Sustainability strategi Flashcards
Beskriv CSR
• CSR captures the dynamics of the relationship between business and society
• Core theme of CSR is to deal, interact and relate with stakeholders with an ethical approach aim to not harm or hurt any stakeholders
• CSR aims to better the condition of any stakeholders
• Exhibits both ethical behavior that organization has towards stakeholder + denotes the responsibility of an organization towards the environment and society in which it operates
• Two aspects to CSR:
o Reducing negative effects
o Increasing positive contributions
Beskriv social marketing
- Social marketing: application of commercial marketing technologies to the analysis, planning, execution and evaluation of programmes designed to influence the voluntary bvehavior of target audiences
- Social marketing is about changing behavior influencing people’s behavior
Beskriv cause-related marketing
- A marketing partnership between a business and a non-profit entity for mutual benefit
- Links a company or brand to a relevant social cause or issue
- This is especially beneficial to the non-profit because it gives them an increased ability to promote the nonprofit organization’s cause via greater financial recourses
Hvad er de langvarige fordele ved CSR?
• There are new expectations and concerns which is driving this new move towards CSR
Long term benefit drivers of CSR:
- Positive effects on company image and reputation
- Revenue increases from higher sales and market share
- Positive effects on employee motivation, retention and recruitment
- Cost savings
- CSR-related risk reduction or management
Hvad er de tre faktorer for at være international konkurrencedygtige? (The sustainable global value chain (SGVC))
In order to achieve being internationally competitive these three factors should be considered:
- Bargaining power: the type of relationship between suppliers and buyers by increasing end-client demand for sustainable products, the certification agency strengthens the position of end clients
- Product differentiation strategy: in the case of conventional global commodity chains, these strategies are rare, as the commodity business is mainly dictated by prices.
- Awareness building: should not be confused with supplier development it’s about creating common consciousness.
Hvad er fordelene ved CSR?
CSR benefits:
• CSR-induces revenue increases can come from additional sales due to increases in sales quantities, prices or margins.
• Revenue can increase as a result of:
o Better branch value
o Better customer attraction and retention
o Higher employee attraction
o Higher employee motivation and retention
Beskriv triple bottom line (TBL)
• Measures the 3 Ps of the CSR strategy:
o Planet
o People
o Profits
Hvad er trinnene til at go global?
Should we go global?
• Step 1: Go or no go global?
• Step 2: If go, which market is most attractive and offer the best opportunities?
• Step 3: Which strategy?
• Step 4: Developing marketing mix, standard or differentiated?
Consider your competitive advantage
• Does the home advantage travel overseas?
Hvilke udfordringer kan man møde ift international handel?
Protected trade: Quotas, embargos and tariffs
• Protectionism – when governments enforce rules on foreign firms to give home firms an advantage
• Import quotas – Limitations on quantities of foreign goods to reduce competition for domestic firms
• Embargo – an extreme quota that prohibits commerce and trade with a specific country altogether
• Tariffs – taxes on imported goods to give domestic firms an advantage
Hvad er det eksterne miljø?
Økonomiske, teknologiske, politiske, sociokulturelle, konkurrence
Beskriv det økonomiske miljø
The economic environment Indicators of economic health • GDP • Exchange rates • Economic infrastructure Level of economic development • GDP and standard of living • 3 basic levels of development o Lesser-developed country (LDC) o Developing country – Newly industrialized countries BRICS countries (Brazil, Russia, India, China and South Africa) o Developed country – G7 members The business cycle • The pattern of changes and fluctuations in an economy • Prosperity (boom), recession, recovery • Inflation and deflation
Beskriv det teknologiske miljø
The technological environment
• Drones
• Unmanned aerial vehicles (UAVs)
• Patents
Beskriv konkurrence miljøet
The competitive environment • Micro and macro environments • Competitive intelligence (CI) activities Competition in the microenvironment • Competition for consumers’ discretionary income • Product competition • Brand competition Competition in the macroenvironment • Market structures o Monopoly o Oligopoly o Monopolistic competition o Perfect competition
Beskriv det politiske miljø
• Local, state, national, global laws and regulations that affect businesses
• Economic sanctions
• Nationalization – when the domestic government reimburses a foreign company for its assets after taking it over
• Expropriation – when the domestic government seizes a foreign company’s assets
Regulatory constraints on trade
• Local content rules – a form of protectionism that stipulates that a certain proportion of a product must consist of components supplied by industries in the host country
Human rights issues
• Some countries deny business opportunities to foreign companies that mistreat their citizens
Beskriv det sociokulturelle miljø
The sociocultural environment
• The characteristics of people that live in a certain society and the culture that reflects the values and beliefs of the society
Demographics
• Population size
• Age
• Gender
• Ethnic group
• Income
• Education
• Occupation
• Familiy structure
• Etc
Values
• Cultural values or deeply held beliefs about what is right and what is wrong
• Collectivistic cultures
• Individualist cultures
Social norms
• Customs – norm handed down from the past that controls basic behavior
• Mores – Customs with strong moral overtone, taboo or forbidden behavior
• Conventions – norms regarding conduct of everyday life
Language
• Language barrier is an obstacle to be aware of if a company wants to enter a foreign market
Ethnocentrism
• The belief that one’s own national or ethnic group is superior to others
• Consumer ethnocentrism – consumers’ beliefs about products produced in their country cs those produced from another country
Hvad er markedsindtræden strategierne?
Exporting
• Sell products on their own or hire intermediaries to represent it in the target country
• Specialists or export merchants
Contractual agreements
• License agreement – A firm gives another firm the license to produce and market its product in a specific country
• Franchising – A form of licensing that gives the franchisee the right to adopt an entire way of doing business in the host country
Strategic alliances
• Alliance with one or more firms in the form of a joint venture in which they create a new entity
Direct investment
• A firm buys all parts of the domestic firm
Beskriv marketing mix strategierne i forbindelse med at gå global
Marketing mix strategies
Standardization vs localization
• Standardization arguments: Basic needs and wants are the same everywhere
• Localization: Preferences differ, therefore one should tailor products and promotional messages to local environments
Tweaking the marketing mix
• Product decisions
o Straight extension strategy: Same products for domestic and foreign markets
o Product adaption strategy: Modified products in foreign markets
o Product invention strategy: New products in foreign markets
Backward integration
• Promotion decisions
o Customize advertising and promotion messages to local and cultural norms
• Price decisions
o Free trade zones
o Grey market goods – goods that are imported without the consent of the trademark holder
o Dumping – company prices its products lower than it offers it in the home country
• Place/distribution decisions
o Establish a reliable distribution system
Beskriv etik og uetik i marketing
Ethical philosophies
• Utilitarian approach – the choice that provides the most good and the least harm
• Fairness/justice approach – pay everyone the same or be able to justify why one salary is higher than another
• Ethical relativism – what is ethical in one culture is not necessarily ethical in another
Codes of business ethics
• Business ethics – basic values that guide the behavior of individuals within a business organization
• Code of ethics – Written standards of behavior to which everyone in the organization must subscribe
Unethical marketing
• Can harm the business’ reputation, image and can lead to legal problems
• Bribery – when someone voluntarily offers payment to get an illegal advantage
• Extortion – occurs when someone in authority extracts payment under duress
Beskriv den bæredygtige marketing mix
• Sustainable marketing mix
o Product strategies
Fair trade suppliers
o Price strategies
Make prices for green products as close to the original as possible
o Place strategies
Retailers who focus on sustainability
Growing trend of locavorism – when customers actively look for local goods
o Promotion strategies
Informing customers of the sustainability through advertising
Hvordan ville man segmentere markedet for grønne produkter?
- Non-greens: Consumers do not think they can make a difference and do not care if they can. May be influenced by other values (low environmental self-efficacy, low environmental values)
- Latent greens: Consumers are aware and concerned about the environment but do not feel that sacrifice on their part will make a difference (low environmental self-efficacy, high environmental values)
- Potential greens: Consumers think they can make a difference but do not feel it is important enough to make a sacrifice (high environmental self-efficacy, low environmental values)
- Active greens: Consumers are ready, willing and able to take environmental action because they care and think they are capable of making a change sacrifice (high environmental self-efficacy, high environmental values)
Beskriv de tre bæredygtige marketingstrategier?
- Auxiliary sustainability marketing: kigger på at skabe bæredygtige produkter eller bæredygtig produktion (eks. Grundfos - genbruge produkter - genanvendelighed –> minimere c02 udslipning
- Reformative sustainablity marketing: Vi skal reformere (ændre) vores adfærd (fx COOP & H&M (Slide 28&29).
- Transformative sustainability marketing: Langt mere radikalt. Den ene side handler om finansielle ‘gains’ og den anden side handler om sociale ‘gains. Det er ikke nok at ændre adfærd - det drives af noget større som foregår på samfundsplan (fx affaldsortering).
