International Marketing Report: Ethical Issues and Consumer Behavior

This report provides an in-depth analysis of international marketing, specifically focusing on the ethical challenges faced by The COBABURU, an Australian brewery, when targeting consumers in France. The report identifies key ethical issues, including human rights, work environment concerns, bribery, and moral obligations of multinational firms, as well as employment practices. It then explores the implications of social-cultural elements like social institutions, values, and organizations, and consumer behavior factors such as motives, cues, responses, and reinforcement. The report concludes with recommendations for The COBABURU to improve its CSR initiatives, address ethical issues, consider cultural nuances, and enhance employment practices to build integrity and trust with customers. The analysis underscores the importance of ethical considerations and cultural sensitivity in developing effective international marketing strategies.

International marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
SECTION 1......................................................................................................................................1
Identification of ethics issues.................................................................................................1
SECTION 2......................................................................................................................................2
Explore the social cultural and consumer behaviour elements and their implication............2
SECTION 3......................................................................................................................................4
RECOMMENDATION..........................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
International marketing is based strategy that is invented in the home country of the
organisation and distribution in other countries(Armstrong & et.al,2015). Present study is based
on The COBABURU. It is a medium sized Australian brewery. It is a producer, whole-seller and
retailer of the premium niche drink. The report will include the ethical issues of the company at
home country as well as France. It will explained the elements of social cultural and consumer
behaviours and their implications on the company.
SECTION 1
Identification of ethics issues
Ethics issues:-
For The COBABURU, there are so many ethical issues arises in targeting the customers
of France as well as Australia:-
Human rights:-
The COBABURU company's main ethical issue is related to human right that arises when
company do not provides basic rights like freedom of thought& expression, right to democracy
and social security to the employees at the workplace that creates ethical issues to the company
because company do not do such type of work that do not care about the right of the employees
at France as well as Australia(Eteokleous, Leonidou & Katsikeas,2016).
Work environment:-
It is also a big ethical issue for the COBABURA because it is a brewery type company
that uses harmful material at the work place that is an important ethical issue for the company
because if company do not provide a good environment at workplace than employees are not feel
happy and safe at workplace and they may be leave the organisation. According to countries
environment, the facilities are provided to the workers. If the COBABURA do not provide
accordingly that creates big ethical issues.
Bribery and corruption:-
It is also an ethical issue because influence someone's behaviours by doing unethical
things like giving unearned rewards. It is a wrong things that done by the company and makes
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major ethical issue. Corruption is also an unethical thing that is done by company for gaining the
advantages through illegally. If The COBABURA uses this type of activities in their business
operation that can create ethical issues as well as reduces the goodwill of the company(Leonidou
& et.al.,2018).
Moral obligations of multinational firms:-
Every country have their own moral obligation. Moral obligation means understanding of
right and wrong consideration. This obligations are arising from the ethical motive and
unconnected with legal obligation of those country where the COBABURA operates their
business activities.
Employment practices:-
It is a pattern that is followed by the company in their hiring process that pattern should
be standardise for each people when the COBABURA do not follow standardise format of the
hiring process that is an ethical issue of the company in the countries. The employment practices
includes discrimination and unfair wages and sexual harassment etc.(Murphy, Laczniak &
Harris,2016).
SECTION 2
Explore the social cultural and consumer behaviour elements and their implication
Social cultural elements and its implications:-
 Social institutions & systems: every country have lots of social system like caste
system, patriarchal family, joint family system and religion, marriage etc. France also
have social system. They believes in religion and marriage system that affects business
marketing strategy because the consumer of the COBABURU also belongs to this
culture. If the COBABURU do not make decision making according to their religion than
it deems as an against the ethics that impact organisation's decision making(Kolk,2016).
 Social values & movers: the COBABURU must consider the customs, tradition and
attitudes of the customers of the France. It is very important to international marketing
manager for their strategy of the marketing because that all factors affects consumers
behaviours. The superstitions, conventions and manners are also important element that
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may create ethical issues. It impacts on COBABURU values because their values are
made by their customers.
 Social organisation: every country have different culture. when culture divides its
members in small groups. These groups may be family, friends, interest group and
occupation etc. the consumers behaviour is influenced according to their culture. If the
COBABURU impacts cultural values of the customers that can create ethical issues for
the company(Keillor, Hult & Babakus,2015).
 Education & culture: it includes customers attitude towards education, organisation
cultural and business morality etc. if the COBABURU contribute in education of the
France that help to enhance their business operations as well as increase business
morality.
 Social responsibility: the marketing manager of COBABURU must follow social
responsibilities of the France that includes business ethics and social welfare. If the
COBABURU contribute in social welfare of the France society that enhance their values
of the product but if they does not follow business ethics of the country that may become
a big ethical issue(Eteokleous, Leonidou & Katsikeas,2016).
Consumer behaviour elements and its implications:-
 Motives: it cover many factors of consumer behaviours such as reasons of doing
something, effects of action etc. if the COBABURU want to make effective marketing
strategy and avoid ethical issues than they have to create a reasons for buying their
products because consumer do not buy products without their benefits and need. If the
COBABURU do not consider consumers motives in their strategy than that makes an
ethical issue(Armstrong & et.al,2015).
 Cues: the COBABURU have to capable to provide direction to the consumer that
influence the buying behaviours of the consumers towards the product and services of the
company. If the company are not able to provide right direction to the customer and
indicate in a wrong way that create ethical issues(Elements of the consumer behaviour,
and defining the market hierarchy, 2019).
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 Response: if the COBABURU wants the response from the customers than they need to
include some physical activities in their marketing plan that enhance the willingness to
the customers and attract towards the company. If the company fails to attract their
customer than that enhance the losses of the company(Demangeot, Broderick &
Craig,2015).
 Reinforcement: the COBABURU creates the similar situations like the other company
and want to the response more than the other companies that helps to company to
understand the behaviours of the consumer in similar situations that helps to prevent the
company from the ethical issues(De Mooij,2015).
SECTION 3
RECOMMENDATION
The COBABURU should improve their existing CSR initiative because that are not
provide maximum benefits to society of the France that impacts negatively of the company
performance if they wants to enhance their values in France than they have to improve their
existing CSR initiative as well as enhance their CSR activities in France. The COBABURU can
include management philosophy, respects of human rights, optimal work environment and more
involvement in environmental activities etc. in their CSR activities that helps to promote their
business as well as enhance the profits and sells of the company. With the help of CSR activities,
company should establish their operation in France easily without the interference of the
government because CSR activities shows company's good image. If the COBABURU enhance
their CSR activities that also prevent company from ethical issues because mostly ethical issues
are related to CSR activities.
The COBABURU should have to chosen the best alternative for resolving the ethical
issues that company faces in France. The influence of language, culture and region is a big issue
for the company in France because COBABURU is a Australian brewery that majorly impact on
various region and culture. France have distinguish business society that play strong role for their
rights and values. The COBABURU should have to consider their target markets values and
rights in their marketing strategy.
The COBABURU should improve their employment practices by introducing many CSR
initiatives for their employees related to working environment, providing housing and education
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facilities for their family, hospitality services etc. because CSR plays an important role for the
business as well as the country. It promotes business activities, vision and create wide range of
stakeholder. if the COBABURU promote their products in France than they have to contribute in
corporate social responsibilities of the France. If the CSR of the COBABURU are good than that
beneficial for the company as well as customer of the France and home country Australia.
The COBABURU should create integrity and trust with international as well as home
country's customers that helps in enhance their the goodwill of the company. Integrity means
conducting their business affairs with honesty and commitment to treat every customer fairly.
Trust means a relationship between the company and customer. The COBABURU should have
maintain good integrity and trust with the customers of the France and Indonesia that enhance
the sales and profit of the company as well as contributing through word of mouth marketing.
The COBABURU should respect equally to their each employees of France as well as
Australia because they are a diverse pool of people who deserve different respect because of
different countries. The diversity begins when company start recruiting the workforce and equal
opportunities for every employees. The company should provide equal opportunities and
respectful working environment that minimize the ethical issues.
CONCLUSION
From the above study it can be concluded that international marketing is one of the most
essential part of international business. It is defined the ethical issues of international marketing
that effects the overall business activities. Further It is explained the elements of the social
cultural and consumer behaviour and their impacts on the company's decision making.
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REFERENCES
Books and journals
Armstrong & et.al.,(2015). Marketing: an introduction.
De Mooij, M. (2015). Cross-cultural research in international marketing: clearing up some of the
confusion. International Marketing Review.32(6). 646-662.
Demangeot, C., Broderick, A. J., & Craig, C. S. (2015). Multicultural marketplaces: New
territory for international marketing and consumer research. International Marketing
Review.32(2). 118-140.
Eteokleous, P. P., Leonidou, L. C., & Katsikeas, C. S. (2016). Corporate social responsibility in
international marketing: review, assessment, and future research. International Marketing
Review. 33(4). 580-624.
Keillor, B., Hult, G. T. M., & Babakus, E. (2015). The Natid Scale: Construction of a National
Identity Scale for Application in International Marketing Research. In Proceedings of the
1994 Academy of Marketing Science (AMS) Annual Conference (pp. 220-224). Springer,
Cham.
Kolk, A. (2016). The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business.51(1).23-
34.
Leonidou & et.al., (2018). International marketing research: A state-of-the-art review and the
way forward. In Advances in Global Marketing(pp. 3-33). Springer, Cham.
Murphy, P. E., Laczniak, G. R., & Harris, F. (2016). Ethics in marketing: International cases
and perspectives. Taylor & Francis.
Online
Elements of the consumer behaviour, and defining the market hierarchy.2019[online]. Available
through<https://slideplayer.com/slide/5120978/>
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