Saturday, December 18, 2010
DMA Structure
The DMA has a secretariat of about 40 based in Central London, together with three regional offices in Edinburgh, Bristol and Manchester. The main driving force of our activity is the 12 Councils, each representing a different direct marketing sector. From training and development to lobbying and business services, they enable members to get to the heart of the key issues affecting their businesses. The growth and complexity of our membership continues to reflect the evolution and diversity of the direct marketing industry. We now have more than 800 corporate members, three quarters of these are supplier members, including dm agencies, list brokers and mailing houses. The other 25% are client members, including household names such as BT, M&S, Lloyds TSB and the AA. For a full listing of members please visit our member directory. And as a member of the International Federation of Direct Marketing Associations (IFDMA) and FEDMA (Federation of European Direct and Interactive Marketing) - on many levels, our reach is global.
Direct Marketing Association in UK
The Direct Marketing Association (DMA) is Europe’s largest and most influential professional body to serve the multi-billion pound direct marketing industry. Through its unique suite of services and programme of activities, the DMA promotes the business interests of its corporate members and drives the growth of the direct marketing industry as a whole.
The Association supports the professional and commercial development of its members through offering a range of business services, including: networking and knowledge-sharing events; cutting-edge industry studies and research; updates and analysis on the latest political and legal developments; business support tools; and specialised legal advice.
On a wider scale, the DMA UK works to maintain the industry’s self-regulatory framework by developing industry standards of best professional practice; engaging with government and other policymakers on legislative matters that affect the industry; and producing industry standards that guide the sustainable development of direct marketing. The DMA also provides thought leadership for industry, and raises its profile through an active PR programme and ongoing community initiatives.
All of the DMA’s activities are directed at engendering political, commercial and consumer faith in the value of direct marketing.
The Association supports the professional and commercial development of its members through offering a range of business services, including: networking and knowledge-sharing events; cutting-edge industry studies and research; updates and analysis on the latest political and legal developments; business support tools; and specialised legal advice.
On a wider scale, the DMA UK works to maintain the industry’s self-regulatory framework by developing industry standards of best professional practice; engaging with government and other policymakers on legislative matters that affect the industry; and producing industry standards that guide the sustainable development of direct marketing. The DMA also provides thought leadership for industry, and raises its profile through an active PR programme and ongoing community initiatives.
All of the DMA’s activities are directed at engendering political, commercial and consumer faith in the value of direct marketing.
The make-up of inward investment into the UK
In 2002, based on earnings in that year alone on the cumulative
inward investment made in the UK in the last couple of centuries,
the breakdown by industry was as shown in Table 6.2. ‘Manufacturing’
accounted for 23 per cent of total earnings; ‘services’ 38 per
cent and ‘resources’ (essentially oil and gas) 39 per cent.
‘Access to the EU’ plays no role in the decision of overseas
investors to choose to invest in the UK in services and oil and gas.
Moreover, ‘access to the EU’ may have been a factor—not necessarily
decisive—in ten per cent or less of investments in UK
manufacturing.4 (‘Access to the EU’ cannot, by definition, explain
the considerable inward investment in the UK that comes from other
EU countries. [See table A4.1, in Appendix IV, p. 65])
HM Treasury, in its October 1997 paper UK Membership of the
Single Currency: an Assessment of the Five Economic Tests, said:
‘The UK attracts a significantly larger share of inward investment
than other countries in the EU. This reflects a number of important
benefits that we offer, including low taxes, the English language and
a flexible labour market.’ Those benefits, it seems, do not include
‘Europe’.
inward investment made in the UK in the last couple of centuries,
the breakdown by industry was as shown in Table 6.2. ‘Manufacturing’
accounted for 23 per cent of total earnings; ‘services’ 38 per
cent and ‘resources’ (essentially oil and gas) 39 per cent.
‘Access to the EU’ plays no role in the decision of overseas
investors to choose to invest in the UK in services and oil and gas.
Moreover, ‘access to the EU’ may have been a factor—not necessarily
decisive—in ten per cent or less of investments in UK
manufacturing.4 (‘Access to the EU’ cannot, by definition, explain
the considerable inward investment in the UK that comes from other
EU countries. [See table A4.1, in Appendix IV, p. 65])
HM Treasury, in its October 1997 paper UK Membership of the
Single Currency: an Assessment of the Five Economic Tests, said:
‘The UK attracts a significantly larger share of inward investment
than other countries in the EU. This reflects a number of important
benefits that we offer, including low taxes, the English language and
a flexible labour market.’ Those benefits, it seems, do not include
‘Europe’.
Net cost or benefit for the UK economy?
Over half of UK legislation is EU-initiated. An analysis of government
Regulatory Impact Assessments allows quantification of some,
but by no means all, of the costs, but not the benefits, of EU
legislation. Dutch research, and UK survey evidence, looks to be
consistent with the RIA-derived estimates.
Scoreboard
Net Cost or Benefit Net Cost
Most Likely Net Cost Two per cent of GDP
Range of Estimates One to three per cent of GDP
Reliability of Estimate B
The British government admits that ‘about half of major UK laws
start off in Europe’. In addition, 1 since 1973, it has enacted directly
in the UK a minimum (it does not know the precise number) of
101,811 EU regulations.2 Clearly, the impact of EU legislation in
the UK is on its way to fulfilling the prediction made over a decade
ago by Jacques Delors, that 80 per cent of member states’ laws
would soon be made in Brussels.
Regulatory Impact Assessments allows quantification of some,
but by no means all, of the costs, but not the benefits, of EU
legislation. Dutch research, and UK survey evidence, looks to be
consistent with the RIA-derived estimates.
Scoreboard
Net Cost or Benefit Net Cost
Most Likely Net Cost Two per cent of GDP
Range of Estimates One to three per cent of GDP
Reliability of Estimate B
The British government admits that ‘about half of major UK laws
start off in Europe’. In addition, 1 since 1973, it has enacted directly
in the UK a minimum (it does not know the precise number) of
101,811 EU regulations.2 Clearly, the impact of EU legislation in
the UK is on its way to fulfilling the prediction made over a decade
ago by Jacques Delors, that 80 per cent of member states’ laws
would soon be made in Brussels.
Cost versus Benefit—the Calculus
Eight basic economic facts about the UK-EU relationship are
listed to set the context in which estimates are made. Direct costs
and benefits are assessed for each of five main categories (not
including the Common Fisheries Policy or the effect of the UK’s
structural trade deficit with the EU). Estimates are expressed to
the nearest half-percentage point of UK GDP, and rated according
to reliability.
The outcome is a ‘most likely’ total current net direct cost of
four per cent of GDP per year, within a range stretching from a
‘rock-bottom’ low of 1.5 per cent GDP to a high of over five per
cent. Net cost is unlikely to diminish in future as seven measures
already in the EU pipeline come into effect.
listed to set the context in which estimates are made. Direct costs
and benefits are assessed for each of five main categories (not
including the Common Fisheries Policy or the effect of the UK’s
structural trade deficit with the EU). Estimates are expressed to
the nearest half-percentage point of UK GDP, and rated according
to reliability.
The outcome is a ‘most likely’ total current net direct cost of
four per cent of GDP per year, within a range stretching from a
‘rock-bottom’ low of 1.5 per cent GDP to a high of over five per
cent. Net cost is unlikely to diminish in future as seven measures
already in the EU pipeline come into effect.
Tuesday, December 14, 2010
A World-Class Education While Getting to Know the United States
Every year, over half a million international students choose to study in the United States. And the United States is eager to host them. Regardless of what you may have heard, about 80 percent of all student visa applications are approved.
Moreover, in the last two years, U.S. consulates have made important changes to accommodate international students. They now offer special visa interview appointment times or, at some locations, set aside times when students can come in without any appointment at all.
The State Department is also working with the governments of other countries to develop reciprocal programs allowing student visas to remain valid for lengthier periods, as well as providing for multiple entries in order that international students can more easily travel home for visits during school breaks.
Understanding that students have to meet very specific deadlines, the State Department has encouraged consulates to find even more ways to expedite student visa applications.
More than 620,000 foreign students enrolled in America’s schools of higher education last year, and another 322,000 came as part of various academic exchange programs.
These international students attend U.S. colleges and institutions for the same reasons that Americans do: academic excellence, unparalleled choices in types of institutions and programs, and great flexibility in designing courses of study.
In addition to world-class instruction in both traditional and cutting-edge fields of study, the higher education programs in the United States are valued for their commitment to fostering the ability to think independently—through logical examination, rational analysis, and lively discussion.
Like our culture, our academic environment is widely diverse. You can attend a small college where you will come to know practically everyone on campus, or a large university in which the student population of a single dormitory alone equals that of a small village. There are urban and rural colleges, and colleges around which small towns have evolved. There are state schools, subsidized by taxpayers, which have more open admissions policies, and private schools that are more selective and, generally, more expensive. There are schools steeped in tradition and those that pride themselves on modernity, two-year and four-year colleges, liberal arts and scientific research schools, single-gender and coeducational institutions. Whatever academic experience you are looking for, with its 3,700 colleges and universities from which to choose, the United States has it.
America holds education in high esteem, which is one of the reasons we have many of the best colleges and universities in the world. We, indeed, welcome talented students from around the globe as a means of enriching mutual understanding and fostering universal advancement. We encourage you to apply.
Moreover, in the last two years, U.S. consulates have made important changes to accommodate international students. They now offer special visa interview appointment times or, at some locations, set aside times when students can come in without any appointment at all.
The State Department is also working with the governments of other countries to develop reciprocal programs allowing student visas to remain valid for lengthier periods, as well as providing for multiple entries in order that international students can more easily travel home for visits during school breaks.
Understanding that students have to meet very specific deadlines, the State Department has encouraged consulates to find even more ways to expedite student visa applications.
More than 620,000 foreign students enrolled in America’s schools of higher education last year, and another 322,000 came as part of various academic exchange programs.
These international students attend U.S. colleges and institutions for the same reasons that Americans do: academic excellence, unparalleled choices in types of institutions and programs, and great flexibility in designing courses of study.
In addition to world-class instruction in both traditional and cutting-edge fields of study, the higher education programs in the United States are valued for their commitment to fostering the ability to think independently—through logical examination, rational analysis, and lively discussion.
Like our culture, our academic environment is widely diverse. You can attend a small college where you will come to know practically everyone on campus, or a large university in which the student population of a single dormitory alone equals that of a small village. There are urban and rural colleges, and colleges around which small towns have evolved. There are state schools, subsidized by taxpayers, which have more open admissions policies, and private schools that are more selective and, generally, more expensive. There are schools steeped in tradition and those that pride themselves on modernity, two-year and four-year colleges, liberal arts and scientific research schools, single-gender and coeducational institutions. Whatever academic experience you are looking for, with its 3,700 colleges and universities from which to choose, the United States has it.
America holds education in high esteem, which is one of the reasons we have many of the best colleges and universities in the world. We, indeed, welcome talented students from around the globe as a means of enriching mutual understanding and fostering universal advancement. We encourage you to apply.
Advanced Engineering opportunities for the UK
UK Advanced Engineering stakeholders identified anumber of trends in the global environment that couldrepresent future opportunities.The key opportunities are seen as those relating totechnology development and the specific opportunitiesarising from climate change and demand growth inemerging markets.During the period of consultation, the challengesbrought about by the global economic downturnbecame apparent. The Government’s Action for Business team is working on a programme of activity co-ordinated across the Department of Business,Enterprise and Regulatory Reform and otherGovernment Departments that will support businesses in meeting current economic challenges and help themprepare for the upturn when it comes.The position of the new UK Advanced Engineeringmarketing strategy is that, whatever the scale and timingof the recovery, the sector has fundamental, underlyingcapabilities for which there will be substantial andgrowing demand in the global economy in the mediumto long term.According to UK stakeholders, this demand is likely tocome from established markets such as the USA andWestern Europe, as well as from the “BRIC” economiesof Brazil, Russia, India and China.While recognising that the communication of coremarketing messages about UK Advanced Engineeringshould apply across all countries, the new strategysuggests that certain markets would need to beprioritised for targeted activity, both for trade andinward investment.
Marketing the UK’s strengths
However, this world-class expertise is not always fullyrecognised in international markets – something that the UK Government is keen to address.Consequently, UK Trade & Investment, working closelywith key industry, government and academic partners,has developed an international marketing strategy forthe UK’s Advanced Engineering sector, which aims tomarket its strengths more effectively overseas.UK: Advancing Engineering. Inventive Solutions forGlobal Challenges sets out the opportunities and threatsfor UK businesses in this dynamic sector and highlightsits main capabilities.Given that these are not always well understoodinternationally, the strategy emphasises the need toreposition the UK sector and promote it more forcefullyon a global stage through the effective communicationof key messages.The next chapters outline the findings of theconsultation process and recommend activities to meet the strategy’s objectives.
Steps for marketing strategies
Step 1. Understanding the corporate philosophy and strategy. For this purpose, we should examine
company’s goals and its basic business plans.
Step 2: Checking and setting marketing range of areas.
Due to the development of railroad and highway as well as information technology, the economic
zones at various parts of Japan have become beyond the boundaries of administrative
districts such as villages, towns, and cities. Thus we need to look at marketing range of areas,
which go over the administrative boundaries.
Step 3: Analyzing area’s features and regional differences.
At this stage, the local characteristics should be understood by studying and analyzing natural
and physical conditions of the area including its climate. The demographic data such as total
population, the composition of population, and the number of households should be made as the
basic indicators for analysis of particular region, together with a study on major industries.
The major regional industries such as agriculture, forestry, and fishing, manufacturing, etc
should be analyzed. Based on the analysis, a survey on regional economy, its marketing size,
and future prospect of the economy should be made.
Step 4: Analyzing Business and Marketing Environment
Analysis of business and marketing environment involves checking present conditions. of companies
in the regions. The three main factors for this check are consumers, competitors, and
the firm of its own.
Accordingly, the following 3 elements called The 3C’s (Customers, Competitors, and Company)
― 20 ―
REGIONAL STUDIES Vol.35 No.2 2008
need to be considered for the analysis. These are:
(i) Customers in the marketplace: Consumers by region, trend, and occupants have to be
examined.
(ii) Competitors: Existing opponents and new entrants, together with their possible substituted
products need to be checked.
(iii) Company: Corporation’s positions in the market such as sales volume, financial situation,
distribution channels, manufacturing facilities and human resources should be studied.
Step 5. Segmenting, Positioning and Targeting process
(i) Segmentation
Based on the results from Step 1 through 4, segmentation of the area should be made.
Both similarities and differences among the regions have to be examined clearly.
(ii) Positioning
At this stage, the market positioning of a company will be decided. Its position will be
among the choices of a market leader, a challenger, a follower, and a niche.
(iii) Examining targeting ends. Targeting goals will be examined.
When checking the targeting ends, the following three factors must be considered.
1) Position of a company in the market: It includes a choice of the market leader,
challenger, follower, and niche
2) Competitors such as exiting potential and new contenders must be elaborated.
3) The company’s business plan by the market situation will be made.
company’s goals and its basic business plans.
Step 2: Checking and setting marketing range of areas.
Due to the development of railroad and highway as well as information technology, the economic
zones at various parts of Japan have become beyond the boundaries of administrative
districts such as villages, towns, and cities. Thus we need to look at marketing range of areas,
which go over the administrative boundaries.
Step 3: Analyzing area’s features and regional differences.
At this stage, the local characteristics should be understood by studying and analyzing natural
and physical conditions of the area including its climate. The demographic data such as total
population, the composition of population, and the number of households should be made as the
basic indicators for analysis of particular region, together with a study on major industries.
The major regional industries such as agriculture, forestry, and fishing, manufacturing, etc
should be analyzed. Based on the analysis, a survey on regional economy, its marketing size,
and future prospect of the economy should be made.
Step 4: Analyzing Business and Marketing Environment
Analysis of business and marketing environment involves checking present conditions. of companies
in the regions. The three main factors for this check are consumers, competitors, and
the firm of its own.
Accordingly, the following 3 elements called The 3C’s (Customers, Competitors, and Company)
― 20 ―
REGIONAL STUDIES Vol.35 No.2 2008
need to be considered for the analysis. These are:
(i) Customers in the marketplace: Consumers by region, trend, and occupants have to be
examined.
(ii) Competitors: Existing opponents and new entrants, together with their possible substituted
products need to be checked.
(iii) Company: Corporation’s positions in the market such as sales volume, financial situation,
distribution channels, manufacturing facilities and human resources should be studied.
Step 5. Segmenting, Positioning and Targeting process
(i) Segmentation
Based on the results from Step 1 through 4, segmentation of the area should be made.
Both similarities and differences among the regions have to be examined clearly.
(ii) Positioning
At this stage, the market positioning of a company will be decided. Its position will be
among the choices of a market leader, a challenger, a follower, and a niche.
(iii) Examining targeting ends. Targeting goals will be examined.
When checking the targeting ends, the following three factors must be considered.
1) Position of a company in the market: It includes a choice of the market leader,
challenger, follower, and niche
2) Competitors such as exiting potential and new contenders must be elaborated.
3) The company’s business plan by the market situation will be made.
Area Marketing meets the needs of local people in changing times
In Japan a widening gap is being observed between the regional and urban economy. The Japanese
population has been declining in absolute terms with more aging people and fewer children. Population
will decline further in all regions except Tokyo by 2030 according to the simulation report of the Economic
Research Committee of the Ministry of Economy, Trade and Industry in 2005.3 The report also
suggests that economic disparity between the metropolitan areas and other local regions will be expanded.
It predicts that only 35 mega cities out of over 1,500 municipalities in 2000 will register an increase
on their gross domestic product in 2030. It says that by 2030 only 35 cities including the government
ordinance cities such as Tokyo will surpass the GDP of 2005. The cities which can expect to have a
growth of GDP in 2030 will be Tokyo (10.7% up) , Osaka city (10.3% up), Nagoya city (9.9% up), Senday city
(4.3% up), Kobe city (6.1% up) and Fukuoka city (4.7% up)4. A few local cities are also expected to have
growth in their GDP in 2030. These are Naha city (17.9% up) and Ishigaki city (11.9% up) in the Okinawa
prefecture due to their high birth rate and vigorous economic boom in tourism.5 The report also says that
other three local cities such as Toyohashi, Okazaki and Kariya, where the major Japanese automobile
firms are located near Nagoya city , are likely to exceed the GDP of 2005 by 2030.
According to a study on the economic condition of prefectural people by the Cabinet Office in 2003,
a gap in citizens’ per capita income has expanded for the past two consecutive years.6 The difference in
annual income between Tokyo, which was the highest (4,267,000 yen) and Okinawa, which was the lowest
(2,042,00 yen) has further increased to 131,000 yen. The fact is that in addition to the decline of local
population, economic disparity between Tokyo and other prefectures has been growing continuously since
many Japanese manufacturers have shifted their production facilities from domestic local sites to foreign
countries. They have done so to take advantage of lower labor costs in foreign lands. In fact, many
Japanese manufacturers have shifted their pattern of trade from the export of domestically produced
goods, called “processing trade pattern”, to export of their products produced in foreign lands, called “international
division of labor mode.” Accordingly the income gap between Tokyo and other regions in
Japan has widened further recently.
population has been declining in absolute terms with more aging people and fewer children. Population
will decline further in all regions except Tokyo by 2030 according to the simulation report of the Economic
Research Committee of the Ministry of Economy, Trade and Industry in 2005.3 The report also
suggests that economic disparity between the metropolitan areas and other local regions will be expanded.
It predicts that only 35 mega cities out of over 1,500 municipalities in 2000 will register an increase
on their gross domestic product in 2030. It says that by 2030 only 35 cities including the government
ordinance cities such as Tokyo will surpass the GDP of 2005. The cities which can expect to have a
growth of GDP in 2030 will be Tokyo (10.7% up) , Osaka city (10.3% up), Nagoya city (9.9% up), Senday city
(4.3% up), Kobe city (6.1% up) and Fukuoka city (4.7% up)4. A few local cities are also expected to have
growth in their GDP in 2030. These are Naha city (17.9% up) and Ishigaki city (11.9% up) in the Okinawa
prefecture due to their high birth rate and vigorous economic boom in tourism.5 The report also says that
other three local cities such as Toyohashi, Okazaki and Kariya, where the major Japanese automobile
firms are located near Nagoya city , are likely to exceed the GDP of 2005 by 2030.
According to a study on the economic condition of prefectural people by the Cabinet Office in 2003,
a gap in citizens’ per capita income has expanded for the past two consecutive years.6 The difference in
annual income between Tokyo, which was the highest (4,267,000 yen) and Okinawa, which was the lowest
(2,042,00 yen) has further increased to 131,000 yen. The fact is that in addition to the decline of local
population, economic disparity between Tokyo and other prefectures has been growing continuously since
many Japanese manufacturers have shifted their production facilities from domestic local sites to foreign
countries. They have done so to take advantage of lower labor costs in foreign lands. In fact, many
Japanese manufacturers have shifted their pattern of trade from the export of domestically produced
goods, called “processing trade pattern”, to export of their products produced in foreign lands, called “international
division of labor mode.” Accordingly the income gap between Tokyo and other regions in
Japan has widened further recently.
The Development of Ethnic Marketing in Australia
Ethnic marketing is a term widely used in the marketing literature to refer to the study of
marketing within ethnic minority contexts and is often used interchangeably with the term
multicultural marketing (Cui, 1997; Pires, 1999).
As the United States has a longer migration history and a larger population size, many companies
in America are well aware of the potential of marketing to the diverse ethnic groups like African-
Americans, Hispanic-Americans, and Asian-Americans (e.g., see Rossman, 1994; Schreiber and
Lenson, 2001). However, the development of ethnic marketing in Australia has been very slow
because of the following reasons (Chan, 1995):
• perceiving difficulty in understanding other cultures. This is largely due to lack of
confidence in dealing with an unfamiliar culture;
• remaining complacent with the mainstream market and not seeing a need to target the
ethnic markets separately. Some simply assume that the ethnic communities will have
access to the mainstream media; and
• being afraid that the targeting of ethnic markets will upset the mainstream market and
the “gains” may not be able to compensate for the “losses.”
The first to practise ethnic marketing in Australia have been government agencies utilising various
ethnic media to advertise and provide information in ethnic languages, ensuring that everyone in
the community has equal access to government services. There is a government policy that 7.5%
of all its print media budgets be allocated to ethnic press. The former Ethnic Affairs Commission
of New South Wales was one of the pioneers in developing the concept and practice of ethnic
marketing by launching the first National Multicultural Marketing Awards in 1990.
In spite of the push by the government to advance ethnic marketing, it was not until the mid-
1990’s that an increasing number of organisations from the private sector began to see the
potential of the diverse ethnic markets. The first multicultural marketing conference by the
private sector was held in July 1994 (Caldwell Management Pty. Ltd., 1994).
Drawing on his seven years of experience as a judge for the National Multicultural Marketing
Awards since 1991, Professor Ian Wilkinson has the following conclusions on the developments
in multicultural marketing in Australia in the past decade (Wilkinson and Cheng, 1999):
• A shift away from simple adaptation of advertising messages as the mainstay of
multicultural marketing strategies.
marketing within ethnic minority contexts and is often used interchangeably with the term
multicultural marketing (Cui, 1997; Pires, 1999).
As the United States has a longer migration history and a larger population size, many companies
in America are well aware of the potential of marketing to the diverse ethnic groups like African-
Americans, Hispanic-Americans, and Asian-Americans (e.g., see Rossman, 1994; Schreiber and
Lenson, 2001). However, the development of ethnic marketing in Australia has been very slow
because of the following reasons (Chan, 1995):
• perceiving difficulty in understanding other cultures. This is largely due to lack of
confidence in dealing with an unfamiliar culture;
• remaining complacent with the mainstream market and not seeing a need to target the
ethnic markets separately. Some simply assume that the ethnic communities will have
access to the mainstream media; and
• being afraid that the targeting of ethnic markets will upset the mainstream market and
the “gains” may not be able to compensate for the “losses.”
The first to practise ethnic marketing in Australia have been government agencies utilising various
ethnic media to advertise and provide information in ethnic languages, ensuring that everyone in
the community has equal access to government services. There is a government policy that 7.5%
of all its print media budgets be allocated to ethnic press. The former Ethnic Affairs Commission
of New South Wales was one of the pioneers in developing the concept and practice of ethnic
marketing by launching the first National Multicultural Marketing Awards in 1990.
In spite of the push by the government to advance ethnic marketing, it was not until the mid-
1990’s that an increasing number of organisations from the private sector began to see the
potential of the diverse ethnic markets. The first multicultural marketing conference by the
private sector was held in July 1994 (Caldwell Management Pty. Ltd., 1994).
Drawing on his seven years of experience as a judge for the National Multicultural Marketing
Awards since 1991, Professor Ian Wilkinson has the following conclusions on the developments
in multicultural marketing in Australia in the past decade (Wilkinson and Cheng, 1999):
• A shift away from simple adaptation of advertising messages as the mainstay of
multicultural marketing strategies.
Current Status of the Mobile Market in Japan
Internet-enabled mobile phones have been a major phenomenon in Japan since February 1999
when the nation’s largest mobile phone operator, NTT DoCoMo, introduced its i-mode service. The
new service was branded with a lowercase “i” to signify the world of information mobile users could
now access via the Internet using only their phones. The popularity of i-mode took the market by surprise
and established i-mode as a model for success that was quickly emulated by Japan’s other mobile operators.
Today, mobile Internet in Japan has established itself as arguably the fastest-growing mass media
platform the world has ever seen, reaching an audience of 50 million people in only three years. This is
less time than it took for the U.S. market to hit the same milestone with radio (38 years), television (13
years), cable TV (10 years), and the PC Internet (five years). About 85 million Japanese mobile users are currently signed up and connected to the Internet on their phones, a penetration of about 67 percent
of Japan’s total population of 127 million, and comprising 87 percent of Japan’s 98.65 million mobile
phone subscriptions. Conveniently, the user base for mobile phones in Japan spans roughly the same
audience of 15- to 65-year-olds being targeted by corporate marketers. In addition, the majority of
these users are post-pay customers, meaning payments are debited monthly from their bank accounts.
This allows mobile network operators to carry on an active and direct merchant relationship with
this huge customer base. In order to reach these mobile users for advertising and marketing
purposes, mobile marketing systems that were optimized to exploit this mobile infrastructure were
implemented in June 2000 when NTT DoCoMo and advertising agency Dentsu joined forces to establish
D2 Communications. Since then, mobile advertising and marketing have shown steady growth.
Mobile advertising is expected to have the highest growth among Japan’s advertising sectors, reaching
three times its current size by 2010 at more than 1.2 trillion yen (approximately $1.07 billion), and
it is anticipated to comprise 2 percent of all advertising spending in Japan, according to data published
by the Dentsu Research Institute in April 2007.
when the nation’s largest mobile phone operator, NTT DoCoMo, introduced its i-mode service. The
new service was branded with a lowercase “i” to signify the world of information mobile users could
now access via the Internet using only their phones. The popularity of i-mode took the market by surprise
and established i-mode as a model for success that was quickly emulated by Japan’s other mobile operators.
Today, mobile Internet in Japan has established itself as arguably the fastest-growing mass media
platform the world has ever seen, reaching an audience of 50 million people in only three years. This is
less time than it took for the U.S. market to hit the same milestone with radio (38 years), television (13
years), cable TV (10 years), and the PC Internet (five years). About 85 million Japanese mobile users are currently signed up and connected to the Internet on their phones, a penetration of about 67 percent
of Japan’s total population of 127 million, and comprising 87 percent of Japan’s 98.65 million mobile
phone subscriptions. Conveniently, the user base for mobile phones in Japan spans roughly the same
audience of 15- to 65-year-olds being targeted by corporate marketers. In addition, the majority of
these users are post-pay customers, meaning payments are debited monthly from their bank accounts.
This allows mobile network operators to carry on an active and direct merchant relationship with
this huge customer base. In order to reach these mobile users for advertising and marketing
purposes, mobile marketing systems that were optimized to exploit this mobile infrastructure were
implemented in June 2000 when NTT DoCoMo and advertising agency Dentsu joined forces to establish
D2 Communications. Since then, mobile advertising and marketing have shown steady growth.
Mobile advertising is expected to have the highest growth among Japan’s advertising sectors, reaching
three times its current size by 2010 at more than 1.2 trillion yen (approximately $1.07 billion), and
it is anticipated to comprise 2 percent of all advertising spending in Japan, according to data published
by the Dentsu Research Institute in April 2007.
Tourism Australia’s response to the global economic recession
Tourism Australia has stepped up its market monitoring to ensure that its strategic decisions are
based on the most up to date information and that TA responds to challenges and opportunities
facing the Australian tourism industry. In addition, this Global Market Monitor shares the most
up to date information with the tourism industry to assist them in their strategic decision
making.
A quarterly full review of all market performance will also be conducted within TA allowing TA to
evaluate current plans and respond where necessary with shifts in marketing funding and
prioritisation.
Our intention is to pursue a strategy in 2009/2010 which will focus on those markets which can
deliver enough volume to minimise the decline in overall visitor numbers to Australia in the short
term, and to take advantage of growth opportunities for the long term.
In a number of source markets Australian sales are expected to perform more strongly than sales
to other competing long haul destinations due to the fall in the Australian dollar and more seat
capacity and lower airfares to Australia.
The importance of the domestic market is even more evident in the current environment and it
will be a strong focus of TourismAustralia’s marketing activity over the coming months.
Tourism Australia’s Annual Operating Plan is currently under development but key elements,
which reflect our overall strategy as described above will include:
• Continued use of the Come Walkabout brand campaign over the next few months with a
gradual transition to the next phase of that campaign toward the end of the year. This is
a reflection of the positive consumer reaction as measured in brand health monitoring;
• Prioritisation toward those markets and market segments that are forecast to perform
best in the next one – two years;
• Increased focus in trade and consumer communications on the improved value for
money of a trip to Australia from a range of source markets for leisure and business
event tourism;
• Increased cooperative activity with industry partners who are funding tactical campaigns
to support delivery of inbound arrivals;
• Relaunch of the domestic No Leave‐No Life campaign to boost domestic leisure
overnight tourism;
• Maintenance of our previous local currency buying power in international markets in the
remainder of 2008/09 (notwithstanding the large fall in the buying power of the A$).
The next Global Market Monitor is planned for the end of April 2009, following contact with
survey respondents just after Easter
based on the most up to date information and that TA responds to challenges and opportunities
facing the Australian tourism industry. In addition, this Global Market Monitor shares the most
up to date information with the tourism industry to assist them in their strategic decision
making.
A quarterly full review of all market performance will also be conducted within TA allowing TA to
evaluate current plans and respond where necessary with shifts in marketing funding and
prioritisation.
Our intention is to pursue a strategy in 2009/2010 which will focus on those markets which can
deliver enough volume to minimise the decline in overall visitor numbers to Australia in the short
term, and to take advantage of growth opportunities for the long term.
In a number of source markets Australian sales are expected to perform more strongly than sales
to other competing long haul destinations due to the fall in the Australian dollar and more seat
capacity and lower airfares to Australia.
The importance of the domestic market is even more evident in the current environment and it
will be a strong focus of TourismAustralia’s marketing activity over the coming months.
Tourism Australia’s Annual Operating Plan is currently under development but key elements,
which reflect our overall strategy as described above will include:
• Continued use of the Come Walkabout brand campaign over the next few months with a
gradual transition to the next phase of that campaign toward the end of the year. This is
a reflection of the positive consumer reaction as measured in brand health monitoring;
• Prioritisation toward those markets and market segments that are forecast to perform
best in the next one – two years;
• Increased focus in trade and consumer communications on the improved value for
money of a trip to Australia from a range of source markets for leisure and business
event tourism;
• Increased cooperative activity with industry partners who are funding tactical campaigns
to support delivery of inbound arrivals;
• Relaunch of the domestic No Leave‐No Life campaign to boost domestic leisure
overnight tourism;
• Maintenance of our previous local currency buying power in international markets in the
remainder of 2008/09 (notwithstanding the large fall in the buying power of the A$).
The next Global Market Monitor is planned for the end of April 2009, following contact with
survey respondents just after Easter
Policy on Marketing to Children in Australia
The Coca-Cola company was contacted by telephone
and the researchers were informed that the company’s
marketing policies were not available to the public.
However, according to the Coca-Cola ‘make every drop
matter’ website (http://www.makeeverydropmatter.
com.au/commitment.html) Coca-Cola Amatil (CCA)
does not market to children under 12.
In 2004, The Coca-Cola Company decided to remove
carbonated soft drinks containing sugar or caffeine
from Australian primary schools (although they still
distribute them in secondary schools).
Coca-Cola also has a policy on tackling obesity which
is primarily based on encouraging higher levels of
participation in physical activity through sponsorship
and educational programs, including the Active Factor
program which encourages children to lead an active
and healthy lifestyle, through exercise and education.
The company also states that their range of beverages
ensure that there are suitable drinks for the entire
family and for every occasion - water, fruit juices,
sports drinks as appropriate and, in moderation, soft
drinks.
and the researchers were informed that the company’s
marketing policies were not available to the public.
However, according to the Coca-Cola ‘make every drop
matter’ website (http://www.makeeverydropmatter.
com.au/commitment.html) Coca-Cola Amatil (CCA)
does not market to children under 12.
In 2004, The Coca-Cola Company decided to remove
carbonated soft drinks containing sugar or caffeine
from Australian primary schools (although they still
distribute them in secondary schools).
Coca-Cola also has a policy on tackling obesity which
is primarily based on encouraging higher levels of
participation in physical activity through sponsorship
and educational programs, including the Active Factor
program which encourages children to lead an active
and healthy lifestyle, through exercise and education.
The company also states that their range of beverages
ensure that there are suitable drinks for the entire
family and for every occasion - water, fruit juices,
sports drinks as appropriate and, in moderation, soft
drinks.
Dietitian’s Comments on Nutritional Quality
‘Mother’, ‘Coca-Cola,’ and ‘Diet Coke’ are not suitable
for children because they contain caffeine.
Each can (250ml) of ‘Mother’ contain about five
teaspoons of sugar, and a can (375ml) of ‘Coca-Cola’
or ‘Fanta’ contains about nine teaspoons of sugar.
Although ‘Fanta’ is promoted as a fruit drink, it only has
5% fruit content.
While there is no sugar in ‘Diet Coke’, it does contain
artificial sweeteners and should not be consumed
in large amounts. Diet soft drinks do not contribute
energy to the diet, but regular soft drinks provide
only ‘empty kilojoules’ and should not be consumed
by children. The acidity and/or sugar content of
the soft drinks could be damaging to teeth. It is of
concern that these products may displace healthier
drinks such as water (which contains fluoride) and
milk (which contains calcium).
for children because they contain caffeine.
Each can (250ml) of ‘Mother’ contain about five
teaspoons of sugar, and a can (375ml) of ‘Coca-Cola’
or ‘Fanta’ contains about nine teaspoons of sugar.
Although ‘Fanta’ is promoted as a fruit drink, it only has
5% fruit content.
While there is no sugar in ‘Diet Coke’, it does contain
artificial sweeteners and should not be consumed
in large amounts. Diet soft drinks do not contribute
energy to the diet, but regular soft drinks provide
only ‘empty kilojoules’ and should not be consumed
by children. The acidity and/or sugar content of
the soft drinks could be damaging to teeth. It is of
concern that these products may displace healthier
drinks such as water (which contains fluoride) and
milk (which contains calcium).
How to Increase the Chance of B2B Direct Mail Being Opened
Business People say that the best way to increase the chances of them opening Direct Mail is
for advertisers to make it clear on the envelope what’s inside and to personalise the letter. They
state that special offers and having their prior permission is the best way to increase the chance
of response.
It is interesting to note that Business Receivers say that they open and read 90% of the DM they
receive, while Business Senders open and read 84%. Most state the reason for not opening
certain mail is their belief that they can tell without opening what’s inside and its apparent
irrelevance for them.
When it comes to response, 73% of Business Receivers say they respond to Direct Mail, while
78% of Senders claim the same thing.
The key motivator when it comes to response amongst Business People is having a need for
the product or service being promoted.
for advertisers to make it clear on the envelope what’s inside and to personalise the letter. They
state that special offers and having their prior permission is the best way to increase the chance
of response.
It is interesting to note that Business Receivers say that they open and read 90% of the DM they
receive, while Business Senders open and read 84%. Most state the reason for not opening
certain mail is their belief that they can tell without opening what’s inside and its apparent
irrelevance for them.
When it comes to response, 73% of Business Receivers say they respond to Direct Mail, while
78% of Senders claim the same thing.
The key motivator when it comes to response amongst Business People is having a need for
the product or service being promoted.
Newspaper and Magazine Advertising
The majority of Consumers (57%) either enjoy or are indifferent to Newspaper and Magazine
Advertising with 43% not enjoying it. 81% of Consumers can nominate an element of
Newspaper and Magazine Advertising that they like. Key attributes cited were the fact that it is
seen to provide useful information, it can be either read or ignored and it can be viewed at a
time of the Consumer’s choosing. It is the preferred way to receive automotive information and
Travel/Holiday information.
48% of Consumers can nominate an element they don’t like in Newspaper and Magazine
Advertising, with the primary reason cited being that advertising takes up too much space,
particularly in magazines.
55% of Consumers say they purchase as a result of Newspaper and Magazine Advertising.
Executive Summary
21
Advertising with 43% not enjoying it. 81% of Consumers can nominate an element of
Newspaper and Magazine Advertising that they like. Key attributes cited were the fact that it is
seen to provide useful information, it can be either read or ignored and it can be viewed at a
time of the Consumer’s choosing. It is the preferred way to receive automotive information and
Travel/Holiday information.
48% of Consumers can nominate an element they don’t like in Newspaper and Magazine
Advertising, with the primary reason cited being that advertising takes up too much space,
particularly in magazines.
55% of Consumers say they purchase as a result of Newspaper and Magazine Advertising.
Executive Summary
21
Email Advertising
Although Email Advertising is in its relative infancy in Australia, 43% of Consumers surveyed
have been subjected to it. Of this group, 54% do not enjoy receiving it, 42% are indifferent and
5% enjoy Email Advertising.
Of the Consumers who had been subjected to Email Advertising, 84% could nominate an
element they don’t like, such as concerns about viruses, volume and privacy invasion.
E-marketers need to be aware of both Consumer and Business People’s concerns regarding
privacy and unsolicited email. They need to be sensitive to the size and quantity of emails they
send and they need to address Receivers’ concerns regarding potential viruses.
31% of Consumers subjected to Email Advertising could nominate an element of it that they
like, such as the perception that it is quick and easy to receive, informative and forms a
permanent record.
Email did not perform particularly well with respect to influencing Consumers’ purchasing
decisions with only 11% of the 43% sample (5% of overall sample) stating that it influences the
buying decision.
As can be seen from the research, email penetration is still relatively low in Australia, with only
43% of Consumers having access to email. 23% of Consumers surveyed have email access at
home only, 15% both home and work and 5% have access at work only. As would be expected
the 18-24 age bracket has by far the greatest access and the 55+ groups have the least.
Executive Summary
15
have been subjected to it. Of this group, 54% do not enjoy receiving it, 42% are indifferent and
5% enjoy Email Advertising.
Of the Consumers who had been subjected to Email Advertising, 84% could nominate an
element they don’t like, such as concerns about viruses, volume and privacy invasion.
E-marketers need to be aware of both Consumer and Business People’s concerns regarding
privacy and unsolicited email. They need to be sensitive to the size and quantity of emails they
send and they need to address Receivers’ concerns regarding potential viruses.
31% of Consumers subjected to Email Advertising could nominate an element of it that they
like, such as the perception that it is quick and easy to receive, informative and forms a
permanent record.
Email did not perform particularly well with respect to influencing Consumers’ purchasing
decisions with only 11% of the 43% sample (5% of overall sample) stating that it influences the
buying decision.
As can be seen from the research, email penetration is still relatively low in Australia, with only
43% of Consumers having access to email. 23% of Consumers surveyed have email access at
home only, 15% both home and work and 5% have access at work only. As would be expected
the 18-24 age bracket has by far the greatest access and the 55+ groups have the least.
Executive Summary
15
Saturday, December 11, 2010
CAN BUSINESS ETHICS BE TAUGHT?
Before launching a book-writing effort, we also needed to be convinced that we could
actually teach our readers something. Despite growing interest in ethics and ethics training,
dissenters from both the business and academic communities have raised questions
about whether ethics can or should be taught. Felix Rohatyn, a noted New York investment
banker, said that ethics can’t be taught past the age of 10. Lester Thurow, former
dean of the Massachusetts Institute of Technology’s Sloan School of Management,
echoed this view when he stated that business schools can do little if students haven’t
already learned ethics from their families, clergy, previous schools, or employers.23
In the wake of the insider trading scandals of the 1980s, Thurow and a chief operating
officer of a large Wall Street investment firm claimed on a television news program
that educational institutions or business organizations could have done little
about the unethical individuals who participated in insider trading. These people just
hadn’t been raised with the proper values.
If they’re correct, ethics education is a waste of time and money. “Bad apples”
are just tainted people who can’t be trained or rehabilitated. Therefore, resources
should be devoted to identifying and discarding bad apples, not educating them. We
disagree, and the evidence is on our side
actually teach our readers something. Despite growing interest in ethics and ethics training,
dissenters from both the business and academic communities have raised questions
about whether ethics can or should be taught. Felix Rohatyn, a noted New York investment
banker, said that ethics can’t be taught past the age of 10. Lester Thurow, former
dean of the Massachusetts Institute of Technology’s Sloan School of Management,
echoed this view when he stated that business schools can do little if students haven’t
already learned ethics from their families, clergy, previous schools, or employers.23
In the wake of the insider trading scandals of the 1980s, Thurow and a chief operating
officer of a large Wall Street investment firm claimed on a television news program
that educational institutions or business organizations could have done little
about the unethical individuals who participated in insider trading. These people just
hadn’t been raised with the proper values.
If they’re correct, ethics education is a waste of time and money. “Bad apples”
are just tainted people who can’t be trained or rehabilitated. Therefore, resources
should be devoted to identifying and discarding bad apples, not educating them. We
disagree, and the evidence is on our side
IS BUSINESS ETHICS JUST A FAD?
Management researchers began to study business ethics during the 1960s by conducting
surveys of managers’ attitudes toward business ethics.19 Some thought that
business ethics was just a fad then (related to media attention to the burgeoning consumer
rights movement, for example) and that interest in the topic would quickly
fade. But research has found that management fads generally last only about 10
years,20 and interest in business ethics has climbed for more than 40 years. This
interest is fueled in part by regular media coverage of ethical lapses in the business
community. Examples include the federal savings and loan disaster, Wall Street
insider trading scandals, Archer Daniels Midland’s price fixing, Denny’s and
Texaco’s racial discrimination, Mitsubishi’s sexual harassment, the tobacco industry’s
nicotine-spiking of cigarettes, the Ford/Firestone tire and automobile safety
controversy, the Enron/Arthur Andersen debacle, WorldCom, Adelphia (unfortunately,
the list is long).
But ethical lapses aren’t limited to business; such problems affect every institution
of our society. For example, in the 1970s the Watergate scandal focused attention
on ethical problems in government. This focus continued with questions about the
faulty decision making that led to the Challenger disaster, check-writing scandals in
Congress, Irangate, Whitewater, sexual harassment in the military, questionable election
fund-raising tactics, and the sex scandals in the Clinton White House.
Religious, educational, philanthropic, and sports organizations haven’t been
immune. Catholic priests (and other religious leaders) have sexually abused children,
students have cheated on exams and plagiarized papers, philanthropic organizations
have spent contributors’ funds irresponsibly, student athletes have run afoul of
National Collegiate Athletic Association (NCAA) rules, and Olympic judges have
been accused of fixing scores. Although we don’t want to leave it to the media to
define ethical business practice, the media’s continuing interest in ethical issues suggests
that ethics isn’t just a fad.
Articles and books have proliferated in the academic and professional press, suggesting
that these communities are becoming increasingly interested in ethics as well.
And organizations of every kind are addressing the “ethics problem” in a number of
ways. Many of them are establishing high-level ethics committees, drafting codes of
ethical conduct, and conducting ethics training programs. Such ethics initiatives have
increased quite steadily since the 1970s
surveys of managers’ attitudes toward business ethics.19 Some thought that
business ethics was just a fad then (related to media attention to the burgeoning consumer
rights movement, for example) and that interest in the topic would quickly
fade. But research has found that management fads generally last only about 10
years,20 and interest in business ethics has climbed for more than 40 years. This
interest is fueled in part by regular media coverage of ethical lapses in the business
community. Examples include the federal savings and loan disaster, Wall Street
insider trading scandals, Archer Daniels Midland’s price fixing, Denny’s and
Texaco’s racial discrimination, Mitsubishi’s sexual harassment, the tobacco industry’s
nicotine-spiking of cigarettes, the Ford/Firestone tire and automobile safety
controversy, the Enron/Arthur Andersen debacle, WorldCom, Adelphia (unfortunately,
the list is long).
But ethical lapses aren’t limited to business; such problems affect every institution
of our society. For example, in the 1970s the Watergate scandal focused attention
on ethical problems in government. This focus continued with questions about the
faulty decision making that led to the Challenger disaster, check-writing scandals in
Congress, Irangate, Whitewater, sexual harassment in the military, questionable election
fund-raising tactics, and the sex scandals in the Clinton White House.
Religious, educational, philanthropic, and sports organizations haven’t been
immune. Catholic priests (and other religious leaders) have sexually abused children,
students have cheated on exams and plagiarized papers, philanthropic organizations
have spent contributors’ funds irresponsibly, student athletes have run afoul of
National Collegiate Athletic Association (NCAA) rules, and Olympic judges have
been accused of fixing scores. Although we don’t want to leave it to the media to
define ethical business practice, the media’s continuing interest in ethical issues suggests
that ethics isn’t just a fad.
Articles and books have proliferated in the academic and professional press, suggesting
that these communities are becoming increasingly interested in ethics as well.
And organizations of every kind are addressing the “ethics problem” in a number of
ways. Many of them are establishing high-level ethics committees, drafting codes of
ethical conduct, and conducting ethics training programs. Such ethics initiatives have
increased quite steadily since the 1970s
Why Study Ethics?
Even granting that business ethics is important, many seem to believe that there is no
point in studying the subject. Ethics is something you feel, not something you think. Finance,
marketing, operations, and even business law lend themselves to intellectual treatment, but ethics
does not.
The idea that ethics has no intellectual content is odd indeed, considering that some of the
most famous intellectuals in world history have given it a central place in their thought
(Confucius, Plato, Aristotle, Maimonides, Thomas Aquinas, etc.). Ethics is in fact a highly
developed field that demands close reasoning. The Western tradition in particular has given rise
to sophisticated deontological, teleological and consequentialist theories of right and wrong. No
one theory explains everything satisfactorily, but the same is true, after all, in the natural sciences.
Even when they grant that ethics has intellectual content, people often say that studying
the field will not change behavior. Character is formed in early childhood, not during a
professor’s lecture.
If the suggestion here is that college-level study does not change behavior, we should
shut down the entire business school, not only the ethics course. Presumably the claim, then, is
that studying finance and marketing can influence one’s conduct, but studying ethics cannot.
This is again a curious view, since ethics is the one field that deals explicitly with conduct.
Where is the evidence for this view? The early origins of character do not prevent finance and
marketing courses from influencing behavior. Why cannot ethics courses also have an effect?
7
Ethics courses have a number of features that seem likely to influence behavior. They
provide a language and conceptual framework with which one can talk and think about ethical
issues. Their emphasis on case studies helps to make one aware of the potential consequences of
one’s actions. They present ethical that theories help define what a valid ethical argument looks
like. They teach one to make distinctions and avoid fallacies that are so common when people
make decisions. They give one an opportunity to think through, at one’s leisure, complex ethical
issues that are likely to arise later, when there is no time to think. They introduce one to such
specialized areas as product liability, employment, intellectual property, environmental
protection, and cross-cultural management. They give one practice at articulating an ethical
position, which can help resist pressure to compromise.
None of this convinces one to be good, but it is useful to those who want to be good. It
may also improve business conduct in general. How many of the recent business scandals would
have occurred if subordinates had possessed the skills, vocabulary and conceptual equipment to
raise an ethical issue with their coworkers?
point in studying the subject. Ethics is something you feel, not something you think. Finance,
marketing, operations, and even business law lend themselves to intellectual treatment, but ethics
does not.
The idea that ethics has no intellectual content is odd indeed, considering that some of the
most famous intellectuals in world history have given it a central place in their thought
(Confucius, Plato, Aristotle, Maimonides, Thomas Aquinas, etc.). Ethics is in fact a highly
developed field that demands close reasoning. The Western tradition in particular has given rise
to sophisticated deontological, teleological and consequentialist theories of right and wrong. No
one theory explains everything satisfactorily, but the same is true, after all, in the natural sciences.
Even when they grant that ethics has intellectual content, people often say that studying
the field will not change behavior. Character is formed in early childhood, not during a
professor’s lecture.
If the suggestion here is that college-level study does not change behavior, we should
shut down the entire business school, not only the ethics course. Presumably the claim, then, is
that studying finance and marketing can influence one’s conduct, but studying ethics cannot.
This is again a curious view, since ethics is the one field that deals explicitly with conduct.
Where is the evidence for this view? The early origins of character do not prevent finance and
marketing courses from influencing behavior. Why cannot ethics courses also have an effect?
7
Ethics courses have a number of features that seem likely to influence behavior. They
provide a language and conceptual framework with which one can talk and think about ethical
issues. Their emphasis on case studies helps to make one aware of the potential consequences of
one’s actions. They present ethical that theories help define what a valid ethical argument looks
like. They teach one to make distinctions and avoid fallacies that are so common when people
make decisions. They give one an opportunity to think through, at one’s leisure, complex ethical
issues that are likely to arise later, when there is no time to think. They introduce one to such
specialized areas as product liability, employment, intellectual property, environmental
protection, and cross-cultural management. They give one practice at articulating an ethical
position, which can help resist pressure to compromise.
None of this convinces one to be good, but it is useful to those who want to be good. It
may also improve business conduct in general. How many of the recent business scandals would
have occurred if subordinates had possessed the skills, vocabulary and conceptual equipment to
raise an ethical issue with their coworkers?
The Duty to Make Money
Granting that a business person’s ultimate objective is to make the world better, how is
this best achieved? A common view is that it is achieved by making as much money as possible.
The best thing business people can do for society is to be good business people, which is to say,
to maximize the company’s profit. They should therefore stick to finance, marketing and
operations management rather than waste time with ethics.
Economist Milton Friedman articulates this view in an essay that is quite popular with
business students, “The Social Responsibility of Business Is to Increase its Profits.”1 According
to Friedman, corporate officers have no obligation to support such social causes as hiring the
hard-core unemployed to reduce poverty, or reducing pollution beyond that mandated by law.
Their sole task is to maximize profit for the company, subject to the limits of law and “rules of
the game” that ensure “open and free competition without deception or fraud.”
Friedman advances two main arguments for this position. First, corporate executives and
directors are not qualified to do anything other than maximize profit. Business people are expert
at making money, not at making social policy. They lack the perspective and training to address
complex social problems, which should be left to governments and social service agencies.
this best achieved? A common view is that it is achieved by making as much money as possible.
The best thing business people can do for society is to be good business people, which is to say,
to maximize the company’s profit. They should therefore stick to finance, marketing and
operations management rather than waste time with ethics.
Economist Milton Friedman articulates this view in an essay that is quite popular with
business students, “The Social Responsibility of Business Is to Increase its Profits.”1 According
to Friedman, corporate officers have no obligation to support such social causes as hiring the
hard-core unemployed to reduce poverty, or reducing pollution beyond that mandated by law.
Their sole task is to maximize profit for the company, subject to the limits of law and “rules of
the game” that ensure “open and free competition without deception or fraud.”
Friedman advances two main arguments for this position. First, corporate executives and
directors are not qualified to do anything other than maximize profit. Business people are expert
at making money, not at making social policy. They lack the perspective and training to address
complex social problems, which should be left to governments and social service agencies.
Why Should One Be Ethical?
There is already something odd about this question. It is like asking, “Why are bachelors
unmarried?” They are unmarried by definition. If they were married, they would not be
bachelors. It is the same with ethics. To say that one should do something is another way of
saying it is ethical. If it is not ethical, then one should not do it.
Perhaps when business people ask why they should be ethical, they have a different
question in mind: what is the motivation for being good? Is their something in it for them?
It is perfectly all right to ask if there is a reward for being good, but this has nothing to do
with whether one should be good. It makes no sense to try convince people that they should be
good by pointing to the rewards that may follow. One should be good because “good” is, by
definition, that which one should be.
As for motivation, good behavior often brings a reward, but not every time. Think about
it. If it were always in one’s interest to be good, there would be no need for ethics. We could
simply act selfishly and forget about obligation. People invented ethics precisely because it does
not always coincide with self interest.
unmarried?” They are unmarried by definition. If they were married, they would not be
bachelors. It is the same with ethics. To say that one should do something is another way of
saying it is ethical. If it is not ethical, then one should not do it.
Perhaps when business people ask why they should be ethical, they have a different
question in mind: what is the motivation for being good? Is their something in it for them?
It is perfectly all right to ask if there is a reward for being good, but this has nothing to do
with whether one should be good. It makes no sense to try convince people that they should be
good by pointing to the rewards that may follow. One should be good because “good” is, by
definition, that which one should be.
As for motivation, good behavior often brings a reward, but not every time. Think about
it. If it were always in one’s interest to be good, there would be no need for ethics. We could
simply act selfishly and forget about obligation. People invented ethics precisely because it does
not always coincide with self interest.
Business Ethics
A Manual for Managing a Responsible Business Enterprise in Emerging
Market Economies grew out of collaboration between the U.S. Department
of Commerce and many dedicated people and organizations. It is intended to
provide a practical guide to assist owners and managers in meeting emerging
global standards and expectations for an effective business ethics program.
Such a step-by-step guide should have great utility in the emerging market
economies that ring the globe. Many are new players in the modern global economy
and lack experience in what it takes for free markets to function efficiently
and to deliver the jobs, goods, services, consumer choices, and general prosperity
that are expected from democratic capitalism. Even developed market
economies, moreover, are searching for better ways to meet market challenges.
A fundamental ingredient of any successful market economy is respect for
basic human values: honesty, trust, and fairness. These values must become an integral
part of business culture and practice for markets to remain free and to work
effectively. Private business is at the strategic center of any civil society. It’s where
people go for a job or to invest savings to realize their aspirations for their families.
Having spent most of my life working in American business, I am compelled
to ask, “If businesses fail to honor their responsibilities to society and don’t
believe in corporate stewardship, who in our society will?” Corporate stewardship
protects the whole “human ecology” of the corporation and its communities,
nurturing the long-term economic growth of both and of their human resources.
Market Economies grew out of collaboration between the U.S. Department
of Commerce and many dedicated people and organizations. It is intended to
provide a practical guide to assist owners and managers in meeting emerging
global standards and expectations for an effective business ethics program.
Such a step-by-step guide should have great utility in the emerging market
economies that ring the globe. Many are new players in the modern global economy
and lack experience in what it takes for free markets to function efficiently
and to deliver the jobs, goods, services, consumer choices, and general prosperity
that are expected from democratic capitalism. Even developed market
economies, moreover, are searching for better ways to meet market challenges.
A fundamental ingredient of any successful market economy is respect for
basic human values: honesty, trust, and fairness. These values must become an integral
part of business culture and practice for markets to remain free and to work
effectively. Private business is at the strategic center of any civil society. It’s where
people go for a job or to invest savings to realize their aspirations for their families.
Having spent most of my life working in American business, I am compelled
to ask, “If businesses fail to honor their responsibilities to society and don’t
believe in corporate stewardship, who in our society will?” Corporate stewardship
protects the whole “human ecology” of the corporation and its communities,
nurturing the long-term economic growth of both and of their human resources.
Sales promotion of Dell
1．Broken down market
Dell computer companies will be in accordance with the product range of its products, respectively, in different areas of application or market classification classification, a different strategy.
2．Pricing strategy
Through direct sales, Dell than in the other major manufacturers of low cost 100 to 200 U.S. dollars, which use low-cost marketing strategy.
3．Advertising strategy
Advertising in Dell website, but no. Dell website contains a wide range of multimedia pictures, and many more performance charts, and even made some advertising in the form of slides. These customers can purchase fully stimulate desire.
Distribution channels
Direct modes in compressed product production lines, supplemented by online purchase at great development of its direct sales model.
Customer Service
1．Online orders, and by a single production
Dell companies to enable customers to purchase computer Dell.com and PremierDell.com for enterprise customers, the company has provided more than 60,000 customized web site to allow customers to track orders for the purchase and implementation. Valuechain.dell.com orders through direct transmission to the supplier of raw materials Dell companies, such suppliers will be able to receive real-time information on raw materials, thus contributing to Dell companies control inventory.
2．Video distribution and delivery guarantee
Dell particularly unique is that the company provided a special specialized services : network users can choose in accordance with their own preferences and needs of the computer, the company provides distribution of the final outcome of the
hardware, and system performance forecasts. As a result, the network of shops in the best possible selection, Dell sites in the forefront in computer networks. Dell customers at the center of the customer requirements for different customers different custom, personalized products. In all customers choice, the website also provides the corresponding price, payment method and delivery address and the identification and door-to-door in two days.
3．Online technical services and technical support
Dell companies provide online services and technical support is very broad, users answer questions, the escalation on Windows, software upgrades informed, and so on. A wide range of services not only to increase the intrinsic value of their products, can also be user satisfaction, and enhance the competitiveness of our products.
4．Online forums , help and Search services
Not only large customers, small enterprises, a large number of persons were also attract home office in Dell brands around. From the autumn of 1998, Dell established executives and customers online forum "had breakfast with Dell" extended to small business users, the topic of this live chat server market trend not only includes such large topics, but also for general users the opportunity to make a wide variety of issues, then adopted Dell online knowledge base in artificial intelligence software to help automatically answered.
Dell also provides comprehensive search services. A user-friendly search service can find their desired product and technical support. The scope is very wide search, the search is on the hardware, but also software for the search; Both assembled whole sets of search; There are various parts of the search, and so on.
5．Orders enquiry and Purchase logistics and delivery logistics
Customers only in the number of Internet customers of six figures or purchase orders numbers, a few minutes, will receive a detailed report on the progress of orders.Delivery logistics, the same achieved its online electronic payment, "customers trolleys" and transport management, etc. functions. Purchase of logistics enterprise-enterprise e-business, not reflected in the website, presumably in the company's internal network will be involved.
Dell computer companies will be in accordance with the product range of its products, respectively, in different areas of application or market classification classification, a different strategy.
2．Pricing strategy
Through direct sales, Dell than in the other major manufacturers of low cost 100 to 200 U.S. dollars, which use low-cost marketing strategy.
3．Advertising strategy
Advertising in Dell website, but no. Dell website contains a wide range of multimedia pictures, and many more performance charts, and even made some advertising in the form of slides. These customers can purchase fully stimulate desire.
Distribution channels
Direct modes in compressed product production lines, supplemented by online purchase at great development of its direct sales model.
Customer Service
1．Online orders, and by a single production
Dell companies to enable customers to purchase computer Dell.com and PremierDell.com for enterprise customers, the company has provided more than 60,000 customized web site to allow customers to track orders for the purchase and implementation. Valuechain.dell.com orders through direct transmission to the supplier of raw materials Dell companies, such suppliers will be able to receive real-time information on raw materials, thus contributing to Dell companies control inventory.
2．Video distribution and delivery guarantee
Dell particularly unique is that the company provided a special specialized services : network users can choose in accordance with their own preferences and needs of the computer, the company provides distribution of the final outcome of the
hardware, and system performance forecasts. As a result, the network of shops in the best possible selection, Dell sites in the forefront in computer networks. Dell customers at the center of the customer requirements for different customers different custom, personalized products. In all customers choice, the website also provides the corresponding price, payment method and delivery address and the identification and door-to-door in two days.
3．Online technical services and technical support
Dell companies provide online services and technical support is very broad, users answer questions, the escalation on Windows, software upgrades informed, and so on. A wide range of services not only to increase the intrinsic value of their products, can also be user satisfaction, and enhance the competitiveness of our products.
4．Online forums , help and Search services
Not only large customers, small enterprises, a large number of persons were also attract home office in Dell brands around. From the autumn of 1998, Dell established executives and customers online forum "had breakfast with Dell" extended to small business users, the topic of this live chat server market trend not only includes such large topics, but also for general users the opportunity to make a wide variety of issues, then adopted Dell online knowledge base in artificial intelligence software to help automatically answered.
Dell also provides comprehensive search services. A user-friendly search service can find their desired product and technical support. The scope is very wide search, the search is on the hardware, but also software for the search; Both assembled whole sets of search; There are various parts of the search, and so on.
5．Orders enquiry and Purchase logistics and delivery logistics
Customers only in the number of Internet customers of six figures or purchase orders numbers, a few minutes, will receive a detailed report on the progress of orders.Delivery logistics, the same achieved its online electronic payment, "customers trolleys" and transport management, etc. functions. Purchase of logistics enterprise-enterprise e-business, not reflected in the website, presumably in the company's internal network will be involved.
Marketing Strategy of DELL
Product: Dell's unique approach to manufacturing separates the different processes so that Dell is not reliant on singular production or supplier's chain for equipment production. Though there is no segregation of the different products and services but nevertheless in separating the components enabled it to target the customers based on the regions in which the products are manufactured. By assingning each regionalized production center particular component for production not only have diversified the risk of concentration of labor and production costs but also depending on particular infrastructure.
Price: Dell's product pricing reflect the affordability of the local consumers. For example basing plants in Xiamen, China Dell has been able to provide products and services at the local prices without incurring additional costs to price. Price reasonability and the availability of support, after sales services and parts have alleviate Dell's position from others.
Place: Dell has been able to affect the location strategy aspect of its marketing campaign. As Dell's products are always available at the nearest dealers customers develop trust for the "local Dell" thereby achieving the objective of gaining their trust in Dell products and services, and forming a large and diversified consumer base.
Promotion: Dell in the past have not concentrated on extensive marketing campaigns but this revolutionarized in 1999 when Dell changed its tactics by engaging in
extensive marketing campaigns. The "Be Direct" attitude has changed the way consumer view Dell as the local producers.
Price: Dell's product pricing reflect the affordability of the local consumers. For example basing plants in Xiamen, China Dell has been able to provide products and services at the local prices without incurring additional costs to price. Price reasonability and the availability of support, after sales services and parts have alleviate Dell's position from others.
Place: Dell has been able to affect the location strategy aspect of its marketing campaign. As Dell's products are always available at the nearest dealers customers develop trust for the "local Dell" thereby achieving the objective of gaining their trust in Dell products and services, and forming a large and diversified consumer base.
Promotion: Dell in the past have not concentrated on extensive marketing campaigns but this revolutionarized in 1999 when Dell changed its tactics by engaging in
extensive marketing campaigns. The "Be Direct" attitude has changed the way consumer view Dell as the local producers.
SWOT Analysis in dell
Strenths: Dell's dynamic organizational structure allows it to achieve diversified targets. By allowing the components to directly become integrated in the manufacturing process of Dell, it has been able to reduce middle channel costs. These components, such as OEMs, CMs, logistics, system integrators, repair and support companies, component suppliers, third party HW and SW suppliers and distributors have become each of the company's manufacturing processes so that ease of provision to the customers is possible. This reverse organizational process structure differ from other industry leaders. Weaknesses: Within the strengths lies Dell's weaknesses. Much of its strategies have to rely on the capacity and capability of these manufacturing components. Continuous updates and process improvement is required so that they can keep up with Dell's pace of development.
Opportunities: Having established an integrative and virtual network, Dell has been able to achieve the high level of corporate outcome that challenged most of the industry leaders. The established value web corporate model have also allow Dell to have global wide access to customers and market. Reaching any niche market in any continent is therefore not a problem for Dell's marketers. Threats: However, due to the integration of components in Dell's organization structure, Dell compete not only compete at the final product level but also at the suppliers level. Third party software for example have great competition for price and product categorization which could eventually affect Dell's position in the market.
Opportunities: Having established an integrative and virtual network, Dell has been able to achieve the high level of corporate outcome that challenged most of the industry leaders. The established value web corporate model have also allow Dell to have global wide access to customers and market. Reaching any niche market in any continent is therefore not a problem for Dell's marketers. Threats: However, due to the integration of components in Dell's organization structure, Dell compete not only compete at the final product level but also at the suppliers level. Third party software for example have great competition for price and product categorization which could eventually affect Dell's position in the market.
Marketing Environment in dell
Dell's strategy is global. It realizes that being closer to the customers is essential in carrying out its marketing strategies as well as in enabling it to build customer base. First by establishing the Internet infrastructure for booking/orders related activities it has been able to increased its customer base from existing markets. Using the same infrastructure it has been able to carry out its marketing strategies in new offices as well. However, Dell differentiate in its marketing tactics in that it believes in establishing a brick and mortar market presence. This is why the company has established sales offices and manufacturing outlets across North America, Europe, Asia and South America. This way it has been able to gauge the local customers' needs as well as services desired.
Apart from the above customer level niche marketing, Dell also believes in reducing competition through collaboration. Unlike other leaders in the industry such
as HP and Compaq, Dell does not believe in taking over existing competitors to eliminate competition. Instead the company have always pride itself in using partnerships and associations for integrated marketing. For example Xerox's addition to the company as a partner for providing printing products and services has served the purpose of integrating one more technology to its lists of comprehensive business services. As James Vanderslice, Vice Chairman of Dell says:"By adding Xerox to our roster of preferred printing partners, we are even better equipped to serve our customers with a full range of office printing technologies that provide end-to-end solutions. The Xerox brand is synonymous with quality, technology leadership and world-class services. We share these core values." ("Dell and Xerox Forge Strategic Marketing Tie").
Not only Dell believes in industry wide collaboration but also in global collaboration. It has based offices in different countries of the world as strategic plan due to the fact that it would be able to reach the niche market effectively. By breaking the dominance or monopoly of other computer companies, Dell would be able to capture the market by providing products and services at competitive pricing strategies.
Apart from the above customer level niche marketing, Dell also believes in reducing competition through collaboration. Unlike other leaders in the industry such
as HP and Compaq, Dell does not believe in taking over existing competitors to eliminate competition. Instead the company have always pride itself in using partnerships and associations for integrated marketing. For example Xerox's addition to the company as a partner for providing printing products and services has served the purpose of integrating one more technology to its lists of comprehensive business services. As James Vanderslice, Vice Chairman of Dell says:"By adding Xerox to our roster of preferred printing partners, we are even better equipped to serve our customers with a full range of office printing technologies that provide end-to-end solutions. The Xerox brand is synonymous with quality, technology leadership and world-class services. We share these core values." ("Dell and Xerox Forge Strategic Marketing Tie").
Not only Dell believes in industry wide collaboration but also in global collaboration. It has based offices in different countries of the world as strategic plan due to the fact that it would be able to reach the niche market effectively. By breaking the dominance or monopoly of other computer companies, Dell would be able to capture the market by providing products and services at competitive pricing strategies.
Friday, December 10, 2010
Price Segmentation
Price segmentation is common and widely practiced. Variation in household incomes creates an opportunity for segmenting some markets along a price dimension. If personal incomes range from low to high, then a company should offer some cheap products, some medium-priced ones, and some expensive ones. This type of price segmentation is well illustrated by the range of automotive brands marketed by General Motors, historically.
Chevrolet, Pontiac, Oldsmobile, Buick, and Cadillac varied in price (and status) along a clearly defined spectrum to appeal to successively higher income groups.
Chevrolet, Pontiac, Oldsmobile, Buick, and Cadillac varied in price (and status) along a clearly defined spectrum to appeal to successively higher income groups.
Distribution Segmentation
Different markets can be reached through different channels of distribution. For example, a company
might segment the “tick and flea collar” market by selling the product to supermarkets under one
brand name, to mass merchandisers under another brand, to pet stores under another brand name,
and to veterinarians under yet another brand name. This type of distributional segmentation is
common, especially among small companies that grant each channel a unique brand to gain distribution
within that channel. Other examples of distributional segmentation would be an upscalline of clothing sold only in expensive department stores, or a hair shampoo sold only through upscale beauty salons.
might segment the “tick and flea collar” market by selling the product to supermarkets under one
brand name, to mass merchandisers under another brand, to pet stores under another brand name,
and to veterinarians under yet another brand name. This type of distributional segmentation is
common, especially among small companies that grant each channel a unique brand to gain distribution
within that channel. Other examples of distributional segmentation would be an upscalline of clothing sold only in expensive department stores, or a hair shampoo sold only through upscale beauty salons.
Geographic Segmentation
This is perhaps the most common form of market segmentation, wherein companies segment the
market by attacking a restricted geographic area. For example, corporations may choose to market
their brands in certain countries, but not in others A brand could be sold only in one market, one
state, or one region of the United States. Many restaurant chains focus on a limited geographic
area to achieve concentration of force. Regional differences in consumer preferences exist, and this
often provides a basis for geographic specialization. For example, a company might choose to
market its redeye gravy only in the southeastern U.S. Likewise, a picante sauce might concentrate
its distribution and advertising in the southwest. A chain saw company might only market its products
in areas with forests. Geographic segmentation can take many forms (urban versus rural,
north versus south, seacoasts versus interior, warm areas versus cold, high-humidity areas versus dry
areas, high-elevation versus low-elevation areas, and so on). These examples also reveal that geographic
segmentation is sometimes a surrogate for (or a means to) other types of segmentation.
market by attacking a restricted geographic area. For example, corporations may choose to market
their brands in certain countries, but not in others A brand could be sold only in one market, one
state, or one region of the United States. Many restaurant chains focus on a limited geographic
area to achieve concentration of force. Regional differences in consumer preferences exist, and this
often provides a basis for geographic specialization. For example, a company might choose to
market its redeye gravy only in the southeastern U.S. Likewise, a picante sauce might concentrate
its distribution and advertising in the southwest. A chain saw company might only market its products
in areas with forests. Geographic segmentation can take many forms (urban versus rural,
north versus south, seacoasts versus interior, warm areas versus cold, high-humidity areas versus dry
areas, high-elevation versus low-elevation areas, and so on). These examples also reveal that geographic
segmentation is sometimes a surrogate for (or a means to) other types of segmentation.
Market Segmentation
When the term “market segmentation” is used,most of us immediately think of psychographics,
lifestyles, values, behaviors, and multivariate cluster analysis routines. Market segmentation
is a much broader concept, however, and pervades the practice of business throughout the world.
What is market segmentation? At its most basic level, the term “market segmentation” refers to
subdividing a market along some commonality, similarity, or kinship. That is, the members of a
market segment share something in common. The purpose of segmentation is the concentration of
marketing energy and force on the subdivision (or the market segment) to gain a competitive
advantage within the segment. It’s analogous to the military principle of “concentration of force” to
overwhelm an enemy. Concentration of marketing energy (or force) is the essence of all marketing
strategy, and market segmentation is the conceptual tool to help achieve this focus. Before discussing
psychographic or lifestyle segmentation (which is what most of us mean when using the term
“segmentation”), let’s review other types of market segmentation. Our focus is on consumer markets
rather than business markets.
lifestyles, values, behaviors, and multivariate cluster analysis routines. Market segmentation
is a much broader concept, however, and pervades the practice of business throughout the world.
What is market segmentation? At its most basic level, the term “market segmentation” refers to
subdividing a market along some commonality, similarity, or kinship. That is, the members of a
market segment share something in common. The purpose of segmentation is the concentration of
marketing energy and force on the subdivision (or the market segment) to gain a competitive
advantage within the segment. It’s analogous to the military principle of “concentration of force” to
overwhelm an enemy. Concentration of marketing energy (or force) is the essence of all marketing
strategy, and market segmentation is the conceptual tool to help achieve this focus. Before discussing
psychographic or lifestyle segmentation (which is what most of us mean when using the term
“segmentation”), let’s review other types of market segmentation. Our focus is on consumer markets
rather than business markets.
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