Ch. 3 environment/ethics

upsetsubduedΔιαχείριση

9 Νοε 2013 (πριν από 3 χρόνια και 5 μήνες)

50 εμφανίσεις

Copyright © 2004 by South
-
Western, a division of Thomson Learning, Inc. All rights reserved
.


Chapter 3


The Marketing Environment,
Ethics, and Social Responsibility

Copyright © 2004 by South
-
Western, a division of Thomson Learning, Inc. All rights reserved
.

Objectives

1.
Identify the five components of the marketing
environment.

2.
Identify the environmental factors that affect
marketing decisions and consumer buying
power.

3. Identify the four levels of the social
responsibility pyramid.






Copyright © 2004 by South
-
Western, a division of Thomson Learning, Inc. All rights reserved
.

Environmental Scanning



Process of collecting information about the
external marketing environment in order to
identify and interpret potential trends.


Upscale chocolate retail outlet sales grew 20%
from 2005
-
2007


So Mars launched Ethel’s Chocolate Lounges
named for the founding matriarch of the
company



Copyright © 2004 by South
-
Western, a division of Thomson Learning, Inc. All rights reserved
.

Elements of the Marketing Mix

Within an Environmental Framework

THE COUNCIL OF BETTER
BUSINESS BUREAUS (CBBB)


“OUR MISSION is to promote
and foster the highest ethical
relationship between
businesses and the public
through voluntary self
-
regulation, consumer and
business education, and
service excellence.


The CBBB helps in keeping the
Competitive Environment
playing field level.

Copyright © 2004 by South
-
Western, a division of Thomson Learning, Inc. All rights reserved
.


Dolls to Ethnic Targets
2007


Nickelodeon’s bilingual character



Kmart
2007
-

1
st

mass retailer with dolls in all stores


Terry Lee dolls


Baby Abuelita singing dolls


special songs preserving Hispanic heritage:


El patio de mi casa, Tengo una muñeca,


A la rueda, Amambrocha

2050


minorities 50% of U.S. residents


30% in 2007


Hispanic buying power
-

$1.2T in 2011


People want a doll & a story reflecting who they are


Mattel’s American Girl with Native American, Hispanic,
black historical dolls


Copyright © 2004 by South
-
Western, a division of Thomson Learning, Inc. All rights reserved
.

Major Federal Law Affecting Marketing

Copyright © 2004 by South
-
Western, a division of Thomson Learning, Inc. All rights reserved
.

Burger King ’07 Agrees to Limits on Kid
-
Aimed Ads





Join Better Business Bureau's Children's Food
and Beverage Advertising Initiative


New product: raw apples cut to look like french
fries and served in a box called the Frypod.


Fits in car’s cupholder


Naming influence from IPod


May ’07
-

when Jobs became the largest
shareholder of Disney


Disney ended $1 billion deal with McDonald’s
to receive cash for use of its movie &cartoon
characters in Happy Meal tie
-
ins.

Copyright © 2004 by South
-
Western, a division of Thomson Learning, Inc. All rights reserved
.

Major Federal Law Affecting Marketing

Copyright © 2004 by South
-
Western, a division of Thomson Learning, Inc. All rights reserved
.

Major Federal Law Affecting Marketing

Copyright © 2004 by South
-
Western, a division of Thomson Learning, Inc. All rights reserved
.

Four Stages in the Business Cycle

1.
Prosperity
-

Consumer spending maintains a brisk
pace and buyers are willing to spend more.

2.
Recessionary Periods
-

Sales of lower
-
priced
brands of grocery and household
-
goods products and
private
-
label goods rise.

3.
Depression
-

Consumer spending sinks to its
lowest level.

4.
Recovery Stage
-

The

economy emerges from
recession and consumer purchasing power
increases.


Caution often restrains their willingness to buy.


As a recovery strengths, consumers become more
indulgent.

Copyright © 2004 by South
-
Western, a division of Thomson Learning, Inc. All rights reserved
.

Social
-
Cultural Environment


The relationship
between marketing and
society and its culture.


The U.S. is becoming


older,


more affluent and


more cultural diverse

Consider the
Nickelodeon

web site.
What are they doing to
promote cultural
diversity? Is their
approach socially
responsible?

Copyright © 2004 by South
-
Western, a division of Thomson Learning, Inc. All rights reserved
.

Social
-
Cultural

Jockey

1976

Copyright © 2004 by South
-
Western, a division of Thomson Learning, Inc. All rights reserved
.

Copyright © 2004 by South
-
Western, a division of Thomson Learning, Inc. All rights reserved
.

Ethical Questions in Marketing

Product


Planned obsolescence


Product quality and safety


Product warranties


Fair packaging and labeling


Pollution

Distribution


Exclusive territories


Dumping


Dealer rights


Predatory competition

Promotion


Bait
-
and
-
switch advertising


Promotional allowances


Bribery

Price


Price fixing


Price discrimination


Price increases


Deceptive pricing

Ethical

Issues

Copyright © 2004 by South
-
Western, a division of Thomson Learning, Inc. All rights reserved
.

Competitive Advantage


Montreal’s Cirque du Soleil


32 talent scouts maintain dbase


of 20,000 potential additions to cast


Each show as life of 10
-
12 yrs.


Runs 5 world tours & 5 permanent shows,
each with a $500M return


300 seamstresses, engineers, makeup
artist create custom show materials


Award
-
winning series on Bravo


NikeID.com customizes:


Lining, mesh, laces, style, shox

Copyright © 2004 by South
-
Western, a division of Thomson Learning, Inc. All rights reserved
.

Ten Steps for Corporation to Improve
Standards of Business Ethics

1.
Appoint a senior
-
level
ethics compliance officer.

2.
Set up an ethics code
capable of detecting and
preventing misconduct.

3.
Distribute a written code of
ethics to employees,
subsidiaries, and
associated companies and
require all business
partners to abide by it.

4.
Conduct regular ethics
training programs to
communicate standards
and procedures.

5.
Establish systems to
monitor misconduct and
report grievances.

6.
Establish consistent
punishment guidelines to
enforce standards and
codes.

7.
Encourage an open
-
door
policy, allowing employees
to report cases on
misconduct without fear of
retaliation.

8.
Prohibit employees with a
track record of misconduct
from holding positions with
substantial discretionary
authority.

9.
Promote ethically aware
and responsible managers.

10.
Continually monitor
effectiveness of all ethics
-
related programs.

Copyright © 2004 by South
-
Western, a division of Thomson Learning, Inc. All rights reserved
.

Legoland competes
with other theme parks
in California.

Copyright © 2004 by South
-
Western, a division of Thomson Learning, Inc. All rights reserved
.

When Sales Fail


Britannica $650M revenue in 1989 from 4
-
volume encyclopedia sets


Sales force of 7,500


Fell to force of 300 in 2005


Slow to react to changing technologies


Myopic in defining business as publishing books
vs. providing information

Copyright © 2004 by South
-
Western, a division of Thomson Learning, Inc. All rights reserved
.

Time
-
Based Competition Strategy

Developing and distributing goods and services
more quickly than competitors.

Provides for


Flexibility and
responsiveness.


Improve product quality.


Reduce costs.


Expand product offerings.


Enhance customer
satisfaction.

Copyright © 2004 by South
-
Western, a division of Thomson Learning, Inc. All rights reserved
.

New Regulatory Frontier


Cyberspace:


How do you “police?”


Privacy and child protection issues.


How do you protect the consumer?

Copyright © 2004 by South
-
Western, a division of Thomson Learning, Inc. All rights reserved
.

Economic
Environment

Forces that Influence Consumer Buying Power and
Marketing Strategies

1.
Business cycle

2.
Inflation

3.
Unemployment

4.
Income

5.
Resource
availability

Copyright © 2004 by South
-
Western, a division of Thomson Learning, Inc. All rights reserved
.

Inflation

Rising prices caused by some combination of
excess demand and increases in the costs
devalues money.

Three possible outcomes:

1.
consumers elect to buy now, in the belief that
prices will be high later;

2.
they decide to alter their purchasing patterns;
or

3.
They postpone certain purchases.

Copyright © 2004 by South
-
Western, a division of Thomson Learning, Inc. All rights reserved
.

The Four
-
Step Pyramid of

Corporate Social Responsibility