Transcript Marketing Impacts Society

Marketing
Impacts Society
2.1 The Impact of Marketing
2.2 Criticisms of Marketing
2.3 Increasing Social Responsibility
The Impact of Marketing
Goals for Lesson 2.1
 Explain how marketing affects businesses
 Describe marketing’s impact on individuals
 Discuss ways marketing benefits society
Marketing – Positive vs
Negative
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Important to determine if marketing plays a
positive or negative role
Does marketing contribute to businesses,
individuals, society
Positive – A community hospital that
describes the various services
Negative – Fashion designers who have
extremely thin models present their clothing
lines to the public
Marketing Affects Businesses
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Critical Business Function
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Understanding the seven marketing functions
(product management, distribution, selling,
marketing-information management, financing,
pricing, promotions
Using the marketing concept (using the needs
of customers as the primary focus during
planning, production, distribution and
promotion
Marketing Affects Business
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Customer Satisfaction
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Understanding the needs and wants of
customers
Understanding the likes and dislikes of
customers
Helps businesses make better decisions about
what to sell and how to sell it
Allows companies to operate more efficiently
Marketing Helps People
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Locations of stores
Favorite brands
Prices clearly labeled
Types of payments
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Helps satisfy customer needs
Customer
Satisfaction
Product Costs
and Prices
Marketing Helps People
Better Products at Lower Costs
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Wants/Needs and Likes/Dislikes lead to
improvements of products and new products
are developed
Product meets customer needs
Results in higher sales volume
Increase sales allow business to produce
products more efficiently
Causes costs to decrease
Marketing Helps People
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Expanded Opportunities
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One-fourth of all jobs in the US are marketing
jobs
Financially rewarding
Helps you become a better consumer
Marketing Skills can with other activities
(elections, college planning, fundraising)
Think Critically
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Buying the naming rights for publicly owed sports stadiums and arenas is obviously
good for taxpayers’ wallets, and it is apparently good for business too. At
astronomical prices such rights have been selling lately, they had better be very good
businesses shelling out, in one case, more than $100 million over 15 years.
Businesses that slap their names on stadiums figure to get billions of impressions per
year from fans, passers-by, and television viewers. Typically the corporate name
goes on signs seen from adjacent roadways, on stadium entrances, and inside near
the scoreboards. In addition, naming rights deals usually include other amenities
such as luxury boxes, complimentary tickets, and game sponsorships.
In a recent survey, 9 of 10 people knew the corporate sponsors of their local sports
arenas. And 6 of 10 respondents said that naming a sports venue after a corporate
sponsor was good for the community. The practice has become so common that the
public now expects it, and the taxpayers increasingly demand it as a way to recoup
costs.
1. In what ways does buying naming rights differ from buying TV spots for a
popular sporting event such as the Super Bowl or World Series?
2. What are some of the possible drawbacks of putting a business’s name on a
public sports arena?
Marketing Benefits Society
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New and better products
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Better standards of living
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Promotes international trade
New and Better Products
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Products and services that help society in
general
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Example: more efficient automobiles that use less
gasoline and cause less pollution
Giving consumers what they want, allowing
natural and raw resources to be used less
Better Standards of Living
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Based on the products and services available
to consumers
Countries with a well developed marketing
system are able to make better products
More jobs for citizens and higher paying jobs
Promotes International Trade
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Marketing has been particularly effective in
improving international trade
US is the large consumer of foreign products
Marketers help determine where products
can be sold and how to sell them in those
countries
Benefits of Marketing
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Businesses meet consumer needs
Consumers make better decisions
Natural resources are used more effectively
Standard of living is improved
International trade increases
Journal
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List at least three benefits that both
consumers and businesses gain by positive
marketing practices. You should provide
specific examples of businesses and list
benefits gained by both businesses and
consumers.
Group Activity
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Complete the following task using magazine
advertisements:
1. Identify 2 ads that portray marketing in a
positive manner. Explain why?
2. Identify 2 ads that portray marketing in a
negative manner. Explain why? How could
the company promote the product or service
in a positive manner?
Criticisms of Marketing
Goals for Lesson 2.2
 Discuss three common criticisms of
marketing
 Explain how marketing can be used to solve
social problems
Common Complaints
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Marketing causes unneeded purchases
Marketing wastes money
Some products do not need marketing
Causes Unneeded Purchases
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Marketing can increase
sales of products
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Attractively packaged
Advertising to encourage
purchase
Special financing
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Does the consumer
really need it?
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Long term results
Dissatisfaction
Returning of products
Will the consumer buy
your products again?
Businesses must be sensitive to the needs and
experiences of customers. Products and services
should be carefully matched. Must value long-term
relationships.
Wastes Money
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50% of the price of products comes from
marketing activities.
Selling and advertising make up about 5% 10%
Effective marketing actually lowers prices in
the long run
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More competition helps keep prices low
Increased sales volume and competition result in
lower prices for consumers
Some Products Don’t Need
Marketing
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Consumer would be responsible for locating
the product
Consumer would have to gather information
about it
No financing options
No distribution of the product
Marketing Solves Problems
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Marketing increases public awareness
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Marketing helps match supply with demand
Increases Public Awareness
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Serious problems facing society (health care,
crime levels, poverty, diseases, racism,
education, unemployment, drug use, the
environment.
How can Marketing help?
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Communication
Advertisements
Public Service Announcements
Helps Match Supply & Demand
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Products and services are not always
available where they are most needed
Effective distribution is can help match supply
with demand
Helps prevent or reduce the impact of
problems that could affect society
Journal – Review Questions
1. On average, marketing costs represent what percentage of the price
that a consumer pays for a product?
2. On average, costs of sales and promotions represent what
percentage of the price that a consumer pays for a product?
3. If sellers do not perform certain marketing functions, why doesn’t
that reduce the final cost of a product to the consumer?
4. Name several public awareness campaigns that are intended to
benefit society?
5. If cranberry growers were suffering from an oversupply of
cranberries that slashed prices and threatened to put them out of
business, how could marketing help them?
Increasing Social
Responsibility
Goals for Lesson 2.3
 Define consumerism
 Explain ways which businesses improve their
own practices
 Discuss how ethical issues affect marketers’
professional responsibilities
Consumer Protection
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Increasing Social Responsibility
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Growth of Consumerism
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Government regulations
Social Responsibility
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Marketers must be willing to pay attention to
society’s needs
The trend today is a greater expectation for
business to be socially responsible
It is not all about customers wants/needs and
making a profit
Businesses need to think about the long run
Growth of Consumerism
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Definition – the organized actions of groups
of consumers seeking to increase their
influence on business practices.
Consumer Bill of Rights (JFK, 1960s) – four
basic rights to all consumers
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Adequate and accurate information
Safe products
Product choices
Communicate ideas to business and government
Consumerism
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Consumer education, consumer information
lobbying, product boycotts
Organizations that test products to determine
safety and value
Boycotts – an organized effort to influence a
company by refusing to buy their product
Government Regulations – Consumer Laws’
Handout
Improving Practices
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Code of ethics – a statement of
responsibilities for honest and proper
conduct.
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Enforced by penalties established by the industry
Self-Regulation – taking responsibility for
actions
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BBB – gathers info for consumers about problems
Buyer’s Bill of Rights
Responsibilities of Marketers (Figure 2-8)
Discussion
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At your table name three or four additional
items that would add to the code of ethics in
Figure 2-8 if they were consumer rights
advocates or if they owned a business.
Students should explain why each additional
item would be an important ethics issue to
include.
Improving Practices
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Social Action – business people helping to
solve some of society’s major problems
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Ex: Members Only – drug abuse and voter
registration
Ex: Nike – Literacy Program
Ex: McDonalds – Ronald McDonald Houses
Ethics in Marketing
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Ethics – decisions and behavior based on
honest and fair standards
Responsibility to Customers
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Marketers have a direct relationship with
customers
Marketing Code of Ethics (product planning,
promotion, pricing, distribution, and marketing
research
Decisions and actions should be evaluated
Ethics in Marketing
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Harm and Accountability
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Marketers must remember that their emphasis
must be on what is best for everyone in an
exchange
No concern for society or customers
Illegal behavior
Educational programs for employees
Journal
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Write one sentence to summarize each
of the following phrases:
“Consumer Protection”
“Improving Practices”
“Ethics in Marketing”