Ethical and unethical business practices in relation to the 3 P's

• Pricing

Ethical practice- The company sells outdated products with cut and cheap prices or make way for a new line of products. Producers also set prices for their products very low to introduce them to the market and elicit consumers to bu them.

Unethical practice- To squash the sales of its competitors, the company sells the same products for lower prices.

• Promotion

Ethical practice- If the company's products have some dangers, the company uses an ethical marketing strategy to underscore the dangers and give clear instructions about how to avoid those dangers by advertising them.

Unethical practice- Even though the company's products have some dangers, the company uses its advertisements to hide and conceal those dangers. 

• Product

Ethical practice- The company collects data on individuals in their target markets and use that data to make great products that the consumers would like to buy, but respect the individual's privacy.

Unethical practice- However, some companies do not respect the individual's privacy by not protecting it, after they finish getting information about the individuals' data in their target markets.  

The company's branding identity

The majority of the companies are trying to develop identity or change negative identity to positive one. What they are doing is 'branding' which is the process involved in creating a unique name and image or other things for a product in the consumers' minds, mainly through advertising campaigns with a consistent theme. For example, Google, the most popular and famous portal site, has been keeping a friendly, relaxing, inviting, unpretentious, fun and productive identity or personality from all the customers in the world. What is noteworthy here is how Google inculcate its intended identity in the customers and expressed it to them. What they used to do so was its logo. Its previous logo was all dark and hackneyed before it changed to achieve its intended identity. First, changed Google logo has a white space on the search page that make customers feel like Google is generous and inviting them in, finally not getting in the way of searching for something. Lastly, it has more vivid colors that also make customers feel like Google is a space for human expression. It also intended not to be boring or hackneyed by customers.

Chapter 24 Exam Practice Question p.249

1. The total sales of Microsoft/ the total sales of the smartphone market= Microsoft's market share of the mobile phone market.

2. There are two ways Microsoft could increase its market share of the mobile phone market. First, if it listens carefully to the consumers' feedback, as known as market orientation that Apple uses well, then it would be possible for Microsoft to make products that the consumers want, so that consumers would like its attitude toward them. However, this method would disturb Microsoft to work on other project, such as working on the new software. If Microsoft figures out how much time they need to spend to listen to the consumers' feedback and how much they work on the other projects, it would increase its market share.

Also, the other way is to spend more money to advertise its product. According to the psychologists, people tend to choose to buy products that they have seen somewhere. Therefore, as much as Microsoft advertise its products, people will tend to buy its products, as they have seen its products somewhere. However, this way may have negative affects as well. If it spends too much money for the advertisement, it may face with the financial problems. It might not spend money for other projects or even fail. Therefore, if Microsoft controls how much it needs to spend on the advertisement, then it may succeed to increase its market share of the mobile phone market.

3. Market-orientated approach, as also known as market orientation, is an outward-looking approach basing product decisions on consumer demands, as established by market research. Apple used this approach very often, as its useful efficacy is high. For instance, if the consumers demand are met with apt products, then they may survive longer and make higher profits than those that are being` sold following a product-led approach. Consecutive feedback from consumers will allow the product and how it is marketed to be adapted to changing tastes before it is too late and before competitors get there first. However, it has also negative aspects. If a firm tries to respond to every passing consumer trend or feedback, then it may well overstretch its resources and end up not doing any other projects particularly.

4. By adopting a more social approach to marketing their products, mobile phone producers, especially Microsoft, will get benefits from it. This approach is an attempt to balance three concerns, company profits, consumer demands and society's interests. Also, this may give the company a significant competitive advantage. Many consumers prefer to buy products from businesses that are seen to be socially responsible. Therefore, this approach may make the consumers buy mobile phone of a specific company which used this approach. Furthermore, this strategy could lead to the company being able to charge higher prices for its products as benefiting society becomes a unique selling point. Therefore, even though the company's mobile phones are so expensive, the consumers probably not stop buying its products, mobile phones, as it already gained a prestige from the consumers through this approach. By using this strategic tool, the mobile producers might make their consumers feel like they are donating while purchasing product,which eventually make them end up buying their phones.

Activity 24.3

1. Tesco Lotus's sales in 2008= 35 billion *31/100= 10.85 billion

2. (10.85+2)/(35+10)*100 (%)= 12.85/45*100= 28.6%

3. Since Tesco Lotus is market leader in Thailand, it not only can enter new market, but also it can open new stores. It would have enough money to open many stores. Also, they are already successful, so they can challenge more by entering new markets. Due to its prestige, it may succeed also in other markets. 

4. I think the Thai government should not put restrictions on Tesco Lotus's future growth. It is a huge business, not only in Thailand or France, but in the rest of the world. It may be a huge impact for Thai that Tesco is operating in Thai. It gives better , but cheaper goods to people i Thai. Most importantly, most people in Thai are satisfied with it and don't want the government to put the restrictions on Tesco Lotus. I think the Thai government should leave Tesco Lotus without any restroction on it for residents in Thailand.

A Conflict Between Stakeholders.

'Apple Company' proclaimed that to make better products with better quality, they are going to cut almost all the previous employees and hire many new skillful employees, but there is not any change about employees' pay. The employees won't, of course, be happy with this news, as they might get fired, lose their jobs and stop making money. However, the shareholders who want 'Apple Company' to make as much profit as possible will welcome this amenent. That's because they might think that new skillful employees will help make products wkth better quality and make much more people to buy their products, which eventually help 'Apple Company' make much more profit than before. Furthermore, people, who want to join 'Apple Company' or who want to get a job to make money, will like this unlike the previous workers. They may have possibility to join the company and start making profit themselves. Lastly, the other companies who are competing with 'Apple Company' will not welcome. They may think that 'Apple' will be more powerful than before, and it means that it will be harder to compete with 'Apple' and beat them. Also, their employees might quit and join 'Apple Company'. That means they are losing their employees by 'Apple'.