Understanding the Pros and Cons of Protectionism

Understanding the Pros and Cons of Protectionism Protectionism is a type of trade policy by which governments attempt to prevent or limit competition from other countries. While it may provide some short-term benefit, particularly in poor or developing nations, unlimited protectionism eventually harms the country’s ability to compete in international trade. This article examines the tools of protectionism, how they are applied in the real world, and the advantages and disadvantages of limiting free trade. Key Takeaways: Protectionism Protectionism is a government-imposed trade policy by which countries attempt to protect their industries and workers from foreign competition. Protectionism is commonly implemented by the imposition of tariffs, quotas on import and exports, product standard, and government subsidies. While it may be of temporary benefit in developing countries, total protectionism typically harms the country’s economy, industries, workers, and consumers. Protectionism Definition Protectionism is a defensive, often politically-motivated, policy intended to shield a country’s businesses, industries, and workers from foreign competition through the imposition of trade barriers such as tariffs and quotas on imported goods and services, along with other government regulations. Protectionism is considered to be the opposite of free trade, which is the total absence of government restrictions on trade.   Historically, strict protectionism has been used mainly by newly developing countries as they build the industries necessary to compete internationally. While this so-called â€Å"infant industry† argument may promise brief, limited protection to the businesses and workers involved, it ultimately harms consumers by increasing the costs of imported essential goods, and workers by reducing trade overall.  Ã‚   Protectionism Methods Traditionally, governments employ four main methods of implementing protectionist policies: import tariffs, import quotas, product standards, and subsidies. Tariffs The most commonly applied protectionist practices, tariffs, also called â€Å"duties,† are taxes charged on specific imported goods. Since tariffs are paid by the importers, the price of imported goods in local markets is increased. The idea of tariffs is to make the imported product less attractive to consumers than the same locally produced product, thus protecting the local business and its workers. One of the most famous tariffs is the Smoot-Hawley Tariff of 1930. Initially intended to protect American farmers from the post-World War II influx of European agricultural imports, the bill eventually approved by Congress added high tariffs on many other imports. When European countries retaliated, the resulting trade war restricted global trade, harming the economies of all countries involved. In the United States, the Smoot-Hawley Tariff was considered an overly-protectionist measure that worsened the severity of the Great Depression. Import Quotas Trade quotas are â€Å"non-tariff† trade barriers that limit the number of a specific product that can be imported over a set period of time. Limiting the supply of a certain imported product, while increasing prices paid by consumers, allows local producers a chance to improve their position in the market by filling the unmet demand. Historically, industries like autos, steel, and consumer electronics have used trade quotas to protect domestic producers from foreign competition. For example, since the early 1980s, the United States has imposed a quota on imported raw sugar and sugar-containing products. Since then, the world price of sugar has averaged from 5 to 13 cents per pound, while the price within the U.S. has ranged from 20 to 24 cents. In contrast to import quotas, â€Å"production quotas† occur when governments limit the supply of a certain product in order to maintain a certain price point for that product. For example, the nations of the Organization of Petroleum Exporting Countries (OPEC) imposes a production quota on crude oil in order to maintain a favorable price for oil in the world market. When the OPEC nations reduce production, U.S. consumers see higher gasoline prices. The most drastic and potentially inflammatory form of import quota, the â€Å"embargo† is a total prohibition against importing a certain product into a country. Historically, embargoes have had drastic impacts on consumers. For example, when OPEC proclaimed an oil embargo against nations it perceived as supporting Israel, the resulting 1973 oil crisis saw the average price of gasoline in the U.S. jump from 38.5 cents per gallon in May 1973 to 55.1 cents in June 1974. Some lawmakers called for nationwide gas rationing and President Richard Nixon asked gasoline stations not to sell gas on Saturday nights or Sundays.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Product Standards Product standards limit imports by imposing minimum safety and quality requirements for certain products. Product standards are typically based on concerns over product safety, material quality, environmental dangers, or improper labeling. For example, French cheese products made with raw, non-pasteurized milk, cannot be imported into the United States until they have been aged at least 60 days. While based on a concern for public health, the delay prevents some specialty French cheeses from being imported, thus providing local producers a better market for their own pasteurized versions. Some product standards apply to both imported and domestically-produced products. For example, the U.S. Food and Drug Administration (FDA) limits the content of mercury in imported and domestically harvested fish sold for human consumption to one part per million. Government Subsidies Subsidies are direct payments or low-interest loans given by governments to local producers to help them compete in the global market. In general, subsidies lower production costs enabling producers to make a profit at lower price levels. For example, U.S. agricultural subsidies help American farmers supplement their income, while helping the government manage the supply of agricultural commodities, and control the cost of American farm products internationally. Additionally, carefully applied subsidies can protect local jobs and help local companies adjust to global market demands and pricing. Protectionism vs. Free Trade Free trade- the opposite of protectionism- is a policy of completely unrestricted trade between countries. Devoid of protectionist restrictions like tariffs or quotas, free trade allows goods to move freely across borders. While both total protectionism and free trade have been tried in the past, the results were usually harmful. As a result, multilateral â€Å"free trade agreements,† or FTAs, such as the North American Free Trade Agreement (NAFTA) and the 160-nation World Trade Organization (WTO) have become common. In FTAs, the participating nations mutually agree on limited protectionist practices tariffs and quotas. Today, economists agree that FTAs has averted many potentially disastrous trade wars. Protectionism Pros and Cons In poor or emerging countries, strict protectionist policies like high tariffs and embargoes on imports can help their new industries grow by protecting them from foreign competition. Protectionist policies also help create new jobs for local workers. Protected by tariffs and quotas, and bolstered by government subsidies, domestic industries are able to hire locally.  However, the effect is typically temporary, actually reducing employment as other countries retaliate by imposing their own protectionist trade barriers. On the negative side, the reality that protectionism hurts the economies of countries that employ it dates back to Adam Smith’s The Wealth of Nations, published in 1776. Eventually, protectionism weakens domestic industries. With no foreign competition, industries see no need for innovation. Their products soon decline in quality, while becoming more expensive than higher quality foreign alternatives. In order to succeed, strict protectionism demands the unrealistic expectation that the protectionist country will be able to produce everything its people need or want. In this sense, protectionism is in direct opposition to the reality that a country’s economy will prosper only when its workers are free to specialize at what they do best rather than trying to make the country self-sufficient. Sources and Further Reading Irwin, Douglas (2017), Peddling Protectionism: Smoot-Hawley and the Great Depression, Princeton University Press.Irwin, Douglas A., Tariffs and Growth in Late Nineteenth-Century America. World Economy. (2001-01-01). ISSN 1467-9701.Hufbauer, Gary C., and Kimberly A. Elliott. Measuring the Costs of Protectionism in the United States. Institute for International Economics, 1994.C. Feenstra, Robert; M. Taylor, Alan. Globalization in an Age of Crisis: Multilateral Economic Cooperation in the Twenty-First Century. National Bureau of Economic Research. ISBN: 978-0-226-03075-3Irwin, Douglas A., Free Trade Under Fire, Princeton University Press, 2005.

OSHAS 18001 Occupational Safety and Health Assessment Series Essay

OSHAS 18001 Occupational Safety and Health Assessment Series - Essay Example The standard enables response to urgent demand by customers for a recognizable occupational safety and health system of management standard against the existing management system. The OHSAS 18001 standard is compatible to the ISOs related to the environment and those of quality, this facilitate the integration of the environment, quality, safety management, and occupational health in an organizations. When an organization adapts to the standard the general management becomes easier in all aspects. There has been development of guidelines for implementation of the OHSAS standard that helps in the general consumer demand that enables the assessing and the verification of the standard. Recently all kinds of organizations have shown interest in demonstrating and achieving a sound occupational safety and health performance by controlling the risks involved with the occupational health and standard. The organizations achieve this in the context of ensuring development of policies, increasingly stringent legislation and the other measures that ensure the organization fosters good occupational health and safety activities and practices. During the development of the OHSAS 18001 standard, there were references from difference standardization publications. These publications include the BB 8800: 1996 that was to guide the systems for the occupational health and safety. The NPR 5001: 1997 that also provided guidelines to the occupational safety and health system, the ISMOL ISA 2000:1997and SGS that helped in giving requirements needed by the systems for health and safety management risks. Also there was the BVQI that helped in safety certification for the health and safety management standard Other standardization publications include the DNV standard of certification 1997, the draft NSAI SR 320, draft AS/NZ specification with the use guidance, draft BSI PASS O88, draft LRQA SMS 8800 and the

Why did China not Experience an Industrial Revolution Between c. 1700 Essay

Why did China not Experience an Industrial Revolution Between c. 1700 and 1949 - Essay Example As the paper highlights coal was at the time a better form of heat production. It gave constant, reliable amount of heat without giving out a lot of by products as a waste. The changeover was due to great innovation from individuals and group of people who skilfully devised ways to make work easier and create a better life for everyone. Most of the innovations were involuntary and automatic, but additionally, there were others that founded through a series of experiments and exploit of science. This revolution that is an industry based commenced in Britain and after a few years later it stretched to the United States of America, as well as Western Europe. It grades one of the most significant turning points in the account of the history of the whole world. Nearly all aspect of the everyday life of the inhabitants of the planet was greatly influenced in one way or another. The thing that was mostly experienced was the sharp growth of the human population. The society at this period was exceedingly rural in nature. The revolution changed this to a much modern and urban society for most of the nations at that time. Many countries experienced this mode of change that spread from the centre of origin in Britain. China has had a dynamic economy in terms of its economy in the recent years. But why did it delay in achieving better industrialization in the period that other states in Europe and other countries in the regions of the world were developing? This paper is going to assess the reasons why china did not experience ‘industrial revolution’ between c. 1700 and 1949.

Csr in Inidan Banking Sector Essay Example for Free

Csr in Inidan Banking Sector Essay State regulatory bodies, NGOs, media, customers have significantly addressed social responsibility issues in banking sector. International organization such as World Bank also exerts pressures on banks to analyze social and environmental risk involved in projects to be financed. In addition the reputation and resultant profitability of an organization are greatly effected by their CSR activities. Researchers have found a positive correlation between CSR and financial performance of the organization. Around the globe, a good commitment is being shown by the banking industry to CSR principles. Banks are showing conscious efforts to reduce the regulatory actions by depicting a good environmental citizen image. Banking in India has originated in the last decades of the 18th century with the establishment of General Bank of India in 1786, and the Bank of Hindustan set up in 1870 (both banks are now defunct). At present, the commercial banking structure in India consists of Scheduled Commercial Banks Unscheduled Banks. Banking in India has evolved in four distinct phases: Foundation phase, Expansion phase, consolidation phase and Reforms phase. An integrated approach of combining CSR with the ultimate customer satisfaction is being adopted by Indian banking industry voluntarily. An attempt has been initiated to ensure social responsible behavior of banking sector in a more systematic manner. Public and private sector banks have common thrust areas which are children welfare, community welfare, education, environment, healthcare, poverty eradication, rural development, vocational training, women’s empowerment, protection to girl child, employment. The core areas for reporting CSR activities are slightly different in both public and private sector banks. The major areas investigated for reporting CSR activities in public and private sector banks is shown by the Figure 1 and Figure 2 respectively below: X axis in the below charts represents the fields of CSR activities and Y axis represents the number of banks working in the particular fields out of the selected sample. Figure 1: Core thrust areas for reported CSR activities in public sector banks Source: 1-IJAEBM-Volume-No-1-Issue-No-2-CSR-Practices-and-CSR-Reporting-in-Indian-Banking-Sector-058-066 As per the chart above rural development has been the ost actively participated activity for Indian public sector banks. Besides, their primary focus has been on gender equality through women empowerment. Figure 2: Core thrust areas for reported CSR activities in private sector banks Source: 1-IJAEBM-Volume-No-1-Issue-No-2-CSR-Practices-and-CSR-Reporting-in-Indian-Banking-Sector-058-066 Enhancing the level of education and employment has been the major areas for reporting CSR activities i n Indian private sector bank. Following are community welfare, programs for child welfare and protection of environment. 3. 1 RBI guidelines on CSR: On December 20, 2007 RBI circulated a notice for all the scheduled commercial banks to highlight the role of banks in corporate social responsibility, with title â€Å"Corporate Social Responsibility, Sustainable Development and Non-Financial Reporting – Role of Banks†. Major issues discussed in the notice were regarding – 1. Corporate Social Responsibility 2. Sustainable Development 3. Non-Financial Reporting Talking about the corporate social responsibility program RBI followed many international initiatives to highlight the importance of the notice like – 1. United Nations Environment Program Finance Initiative (UNEP FI) 2. They can achieve the mission by supporting initiatives that are * Cost effective * Capable of large-scale replication * Measurable * Having potential for both near and long-term impact. * Banks must provide appropriate training to its employees on environmental and social risks in lending to ensure that climate change is taken into account in corporate banking decisions. 6. Conclusion The CSR moment in the banking sector is slowing picking the pace. Many banks are showing their inclination and interest towards the CSR activities and believe it as their social responsibility. On the other side CSR reporting practices are far from satisfaction. There are hardly few banks which report their activities on triple bottom line principles. The lack of uniform standards for rating CSR practices leads to problem in comparison of corporate houses and difficulty in determining the CSR rating. In spite of the slow adaptation of CSR reporting practices in India, it is predicted to pick up a great pace in near future. The need for enacting some stringent regulatory provisions to ensure adherence to social responsibility principles is necessary. https://ru.scribd.com/doc/19779226/CSR-PROGRAM-IN-BANKING-SECTOR-AN-INDIAN-PERSPECTIVE http://www.karmayog.org/ https://en.wikipedia.org/wiki/Reserve_Bank_of_India https://en.wikipedia.org/wiki/Corporate_social_responsibility

Finance: Stocks Vs Treasury Bonds :: essays research papers

Historically speaking, stocks have been found to be no more risky than Treasury bonds. Over the past twenty years vast research has been done on this subject. Jeremy Siegel of the University of Pennsylvania’s Wharton School stated that, â€Å"The safest long-term investment for the preservation of purchasing power has clearly been stocks, not bonds.† Since the mid nineteen twenties, company stocks have average annual returns close to 11%, while on the other hand, Treasury Bonds only return with a little over 5%.   Ã‚  Ã‚  Ã‚  Ã‚  Currently stocks are on the rise. Since 1982 the reason for this is the declining risk premium. The return, or â€Å"risk premium,† that is required is much less. This is for several reasons. Investors have realized not to be so fearful of the great unpredictability of stocks. Instead of dropping stocks in the short run, investors are learning to hold out for the long run to see huge benefits. Secondly, Americans are now keeping stocks in accounts that require long-term holding, such as retirement accounts. Also, businesses are becoming much more efficient and the chance of undergoing devastating turn-arounds in a recession are much less. The tax environment is more generous, foreign threats have ceased dramatically, and the government management has vastly improved. The bottom line is that the risk of investing stocks is much less than it ever has been before. The level of the risk premium is heading towards zero, while currently holding at 3%. That 3% is much better than the historical average of 7%. James K. Glassman and Kevin A Hassett, authors of the book, â€Å"Dow 36,000,† claim that the prediction of the Dow reaching 36,000 is not out of the realm of possibilities. If the earnings grow in the long term at the same rate as the GDP and treasury bonds are below 6%, then it is very possible for the Dow to hit a level of 36,000. One critic of â€Å"Dow 36,000,† Burton G. Malkiel, stated that the rise in stocks that has been occurring is the beginning to an adjustment that â€Å"will only be complete when stocks and bonds are priced to offer equivalent returns, and that implies a level of 36,000 for the Dow today with a price earnings multiple of 100.† So the question remains at whether the authors of â€Å"Dow 36,000† are correct or incorrect about the arguments and predictions that they make in their book. They are correct in what they predict in their book, but they need to make sure to not lead some not-so-experienced investors down the wrong road of deception.

A 20th Century Leader

‘Robert Kennedy: His Life’ is the autobiography of Robert F. Kennedy (popularly referred to as RFK). It was written by Evan Thomas, a former senior editor of Newsweek in Washington.He was the first biographer to have access to Kennedy’s personal papers as attorney general. Thought the book contains no shocking revelations, there is a lot of fresh information gathered from Robert’s surviving colleagues, files and other sources. In the book, Thomas gives an elucidation of the man’s strengths as well as failures, and discloses the complex web of relationships in the Kennedy family.Depicting RFK as a man whose ‘house had a lot of mansions’, Thomas refers to him as ‘the lucky one’. Throughout the book, Thomas brings out the many phases of Kennedy’s personality. He was a very rich individual who could act like a spoiled child one day, and show sympathy to the minorities the next. Though the book honors a man whose potential was cut short too soon, Thomas’ book focuses on a man, a family and an era about whom Americans will never fully understand.Robert was the younger brother of U.S. President John F. Kennedy (JFK). Born on November 20, 1925, he was the seventh born of Rose Fitzgerald and Joseph P. Kennedy. After living in Brookline, Massachusetts for two years, Robert and his family moved severally to mansions located in different parts of New York such as Riversdale and Bronxville.Robert schooled at Riversdale and Bronxville elementary schools till 5th grade, and then moved to Riverdale Country School for 6th grade. In 1938 when 12 years old, Robert took his first trip abroad with his family to England, where his father was serving as an American envoy. After finishing high school in 1943, Robert was drafted into the U.S. Naval Reserve as a trainee seaman.Robert Kennedy’s involvement in politicsAccording to Brian (1996), when World War II broke out, Robert took a break from studies at Harvard and joined the U.S. Navy. After the war, he went on to complete his studies and graduated with a law degree from University of Virginia. In the 1950s, he served as a counsel to a US Senate committee probing labor unions, leading to his open feud with the Teamsters leader Jimmy Hoffa.Robert’s political career is more closely associated with his brother, JFK. He oversaw JFK’s successful campaigns for the US Senate in 1952 and the presidency in 1960, and then was appointed as Attorney General in John’s administration.He was at the forefront of enforcing civil rights measures in the South and became the president’s closest adviser on all issues, for example foreign policy matters such as the Cuban missile crisis. After his brother’s assassination in 1963, Robert continued to serve in the Lyndon Johnson government as Attorney General and was unhappy that Johnson overlooked him for vice-presidency in 1964.Robert ran successfully for senator of Ne w York. As senator, he was loved by African Americans and other minorities such as immigrant groups and Native Americans. He spoke convincingly in favor of the excluded, disaffected and impoverished, hence getting the support of social justice campaigners and leaders of the civil rights struggle.He backed President Johnson on domestic matters, particularly civil rights and the war on poverty, but did agree with him over the war in Vietnam. By 1968, he was one of the most vocal advocates against the American policy on Vietnam. On domestic policy however, he became more and more liberal and developed a soft spot for the dispossessed and the minorities.Robert declared his candidacy for the US presidency in early 1968. He was assassinated on June, 5, 1968 at the Ambassador Hotel in Los Angeles just after delivering a speech to his supporters upon capturing the California primary. He was pronounced dead the following morning.Attitudes and ApproachAccording to Brian (1996), Robert as a ch ild was frequently the target of his father’s domineering temperament. However as he got older, he won the admiration of his father and brothers through his competitiveness. During his brother’s campaigns, Robert was more tenacious, passionate and involved than the candidate himself, aggressively tackling every detail and fighting every battle.

Londons Ships of Historical Interest Partnership - Marketing Plan - Free Essay Example

Sample details Pages: 10 Words: 2886 Downloads: 10 Date added: 2017/06/26 Category Marketing Essay Type Case study Level High school Did you like this example? Londons Ships of Historical Interest Partnership Marketing Plan Executive Summary Londons Ships Partnership is not simply a tourist attraction, but a serviceable brand. Counting Maritime Vessels including the historic 1577 Golden Hinde and the World War II cruiser HMS Belfast, they provide an excellent source of national interest in a nation of naval history and heritage. Despite a reduction in interest and decrease in the amount of tourists these vessels attract, it still remains a worthwhile business proposition with the penetration of international markets. Don’t waste time! Our writers will create an original "Londons Ships of Historical Interest Partnership Marketing Plan" essay for you Create order With careful, focused and well-executed marketing, the London Ships has a very real opportunity to attract large numbers of tourists who, every year, visit the UK and its capital city for its unique and undisputed history. Objectives The historic London Ships are themselves a valuable and worthwhile source of information that has seen its purpose unrecognised over recent years perhaps by younger generations not reminded of Britains rich sea trade and heritage. The main business objective therefore should revolve around the awareness of the London Ships as a brand.One of the four dimensions of brand equity (Aaker, 2000) is brand awareness and is seen as the platform for creating a successful global brand. Focusing marketing efforts towards increasing brand awareness is therefore the most efficient method to achieve the companys long-term objectives. What follows is a summary of the companys primary objectives; ? Increase the awareness of the work of London Ships Partnership within the tourism market, both domestically and internationally. ? Establish the London Ships Partnership as a brand in key international tourism markets. ? Increase awareness amongst the tourism market of each member vessel and their historical importance. An analysis of the marketing environment in the international tourism market is needed to establish these objectives in a measurable approach so as to execute a clear and cohesive marketing strategy. Marketing Environment Micro-environment It is important to analysis the micro environment before establishing a strategy or plan. Detailed knowledge of your company and the surrounding issues help with the cohesion of a strategy, and utilizing strengths whilst being aware of threats will mean you are more likely to achieve objectives at a lower risk. Firstly, we shall examination the internals of LSP with a SWOT analysis, as follows; Strengths ? Long naval history and tradition mean greater pull for tourists. ? Weak UK pound; more attractive destination for Europeans. ? London Ships Partnership already an established brand. Weaknesses ? Low awareness of LSP amongst younger generation. ? Recession fears may still stave off spending. Opportunities ? Capital city location; large catchment of tourists. ? Diverse range of ships. ? Opportunity to improve website facility. Threats ? Rival tourist ‘hotspots means increased competition. By focusing on strengths, LSP therefore has the opportunity to become an established brand. LSP already have the elements required to form a strong brand such as Memorability, Meaningfulness and Likeability (Keller, 2003). It is a source of rich history, part of Britains naval heritage and also covers large periods of history, offering a range of vessels meaning it has strong and durable characteristics that are easily transferable to certain international markets. An example of this would be the inclusion of the oldest vessel on show, a replica of The Golden Hinde, originally built in 1577, highlighting Britains rich history. The weakening of the Sterling against the Euro means that the UK may become a more attractive destination for visitation, especially for tourists who fall within the Euro Zone who will receive more their money. As a result, LSP could benefit from a possible influx of tourists during the winter season for weekend breaks, or longer stays during the summer of 2011. One counter arg ument that could be made is that global recession fears may still halter peoples spending of disposable income, resulting in the lessening of holidaying. Although this may increase domestic tourism, it doesnt help achieve the objective of increasing awareness in untapped international markets. A possible lucrative opportunity of LSP to increase awareness is the improving of its website. Although already accessible internationally, amendments could be made to the language settings facility, meaning that a language barrier isnt an issue when customers may research LSP. This SWOT analysis has provided us with an overview of the internal factors of LSP, but an analysis of the macro-environment will be necessary before deciding upon the best marketing strategy. Macro-environment The macro-environment, or external factors, that affect LSP are ever-more critical in a globalised business world. Considering LSPs primary objective of increasing awareness in international mar kets, these uncontrollable issues have to be considered before launching a marketing strategy into foreign markets. What follows is a PEST analysis; a summary of external issues and highlights potential problems; Launching a campaign in overseas countries/markets; Political ? What is the tax system in this particular county? Is there laws or regulations that need to be addressed? ? Does this country have editorial or advertising standards that you must adhere to? ? Is this country politically stable? Economic ? What is the GDP of this country? Are their long-term economic prospects stable? ? What are the inflation or interest rates of this country? ? How has this country recovered from the economic crisis? Socio-cultural ? Is language a potential barrier for marketing communications? ? Are there any issues of sensitivity regarding its history with Britain or the ships themselves? ? Is there a large enough middle-class regarding levels of disposable income? Technological ? How much of the population of this country have access to the internet? ? What advertising method would be the most efficient, regarding media channels? Economic issues are likely to be central to the decision making process for a marketing strategy regarding the uncertainty of global markets since the global recession of 2008 took hold of most markets in the west and markets that rely heavily on financial services. The current GDP figures and interest rates of each country will correspond to the amount of disposable income of the mass populous. The tourism market especially relies on economic ‘booms when people, and especially the middle classes, have disposable income which is intended to be spent on a non-essential holiday; how have people responded to the recession concerning their spending habits? Social factors may also have a significant impact on holiday makers desire to see maritime vessels; does the country have its own shipping histo ry, therefore diminishing the desire to see such ships in London? This may rule out European countries such as France, Portugal and Spain as a potential target market. Market Identification Rather than offering a standard marketing strategy to everyone, it is much more efficient and economical to target a specific target market. This way, all marketing efforts are consolidated into one, clear and cohesive strategy that penetrates the markets chosen and increases the likelihood of successfully completing objectives. In the previous section, we have underlined the issues and implications of launching a marketing strategy on a global scale. Before arriving at a decision, we can segment the market further, deciding upon the most likely demographic to benefit from a marketing strategy. Our target audience must have a high socio-economic status as a high level of disposable income is required to be able to visit the UK, which is a particularly expensive destination to visit and holiday in. This therefore would not include places of low GDP or markets that are still in recession or slow to emerge to a full economic recovery, such as Greece or Spain. Also, as the Euro currency is currently struggling, it may not benefit LSP to target certain economies within the Euro Zone. As we have established previously, perhaps it would be fair to also not include France or Portugal as they already have their own rich naval history and would therefore already likely be aware of the London Ships brand. Another reason may be lack of demand to see the ships themselves, with these nations having similar tourist attractions themselves, proving that any marketing efforts would be uneconomical. It would be more efficient to focus these efforts towards a market that may be unfamiliar with the ships and its history, thus creating demand which in turn would achieve a longer-term business objective of future sales targets. Age can be a deciding factor when selecting the right demographic to fit a successful marketing campaign although it was stated in the brief that through workshops and events involving The Golden Hinde, LSP reached over 20,000 children. Fami lies are therefore a possible target, however a difference needs to be distinguished between target audience and target market. If we consider that children up to the age of 16 can be part of the target audience, we should deliver the marketing strategy and message to the parents, who make up the target market. However, we should acknowledge children within the message we try to deliver, to make our campaign more inclusive. Emerging overseas markets, in particular China, would offer us a huge catchment of middle-class, wealthy couples and families with high disposable income. As China becomes the second largest economy in the world (The Guardian, 16.8.2010) and a booming new free market economy, millions more are moving up to the middle-class and are becoming ever wealthier. In this free market economy, a new China results in wealthy Chinese travelling far and giving other countries a huge boost in tourism. An example of this being an increase of 80% of Chinese tourists vi siting its neighbouring country and economic rival, Japan (The Guardian, 16.8.2010). If we also factor in the likelihood of Chinese tourists not already aware of Britains naval heritage, and acknowledging Chinas huge population, it therefore leaves a large target market that will ultimately lead to an increase in demand. For clarity, here are the findings for Market Identification; ? The target demographic for London Ships Partnership are wealthy, middle-class and aged between 30 – 65 who possibly have children, one or more. The chosen market is China. ? The target audience includes children up to the age of 16. Marketing Objectives We have already established the overall business objectives for London Ships Partnership, but we need to set the marketing objectives. These are required to be quantifiable, clear and within a timeframe (Jobber, 2004). If we consider our target market and audience identified and allowing for any possible budget or labour restraints, we can come to a marketing objective that is realistic, efficient and economical. As follows; ? To increase brand awareness amongst our target market by 10% between 30th September 2010 and 30th September 2011. A modest figure of a 10% increase in awareness is required due to the large numbers that fall into the target demographic. For purposes of clarity, stating the dates in which to complete the objectives helps in the execution and cohesion of the marketing strategy and of all departments of the organisation. Selecting the correct marketing strategy and marketing mix is essential to carry through the stated objective, of which we will discu ss in the following section. Marketing Strategy Choosing the correct marketing mix is essential and all components must complement each other and be focused upon a single goal. Presented here is each component of the marketing mix and what methods will be selected; Product The product in this case is the defining characteristic of this particular brand. Emphasis on London Ships Partnerships brand equity, in particular brand image should be carried through the promotion of the marketing mix to successfully create a strong reputation. The ships themselves are part of Britains rich history which penetrates deep into the culture of naval heritage; therefore these characteristics should be part of the message for the marketing campaign. Highlighting brand image creates a strong overall brand and is a powerful tool in changing customers attitudes and buying habits. Considering this, the strategy to employ is the Current Product / New Market. In this case, we are enteri ng a fresh market in an unfamiliar country, but with our service in its current form. This clear direction should help implement and thrust the strategy forward. Price The product here is essentially a service and what you receive as part of this service is being part of history; seeing and experiencing hundreds of years of naval heritage. The product, or service, is free. These two elements should be combined to get the correct message across to the target market and in creating a unique selling point. Exclaiming that you have a rich and rewarding experience for no cost shouldnt be ignored, instead it should be part of the marketing strategy. Place Being based in London provides an excellent backdrop for giving the customer an enjoyable experience. London, itself being one of the most famous cities in the world, and having a rich history itself, means that it lends itself well and is consistent with the message that we are trying to get across; history, tradition a nd heritage. Place as part of the marketing mix, is essentially intangible, which means that it is often uncontrollable as to the experience the customer has. We can therefore, bring another ‘P into the mix; People. Delivering the message that LSP has excellent customer service that complements an already enjoyable experience, results in a stronger and more effective message. Promotion In purely marketing terms, Promotion is often the most important part of the marketing mix, and is always the last element to execute. To meet our marketing objective we are essentially required to deliver a message to our target market. The strategy for promotion in the case of LSP is Pull Strategy; we are creating awareness followed by demand for the product. Through integrated marketing communications we are able to deliver a message that is consistent and efficient. The marketing communications mix is as follows; ? Personal Selling ? Sales Promotion ? Public Relations ? Direct Marketing ? Advertising Using these ‘tools as an integrated mix we can deliver a single consistent message. Due to budgetary reasons (which we will discuss in further detail) it may be more economical to concentrate on delivering this message through advertising. Advertising is non-personal and is used for mass consumption, usually through mass media. Our primary marketing objective is to increase awareness and mass advertising would be the most efficient way of doing this, and can often be the cheapest option as the message is being delivered to the maximum people in the target market. Action Plan Goals Department Timescale Develop task frame for All 7 Days marketing campaign Set budget for marketing Financial 14 Days campaign Select media channels Marketing 14 Days for promotion and advertising. Launch marketing Marketing 9 Days campaign Marketing Budget An overview of the likely spending on the promotional tools used to implement the marketing strategy must be considered by the relevant department. In the case of the London Ships Partnership there might be issues regarding government grants or council subsidies which would affect the scale and size of a communications strategy. If the funding for the marketing campaign is reliant on a small share of profits, then decisions have to be made regarding the distribution of capital to each promotional tool. Regarding advertising for example, would it be more efficient to spend a high amount on a television advert in China reaching large numbers of people, or a more personal form of advertising to strengthen the message? Evaluation/Critical Issues The creation of any marketing strategy should begin with market research. Knowledge of the markets will lead to an understanding of the required target market and the better you know who you are focusing marketing efforts on, the better equipped you are at achieving objectives. Marketing objectives should be clear, concise and cohesive but is the objective that we decided upon flexible enough to alter after six months, if the strategy isnt working? This highlights the need to deliver a consistent message as part of the marketing communications campaign. It is far more efficient to deliver one simple message to a specified target market or audience. Therefore, all departments responsible for the strategy need to communicate internally so as to be focused enough to execute successfully. Earlier in the marketing plan, we highlighted the necessity of analysing the environment, both micro and macro. Some external factors, which are uncontrollable, could prove problematic. An example of this is the current global economic state, and the uncertainty that still remains in some markets. Despite China growing rapidly, it may still be at risk as it may struggle to sustain such huge year-on-year growth, claim investment group Marc Faber. Its GDP per capita still remains at only $3,600 (The Guardian 16.8.2010). However, despite any cynicism, China is an emerging market with a growing middle-class and is therefore cause for optimism for the UK tourism market and for the London Ships Partnership. Bibliography Aaker, D and Joachimsthaler, E. (2000) Brand Leadership. NY, US, Free Press Business. Jobber, D. (2004) Principles and Practice of Marketing. 4th Ed. London, McGraw Hill. Jones, G. (2007) Organisational Theory, Design and Change. 5th Ed. NJ, US, Prentice Hall. Keegan, W and Green, M. (2005) Global Marketing. 4th Ed. US, Pearson Prentice Hall. Keegan, W. (1999) Global Marketing Management. 6th Ed. NJ, US, Prentice Hall. Keller, K. (2003) Strategic Brand Management: Building, Measuring and Managing Brand Equity. 2nd Ed. NJ, US, Pearson Education Ltd. Van Gelder, S. (2003) Global Brand Strategy: Unlocking Branding Potential Across Countries, Cultures Markets. London/VA, US, Kogan Page. The Guardian (2010) China Overtakes Japan As Second Largest Economy (Internet) Guardian Online. Available from: https://www.guardian.co.uk/business/2010/aug/16/china-overtakes-japan-second-largest-economy (Accessed 17.8.2010) The Guardian (2010) Chinas Cash Rich Visit Japan ( Internet) Guardian Online. Available from: https://www.guardian.co.uk/world/2010/aug/16/china-rich-tourists-visit-japan (Accessed 17.8.2010)