GLOBAL MARKETING

TOPIC: SOCIALISM PREPARED BY : PUTERI NURUL FARHANA ABD AZIZ PREPARED FOR: MADAM KHALILAH BT IBRAHIM

Socialism Especially Influenced by Adam Smith Wealth of Nations, 1776 Laissez Faire Economics Government does not interfere with business --hands off

WHAT IS SOCIALISM?
Socialism:

A political and economic theory that a countrys land, transport, natural resources and chief industries should be owned and control by the whole community or by the state, and the wealth should be equally distributed.

SOCIALISM
Socialism

does not have a common meaning. Different people include different things in it. However the basic thinking is the same, i.e.; the government should have control over economic activities, and private ownership of land and capital abolished or put under tight restrictions. Bridge between Capitalism and Communism

SOCIALISM DEFINITION
Dickinson

defines it as, Socialism is an economic organization of society, in which the material means of production are owned by the whole community and operated by the organs, representative of, and responsible to the community, according to a general plan; all members of the community are being entitle to have equal benefit from the resulting production.

SOCIALISM TERMINOLOGY
The

term Socialism or Socialist can refer to several related things: An ideology or a group of ideologies, a state that exists or has existed. In Marxist theory: the society that would succeed capitalism, and then develop further into communism.

HISTORICAL BACKGROUND

Industrial Revolutions Threw thousands of handcraft workers into the labor Market Crowed slum were established around the factories Crimes, disease, hunger and misery were a way of life Industrial accident and no compensation for families No Rights of wage earner Union were illegal

SOCIALISMS PRINCIPLES
Egalitarianism(equality) Humankind will be unified and cooperative Wealth owned in common, used for the common good Capitalism exploits the very people who create societys wealth. Moralism Division of rich and poor is evil

OWENS IDEOLOGY
People

are formed by their environment Created better living conditions Businesspeople are not enough concerned with their employees Provided better hours, wages, benefits

EXAMPLE OF COUNTRY
People's Republic of China (since October 1, 1949) Republic of Cuba (since January 1, 1959) Lao People's Democratic Republic (since December 2, 1975) Socialist Republic of Vietnam (officially in reunified Vietnam since July 2, 1976, but in the North since 1954) Democratic People's Republic of Korea (since September 9, 1948

SOCIALISM DEVELOPS AS A MOVEMENT TO DISPLACE CAPITALISM

CAPITALISM
Private

SOCIALISM
Government

individuals own and operate means of production Private owners provide people with goods and services Individual owners make decisions

( representing people) owns and operates means of production Government determines needs of the people Government plans the economy

TYPES OF SOCIALISM
Utopian

Socialism State Socialism Christian Socialism Anarchism Marxian Socialism

Social Justice Better allocation of resources Improving productive efficiency Social security and welfare

Economic stability

ADVANTAGES OF SOCIALISM
In

environments with plentiful resources, socialism provides all members with their survival needs, creating a stable social environment. Members that cannot participate economically - due to disabilities, age, or periods of poor health - can still impart wisdom, emotional support and continuity of experience to the system.

DISADVANTAGES
Since

there is no culling and no economic advantage to working harder, socialistic systems provide no inherent incentive to participate. This makes socialism internally unstable. Due to a lack of incentives, socialistic systems tend not to be competitive, making them externally unstable.

SOCIALISM IS THE NEW WORLD ORDER HOW WILL MARKETERS SURVIVE?

Marketers need to LIE in order to be successful. L: LISTEN: Trust is built by understanding and acting upon the needs of the customer. To understand the needs, you need to listen in. I: INFLUENCE: After Listening and Learning about the customer needs, you need to act on it in an authentic manner. E: ENGAGE: If you constantly listen and learn from the customer AND influence her by acting in a transparent and authentic manner, you will engaged with customer.. Customers are the most profitable. They provide feedback and suggestions They are willing to pay a higher price

 Misallocation
Loss

of resources

of economic freedom equality not achieved

Economic

Concentration

of power in the state