chapter 3 the marketing environment, ethics, and social responsibility principles of contemporary...
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Chapter 3 The Marketing Environment,
Ethics, and Social Responsibility
Principles of
Contemporary MarketingKurtz & Boone
CHAPTER 3 The Marketing Environment, Ethics, and Social Responsibility
Chapter Objectives
1. Identify the five components of the marketing
environment.
2. Explain the types of competition marketers face and the steps necessary for developing a competitive strategy.
3. Describe how marketing activities are regulated and how marketers can influence the political-legal environment.
4. Outline the economic factors that affect marketing decisions and consumer buying power.
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CHAPTER 3 The Marketing Environment, Ethics, and Social Responsibility
5. Discuss the impact of the technological environment on a firm’s marketing activities.
6. Explain how the social-cultural environment influences marketing.
7. Describe the ethical issues in marketing.
8. Identify the four levels of the social responsibility pyramid.
Chapter Objectives
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CHAPTER 3 The Marketing Environment, Ethics, and Social Responsibility
o Collecting external marketing environment information to identify and interpret potential trends
o Environmental management - Attainment of organizational objectives by predicting and influencing the competitive, political-legal, economic, technological, and social- cultural environments
o Strategic alliance - Partnership in which two or more companies combine resources and capital to create competitive advantages in a new market
Environmental Scanning
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CHAPTER 3 The Marketing Environment, Ethics, and Social Responsibility
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CHAPTER 3 The Marketing Environment, Ethics, and Social Responsibility
o Interactive process that occurs in the marketplace among:o Marketers of directly competitive products
o Marketers of products that can be substituted for one another
o Marketers competing for the consumer’s purchasing power
The Competitive Environment
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CHAPTER 3 The Marketing Environment, Ethics, and Social Responsibility
o Consists of laws and their interpretations that require firms to operate under competitive conditions and to protect consumer rightso Ignorance or non-compliance can result in
fines, negative publicity, and civil damage suits
The Political-Legal Environment
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CHAPTER 3 The Marketing Environment, Ethics, and Social Responsibility
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 3 The Marketing Environment, Ethics, and Social Responsibility
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 3 The Marketing Environment, Ethics, and Social Responsibility
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 3 The Marketing Environment, Ethics, and Social Responsibility
o Gross domestic product (GDP) - Sum of all goods and services produced by a nation in a year
o Economic environment - Factors that influence consumer buying power and marketing strategies
o Business cycle - Pattern of stages in the level of economic activity
The Economic Environment
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CHAPTER 3 The Marketing Environment, Ethics, and Social Responsibility
o Prosperity - Consumer spending is brisk; growth in services sector
o Recession - Consumers focus on basic, fundamental products
o Depression - Consumer spending sinks to its lowest level
o Recovery - Consumer purchasing power increases
Stages in the Business Cycle
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CHAPTER 3 The Marketing Environment, Ethics, and Social Responsibility
o Application of knowledge based on discoveries in science, inventions, and innovations to marketing
o Technology leads to:o New products
o Improvements in existing products
o Better customer service
o Reduced prices
The Technological Environment
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CHAPTER 3 The Marketing Environment, Ethics, and Social Responsibility
o The relationship between the marketer, society, and culture
o Marketers must be sensitive to demographic shifts and changing values
o Increasing importance of cultural diversityo Example: Univision and Telemundo face
growing competition in Spanish-language television programming
The Social-Cultural Environment
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CHAPTER 3 The Marketing Environment, Ethics, and Social Responsibility
o Social force within the environment that aids and protects the consumer by exerting legal, moral, and economic pressures on business and government
o Consumer rights:o The right to choose freely
o The right to be informed
o The right to be heard
o The right to be safe
Consumerism
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CHAPTER 3 The Marketing Environment, Ethics, and Social Responsibility
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CHAPTER 3 The Marketing Environment, Ethics, and Social Responsibility
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CHAPTER 3 The Marketing Environment, Ethics, and Social Responsibility
o Consumers are concerned about privacyo Proliferation of databases
o Selling of address lists
o Ease with which consumer information can be gathered
o Several agencies offer assistance to Internet consumers
o The U.S. government maintains a Do Not Call registry to prevent unwanted telemarketing
Ethics in Marketing Research
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o Consumers are concerned about privacyo Proliferation of databases
o Selling of address lists
o Ease with which consumer information can be gathered
CHAPTER 3 The Marketing Environment, Ethics, and Social Responsibility
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Source: The Four Step Pyramid of CorporateSocial Responsibility from Business Horizons,Vol. 34, 1991, page 92, Freeman & Liedtka,“Corp. Social Responsibility.” Reprinted fromBusiness Horizons © 1991 with permissionFrom Elsevier.
CHAPTER 3 The Marketing Environment, Ethics, and Social Responsibility
o Marketers must consider:o The global effects of their decisions
o The long-term effects of their decisions
o The well-being of future generations
o Entire communities can benefit through socially responsible investing
o Green marketing - Production, promotion, and reclamation of environmentally sensitive products
Marketing’s Responsibilities
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