Transcript Notes for Chapter 2 - Garnet Valley School District

SOCIALLY
RESPONSIVE
MARKETING
Chapter 2
MARKETING AFFECTS BUSINESSES
 Marketing helps businesses find customers and sell their
products and services profitability
 Marketing is responsible for the activities leading to the
exchange of a business’s products and services for the
customers money
 The marketing functions are needed to make the exchange
possible.
 Marketing is used to identify and understand the customer
 Through research businesses are able to determine customer needs,
attitudes, likes, and dislikes
 Then the business can develop P&S that meet the needs of the
customer and earn a profit
MARKETING HELPS PEOPLE
 Marketing helps satisfy needs and wants
 Manufacturers developing a new brand of laundry detergent
will make better decisions if they are aware of what
consumers like and dislike about the current brand
 It also helps make better decisions about what to sell and
how to sell it
 EX - The manager of a clothing store will want to know what
consumers are expecting in terms of styles and prices before
purchasing new items to sell
 When customers needs and wants are met, they are more likely to
be loyal and continue to purchase from the business
MARKETING HELPS PEOPLE
 Individuals benefit from marketing because it improves
the exchange between business and customers
 Here is an example of its value
 Consider going to a supermarket to buy party supplies
 You want the store to be conveniently located, adequately supply
decorations, drinks, snacks, have easily located products, prices clearly
marked, etc…
 Each of those activities is an example of marketing, and make it easier
for you to shop
 The business benefits because you purchase the product, and you
benefit because your needs were satisfied
BENEFITS OF MARKETING
Businesses meet consumer needs
Consumers make better decisions
Natural resources are used more effectively
Standard of living is improved
International trade increases
CRITICISMS OF MARKETING
Common Complaints
 If not used appropriately marketing can have negative effects
 This can/has lead to a negative image for some marketing activities
 If a consumer has a negative opinion about a business, it can affect
whether or not they will be customers
 Know the two examples we went over in class (Gerber and Toyota)
and be able to describe the incidents – ON TEST
MARKETING WASTES MONEY
 All marketing activities are about 50% of the price of products
 Some products % are higher – while other products % are smaller
 Promotion and selling are only 2-10% of the products price...
 Marketing actually lowers product prices in the long run (Question on
Test!!!!!!!!!!!!!!)
 Because of marketing, products can be sold to more customers
 This in turn creates more competition
 When consumers have more choices, they usually buy reasonably priced items
 This encourages businesses to keep prices as low as possible to be competitive
MARKETING SOLVES PROBLEMS
 If misused marketing can have negative results, but if used effectively it
can be positive
 Concerns about health care, crime levels, poverty etc…all require the
attention of many people if solutions are to be found
 Marketing can help in several ways
 Through communication people are more aware and informed
 Consider the # of times you have received information about seat belts,
recycling, drugs & alcohol
 Marketing is responsible for these public serve announcement
MARKETING HELPS MATCH SUPPLY WITH
DEMAND
 Products & Services are not always available when
consumers need them
 Ex- if there is a drought in one part of the country, farmers
may not have enough hay and grain to feed their livestock.
At the same time, there might be excess supply in other
areas
 An effective distribution system can move the hay and grain
quickly from one part to the other…matching supply and
demand
CONSUMER PROTECTION
 The trend today is greater expectation for businesses to be socially
responsible and to aid in solving problems facing society
 Social responsibility comes into affect
 When making decisions, business people realize that they must consider
factors beyond what their customers want
 Increasing social responsibility of a business is occurring three major
ways…
1) GROWTH OF CONSUMERISM
 Consumerism - Organized actions of groups of consumers seeking to
increase their influence on business practices
 Consumers have little influence alone, but when organized as a group
consumers have a much greater impact
 Septa Strike
 Teacher Strike
 Students Strike??
 Consumer bill of rights
 Right to adequate information, safe products, product choices & to communicate
ideas and opinions
2) GOVERNMENT REGULATION
Government regulation- Make laws designed to
improve social impact of business practices
Businesses must comply with consumer protection
laws or risk fines and a loss of business
3) IMPROVING BUSINESS PRACTICES
 Improving business practices- Business recognize their
responsibility to consumers and to society because …
 If a social problem exists the government may increase tax
to pay for programs
 Business do not want increase regulation of taxes
CODE OF ETHICS
 What is the definition of ethics, and why do businesses adopt a code of
ethics? (This is on your Ch. 2 TEST)
 Ethics: What you believe to be right or wrong
 Encourages honest and proper conduct
 AMA (American Marketing Association) agree on standards of conduct
to encourage this responsible behavior
 Codes can be influence by penalties by the industry
 AMA describes specific responsibilities for marketers in the 4 P’s area
SELF REGULATION
Self-Regulation – Business developed procedures to
respond to consumer problems and to encourage
customers to work directly with businesses to
solve them
 Is taking personal responsibility for ones actions
 The Better Business Bureau is a consumer protection
organization
MISCELLANEOUS
 Businesses that use the marketing concept use marketing to
identify and understand its customers
 The Better Business Bureau is a consumer protection
organization sponsored by businesses
 The following marketing techniques often results in
consumers making unneeded purchases
 offering consumers a wide number of choices
 attractive display and packaging
 credit and special financing arrangements
MISCELLANEOUS
Marketing should start with good products
Successful businesses value long-term relationships
with customers.
Increased sales volume and competition result in
lower prices for consumers.