The Marketing Environment and Marketing Ethics

1
The Marketing Environment and Marketing Ethics
2
chapter
2
Learning Objectives
1. Discuss the external environment of
marketing, and explain how it affects a firm. 2.
Explain the importance to marketing managers of
multiculturalism and growing ethnic markets.
Note Strategic Options. 3. Identify consumer and
marketer reactions to the state of the economy.
Note Impact on NE Ohio.
2
chapter
3
Learning Objectives (continued)
4. Describe the role of ethics and ethical
decisions in business. 5. Discuss corporate
social responsibility.
2
chapter
4
Learning Objective
1
Discuss the external environment of marketing,
and explain how it affects a firm.
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Target Market
1
A defined group most likely to buy a firms
product.
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External Marketing Environment
1
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External Marketing Environment
1
8
1
Marketing Environment

• Marketing Environment- consists of the actors and
  forces outside marketing that affect marketing
  managements ability to develop and maintain
  successful relationships with its target
  customers.
• Includes
• Microenvironment - forces close to the company
  that affect its ability to serve its customers.
• Macroenvironment - larger societal forces that
  affect the whole microenvironment.

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The Microenvironment
1
Company
Suppliers
Publics
Forces Affecting a Companys Ability to Serve
Its Customers
Competitors
Intermediaries
Customers
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Learning Objective
2
Explain the importance to marketing managers of
multiculturalism and growing ethnic markets.
Note Strategic Options.
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Growing Ethnic Markets
2

• U.S. population is becoming a multicultural
  society and workforce
• Trend in U.S. is toward greater multiculturalism

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Multiculturalism
2
When all major ethnic groups in an area--such as
a city, county, or census tract--are
roughlyrepresented.
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U.S. Multicultural Makeup
2
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Multicultural Marketing
2
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Learning Objective
3
Identify consumer and marketer reactions to the
state of the economy.
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Economic Factors
3
Economic Areas of Concern to Marketers
Distribution of Consumer Income
Recession
Inflation
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Rising Incomes
3

• 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

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Inflation
3

• Prices rise with no wage increasePurchasing
  Power decreases
• Increase profit margins by increasing efficiency
• Consumers reaction
• Search for lowest prices
• Rely on coupons and sales

Prices
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Recession
3

• Income, production and employment fall
• Reduced demand for goods and services

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Recession Marketing Strategies
3

• Improve existing products
• Introduce new products
• Maintain customer services
• Emphasize top-of -the line products

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NE OHIO UPDATE

• Medium income increases by 20 since mid-1980s.
• Gains due to working more.
• Working more to maintain a life style.
• Lower per hour rates.
• More without medical benefits and pensions.

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Learning Objective
4
Describe the role of ethics and ethical
decisions in business.
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Ethical Behavior in Business
4
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Ethical Development Levels
4
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Morality and Business Ethics
4
Preconventional Morality

• Childlike level
• Based on what will be punished or rewarded.
• Self-centered, calculating, selfish.

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Morality and Business Ethics
4
Conventional Morality

• Moves toward the expectations of society
• Concerned over legality and the opinion of
  others.
• When in Rome, do as the Romans

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Morality and Business Ethics
4
Postconventional Morality

• Morality of the mature adult
• Concern about how they judge themselves.
• Concern if it is right in the long run.

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Ethical Decision Making
4
Social Consensus
Extent of Problems
Top Management Actions
Potential Consequences
Probability of Harm
Number Affected
Time Until Consequences
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Code of Ethics
4
A guideline to help marketing managers and other
employees make better decisions.
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Creating Ethical Guidelines
4

• Help identify acceptable business practices
• Help control behavior internally
• Reduce confusion in decision making
• Facilitate discussion about right and wrong

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Learning Objective
5
Discuss corporate social responsibility.
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Corporate Social Responsibility
5
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Social Criticisms of Marketing
5
High Prices
Deceptive Practices
Poor Service
Marketings Impact on Individual Consumers
High- Pressure Selling
Planned Obsolescence
Shoddy or Unsafe Products
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Marketings Impact on Society
5
The Marketing Function is Accused by Society of
Creating
False Wants and Too Much Materialism
Too Few Social Goods
Cultural Pollution
Too Much Political Power
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Marketings Impact on Other Businesses
5
Critics Charge that a Companys Marketing
Practices Can Harm Other Companies and Reduce
Competition Through
Acquisitions of Competitors
Marketing Practices that Create Barriers to Entry
Unfair Competitive Marketing Practices
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The Right to Choose Be Informed
The Right to Be Safe Protected
Basic Consumer Rights
Consumerism
5
The Right to Be Heard About Quality of Life
Issues
The Right to Choose Expect the Product to
Perform
37
Consumer-Oriented Marketing
Enlightened Marketing
5
Enlightened Marketing Holds That a Companys
Marketing Should Support the Best Long-Run
Performance of the Marketing System.
Innovative Marketing
Value Marketing
Sense-of-Mission Marketing
Societal Marketing
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Societal Classification of Products
5
Immediate Satisfaction
Low
High
High
Long-Run Consumer Benefit
Low