Transcript LO2
McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 3, YOU SHOULD BE ABLE TO: LO1 Explain the purpose of environmental scanning. LO2 Describe social forces such as demographics and culture. LO3 Discuss how economic forces affect marketing. LO4 Describe how technological changes can affect marketing. 3-2 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 3, YOU SHOULD BE ABLE TO: LO5 Discuss the forms of competition that exist in a market. LO6 Explain how regulatory forces ensure competition and protect producers and consumers. LO7 Identify factors that influence ethical and unethical marketing decisions. LO8 Describe the different concepts of social responsibility. 3-3 WHAT IS THE WORLD’S THIRD LARGEST NATION? THE SOCIAL NATION CREATED BY FACEBOOK! 3-4 FIGURE 3-1 Environmental forces affect the organization, its suppliers, and its customers 3-5 LO2 SOCIAL FORCES DEMOGRAPHICS—POPULATION Environmental Scanning Social Forces Demographics • Population at a Glance Population Explosion • U.S. Population 3-6 LO2 SOCIAL FORCES DEMOGRAPHICS—GENERATIONAL COHORTS Baby Boomers: 1946 - 1964 Generation X: 1965 - 1976 Generation Y: 1977 - 1994 Millennials: 1995+ 3-7 LO2 Ameritrade, American Airlines, and HTC Which generational cohort is being reached? 3-8 LO2 MAKING RESPONSIBLE DECISIONS Millennials Are Going to Change the World! 3-9 SOCIAL FORCES LO2 DEMOGRAPHICS—RACIAL & ETHNIC DIVERSITY Composition Trends • African Americans • Hispanics • Asian Americans Multicultural Marketing 3-10 LO2 SOCIAL FORCES DEMOGRAPHICS—THE AMERICAN HOUSEHOLD Marital Status Cohabitation Blended Family 3-11 LO2 SOCIAL FORCES DEMOGRAPHICS—POPULATION SHIFTS Regional Shifts in the U.S.: 2012 3-12 SOCIAL FORCES LO2 DEMOGRAPHICS—POPULATION SHIFTS Shifts Within States • Rural • Cities • Suburbs • Exurbs 3-13 LO2 SOCIAL FORCES DEMOGRAPHICS—POPULATION SHIFTS Statistical Areas (SA): Illinois • Combined SA: NE Illinois • Micropolitan SA: Dixon, IL • Metropolitan SA: St. Louis, MO & SW IL • Metropolitan Division: Chicagoland 3-14 SOCIAL FORCES LO2 CULTURE Culture Cultural Values 3-15 LO3 ECONOMIC FORCES MACROECONOMIC CONDITIONS Economy • Inflation • Recession 3-16 LO3 ECONOMIC FORCES CONSUMER INCOME Gross Income Disposable Income Discretionary Income 3-17 LO4 TECHNOLOGICAL FORCES TECHNOLOGY OF TOMORROW Technology • Social Networks • Natural User Interfaces • Green Infrastructure • Biotechnology • Tablet Devices, Etc. 3-18 LO4 TECHNOLOGICAL FORCES IMPACT ON CUSTOMER VALUE Impact on Customer Value • Plummeting Costs • New Products Marketspace Electronic Commerce 3-19 LO4 New Yorker, GoToMeeting, and Spot Connect What products might be replaced with these? 3-20 LO5 COMPETITIVE FORCES ALTERNATIVE FORMS OF COMPETITION Competition • Pure Competition • Monopolistic Competition • Oligopoly • Pure Monopoly 3-21 FIGURE 3-A Continuum of competition 3-22 LO6 REGULATORY FORCES FEDERAL LEGISLATION Regulation Protecting Competition • Sherman Antitrust Act (1890) • Clayton Act (1914) • Robinson-Patman Act (1936) 3-23 LO6 REGULATORY FORCES FEDERAL LEGISLATION Protecting Producers and Consumers • Patent Law • Copyright Law • Digital Millennium Copyright Act (1998) • Nutritional Labeling 3-24 LO6 REGULATORY FORCES FEDERAL LEGISLATION Protecting Producers and Consumers • Consumer Product Safety Act (1972) • Consumer Product Safety Commission • Consumerism 3-25 LO6 REGULATORY FORCES FEDERAL LEGISLATION Protecting Producers and Consumers • Price Fixing • Price Discounting 3-26 LO6 REGULATORY FORCES FEDERAL LEGISLATION Protecting Producers and Consumers • Federal Trade Commission Act of 1914 Cease and Desist Order Corrective Advertising • CAN-SPAM Act (2004) • Do Not Call Registry 3-27 LO6 REGULATORY FORCES FEDERAL LEGISLATION Protecting Producers and Consumers • Exclusive Dealing • Requirement Contracts • Exclusive Territorial Distributorships • Tying Arrangement 3-28 REGULATORY FORCES LO6 FEDERAL LEGISLATION Protecting Producers and Consumers • Landham Act (1946) • Trademark Law Revision Act (1988) • Madrid Protocol (2003) • U.S. Supreme Court: Trademark Colors • Federal Dilution Act (1995) Control Through Self-Regulation 3-29 LO6 Band-Aid, ChapStick, Jell-O, Kleenex, Vaseline, Frisbee, and Q-Tips Are these brand names generic trademarks? 3-30 LO7 ETHICAL MARKETING BEHAVIOR SOCIETAL CULTURE AND NORMS Ethics Current Perceptions of Ethical Behavior Culture Laws 3-31 FIGURE 3-2 A framework for understanding ethical behavior 3-32 LO7 ETHICAL MARKETING BEHAVIOR BUSINESS CULTURE AND INDUSTRY PRACTICES Business Cultures Ethics of Exchange • Caveat Emptor • Consumer Bill of Rights (1962): The Right To Safety To Choose To Be Informed To Be Heard 3-33 LO7 ETHICAL MARKETING BEHAVIOR BUSINESS CULTURE AND INDUSTRY PRACTICES Ethics of Competition • Economic Espionage • Bribes and Kickbacks 3-34 LO7 MAKING RESPONSIBLE DECISIONS Corporate Conscience in the Cola War 3-35 LO7 ETHICAL MARKETING BEHAVIOR CORPORATE CULTURE AND EXPECTATIONS Corporate Culture Code of Ethics Ethical Behavior of Top Management and Co-Workers • Whistle-Blowers 3-36 FIGURE 3-B American Marketing Association Statement of Ethics (abridged) 3-37 LO7 ETHICAL MARKETING BEHAVIOR PERSONAL MORAL PHILOSOPHY AND ETHICS Moral Idealism Nestlé’s Gerber Utilitarianism Good Start Infant Formula 3-38 LO8 SOCIAL RESPONSIBILITY IN MARKETING THREE CONCEPTS OF SOCIAL RESPONSIBILITY Social Responsibility • Profit Responsibility • Stakeholder Responsibility • Societal Responsibility 3-39 FIGURE 3-C Three concepts of social responsibility 3-40 LO8 SOCIAL RESPONSIBILITY IN MARKETING THREE CONCEPTS OF SOCIAL RESPONSIBILITY Societal Responsibility • Triple-Bottom Line • Green Marketing HäagenDazs • Cause Marketing 3-41 MARKETING MATTERS LO8 Will Consumers Switch Brands for a Cause? Yes, If… 3-42 LO8 SOCIAL RESPONSIBILITY IN MARKETING SUSTAINABLE DEVELOPMENT Social Audit Sustainable Development 3-43