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114-521: The aim of FINE is to enable these networks and their members to cooperate on: FINE is an informal working group. It has no formal structure and no decision-making power. Meetings are held as required. Preparation, hosting and facilitation of the meetings rotates between members. Decisions are taken by the boards of the FINE members. Since April 2004 FINE has run a fair trade advocacy office in Brussels . Its role

228-458: A "feel good" movement. Because the movement has an established history, it is not just a fad. It raises awareness about an issue and offers a solution. The solution is an easy one for college students to handle: paying about five cents more for a cup of coffee or tea. Worldshops, or fair trade shops, are specialized retail outlets that offer and promote fair trade products. Worldshops also typically organize educational fair trade activities and play

342-717: A Fair Trade school or Fair Trade university emerged from the United Kingdom , where the Fairtrade Foundation maintains a list of colleges and schools that comply with the requirements to be labeled such a university. In order to be considered a Fair Trade University, a university must establish a Fairtrade School Steering Group. They must have a written and implemented, school-wide, fair trade policy. The school or university must be dedicated to selling and using Fair Trade products. They must learn and educate about Fair Trade issues. Finally, they must promote fair trade not only within

456-598: A Vertical Integration Strategy include the internal costs for the business and the need for overhead costs. Also if the business is not well organized and fully equipped and prepared the business will struggle using this strategy. There are also competitive disadvantages as well, which include; creates barriers for the business, and loses access to information from suppliers and distributors. In terms of market position, firms may be classified as market leaders, market challengers, market followers or market nichers. Most firms carry out strategic planning every 3– 5 years and treat

570-462: A business’s competitive position while addressing challenges and opportunities in the industry. Managerial marketing involves executing specific and targeted objectives. Marketing strategy allows a firm to narrow down its visions into practical and achievable goals while Marketing management involves practical planning to implement these goals. The term higher-order planning is often used to refer to marketing strategy since this strategy helps establish

684-453: A company's overarching mission statement . Strategies often specify how to adjust the marketing mix ; firms can use tools such as Marketing Mix Modeling to help them decide how to allocate scarce resources, as well as how to allocate funds across a portfolio of brands. In addition, firms can conduct analyses of performance, customer analysis, competitor analysis , and target market analysis. Marketing strategies may differ depending on

798-402: A competitive advantage. In recent years, the advent of digital marketing has revolutionized strategic marketing practices, introducing new avenues for customer engagement and data-driven decision-making. The terms “strategic” and “managerial” marketing distinguish between two processes, each with different goals and conceptual tools. Strategic marketing involves implementing policies that boost

912-418: A competitive advantage. The resource-based view suggests that organizations must develop unique, firm-specific core competencies that will allow them to outperform competitors by doing things differently and in a superior manner. Barney stated that for resources to hold potential as sources of sustainable competitive advantage, they should be valuable, rare, and imperfectly imitable. A key insight arising from

1026-506: A complex network of inter-related assets and capabilities, organizations can adopt many possible competitive positions. Although scholars debate the precise categories of competitive positions that are used, there is general agreement, within the literature, that the resource-based view is much more flexible than Porter's prescriptive approach to strategy formulation. Hooley et al., suggest the following classification of competitive positions: The choice of competitive strategy often depends on

1140-410: A cost advantage over early entrants due to the use of product imitation. However, if a business is switching markets, this could take the cost advantage away due to the expense of changing markets for the business. Late Entry into a market does not necessarily mean there is a disadvantage when it comes to market share, it depends on how the marketing mix is adopted and the performance of the business. If

1254-604: A definition of fair trade developed by FINE , an informal association of four international fair trade organizations: Fairtrade International (formerly called FLO, Fairtrade Labelling Organizations International), World Fair Trade Organization (WFTO), Network of European Worldshops and European Fair Trade Association (EFTA). Fair trade, by this definition, is a trading partnership based on dialogue, transparency and respect, that seeks greater equity in international trade. Fair trade organizations, backed by consumers, support producers, raise awareness and campaign for changes in

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1368-421: A detailed description about what fair trade is. They could, however, identify fair trade based on some of its possible benefits to their community. When asked, farmers responded that fair trade has had a positive effect on their lives and communities. They also wanted consumers to know that fair trade is important for supporting their families and their cooperatives . Overall, the farmers studied were satisfied with

1482-420: A diversification strategy is that the benefits could take a while to start showing, which could lead the business to believe that the strategy in ineffective. Another disadvantage or risk is, it has been shown that using the horizontal diversification method has become harmful for stock value, but using the vertical diversification had the best effects. A disadvantage of using the horizontal integration strategy

1596-508: A fair trade systems. A large number of fair trade and ethical marketing organizations employ a variety of marketing strategies . Most fair trade marketers believe it is necessary to sell the products through supermarkets to get a sufficient volume of trade to affect the developing world. In 2018, nearly 700,000 metric tons of fair-trade bananas were sold worldwide, with the next largest fair-trade commodity being cocoa beans (260,000 tons) then coffee beans (207,000 tons). The biggest product in

1710-475: A few examples to understand the basics. Marketing scholars have suggested that strategic marketing arose in the late 1970s and its origins can be understood in terms of a distinct evolutionary path: Marketing strategy involves mapping out the company's direction for the forthcoming planning period, whether that be three, five, or ten years. It involves undertaking a 360° review of the firm and its operating environment to identify new business opportunities that

1824-469: A great deal of skill and judgment. Strategic analysis is designed to address the first strategic question, "Where are we now?" Traditional market research is less useful for strategic marketing because the analyst is not seeking insights about customer attitudes and preferences. Instead, strategic analysts are seeking insights into the firm's operating environment to identify possible future scenarios, opportunities, and threats. Mintzberg suggests that

1938-563: A highly vertically integrated business this creates different economies therefore creating a positive performance for the business. Vertical integration is seen as a business controlling the inputs of supplies and outputs of products as well as the distribution of the final product. Some benefits of using a Vertical integration strategy is that costs may be reduced because of the reducing transaction costs which include finding, selling, monitoring, contracting and negotiating with other firms. Also by decreasing outside businesses input it will increase

2052-423: A lesser extent, North America. Some felt that these shops were too disconnected from the rhythm and the lifestyle of contemporary developed societies. The inconvenience of going to them to buy only a product or two was too high even for the most dedicated customers. The only way to increase sale opportunities was to offer fair trade products where consumers normally shop, in large distribution channels. The problem

2166-455: A licence to use the FAIRTRADE mark, businesses need to apply for products to be certified by submitting information about their supply chain. Then they can have individual products certified depending on how these are sourced. Coffee packers in developed countries pay a fee to the Fairtrade Foundation for the right to use the brand and logo. Packers and retailers can charge as much as they want for

2280-412: A lower risk when first entering a new market. By being a first entrant, it is easy to avoid higher switching costs compared to later entrants. For example, those who enter later would have to invest more expenditure in order to encourage customers away from early entrants. However, while Market Pioneers may have the “highest probability of engaging in product development” and lower switching costs, to have

2394-405: A market have serious market-share advantages above all those who enter later. Pioneers have the first-mover advantage, and in order to have this advantage, business’ must ensure they have at least one or more of three primary sources: Technological Leadership, Preemption of Assets or Buyer Switching Costs. Technological Leadership means gaining an advantage through either Research and Development or

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2508-537: A merge has happened, this increases the knowledge of the business and marketing area they are focused on. The last benefit is more opportunities for deviation to occur in merged businesses rather than independent businesses. Vertical integration is when business is expanded through the vertical production line on one business. An example of a vertically integrated business could be Apple. Apple owns all their own software, hardware, designs and operating systems instead of relying on other businesses to supply these. By having

2622-415: A process of convergence among "LIs" ("Labeling Initiatives") led to the creation of Fairtrade Labelling Organizations International, an umbrella organization whose mission is to set fair trade standards, support, inspect, and certify disadvantaged producers, and harmonize the fair trade message across the movement. In 2002, FLO launched an International Fairtrade Certification Mark. The goals were to improve

2736-603: A recent publication suggests that 72 techniques are essential. No optimal technique can be identified as useful across all situations or problems. Determining which technique to use in any given situation rests with the analyst's skills. The choice of tool depends on a variety of factors including: data availability; the nature of the marketing problem; the objective or purpose, the analyst's skill level as well as other constraints such as time or motivation. The most commonly used tools and techniques include: Research methods Analytical techniques The vision and mission address

2850-609: A role in trade justice and other North-South political campaigns . Worldshops are often not-for-profit organizations run by local volunteer networks. The movement emerged in Europe and a majority of worldshops are still based on the continent, but worldshops also exist in North America, Australia, and New Zealand. Marketing strategies Marketing strategy refers to efforts undertaken by an organization to increase its sales and achieve competitive advantage . In other words, it

2964-408: A sales value ratio of 80% handcrafts to 20% agricultural goods was the norm, in 2002 handcrafts amounted to 25% of fair trade sales while commodity food was up at 69%. Sales of fair trade products only took off with the arrival of the first Fairtrade certification initiatives. Although buoyed by growing sales, fair trade had been generally confined to small worldshops scattered across Europe and, to

3078-538: A simple choice while being spared these burdens and expenses. Consumers of fair trade products usually make the intentional choice to purchase fair trade goods based on attitude , moral norms, perceived behavioral control and social norms. It is useful to include of measure of moral norms to improve the predictive power of intentions to buy fair trade over the basic predictors, like attitude and perceived behavioral control. University students have significantly increased their consumption of fair trade products over

3192-586: A standard-setting body ( Fairtrade International ) and a certification body ( FLO-CERT ), the system involves independent auditing of producers and traders to ensure the standards are met. For a product to carry either the International Fairtrade Certification Mark or the Fair Trade Certified Mark , it must come from FLO-CERT inspected and certified producer organizations. The crops must be grown and harvested in accordance with

3306-409: A variety of factors including: the firm's market position relative to rival firms, the stage of the product life cycle. A well-established firm in a mature market will likely have a different strategy than a start-up . Growth of a business is critical for business success. A firm may grow by developing the market or by developing new products. The Ansoff product and market growth matrix illustrates

3420-433: Is direct trade , which eliminates the overhead costs of the fair trade certification and allows suppliers to receive higher prices closer to the retail value of the end product. Some suppliers use relationships started in a fair trade system to autonomously springboard into direct sales relationships they negotiate themselves, whereas other direct trade systems are supplier-initiated for social responsibility reasons similar to

3534-427: Is a realistic, long-term future scenario for the organization. (Vision statements should not be confused with slogans or mottos.) It is a "clearly articulated statement of the business scope." A strong vision statement typically includes the following: Some scholars point out the market visioning is a skill or competency that encapsulates the planners' capacity "to link advanced technologies to market opportunities of

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3648-554: Is a visible way that these farmers are different from their neighbors and it influences the way they farm. They place importance on natural growing methods. Fair trade farmers are also more likely to attribute their higher prices to the quality of their products rather than fair market prices. Fairtrade labelling (usually simply Fairtrade or Fair Trade Certified in the United States) is a certification system that allows consumers to identify goods that meet certain standards. Overseen by

3762-466: Is applied to those who are Late Followers in the market. By having a different strategy, it allows the followers to create their own unique selling point and perhaps target a different audience in comparison to that of the Market Pioneers. Early following into a market can often be encouraged by an established business’ product that is “threatened or has industry-specific supporting assets”. Following

3876-613: Is money left over for the farmers. The cooperatives sometimes pay farmers a higher price than farmers do, sometimes less, but there is no evidence on which is more common. To become a certified fair trade producer , the primary cooperative and its member farmers must operate to certain political standards, imposed from Europe. FLO-CERT, the for-profit side, handles producer certification, inspecting and certifying producer organizations in more than 50 countries in Africa, Asia, and Latin America. In

3990-909: Is popular in the UK, where there are over 500 Fairtrade towns , 118 universities, over 6,000 churches, and over 4,000 UK schools registered in the Fairtrade Schools Scheme . In 2011, more than 1.2 million farmers and workers in more than 60 countries participated in Fairtrade International's fair trade system, which included €65 million in fairtrade premium paid to producers for use developing their communities. Some criticisms have been raised about fair trade systems, including that fair trade certification did not lead to financial benefit to producers or improvement in working conditions, and that fair trade certification resulted in greater inequalities in some markets. A proposed alternative to fair trade

4104-412: Is that it is an open platform for a business to expand and build away from the already existing market. High levels of horizontal integration lead to high levels of communication within the business. Another benefit of using this strategy is that it leads to a larger market for merged businesses, and it is easier to build good reputations for a business when using this strategy. A disadvantage of using

4218-448: Is that it is possible to identify successful companies that pursue a hybrid strategy – such as low-cost positions and differentiated positions simultaneously. Toyota is a classic example of this hybrid approach. Other scholars point to the simplistic nature of the analysis and the overly prescriptive nature of the strategic choices which limits strategies to just three options. Yet others point to research showing that many practitioners find

4332-403: Is that this limits and restricts the field of interest that the business. Horizontal integration can affect a business's reputation, especially after a merge has happened between two or more businesses. There are three main benefits to a business's reputation after a merge. A larger business helps the reputation and increases the severity of the punishment. As well as the merge of information after

4446-448: Is the method of advertising a company's products to the public through an established plan through the meticulous planning and organization of ideas, data, and information. Strategic marketing emerged in the 1970s and 1980s as a distinct field of study, branching out of strategic management . Marketing strategies concern the link between the organization and its customers, and how best to leverage resources within an organization to achieve

4560-535: Is to benefit in some way consumers on a micro level from person to person and then second, keep all of society as a whole in contentment. In 1980, Michael Porter developed an approach to strategy formulation that proved to be extremely popular with both scholars and practitioners. The approach became known as the positioning school because of its emphasis on locating a defensible competitive position within an industry or sector. In this approach, strategy formulation consists of three key strands of thinking: analysis of

4674-609: Is to coordinate the advocacy activities of fair trade proponents at both the European and the international levels. The aim of the office is to step up public support for fair trade and to speak out for trade justice . In 2001, FINE members agreed the following definition of fair trade, on which to base their work: " Fair trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing

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4788-478: Is used in all these meanings in key documents. In practice, when price and credit are discussed, "producer" means the exporting organization, "For small producers' organizations, payment must be made directly to the certified small producers' organization". and "In the case of a small producers' organization [e.g. for coffee], Fairtrade Minimum Prices are set at the level of the Producer Organization, not at

4902-586: The Earth Charter and the application of fair trade principles, and several upper-level anthropology courses focused on fair trade. In 2010, the University of California, San Diego became the second Fair Trade University in the United States. UC San Diego considered the efforts of the Fairtrade Foundation in the UK, but wanted to be more detailed about how their declaration as a Fair Trade University would change

5016-512: The Mennonite Central Committee (MCC), and SERRV International were the first, in 1946 and 1949 respectively, to develop fair trade supply chains in developing countries. The products, almost exclusively handicrafts ranging from jute goods to cross-stitch work, were mostly sold in churches or fairs. The goods themselves had often no other function than to indicate that a donation had been made. The current fair trade movement

5130-759: The United Nations charter of human rights , a fair price that covers the cost of production and facilitates social development, and protection of the environment. The Fairtrade certification also attempts to promote long-term business relationships between buyers and sellers, crop pre-financing, and greater transparency throughout the supply chain. The Fairtrade certification system covers a growing range of products, including bananas, honey, coffee, oranges, Cocoa bean, cocoa, cotton, dried and fresh fruits and vegetables, juices, nuts and oil seeds, quinoa, rice, spices, sugar, tea and wine. Companies offering products that meet Fairtrade standards may apply for licences to use one of

5244-402: The fair trade debate there are many complaints of failure to enforce these standards, with producers, cooperatives, importers, and packers profiting by evading them. Fair trade benefits workers in developing countries. The nature of fair trade makes it a global phenomenon; therefore, there are diverse motives for group formation related to fair trade. The social transformation caused by

5358-600: The Canadian Student Fair Trade Network (Canada), or Fair Trade Campaigns (USA), which also houses Fair Trade Universities and Fair Trade Schools. The involvement of church organizations has been and continues to be an integral part of the fair trade movement: The first attempts to commercialize fair trade goods in markets in the global north were initiated in the 1940s and 1950s by religious groups and various politically oriented non-governmental organizations (NGOs). Ten Thousand Villages, an NGO within

5472-499: The Earth Charter and created a Campus Sustainability Plan to align with the efforts of becoming a Fair Trade University. The University of Wisconsin-Oshkosh also offers courses in different disciplines that implement fair trade learning. They offer a business course with a trip to Peru to visit coffee farmers, an environmental science class that discusses fair trade as a way for cleaner food systems, an English course that focuses on

5586-544: The Fairtrade Certification Marks for those products. The International Fairtrade Certification Mark was launched in 2002 by FLO, and replaced twelve Marks used by various Fairtrade labelling initiatives. The new Certification Mark is currently used worldwide (with the exception of the United States). The Fair Trade Certified Mark is still used to identify Fairtrade goods in the United States. The fair trade industry standards provided by Fairtrade International use

5700-445: The advantage of learning from their early competitors and improving the benefits or reducing the total costs. This allows them to create a strategy that could essentially mean gaining market share and most importantly, staying in the market. In addition to this, markets evolve, leading to consumers wanting improvements and advancements on products. Late Followers have the advantage of catching the shifts in customer needs and wants towards

5814-408: The approach to be overly theoretical and not applicable to their business. During the 1990s, the resource-based view (also known as the resource-advantage theory ) of the firm became the dominant paradigm. It is an interdisciplinary approach that represents a substantial shift in thinking. It focuses attention on an organization's internal resources as a means of organizing processes and obtaining

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5928-448: The basis for competing over the forthcoming planning period. For this reason, some companies engage external consultants, often advertising or marketing agencies, to provide an independent assessment of the firm's capabilities and resources. There is one strategy that is at times weaved into marketing strategies, however not explicitly stated. And it is unethical in that it specifically targets unsuspecting minority groups. First, consider

6042-477: The capabilities-performance relationship. Such a logic of analysis was implicit in the original formulation of RA theory and although it was taken into consideration by several scholars, it has never been articulated explicitly and tested empirically. In the resource-based view, strategists select the strategy or competitive position that best exploits the internal resources and capabilities relative to external opportunities. Given that strategic resources represent

6156-462: The coffee. The coffee has to come from a certified fair trade cooperative, and there is a minimum price when the world market is oversupplied. Additionally, the cooperatives are paid an additional 10c per pound premium by buyers for community development projects. The cooperatives can, on average, sell only a third of their output as fair trade, because of lack of demand, and sell the rest at world prices. The exporting cooperative can spend

6270-576: The cooperative, other than receiving a better price for their coffee. Many farmers around the world are unaware of fair trade practices that they could be implementing to earn a higher wage. Coffee is one of the most highly traded commodities in the world, yet the farmers who grow it typically earn less than $ 2 a day. When surveyed, farmers from Cooperativa Agraria Cafetalera Pangoa (CAC Pangoa) in San Martín de Pangoa, Peru, could answer positively that they have heard about fair trade, but were not able to give

6384-540: The current fair trade system, but some of them, such as the Mazaronquiari group of the CAC, desire yet a higher price for their products in order to live a higher quality of life. Some producers also profit from the indirect benefits of fair trade practices. Fair trade cooperatives create a space of solidarity and promote an entrepreneurial spirit among growers. When growers feel like they have control over their own lives within

6498-414: The defining characteristic of ATOs is equal partnership and respect–partnership between the developing region producers and importers, shops, labelling organizations, and consumers. Alternative trade "humanizes" the trade process–making the producer-consumer chain as short as possible so that consumers become aware of the culture, identity, and conditions in which producers live. All actors are committed to

6612-548: The definition of ethics , which is the moral question of whether or not something is socially acceptable. Applying this definition to marketing strategy, companies must be wary that they do not purposefully seek to seclude groups of people based on their cultural background. A company that is seeking to expand internationally has a duty to establish their marketing agenda with multiple cultures in mind, so as to prevent bodies of people from getting left out. Marketing strategies have two goals: first of which, keeping with company's goals,

6726-402: The efficient use of inputs into the business. Another benefit of vertical integration is that it improves the exchange of information through the different stages of the production line. Some competitive advantages could include; avoiding foreclosures, improving the business marketing intelligence, and opens up opportunities to create different products for the market. Some disadvantages of using

6840-634: The emphasis on the establishment of fair trade relations with the developing world. 1965 saw the creation of the first alternative trading organization (ATO): that year, British NGO Oxfam launched "Helping-by-Selling", a program that sold imported handicrafts in Oxfam stores in the UK and from mail-order catalogues. By 1968, the Whole Earth Catalog was connecting thousands of specialized merchants, artisans, and scientists directly with consumers who were interested in supporting independent producers, with

6954-466: The fair trade movement also varies around the world. A study of coffee growers in Guatemala illustrates the effect of fair trade practices on growers. In this study, thirty-four farmers were interviewed. Of those thirty-four growers, twenty-two had an understanding of fair trade based on internationally recognized definitions, for example, describing fair trade in market and economical terms or knowing what

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7068-637: The fair trade movement that aims "to contribute to the alleviation of poverty in developing regions of the world by establishing a system of trade that allows marginalized producers in developing regions to gain access to developed markets." ATOs have fair trade at the core of their mission and activities, using it as a development tool to support disadvantaged producers and to reduce poverty and combining their marketing with awareness-raising and campaigning. ATOs are often based on political and religious groups, though their secular purpose precludes sectarian identification and evangelical activity. According to EFTA,

7182-413: The financing of scholarships from funding from their fair trade social premium. In terms of education, the social premium can be used to build and furnish schools too. Most fair trade import organizations are members of, or certified by, one of several national or international federations. These federations coordinate, promote, and facilitate the work of fair trade organizations. The following are some of

7296-425: The firm could potentially leverage for competitive advantage. Strategic planning can also reveal market threats that the firm may need to consider for long-term sustainability. Strategic planning makes no assumptions about the firm continuing to offer the same products to the same customers in the future. Instead, it is concerned with identifying the business opportunities that are likely to be successful and evaluating

7410-428: The firm must select one approach to the exclusion of all others. Firms that try to be all things to all people can present a confusing market position which ultimately leads to below-average returns. Any ambiguity about the firm's approach is a recipe for "strategic mediocrity" and any firm that tries to pursue two approaches simultaneously is said to be "stuck in the middle" and destined for failure. Porter's approach

7524-458: The firm's capacity to leverage such opportunities. It seeks to identify the strategic gap , which is the difference between where a firm is currently situated (the strategic reality or inadvertent strategy ) and where it should be situated for sustainable, long-term growth (the strategic intent or deliberate strategy ). Strategic planning seeks to address three deceptively simple questions, specifically: A fourth question may be added to

7638-404: The first-mover advantage, it can be more expensive due to product innovation being more costly than product imitation. It has been found that while Pioneers in both consumer goods and industrial markets have gained “significant sales advantages”, they incur larger disadvantages cost-wise. Being market pioneer can, more often than not, attract entrepreneurs or investors depending on the benefits of

7752-565: The five forces to determine the sources of competitive advantage; the selection of one of three possible positions which leverage the advantage and the value chain to implement the strategy. In this approach, the strategic choices involve decisions about whether to compete for a share of the total market or for a specific target group (competitive scope) and whether to compete on costs or product differences (competitive advantage). This type of thinking leads to three generic strategies: According to Porter, these strategies are mutually exclusive and

7866-408: The following: The generic competitive strategy outlines the fundamental basis for obtaining a sustainable competitive advantage within a category. Firms can normally trace their competitive position to one of three factors: It is essential that the internal analysis provide a frank and open evaluation of the firm's superiority in terms of skills, resources or market position since this will provide

7980-460: The future, and to do so through a shared understanding of a given product market. A mission statement is a clear and concise statement of the organization's reason for being and its scope of operations, while the generic strategy outlines how the company intends to achieve both its vision and mission. Mission statements should include detailed information and must be more than a simple motherhood statement . A mission statement typically includes

8094-510: The general direction for the firm while providing a structure for the marketing program. Marketing Management is a combined effort of strategies on how a business can launch its products and services. On the other hand, Marketing strategy is the combination of many processes where the business owner or marketer can attract potential customers via several channels. It can be through offline channels or online channels. Marketing Strategy Examples – Marketing Management Examples – These are

8208-610: The goal of bypassing corporate retail and department stores. The Whole Earth Catalog sought to balance the international free market by allowing direct purchasing of goods produced primarily in the U.S. and Canada but also in Central and South America. In 1969, the first worldshop opened its doors in the Netherlands. It aimed at bringing the principles of fair trade to the retail sector by selling almost exclusively goods produced under fair trade terms in "underdeveloped regions". The first shop

8322-400: The handicrafts market forced fair trade supporters to rethink their business model and their goals. Moreover, several fair trade supporters were worried by the effect on small farmers of structural reforms in the agricultural sector as well as the fall in commodity prices. Many came to believe it was the movement's responsibility to address the issue and remedies usable in the ongoing crisis in

8436-442: The industry. In subsequent years, fair trade agricultural commodities played an important role in the growth of many ATOs: successful on the market, they offered a source of income for producers and provided alternative trading organizations a complement to the handicrafts market. The first fair trade agricultural products were tea and coffee, followed by: dried fruits, cocoa, sugar, fruit juices, rice, spices and nuts. While in 1992,

8550-527: The largest: In 1998, the four federations listed above joined together as FINE , an informal association whose goal is to harmonize fair trade standards and guidelines, increase the quality and efficiency of fair trade monitoring systems, and advocate fair trade politically. Student groups have also been increasingly promoting fair trade products. Although hundreds of independent student organizations are active worldwide, most groups in North America are either affiliated with United Students for Fair Trade (USA),

8664-633: The last several decades. Women college students have a more favorable attitude than men toward buying fair trade products and they feel more morally obligated to do so. Women are also reported to have stronger intentions to buy fair trade products. Producers organize and strive for fair trade certification for several reasons, either through religious ties, wants for social justice, wants for autonomy, political liberalization or simply because they want to be paid more for their labor efforts and products. Farmers are more likely to identify with organic farming than fair trade farming practices because organic farming

8778-430: The level of individual producers (members of the organization)" which means that the "producer" here is halfway up the marketing chain between the farmer and the consumer. The part of the standards referring to cultivation, environment, pesticides, and child labour has the farmer as "producer". An alternative trading organization (ATO) is usually a non-governmental organization (NGO) or mission-driven business aligned with

8892-418: The list, namely 'How do we know when we got there?' Due to the increasing need for accountability, many marketing organizations use a variety of metrics to track strategic performance, allowing for corrective action to be taken as required. On the surface, strategic planning seeks to address three simple questions, however, the research and analysis involved in strategic planning are very sophisticated and require

9006-409: The market in terms of units was fair-trade flowers, with over 825 million units sold. There remain many fair trade organizations that adhere more or less to the original objectives of fair trade and that market products through alternative channels where possible and through specialist fair trade shops, but they have a small proportion of the total market compared to Fairtrade International. To gain

9120-641: The market. If there is an upside potential and the ability to have a stable market share, many businesses would start to follow in the footsteps of these pioneers. These are more commonly known as Close Followers. These entrants into the market can also be seen as challengers to the Market Pioneers and the Late Followers. This is because early followers are more than likely to invest a significant amount in Product Research and Development than later entrants. By doing this, it allows businesses to find weaknesses in

9234-413: The money in several ways. Some go to meeting the costs of conformity and certification: as they have to meet fair trade standards on all their produce, they have to recover the costs from a small part of their turnover, sometimes as little as 8%, and may not make any profit. Some meet other costs. Some is spent on social projects such as building schools, health clinics and baseball pitches. Sometimes there

9348-429: The network of their cooperative, it can be empowering. Operating a profitable business allows growers to think about their future, rather than worrying about how they are going to survive in poverty. A component of fair trade is the extra money that buyers of fair trade goods pay to the producers or producer-groups, sometimes referred to as a "social premium." The producers or producer-groups decide where and how to spend

9462-544: The notion of fair trade practices as "moral economies". The presence of labeling gives consumers the feeling of "doing the right thing" with a simple purchase. Labeling practices place the burden of getting certification on the producers in the Global South, furthering inequality between the Global North and the Global South. The process of securing certification is burdensome and expensive. Northern consumers are able to make

9576-524: The payment of higher prices to exporters with improved social and environmental standards . The movement focuses in particular on commodities, or products that are typically exported from developing countries to developed countries but are also used in domestic markets (e.g., Brazil, the United Kingdom and Bangladesh), most notably for handicrafts , coffee , cocoa , wine, sugar, fruit, flowers and gold. Fair trade labelling organizations commonly use

9690-544: The principle of alternative trade, the need for advocacy in their working relations , and the importance of awareness-raising and advocacy work. Examples of such organisations are Ten Thousand Villages, Greenheart Shop, Equal Exchange , and SERRV International in the U.S. and Equal Exchange Trading , Traidcraft , Oxfam Trading, Twin Trading , and Alter Eco in Europe as well as Siem Fair Trade Fashion in Australia. The concept of

9804-421: The process as a means of checking whether the company is on track to achieve its vision and mission. Ideally, strategies are both dynamic and interactive, partially planned and partially unplanned. Strategies are broad in their scope in order to enable a firm to react to unforeseen developments while trying to keep focused on a specific pathway. A key aspect of marketing strategy is to keep marketing consistent with

9918-406: The products produced before, thus leading to improvements and expansion on the aforementioned product. Therefore, it could also lead to customer preference, which is essential in market success. Due to the nature of early followers and the research time being later than Market Pioneers, different development strategies are used as opposed to those who entered the market in the beginning, and the same

10032-400: The products. When bearing in mind customer preference, customer value has a significant influence. Customer value means taking into account the investment of customers as well as the brand or product. It is created through the “perceptions of benefits” and the “total cost of ownership”. On the other hand, if the needs and wants of consumers have only slightly altered, Late Followers could have

10146-458: The resource-based view is that not all resources are of equal importance nor possess the potential to become a source of sustainable competitive advantage. The sustainability of any competitive advantage depends on the extent to which resources can be imitated or substituted. Barney and others point out that understanding the causal relationship between the sources of advantage and successful strategies can be very difficult in practice. Barney calls

10260-453: The resource-based view paradigm, Cacciolatti & Lee (2016) proposed a novel resource-advantage theory based framework that builds on those organizational capabilities that are relevant to marketing strategy and shows how they have an effect on firm performance. The capabilities-performance model proposed by Cacciolatti & Lee (2016) illustrates the mechanism whereby market orientation, strategic orientation, and organizational power moderate

10374-611: The rights of, marginalized producers and workers – especially in the South. Fair trade organizations, backed by consumers, are engaged actively in supporting producers, awareness raising and in campaigning for changes in the rules and practice of conventional international trade." FINE members further agreed to define fair trade 's strategic intent as: Fair trade Fair trade is a term for an arrangement designed to help producers in developing countries achieve sustainable and equitable trade relationships. The fair trade movement combines

10488-525: The rules and practice of conventional international trade. Fair trade certifiers include Fairtrade International , Ecocert , Fair World Project and Fair Trade USA , whose labelling scheme includes independent smallholders and estates for crops. In 2008, Fairtrade International certified approximately (€3.4B) of products. On 6 June 2008, Wales became the world's first Fair Trade Nation ; followed by Scotland in February 2013. The fair trade movement

10602-688: The school but throughout the wider community. A Fair Trade University develops all aspects of fair trade practices in their coursework. In 2007, the Director of the Environmental Studies program at the University of Wisconsin-Oshkosh , David Barnhill, endeavored to become the first Fair Trade University. This received positive reactions from faculty and students. To begin, the university agreed that it would need support from four institutional groups—faculty, staff, support staff, and students—to maximize support and educational efforts. The University endorsed

10716-450: The second central question, 'Where are we going?' At the conclusion of the research and analysis stage, the firm will typically review its vision statement , mission statement and, if necessary, devise a new vision and mission for the outlook period. At this stage, the firm will also devise a generic competitive strategy as the basis for maintaining a sustainable competitive advantage for the forthcoming planning period. A vision statement

10830-531: The situation where there is a connection to a firm's organized materials and when their continued competitive advantage is only partially comprehended as "casually ambiguous". Thus, a great deal of managerial effort must be invested in identifying, understanding, and classifying core competencies. In addition, management must invest in organizational learning to develop and maintain key resources and competencies. Market Based Resources include: After more than two decades of advancements in marketing strategy and in

10944-465: The so called, "Close Followers" are the "Late Entrants". They get their name from their delayed arrival into the market. Despite the thought process that late entry into the market will lead to absolute failure, there are actually a few pros for those classified as late entrants. One such pro is the ability to view how others who previously joined the market have acted and strategize market planning around their mistakes and/or successes. Late Followers have

11058-490: The social premium in its entirety on themselves, but the rest invest in public goods, like paying for teachers' salaries, providing a community health care clinic, and improving infrastructure, such as bringing in electricity and bettering roads. Farmers' organisations that use their social premium for public goods often finance educational scholarships. For example, Costa Rican coffee cooperative Coocafé has supported hundreds of children and youth at school and university through

11172-414: The social premium is and how their cooperative has used it. Three growers explained a deep understanding of fair trade, showing a knowledge of both fair market principles and how fair trade affects them socially. Nine growers had erroneous or no knowledge of Fair Trade. The three growers who had a deeper knowledge of the social implications of fair trade all had responsibilities within their cooperatives. One

11286-463: The social premium of fair trade is to privately invest in public goods that infrastructure and the government are lacking in. These include environmental initiatives, public schools, and water projects. At some point, all producer-groups re-invest their social premium back into their farms and businesses. They buy capital, like trucks and machinery, and education for their members, like organic farming education. Thirty-eight percent of producer-groups spend

11400-423: The social premium.. These premiums usually go towards socioeconomic development, wherever the producers or producer-groups see fit. Within producer-groups, the decisions about how the social premium will be spent are handled democratically, with transparency and participation . Producers and producer-groups spend this social premium to support socioeconomic development in a variety of ways. One common way to spend

11514-419: The standards set by FLO International. The supply chain must be monitored by FLO-CERT, to ensure the integrity of the labelled product. Fairtrade certification purports to guarantee not only fair prices, but also ethical purchasing principles. These principles include adherence to ILO agreements such as those banning child and slave labour , guaranteeing a safe workplace and the right to unionise, adherence to

11628-522: The top planners spend most of their time engaged in analysis and are concerned with industry or competitive analyses as well as internal studies, including the use of computer models to analyze trends in the organization. Strategic planners use a variety of research tools and analytical techniques, depending on the environment complexity and the firm's goals. Fletcher and Bensoussan, for instance, have identified some 200 qualitative and quantitative analytical techniques regularly used by strategic analysts while

11742-404: The two broad dimensions for achieving growth. The Ansoff matrix identifies four specific growth strategies: market penetration , product development , market development and diversification . A horizontal integration strategy may be indicated in fast-changing work environments as well as providing a broad knowledge base for the business and employees. A benefit of horizontal diversification

11856-456: The unique situation of the individual business. According to Lieberman and Montgomery, every entrant into a market – whether it is new or not – is classified under a Market Pioneer, Close Follower or a Late follower Market pioneers are known to often open a new market to consumers based on a major innovation. They emphasize these product developments, and in a significant number of cases, studies have shown that early entrants – or pioneers – into

11970-583: The visibility of the Mark on supermarket shelves, facilitate cross border trade, and simplify procedures for both producers and importers. The certification mark is used in more than 50 countries and on dozens of different products, based on FLO's certification for coffee, tea, rice, bananas, mangoes, cocoa, cotton, sugar, honey, fruit juices, nuts, fresh fruit, quinoa, herbs and spices, wine, footballs , etc. With ethical labeling, consumers can take moral responsibility for their economic decisions and actions. This supports

12084-504: The way on-campus franchises do business with the university. They required constant assessment and improvement. Being a Fair Trade University for UC San Diego is a promise between the university and the students about the continual effort by the university to increase the accessibility of fair trade-certified food and drinks and to encourage sustainability in other ways, such as buying from local, organic farmers and decreasing waste. Fair Trade Universities have been successful because they are

12198-695: The word "producer" in many different senses, often in the same specification document. Sometimes it refers to farmers, sometimes to the primary cooperatives they belong to, to the secondary cooperatives that the primary cooperatives belong to, or to the tertiary cooperatives that the secondary cooperatives may belong to but "Producer [also] means any entity that has been certified under the Fairtrade International Generic Fairtrade Standard for Small Producer Organizations, Generic Fairtrade Standard for Hired Labour Situations, or Generic Fairtrade Standard for Contract Production." The word

12312-486: The worldshops and into the mainstream, reaching a larger consumer segment and boosting fair trade sales significantly. The labeling initiative also allowed customers and distributors alike to track the origin of the goods to confirm that the products were really benefiting the producers at the end of the supply chain. The concept caught on: in ensuing years, similar non-profit Fairtrade labelling organizations were set up in other European countries and North America. In 1997,

12426-453: The “learning curve”. This lets a business use the research and development stage as a key point of selling due to primary research of a new or developed product. Preemption of Assets can help gain an advantage through acquiring scarce assets within a certain market, allowing the first-mover to be able to have control of existing assets rather than those that are created through new technology. Thus allowing pre-existing information to be used and

12540-506: Was a manager, one was in charge of the wet mill, and one was his group's treasurer. These farmers did not have a pattern in terms of years of education, age, or years of membership in the cooperative; their answers to the questions, "Why did you join?" differentiate them from other members and explain why they have such an extensive knowledge of fair trade. These farmers cited switching to organic farming, wanting to raise money for social projects, and more training offered as reasons for joining

12654-483: Was run by volunteers and was so successful that dozens of similar shops soon went into business in the Benelux countries, Germany, and other Western European countries. In the early 1980s, alternative trading organizations faced challenges: the novelty of fair trade products began to wear off, demand reached a plateau and some handicrafts began to look "tired and old fashioned" in the marketplace. The decline of segments of

12768-523: Was shaped in Europe in the 1960s. Fair trade during that period was often seen as a political gesture against neo-imperialism: radical student movements began targeting multinational corporations, and concerns emerged that traditional business models were fundamentally flawed. The slogan at the time, "Trade not Aid", gained international recognition in 1968 when it was adopted by the United Nations Conference on Trade and Development (UNCTAD) to put

12882-420: Was the dominant paradigm throughout the 1980s, allowing others who sought to formulate strategy within their business model to follow his (at the time) best division of the ways in which to target the market. This only lasted a little while though, as Porter's approach began receiving a good amount of criticism mainly due to its simplicity; which is part of what made his approach so popular. One important criticism

12996-421: Was to find a way to expand distribution without compromising consumer trust in fair trade products and in their origins. A solution was found in 1988, when the first fair trade certification initiative, Max Havelaar , was created in the Netherlands under the initiative of Nico Roozen , Frans Van Der Hoff , and Dutch development NGO Solidaridad . The independent certification allowed the goods to be sold outside

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