What will we talk about today

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Marketing 300/AGB 320 Lecture 9/9 Outline

• What will we talk about today?
• -The Marketing Environment (Ch. 4)
• -Social Responsibility Marketing Ethics (Ch.
  20)
• Hand in Your Responses From Letter Assignment
• Form Teams - Make Sure I know what team you are
  on before leaving
• Freedom! For the night at least

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What is the Marketing Environment ?

• Marketing Environment- 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
  company) and Macroenvironment (larger societal
  forces).

Marketing
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Companys Microenvironment

• Companys Internal Environment- functional areas
  inside a company
• Suppliers - provide the resources needed to
  produce goods and services
• Marketing Intermediaries - help the company to
  promote, sell, and distribute its goods to final
  buyers. i.e. resellers.
• Customers - five types
• Competitors - those who serve a target market
  with similar products and services
• Publics - any group that perceives itself having
  an interest in a companys ability to achieve its
  objectives.

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Types of Customer Markets
Reseller Markets
Government Markets
Business Markets
Consumer Markets
International Markets
Company
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Types of Publics
Citizen Action Publics
Local Publics
Government Publics
General Public
Media Publics
Financial Publics
Internal Publics
Company
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Major Forces in the Companys Macroenvironment
(Fig. 3.4)
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The Companys Macroenvironment

• Demographic - studies populations in terms of
  size, density, location, age, gender, race,
  occupation and other statistics.
• Economic - factors that affect consumer
  purchasing power and spending patterns.
• Natural - natural resources needed as inputs by
  marketers or that are affected by marketing
  activities.

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Key U.S.Demographic Trends
Changing Age Structure Population is aging many
divisions
Changing American Family Later marriage, fewer
children, working women, and nontraditional
households
Geographic Shifts Moving to the Sunbelt, suburbs,
micropolitan areas
Better-Educated More White-Collar Increased
college attendance and white-collar workers
Increasing Diversity 71 Caucasian, 12
African-American, 12 Hispanic 4 Asian
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Age Distribution of the U.S. Population
Baby Boomer Generation

(78 million people born 1946-1964)
One of the most powerful forces
shaping the marketing environment, 28 of
population
Generation X
(45 million people born 1965-1976) More
skeptical, cynical of frivolous marketing pitches
promising easy success
Echo Boomer Generation


(72 million people born 1977-1994)
Fluent and comfortable with computer, digital,
and Internet technology (Net-Gens)
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Discussion

• Think of a company that has done a good job of
  reacting to
• Baby Boomers, or
• Generation X, or
• Echo Boomers
• What did the company do well?
• Compare this company to one that has done a poor
  job. What did they do poorly?

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Economic Environment
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Natural Environment
Shortages of Raw Materials
Factors Affecting the Natural Environment
Environmentally Sustainable Strategies
Increased Pollution
Governmental Intervention
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The CompanysMacroenvironment

• Technological - forces that create new
  technologies, creating new product and market
  opportunities.
• Political - laws, agencies and pressure groups
  that influence and limit organizations and
  individuals in a given society.
• Cultural - institutions and other forces that
  affect a societys basic values, perceptions,
  preferences, and behaviors.

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Technological Environment

• Faster pace of technological change products are
  outdated at a rapid pace.
• Almost unlimited opportunities being developed
  daily in health care, space industry, robotics,
  and bio-genetic field.
• Challenge is not only technical, but also
  commercial make practical, affordable versions
  of products.
• Increased regulation concerning product safety,
  individual privacy, and other areas that affect
  technological changes.

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Political Environment
Includes Laws, Government Agencies, Etc. that
Influence Limit Organizations/ Individuals in
a Given Society
Increasing Legislation
Changing Government Agency Enforcement
Increased Emphasis on Ethics Socially Responsibl
e Actions
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Cultural Environment
Peoples View of Themselves
Peoples View of Others
Peoples View of the Universe
Cultural Values of a Society
Peoples View of Organizations
Peoples View of Nature
Peoples View of Society
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Responding to the Marketing Environment

• Environmental Management Perspective
• Taking a proactive approach to managing the
  microenvironment and the macroenvironment by
  taking aggressive (rather than passive) actions
  to affect the publics and forces in the marketing
  environment.
• How? Hire lobbyists , run advertorials, press
  law suits, file complaints, and form agreements.

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Review of Concept Connections

• Describe the environmental forces that affect the
  companys ability to serve its customers.
• Explain how changes in the demographic and
  economic environments affect marketing decisions.
• Identify the major trends in the firms natural
  and technological environments.
• Explain the key changes in the political and
  cultural environments.
• Discuss how companies can react to the marketing
  environment.

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Chapter 20

• Marketing and Society Social Responsibility and
  Marketing Ethics

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Marketings Impact on Individual Consumers

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Marketings Impact on Individual Consumers High
Prices
High Prices Caused by the Following Factors
High Costs of Distribution
High Advertising And Promotion Costs
Excessive Markups
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Marketings Impact on Individual Consumers
Deceptive Practices
Deceptive Pricing
Falsely Advertising Factory or Wholesale
Prices, Large Reduction From Phony High List
Price
Deceptive Promotion
Overstating the Products Features, Luring
Customers to the Store for Out-of-Stock Bargains,
etc.
Deceptive Packaging
Exaggerating Package Contents, Not Filling
Package to the Top, Using Misleading Labeling
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Discussion

• Think back over the past three months or so and
  think of instances in which youve suffered a
  marketing abuse such as those just discussed.
• What kind(s) of company(ies) were involved?
• Was (were) the abuses intentional?
• How might you go about righting this wrong?

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Marketings Impact on Society as a Whole
Producing Too Few Social Goods
False Wants Too Much Materialism
Marketing Perceived Negative Impact on Society
as a Whole
Cultural Pollution
Too Much Political Power
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Marketings Impact on Other Businesses
All Can Harm Other Companies Reduce Competition
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Consumerism
Consumerism is an Organized Movement of Citizens
and Government Agencies to Improve the Rights and
Power of Buyers in Relation to Sellers.
Sellers Rights
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Consumerism
The Right to Be Safe Protected
The Right to Choose Be Informed
Basic Consumer Rights
The Right to Be Heard About Quality of Life
Issues
The Right to Choose Expect the Product to
Perform
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Environmentalism
Have a Sustainability Economy
Pollution Prevention vs. Control
Plan for New Environmental Technologies
Practice Product Stewardship
Adopt Design for the Environment
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Enlightened Marketing
Consumer-Oriented Marketing
Innovative Marketing
Enlightened Marketing Holds That a Companys
Marketing Should Support the Best Long-Run
Performance of the Marketing System.
Value Marketing
Sense-of-Mission Marketing
Societal Marketing
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Societal Classification of Products (Fig. 20.3)
Immediate Satisfaction
Low
High
High
Long-Run Consumer Benefit
Low
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Marketing Ethics
Companies Need to Develop Corporate Marketing
Ethics Policies Broad Guidelines That Everyone
in the Organization Must Follow and Should
Address

• Pricing
• Product Development
• General Ethical Standards

• Distributor Relations
• Advertising Standards
• Customer Service

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Marketing Ethics
Principles That Should Guide Companies and
Marketing Managers On Issues of Ethics and Social
Responsibility
Decided by the Free Market and Legal System
Responsibility of Individual Companies And
Managers
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Review of Concept Connections

• Identify the major social criticisms of
  marketing.
• Define consumerism and environmentalism and
  explain how they affect marketing strategies.
• Describe the principles of socially responsible
  marketing.
• Explain the role of ethics in marketing.