Chapter 2 Marketing Impacts Society

Topics

The Impact of MarketingCriticisms of MarketingIncreasing Social Responsibility

Objectives

Explain how marketing affects businesses.

Describe marketing’s impact on individuals.

Discuss ways marketing benefits society.

Marketing Affects Businesses

Helping businesses find a suitable market for their products and/or services.

Does marketing play a positive or negative roles?How can they improve negative marketing

techniques?

Critical Business Function

Without marketing, businesses would not be able to survive

The Marketing ConceptAllows business to benefit more Identifies the customers; likes, dislikes, and

attitude Customer Satisfaction

Marketing Helps People

What to look for when shopping…LocationPriceCustomer Service

High PricesHigh costs of distributionHigh advertising and promotion costsExcessive markups

Lower Cost

High number of products at a lower costIncrease in sales = Increase in

production Customer Satisfaction Production and Marketing

Costs

Expanded Opportunities

Opening Up New OpportunitiesSalespeopleCustomer Service RepresentativesWarehouse Managers Inventory SpecialistsMarketing Research Personnel

Marketing Benefits Society

New and better productsBetter standards of livingPromotes international trade

Where products can be soldHow to sell them in countries that may have

very different business procedures, money systems, and buying practices.

Benefits of Marketing

Businesses meet consumer needsConsumers make better decisionsNatural resources are used more

effectivelyStandard of living is improvedInternational trade increases

CRITICISMS OF MARKETING

Discuss three common criticisms of marketing.

Explain how marketing can be used to solve social problems.

Common Complaints

Marketing causes unneeded purchasesMarketing wastes moneySome products don’t need marketing

Criticisms for Businesses

Acquisitions of CompetitorsMarketing PracticesCreating Barriers to Entry

Typical Cost of Marketing

Product Price

Total product price (100%)

Average cost of all marketing activities (50%)

Average cost of sales and advertising (2 – 10%)

Marketing Solves Problems

Marketing increases public awareness.Marketing helps match supply with

demand.

Supply and Demand

DemandWhat the consumer is willing to buy.

SupplyWhat the producer is willing to produce

Supply and Demand

Increase Social Responsibility

Define consumerism.Explain ways which businesses improve

their own practices.Discuss how ethical issues affect

marketers’ professional responsibilities.

Consumer Protection

BUSINESSBUSINESS

GOVERNMENTGOVERNMENT

CONSUMER CONSUMER GROUPSGROUPS

Consumerism

Organized actions of a group of consumers seeking to increase their influence on business practices.

Social ResponsibilityConcern about the consequences of actions

on othersFigure 2-7 pg 45

Marketing’s Impact on Individual ConsumersDeceptive Practices

Pricing PromotionPackaging

High-Pressure Selling

Government Regulations

Laws and regulations are designed tooooooooooooooooooo… Improve social impacts of business

practicesProtect consumers

Improving Practices

Codes of ethicsStatement of responsibilities for honest and

proper conductSelf-regulation

Personal responsibilitySocial actionFigure 2-8 pg 47

Ethics in Marketing?

Responsibility to customersSatisfy needs and wants

Harm and accountabilityProvide products and services that meet the

requirements that are set forth by the business.

Provide the best products and services.