not have the proper treatment plants to make the water drinkable, which has led to a drinking water shortage throughout the area as “under NAFTA, maquiladora employment increased by 54% in Ciudad Juárez, spurring significant population growth.
Yet Juárez still has no waste treatment facility to treat sewage produced by the 1.3 million people who now live there“. Combine the lack of water with a rapidly growing population and the problem is magnified even more. An example of the damage that the pollution has done is the Rio Grande. Testing has shown the “fecal contamination leaves border residents at risk for Hepatitis A” (Maquiladoras at a Glance). This risk includes people on both sides of the border as the cases of Hepatitis A have increased greatly in Southern Texas as well. The water is not the only source of contamination, however, as the air is also full of pollutants. Residents along the border in both Mexico and the United States are exposed to unhealthy levels of carbon monoxide, which can create health risk, especially in children and the elderly. The average of neural tube defects in babies is nearly twice the American national average in the border area. If it is discovered by the public that these corporations are responsible for the devastation to the environment, it could be disastrous for them economically because public opinion would be swayed.
When marketing a business it is important to recognize outside factors that can have an impact on the company. Ethical, technological, and environmental deficiencies can come back to haunt a company if the public is made aware of them so it is important for companies to work on these things. In the end, the business’s survival could depend on it.
Bazerman, Max H. (2006). Judgment in Managerial Decision Making. Hoboken, NJ: John Wiley and Sons.
Corpwatch: Maquiladoras at a Glance. “Maquiladoras at a Glance“. Retrieved August 28 2006. http://www.corpwatch.org/article.php?id=1528