Marketing ethics in emerging markets

Marketing Ethics; Emerging Markets.

The article by Sele concerns the global tendency today for multinational companies (MNCs) to enter emerging markets such as China, Brazil, and India. The market trend has been that these countries have been moving from cheap manufacturing bases to buyers. However, when entering a foreign market, especially in the emerging sector, there are several things that a company should keep in mind. The foreign environment is sensitive to changes created by market entry. These changes could impact the environment in terms of the social, environmental, and economic paradigms. These work together to create an ethical impact that must be addressed if the foreign market is to be entered not only successfully, but also sustainably.

Sele notes that there are various basic ethical issues that should be taken into account when entering a foreign market. These include the creation of needs as opposed to addressing already existing needs. This is a concern that is particularly poignant in emerging markets, where the buying power is increasing, but poverty prevails for the majority of citizens. Furthermore, there has been increasing global outcry against the exploitation of these markets by means of aggressive marketing techniques and unsustainable practices.

To remedy this, the article suggests that market entrants who wish to do so responsibly and sustainably should take into account the social and environmental paradigms in terms of ethical and sustainable practices. Social and environmental responsibility should, for example, form part of the marketing plant. Particularly, the author notes that there should be a balance between created needs and existing needs. It is undeniable that a business seeking to expand does so with the primary purpose of profit in mind. The article, and worldwide critics, contend that this should, however, be done in a manner that is responsible and sustainable. Hence, a balance is required between the interest of the expanding company, which is profit, and the interests of the market being entered, which is long-term sustainability and the fulfilment of needs.

Two fundamental approaches the author suggests as a solution to this dilemma is Eco-marketing and Societal Marketing. The former focuses on sustainable practice in terms of environmental resources. Eco-marketing is the less complicated of the two, as it generally focuses upon using natural resources in a sustainable manner. Social values and norms usually do not play a part in this, although such complications might arise in terms of political and market rules of entry.

Societal Marketing can be a complicated approach, since it concerns the foreign culture and its social values and norms. Where the target culture is significantly different from the entering culture, much research will be required to ensure that the product and its marketing adheres to and sustains the cultural norms it enters. This could be difficult to determine, since generally assumed values in one culture may not be the same in another. Determining this could be difficult and time consuming. It is nonetheless a necessary step towards successful and sustainable market entry. A culture whose values are, for example, alienated by a marketing campaign is likely to be alienated and will not deliver a sustainable customer base for the success of the company.

Ultimately, what the article focuses on, is that success in the long-term depends upon a company's ability to enter the market in a way that is both environmentally sustainable and socially ethical. In this way, the product being manufactured will sustain a long-term life cycle, while also serving a customer base that is in its favor.

As the manufacturer of shampoo, my company is seeking to enter the Brazilian market. The first concern is then to determine a gap in the shampoo market. However, we should also concern ourselves with the existing needs in the general social paradigm. Our point of entry, for example, may have communities that suffer from poverty or a lack of quality education. In addition to the potential market, we should therefore search for ways in which we can assist the community where we operate. A third component of the investigation will focus on the environmental sustainability of manufacturing our product in the country. We will draw up a full environmental plan to ensure that we minimize our impact on the environment.

When these plans are in place, it is time to create a marketing campaign. This, as the focus of the article, is where we need to be careful in terms of not alienating our potential market. In addition to creating an advertisement that highlights the benefits of our products, we should also be concerned with proving that we are an ecologically and socially responsible company.