chapter 3 the marketing environment and marketing ethics
Post on 01-Jan-2016
230 Views
Preview:
TRANSCRIPT
Chapter 3 The Marketing Chapter 3 The Marketing Environment Environment
and Marketing Ethicsand Marketing Ethics
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
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
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...
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
Age Groups: Generation YAge Groups: Generation Y
• Born between 1979 and 1994
• Size creates immense marketing impact
• Respond to ads differently
Age Groups: Generation XAge Groups: Generation X
• Born between 1965 and 1978
• Savvy and cynical consumers
• Indulge themselves with meals/alcohol, clothing, and electronics
Age Groups: Baby BoomersAge Groups: Baby Boomers
• Born between 1946 and 1964
• Cherish youth, convenience, and individuality
• Individualism has led to a personalized economy
Age Groups: Older ConsumersAge Groups: Older Consumers
• Age “50 plus”
• Healthier, wealthier, better educated
• Considerable purchasing power
• Market potential not fully tapped
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
Growing Ethnic MarketsGrowing Ethnic Markets
• U.S. population is becoming a multicultural society and workforce
• Trend in U.S. is toward greater multiculturalism
U.S. Multicultural MakeupU.S. Multicultural Makeup
0%
20%
40%
60%
80%
100%
1999
2023
WhitesAfricanHispanicAsian
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
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
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
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
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
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.
Approaches to Ethics
EthicalBehavior
PunishmentPunishment RewardsRewards
Agency &Judicial
Penalties
Agency &Judicial
Penalties
ConsumerComplaints
Boycotts
ConsumerComplaints
Boycotts
ConsumerResponse &
Bonding
ConsumerResponse &
Bonding
Do theRightThing
Do theRightThing
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
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.
• 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
Strategic Value of Corporate Citizenship Walker Research
Brand Loyalty
CompanyReputation Societal
ValueEconomic
Value
Service
Quality
PriceGood Corporate
Citizen
BusinessPractices
EmployeeTreatment
FinancialStability
Care AboutEnvironment
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
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
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
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/
top related