Transcript Principles of Marketing

Principles of
Marketing
Lecture-43
Summary
of
Lecture-42
e-Marketing
The Birth of the
Internet
The Role of the
Internet in Marketing
Definitions
• E- Commerce
• E-Marketing
• E-Business
Rules of
E-Marketing
Basic Forms of
Virtual Business
Business-to-Consumer
(B2C)
Basic Forms
of
Electronic
Commerce
Business-to-Business
(B2B)
Decision Variables of
the Marketing Mix
Catch for Pakistani
Business
Today’s Topics
Marketing and
Society
Current Issues
in Marketing
• The current issues and
marketing can be divided
into two major subjects:
–Ethics
–Social responsibility
• The two concepts are very
closely related
Marketing Ethics
• Marketers’ standards of
conduct and moral values.
• People develop standards of
ethical behavior based on their
own systems of values and that
may differ from employers
organizational ethics, which,
produces conflicts
Social Criticisms of
Marketing
High
Prices
Poor
Service
Planned
Obsolescence
Marketing’s
Impact on
Individual
Consumers
Shoddy or
Unsafe
Products
Deceptive
Practices
High
Pressure
Selling
Marketing’s
Impact on Society
The Marketing Function is Accused
by Society of Creating:
False Wants
and Too
Much
Materialism
Too Few
Social
Goods
Too Much
Political
Power
Cultural
Pollution
Ethical
Questions
in Marketing
Product
• Planned obsolescence
• Product quality and safety
• Product warranties
• Fair packaging and labeling
• Pollution
• Packages larger than
necessary to gain shelf
space
• Odd-sized packages to
complicate price
comparisons
• Product testing on animals
Price
•Price fixing
•Price discrimination
•Price increases
•Deceptive pricing
Distribution
•Exclusive territories
•Dumping
•Dealer rights
•Predatory competition
• What degree of control should
the firm exert over its channel?
• Should a company distribute its
products in marginally
profitable outlets that lack
alternative sources of supply?
Promotion
• Bait-and-switch advertising
• Promotional allowances
• Bribery
• Promotion gives rise to more
ethical questions than other
components of the
marketing mix.
• Advertising does everything
from simple exaggeration to
outright deceit (car
advertisements where the
fine print is so small you
can’t read it.).
Marketing’s Impact
on Other Businesses
Critics Charge that a
Company’s
Marketing Practices
Can Harm Other
Companies and
Reduce Competition
Through..
Acquisitions
of
Competitors
Marketing
Practices that
Create Barriers
to Entry
Unfair
Competitive
Marketing
Practices
Marketing Ethics
Distributor
Relations
Advertising
Product
Development Corporate Standards
Marketing
Ethics
Customer
Policies
Pricing
Service
General
Code
Consumerism
The Right to Be Safe
The Right to Be Informed
Basic Consumer Rights
The Right to Be Heard
The Right to Choose
Social
Responsibility
• The collection of marketing
philosophies, policies, procedures,
and actions intended primarily to
enhance society’s welfare.
• Social responsibility allows for
easier measurement than
marketing ethics.
• Government legislation can
mandate socially responsible
actions.
• Contemporary marketing
decisions must consider the
entire societal framework, not
only in your own country but
also throughout the world.
• Marketing decisions must also
account for their eventual, longterm effects and for their results
for future generations.
Marketing and
ecology
• Ecology -
the relationship
between organisms and their
natural environments
• Examples:
garbage disposal,
acid rain, depletion of the
ozone layer, global warming,
and contamination of the air
and water.
Enlightened
Marketing
Consumer-Oriented Marketing
Innovative Marketing
Value Marketing
Sense-of-Mission Marketing
Societal Marketing
Society
(Human Welfare)
Societal
Marketing
Concept
Consumers
(Satisfaction)
Company
(Profits)
Principles
For Public
Policy Toward
Marketing
Consumer and
Producer Freedom
Curbing Potential
Harm
Meeting Basic
Needs
Key Principles
for a Public Policy
Toward Marketing
Economic
Efficiency
Innovation
Consumer
Education
Consumer
Protection
Society
(Human Welfare)
Societal
Marketing
Concept
Consumers
(Satisfaction)
Company
(Profits)
Enough for
today. . .
Summary
Marketing and
Society
• The current issues and
marketing can be divided
into two major subjects:
–Ethics
–Social responsibility
• The two concepts are very
closely related
Social Criticisms of
Marketing
High
Prices
Poor
Service
Planned
Obsolescence
Marketing’s
Impact on
Individual
Consumers
Shoddy or
Unsafe
Products
Deceptive
Practices
High
Pressure
Selling
Marketing’s
Impact on Society
The Marketing Function is Accused
by Society of Creating:
False Wants
and Too
Much
Materialism
Too Few
Social
Goods
Too Much
Political
Power
Cultural
Pollution
Ethical
Questions
in Marketing
Distributor
Relations
Advertising
Product
Development Corporate Standards
Marketing
Ethics
Customer
Policies
Pricing
Service
General
Code
Social
Responsibility
Society
(Human Welfare)
Societal
Marketing
Concept
Consumers
(Satisfaction)
Company
(Profits)
Next….
Review
Principles of
Marketing
Lecture-43