Transcript Chapter 17 Marketing Planning and Forecasting

Part 4: Evaluating marketing
Chapter 18: Ethical marketing in a
consumer-oriented world—appraisal and
challenges
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy
18–1
When we finish this lecture you should
• Understand how marketing can and should be
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evaluated
Know how to assess the connection between
marketing, materialism and social values
Know the challenges facing marketers in the future
Understand the issues at stake in globalisation
Know how to consider the ethical implications of
marketing decision-making
Know the reason as to why the legal framework of
marketing matters
Realise how far marketing can or should go
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy
18–2
Questioning marketing
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Would we be better off if there was not quite so much
emphasis on marketing?
Do we really need so many brands of products?
Does all the money spent on advertising really help
consumers?
Should we expect to be able to order groceries over the
Internet and have a van deliver them to our front door?
Do all the retail stores in shopping centres just add to the
price consumers must pay?
Does marketing serve society well or does it cost too much?
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy
18–3
Measuring consumer satisfaction
• The consumer satisfaction index
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A measure based on regular interviews with a number of
consumers, indicating the extent to which a company
fulfils a consumer’s needs, desires and expectations
• Satisfaction is subjective
• Profit—Surrogate measure of consumer satisfaction
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy
18–4
Micro-marketing often does cost too
much
• Micro-marketing is only viable when the benefits to
the customer exceed the costs to the marketer
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For customers in production-oriented companies, micromarketing may cost too much
• Many new products fail in production-oriented
companies
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Lack of understanding of the customer
Improper blending of the four Ps
Lack of understanding of the marketing environment
‘Me-too’ products don’t always succeed
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy
18–5
Macro-marketing does not cost too
much
• Consumers have a choice as to whether or not to
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buy new products
Prices of older products usually drop
Innovative companies’ profits may rise,
encouraging further innovation leading to new
investments, economic growth, higher income and
employment
Increased profits attract competition
Advertising is an economical way to provide
information
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy
18–6
Marketing, materialism and social
values
• Marketers aim to fulfil customers’ needs, not judge
them
• The market-directed economy can address social
problems
• Generally, marketing does not create ‘false tastes’
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy
18–7
Free speech and the use of sex
appeal in advertising
• Legislation abrogates free choice
• Public outrage can play into marketers’ hands
• Marketers can choose to take a societal view
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy
18–8
Figure 18.1 Some important changes and trends
affecting marketing and strategy planning
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy
18–9
Figure 18.1 Some important changes and trends
affecting marketing and strategy planning
(continued)
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy
18–10
Figure 18.1 Some important changes and trends
affecting marketing and strategy planning
(continued)
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy
18–11
Globalisation
• Globalisation—Considering the whole world as a
market
• Emergence of post-communist economies
• Extension of free trade markets
• Culture clashes
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy
18–12
Ethical marketing is not an oxymoron
• A rise in importance of environmental issues
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Green marketing—A key tool in environmental care
The ‘triple bottom line’—A principle whereby companies
should care about people, the planet and profit
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy
18–13
Ethical marketing is not an oxymoron
(continued)
• Privacy is important
• Consumer privacy— The consumer’s right that
information shared with a vendor will not be used
in ways inconsistent with the consumer’s
expectations
• Technology can threaten privacy
• Governments are active in preserving privacy
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy
18–14
The legal framework
• Unethical marketing practices are attracting bigger
penalties
• ‘Misleading or deceptive conduct’ by marketers is
targeted
• Who should be punished?
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy
18–15
Responsibility for ethics must be
shared
• Should marketers get the blame for giving
consumers what they want?
• Consumers’ impact on marketers
• Consumer/marketer harmony
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy
18–16
How far should the marketing
concept go?
• Should dangerous products be banned?
• Can clever marketing kill competitors’ good
products?
• Does legislation help?
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy
18–17