Transcript socially responsive marketing - Garnet Valley School District

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CHAPTER
2
SOCIALLY
RESPONSIVE MARKETING
2-1 The Impact of Marketing
2-2 Criticisms of Marketing
2-3 Increasing Social Responsibility
Chapter 2
MARKETING
© 2009 South-Western, Cengage Learning
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2-1
THE IMPACT OF
MARKETING
GOALS
Explain how marketing affects
businesses.
Describe marketing’s impact on
individuals.
Discuss ways marketing benefits
society.
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CHAPTER
2
SOCIALLY
RESPONSIVE MARKETING
• Marketing Matters pg 36
• 3 columns – in each column include all the
questions you may have asked yourself before
making this purchase.
• At the bottom write a summary of why you chose
to ask those questions, and why the questions
differed from product to product.
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© 2009 South-Western, Cengage Learning
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Marketing Affects Businesses
 Many people question the value of Marketing
 Adds to the cost of products
 Encourages people to buy things they really do
not want or need
 Build a good product/service no need
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Marketing Affects Businesses
Critical business function
Customer satisfaction
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Marketing Affects Businesses
Critical business function
 Marketing is responsible for the activities leading to
the exchange of a business’s products and
services for the customer’s money
 Identify and understand customers, attitudes, likes
and dislikes
 Marketing Information Systems, Market Research
 Develops Products and Services for customers at
a profit
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Marketing Affects Businesses
Customer satisfaction
 Satisfy customer wants and needs (Tide)
 Helps business makes better decisions
about what to sell and how to sell it (retail)
 Customers are likely to be more loyal and
continue to purchase from the business
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Marketing Helps People
Better products at a lower cost
Expanded opportunities
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Marketing Helps People
 Individuals benefit from marketing because it
improves the exchange between business and
customers
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Marketing Helps People
 Here is an example of its value
 Consider going to a supermarket to buy party supplies
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Marketing Helps People
 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
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Marketing Helps People
Better products at a lower cost
 cell phones
Expanded opportunities
 ¼ to 1/3 of all jobs in the U.S.
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Does Marketing Benefits
Society?
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© 2009 South-Western, Cengage Learning
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Marketing Benefits Society
New and better products
Better standards of living
Improved international trade
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Marketing Benefits Society
New and better products
 Marketing encourages business to provide
products and services that customers want
 More efficient automobiles
 Biodegradable products
 Airbags, Self-Driving Cars
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Marketing Benefits Society
Better standards of living
 Based on the products and services
available to customers
 Amount of resources consumers have to
obtain for the products/services
 Quality of life for consumers
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Marketing Benefits Society
Improved international trade
 Sale of products and services to people in other
countries
 Marketers help to determine where products can
be sold, how to sell in countries that have different
business procedures, money system and buying
practice
 Shipping, Product Handling, Customer Service,
Promotional methods
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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
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2-2
CRITICISMS
OF MARKETING
Thoughts
 How does marketing help the environment?
 Why is a business that is committed to long
term customer relationships less likely to use
high-pressure sales tactics?
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2-2
CRITICISMS
OF MARKETING
GOALS
Discuss three common criticisms of
marketing.
Explain how marketing can be used to
solve social problems.
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Common Complaints
Marketing causes unneeded
purchases
Marketing wastes money
Marketing is not always needed
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Common Complaints
Marketing causes unneeded purchases
 Products are readily available
 Packaged to attract attention
 Advertising to encourage specific brands
 Credit and Special Financing
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Common Complaints Countered
Marketing causes unneeded purchases
 Dissatisfied customer
 Return item – lost sale
 Tell other people not to purchase
 Reduction in profit
 No relationship with customers
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Common Complaints
Marketing causes unneeded purchases
Marketing wastes money
Marketing is not always needed
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Product Price
The Typical
Costs of Marketing
Average cost
of sales and
advertising
(2–10%)
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Average
cost of all
marketing
activities
(50%)
MARKETING
Total
product
price
(100%)
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Common Complaints Countered
Marketing wastes money
 Products can be sold to more customers
 Increased competition
 Lowest price
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Common Complaints
Marketing causes unneeded purchases
Marketing wastes money
Marketing is not always needed
 Can you think of a product that does not
need marketing?
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Common Complaints
Marketing is not always needed
 Can you think of a product that does not
need marketing?
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Common Complaints Countered
Marketing is not always needed
 If no marketing the customer would be
responsible to complete the activities to
purchase a product.




Find the product
Pay cash
Transportation
Risk
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Marketing Solves Problems
Marketing increases public awareness
Marketing helps match supply with
demand
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Marketing Solves Problems
Marketing increases public awareness
 Communication on issues
 Encouraged to take action
 Green (environmental) marketing
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Marketing Solves Problems
Marketing helps match supply with
demand
 Transportation
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2-3
INCREASING SOCIAL
RESPONSIBILITY
GOALS
Define consumerism.
Explain ways by which businesses
improve their own practices.
Discuss how ethical issues affect
marketers’ professional responsibilities.
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Consumer Protection
 The trend today is greater expectation for businesses
to be socially responsible and to aid in solving
problems facing society
 Social responsibility: concerns about the
consequences of actions on others.
 When making decisions, business people realize that
they must consider factors beyond what their
customers want and a profit
 Increasing social responsibility of a business is
occurring three major ways
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Consumer Protection
The growth of consumerism
Government regulation
Improving Business Practice
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Social Responsibility
Must Be Shared
CONSUMER
GROUPS
BUSINESS
GOVERNMENT
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Consumer Protection
 The growth of consumerism
 Consumerism is the 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
 Consumer bill of rights
 Right to adequate information, safe products, product
choices & to communicate ideas and opinions
 Boycott is an organized effort to influence a company by
refusing to purchase its products
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Consumer Protection
The growth of consumerism
Government regulation
Improving Business Practice
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Consumer Protection
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
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Sherman Antitrust Act, 1890
To increase competition among
businesses by regulating monopolies
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Food and Drug Act, 1906
To control the content and labeling of
food and drug products by forming the
Food and Drug Administration (FDA)
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Federal Trade
Commission Act, 1914
To form the Federal Trade Commission
(FTC) to protect consumer rights
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Robinson-Patman Act, 1936
To protect small businesses from unfair
pricing practices between
manufacturers and large businesses
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Fair Packaging and
Labeling Act, 1966
To require packages to be accurately
labeled and fairly represent the contents
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Consumer Credit
Protection Act, 1968
To require disclosure of credit
requirements and rates to loan
applicants
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Consumer Product
Safety Act, 1972
To set safety standards and to form the
Consumer Product Safety Commission
(CPSC)
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Americans with
Disabilities Act, 1990
To prohibit discrimination and ensure
equal opportunity for persons with
disabilities
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Telemarketing and Consumer Fraud
and Abuse Prevention Act, 1994
To prohibit deceptive telemarketing
practices and regulate calls made to
consumers’ homes
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Millennium Digital
Commerce Act, 1999
To regulate the use of electronic
contracts and signatures for Internet
business transactions
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Gramm-Leach-Bliley Financial
Modernization Act, 1999
To limit the sharing of consumer
information by requiring financial
services companies to inform
consumers about how private
information is handled
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Consumer Protection
The growth of consumerism
Government regulation
Improving Business Practice
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Consumer Protection
Improving Business Practice
 Business recognize their responsibility to
consumers and to society because …
 Customers will stop buying the product
 If a social problem exists the government may
increase tax to pay for programs
 Business do not want increase regulation of
taxes
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Improving Practices
Codes of ethics
Self-regulation
Social action
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Improving Practices
Ethics
 Are moral principles or values based on
honesty and fairness.
Codes of ethics
 a set of standards or rules that guide
ethical business behavior.
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Improving Practices
Codes of ethics
 Encourages honest and proper conduct
 They 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
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Responsibilities of the Marketer
In product development and
management
In promotions
In distribution
In pricing
In marketing research
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Responsibilities of the Marketer
Product development and management
Disclosing all substantial risks associated
with a product or service
Identifying substitutions that change the
product or impact buying decisions
Identifying extra cost-added features
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Responsibilities of the Marketer
Promotions
Avoiding false and misleading
advertising
Rejecting high-pressure or misleading
sales tactics and promotions
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Responsibilities of the Marketer
Distribution
Not exploiting customers by
manipulating the availability of a product
Not using coercion
Not exerting undue influence over the
reseller’s choice to handle a product
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Responsibilities of the Marketer
Pricing
Not engaging in price fixing
Not practicing predatory pricing
Disclosing the full price associated with
any purchase
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Responsibilities of the Marketer
Marketing research
Prohibiting selling or fundraising
disguised as conducting research
Avoiding misrepresentation and
omission of pertinent research data
Treating clients and suppliers fairly
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Improving Practices
Self-regulation
 Taking personal responsibility for actions.
 Better Business Bureau is a customer
protection organization sponsored by business
to gather information from consumers about
problems, provide information about improper
business practices, and attempt to solve
problems between businesses and their
customers.
 Consumer Service Departments
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Improving Practices
Social action
 Business people are concerned about the
world in which they live so they invest time
and money to help their communities.
 Ronald McDonald’s House
 Avaya
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Ethics in Marketing
Responsibility to customers
Harm and accountability
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