Chapter 3 The Marketing Environment and Marketing Ethics.
-
Upload
malcolm-horn -
Category
Documents
-
view
227 -
download
0
Transcript of Chapter 3 The Marketing Environment and Marketing Ethics.
![Page 1: Chapter 3 The Marketing Environment and Marketing Ethics.](https://reader035.fdocuments.us/reader035/viewer/2022062301/56649ecb5503460f94bd9e6c/html5/thumbnails/1.jpg)
Chapter 3 The Marketing Chapter 3 The Marketing Environment Environment
and Marketing Ethicsand Marketing Ethics
![Page 2: Chapter 3 The Marketing Environment and Marketing Ethics.](https://reader035.fdocuments.us/reader035/viewer/2022062301/56649ecb5503460f94bd9e6c/html5/thumbnails/2.jpg)
External Marketing EnvironmentExternal Marketing Environment
DemographicsDemographics
SocialChangeSocial
Change
EconomicConditionsEconomicConditions
Political & Legal FactorsPolitical &
Legal Factors
TechnologyTechnology
CompetitionCompetition
EnvironmentalScanning
Target Market
ProductDistributionPromotion
Price
ProductDistributionPromotion
Price
External Environment is not controllable Ever-Changing
Marketplace
![Page 3: Chapter 3 The Marketing Environment and Marketing Ethics.](https://reader035.fdocuments.us/reader035/viewer/2022062301/56649ecb5503460f94bd9e6c/html5/thumbnails/3.jpg)
Marketing-Oriented ValuesMarketing-Oriented Values
CulturalCreativityCultural
Creativity
TraditionalismTraditionalism
ModernismModernism
Interested in new products and services.
“Heartlanders” with nostalgic views
Place high value on success, materialism, technology
![Page 4: Chapter 3 The Marketing Environment and Marketing Ethics.](https://reader035.fdocuments.us/reader035/viewer/2022062301/56649ecb5503460f94bd9e6c/html5/thumbnails/4.jpg)
The Poverty of TimeThe Poverty of Time
A lack of time to do anything but
work, commute to work, handle
family situations, do housework,
shop, eat, sleep...
![Page 5: Chapter 3 The Marketing Environment and Marketing Ethics.](https://reader035.fdocuments.us/reader035/viewer/2022062301/56649ecb5503460f94bd9e6c/html5/thumbnails/5.jpg)
Role of Families & WomenRole of Families & Women
• 58% of all females are in the workforce
• Rising purchasing power from dual-income families
• Change of “traditional” purchasing roles
![Page 6: Chapter 3 The Marketing Environment and Marketing Ethics.](https://reader035.fdocuments.us/reader035/viewer/2022062301/56649ecb5503460f94bd9e6c/html5/thumbnails/6.jpg)
Age Groups: Generation YAge Groups: Generation Y
• Born between 1979 and 1994
• Size creates immense marketing impact
• Respond to ads differently
![Page 7: Chapter 3 The Marketing Environment and Marketing Ethics.](https://reader035.fdocuments.us/reader035/viewer/2022062301/56649ecb5503460f94bd9e6c/html5/thumbnails/7.jpg)
Age Groups: Generation XAge Groups: Generation X
• Born between 1965 and 1978
• Savvy and cynical consumers
• Indulge themselves with meals/alcohol, clothing, and electronics
![Page 8: Chapter 3 The Marketing Environment and Marketing Ethics.](https://reader035.fdocuments.us/reader035/viewer/2022062301/56649ecb5503460f94bd9e6c/html5/thumbnails/8.jpg)
Age Groups: Baby BoomersAge Groups: Baby Boomers
• Born between 1946 and 1964
• Cherish youth, convenience, and individuality
• Individualism has led to a personalized economy
![Page 9: Chapter 3 The Marketing Environment and Marketing Ethics.](https://reader035.fdocuments.us/reader035/viewer/2022062301/56649ecb5503460f94bd9e6c/html5/thumbnails/9.jpg)
Age Groups: Older ConsumersAge Groups: Older Consumers
• Age “50 plus”
• Healthier, wealthier, better educated
• Considerable purchasing power
• Market potential not fully tapped
![Page 10: Chapter 3 The Marketing Environment and Marketing Ethics.](https://reader035.fdocuments.us/reader035/viewer/2022062301/56649ecb5503460f94bd9e6c/html5/thumbnails/10.jpg)
Location: Americans on the MoveLocation: Americans on the Move
• Average U.S. citizen moves every six years
• Immigrants add $10 billion yearly to economy
• Migration is a global phenomenon
![Page 11: Chapter 3 The Marketing Environment and Marketing Ethics.](https://reader035.fdocuments.us/reader035/viewer/2022062301/56649ecb5503460f94bd9e6c/html5/thumbnails/11.jpg)
Growing Ethnic MarketsGrowing Ethnic Markets
• U.S. population is becoming a multicultural society and workforce
• Trend in U.S. is toward greater multiculturalism
![Page 12: Chapter 3 The Marketing Environment and Marketing Ethics.](https://reader035.fdocuments.us/reader035/viewer/2022062301/56649ecb5503460f94bd9e6c/html5/thumbnails/12.jpg)
U.S. Multicultural MakeupU.S. Multicultural Makeup
0%
20%
40%
60%
80%
100%
1999
2023
WhitesAfricanHispanicAsian
![Page 13: Chapter 3 The Marketing Environment and Marketing Ethics.](https://reader035.fdocuments.us/reader035/viewer/2022062301/56649ecb5503460f94bd9e6c/html5/thumbnails/13.jpg)
Rising IncomesRising Incomes
• 66% of U.S. households earn “middle-class” income
• Over 10% earn over $75,000, primarilyfrom dual-income families
• More discretionary income for high-end goods and services
![Page 14: Chapter 3 The Marketing Environment and Marketing Ethics.](https://reader035.fdocuments.us/reader035/viewer/2022062301/56649ecb5503460f94bd9e6c/html5/thumbnails/14.jpg)
Technological & Resource FactorsTechnological & Resource Factors
• New technology helps firm cope with other environmental factors
• U.S. excels at basic research, but falls short at applied research
• Information technology has helped U.S. economic growth
![Page 15: Chapter 3 The Marketing Environment and Marketing Ethics.](https://reader035.fdocuments.us/reader035/viewer/2022062301/56649ecb5503460f94bd9e6c/html5/thumbnails/15.jpg)
Regulatory AgenciesRegulatory Agencies
Consumer Product Safety Commission
Consumer Product Safety Commission
Federal Trade Commission
Federal Trade Commission
Food & Drug AdministrationFood & Drug
Administration
Protects consumer safety in and around their homes
Prevents unfair methods ofcompetition in commerce
Enforces safety regulations for food and drug products
![Page 16: Chapter 3 The Marketing Environment and Marketing Ethics.](https://reader035.fdocuments.us/reader035/viewer/2022062301/56649ecb5503460f94bd9e6c/html5/thumbnails/16.jpg)
Global CompetitionGlobal Competition
• More foreign firms are entering U.S. market
• Foreign firms in U.S. now compete on product quality
• Global markets are highly competitive
![Page 17: Chapter 3 The Marketing Environment and Marketing Ethics.](https://reader035.fdocuments.us/reader035/viewer/2022062301/56649ecb5503460f94bd9e6c/html5/thumbnails/17.jpg)
Ethical Decision MakingEthical Decision Making
Social Consensus
Social Consensus
Extent of ProblemsExtent of Problems
Top Management
Actions
Top Management
ActionsPotential
ConsequencesPotential
Consequences
Probability of Harm
Probability of Harm
Number AffectedNumber Affected
Time Until Consequences
Time Until Consequences
![Page 18: Chapter 3 The Marketing Environment and Marketing Ethics.](https://reader035.fdocuments.us/reader035/viewer/2022062301/56649ecb5503460f94bd9e6c/html5/thumbnails/18.jpg)
Corporate Social ResponsibilityCorporate Social Responsibility
EthicalEthicalDo what is right.Do what is right.
LegalLegalObey the Law.Obey the Law.
EconomicEconomicBe profitable.Be profitable.
PhilanthropicPhilanthropicBe a good citizen.Be a good citizen.
![Page 19: Chapter 3 The Marketing Environment and Marketing Ethics.](https://reader035.fdocuments.us/reader035/viewer/2022062301/56649ecb5503460f94bd9e6c/html5/thumbnails/19.jpg)
Approaches to Ethics
EthicalBehavior
PunishmentPunishment RewardsRewards
Agency &Judicial
Penalties
Agency &Judicial
Penalties
ConsumerComplaints
Boycotts
ConsumerComplaints
Boycotts
ConsumerResponse &
Bonding
ConsumerResponse &
Bonding
Do theRightThing
Do theRightThing
![Page 20: Chapter 3 The Marketing Environment and Marketing Ethics.](https://reader035.fdocuments.us/reader035/viewer/2022062301/56649ecb5503460f94bd9e6c/html5/thumbnails/20.jpg)
Strategic Philanthropy
• Home Depot - Team Depot -- trains and places employees as volunteers with local youth-enrichment, home-renovation and environmental programs.• Avon - Breast Cancer Awareness Crusade that after six years has raised more than $32 million for women's health programs.• Lens Crafters' "Gift of Sight," or Wal-Mart's "Good Works," and Taco Bell's "Teen Supreme,” are creating programs that have their own names and brand and images and logos. They become integrated with the company. Companies truly have to stand for something -- and do it with integrity and credibility.• Corporate contributions to "cause programs" now exceed $700 million annually.
From Don Oldenburg, Washington Post Staff Writer, Wednesday, May 5, 1999; Page C04
![Page 21: Chapter 3 The Marketing Environment and Marketing Ethics.](https://reader035.fdocuments.us/reader035/viewer/2022062301/56649ecb5503460f94bd9e6c/html5/thumbnails/21.jpg)
Roper Poll
After price and quality, one-third of Americans consider a company's responsible business practices the most important factor in deciding whether or not to buy a brand. Indeed, social responsibility was more influential than advertising.
![Page 22: Chapter 3 The Marketing Environment and Marketing Ethics.](https://reader035.fdocuments.us/reader035/viewer/2022062301/56649ecb5503460f94bd9e6c/html5/thumbnails/22.jpg)
• More likely to purchase product associated with a cause they care about (78%).
• Likely to switch brands (66%).• Likely switch retailers (62%).• Pay more for a product (54%).• Pay five percent more (30%).• Pay 10 percent more (24%).• Consumers could name a company they
deemed least socially responsible (18%). Topping the list were Exxon, Dow and General Electric.
Roper Poll
![Page 23: Chapter 3 The Marketing Environment and Marketing Ethics.](https://reader035.fdocuments.us/reader035/viewer/2022062301/56649ecb5503460f94bd9e6c/html5/thumbnails/23.jpg)
Strategic Value of Corporate Citizenship Walker Research
Brand Loyalty
CompanyReputation Societal
ValueEconomic
Value
Service
Quality
PriceGood Corporate
Citizen
BusinessPractices
EmployeeTreatment
FinancialStability
Care AboutEnvironment
![Page 24: Chapter 3 The Marketing Environment and Marketing Ethics.](https://reader035.fdocuments.us/reader035/viewer/2022062301/56649ecb5503460f94bd9e6c/html5/thumbnails/24.jpg)
Strategic Value of Corporate Citizenship Walker Research
• 56% saw support of philanthropy as positive• 9% saw support of philanthropy as negative• Ratings of Industries that ‘Overall Support of the Community’
0 20 40 60
Non-Profits
Computers
Food
Utilities
Appliances
Petroleum
Government
Insurance
Chemical
Tobacco
![Page 25: Chapter 3 The Marketing Environment and Marketing Ethics.](https://reader035.fdocuments.us/reader035/viewer/2022062301/56649ecb5503460f94bd9e6c/html5/thumbnails/25.jpg)
Do Consumers Really Care About Business Ethics?*
Examples: Infant Formula, Outsourcing production to a country with very poor human rights records
The Costs: Getting caught, Nestles, Sears, Beechnut
*Creyer & Ross, Journal of Consumer Marketing
![Page 26: Chapter 3 The Marketing Environment and Marketing Ethics.](https://reader035.fdocuments.us/reader035/viewer/2022062301/56649ecb5503460f94bd9e6c/html5/thumbnails/26.jpg)
Do Consumers Really Care About Business Ethics?*
Study Results:
• Ethics is important to Consumers
• Ethical behavior is expected
• Willing to pay more for products from ethically responsible firms
• Willing to buy from unethical companies, but only at lower prices
*Creyer & Ross, Journal of Consumer Marketing
![Page 27: Chapter 3 The Marketing Environment and Marketing Ethics.](https://reader035.fdocuments.us/reader035/viewer/2022062301/56649ecb5503460f94bd9e6c/html5/thumbnails/27.jpg)
Corruption Vs. Investment Growth*
Inve
stm
ent
as %
of
GD
P
Lo
w
H
igh
High Corruption Level Low
Singapore
Ireland Switzlnd
Greece France Mexico France USA
Zaire Zimbabwe Netherlands
Haiti Britain
Ghana Angola
*Washington Post
Also see http://www.transparency.de/