Marketing Impacts Society 2.1 The Impact of Marketing 2.2 Criticisms of Marketing 2.3 Increasing...

37
Marketing Impacts Society 2.1 The Impact of Marketing 2.2 Criticisms of Marketing 2.3 Increasing Social Responsibility

Transcript of Marketing Impacts Society 2.1 The Impact of Marketing 2.2 Criticisms of Marketing 2.3 Increasing...

Marketing Impacts Society

2.1 The Impact of Marketing

2.2 Criticisms of Marketing

2.3 Increasing Social Responsibility

The Impact of Marketing

Goals for Lesson 2.1 Explain how marketing affects businesses Describe marketing’s impact on individuals Discuss ways marketing benefits society

Marketing – Positive vs Negative

Important to determine if marketing plays a positive or negative role

Does marketing contribute to businesses, individuals, society

Positive – A community hospital that describes the various services

Negative – Fashion designers who have extremely thin models present their clothing lines to the public

Marketing Affects Businesses

Critical Business Function Understanding the seven marketing functions

(product management, distribution, selling, marketing-information management, financing, pricing, promotions

Using the marketing concept (using the needs of customers as the primary focus during planning, production, distribution and promotion

Marketing Affects Business

Customer Satisfaction Understanding the needs and wants of

customers Understanding the likes and dislikes of

customers Helps businesses make better decisions about

what to sell and how to sell it Allows companies to operate more efficiently

Marketing Helps People

Locations of stores Favorite brands Prices clearly labeled Types of payments

Helps satisfy customer needs

Customer

Satisfaction

Product Costs

and Prices

Marketing Helps People

Better Products at Lower Costs Wants/Needs and Likes/Dislikes lead to

improvements of products and new products are developed

1. Product meets customer needs

2. Results in higher sales volume

3. Increase sales allow business to produce products more efficiently

4. Causes costs to decrease

Marketing Helps People

Expanded Opportunities One-fourth of all jobs in the US are marketing

jobs Financially rewarding Helps you become a better consumer Marketing Skills can with other activities

(elections, college planning, fundraising)

Think Critically

Buying the naming rights for publicly owed sports stadiums and arenas is obviously good for taxpayers’ wallets, and it is apparently good for business too. At astronomical prices such rights have been selling lately, they had better be very good businesses shelling out, in one case, more than $100 million over 15 years.

Businesses that slap their names on stadiums figure to get billions of impressions per year from fans, passers-by, and television viewers. Typically the corporate name goes on signs seen from adjacent roadways, on stadium entrances, and inside near the scoreboards. In addition, naming rights deals usually include other amenities such as luxury boxes, complimentary tickets, and game sponsorships.

In a recent survey, 9 of 10 people knew the corporate sponsors of their local sports arenas. And 6 of 10 respondents said that naming a sports venue after a corporate sponsor was good for the community. The practice has become so common that the public now expects it, and the taxpayers increasingly demand it as a way to recoup costs.

1. In what ways does buying naming rights differ from buying TV spots for a popular sporting event such as the Super Bowl or World Series?

2. What are some of the possible drawbacks of putting a business’s name on a public sports arena?

Marketing Benefits Society

New and better products

Better standards of living

Promotes international trade

New and Better Products

Products and services that help society in general Example: more efficient automobiles that use less

gasoline and cause less pollution Giving consumers what they want, allowing

natural and raw resources to be used less

Better Standards of Living

Based on the products and services available to consumers

Countries with a well developed marketing system are able to make better products

More jobs for citizens and higher paying jobs

Promotes International Trade

Marketing has been particularly effective in improving international trade

US is the large consumer of foreign products Marketers help determine where products

can be sold and how to sell them in those countries

Benefits of Marketing

Businesses meet consumer needs Consumers make better decisions Natural resources are used more effectively Standard of living is improved International trade increases

Journal

List at least three benefits that both consumers and businesses gain by positive marketing practices. You should provide specific examples of businesses and list benefits gained by both businesses and consumers.

Group Activity

Complete the following task using magazine advertisements:

1. Identify 2 ads that portray marketing in a positive manner. Explain why?

2. Identify 2 ads that portray marketing in a negative manner. Explain why? How could the company promote the product or service in a positive manner?

Criticisms of Marketing

Goals for Lesson 2.2 Discuss three common criticisms of

marketing Explain how marketing can be used to solve

social problems

Common Complaints

Marketing causes unneeded purchases Marketing wastes money Some products do not need marketing

Causes Unneeded Purchases

Marketing can increase sales of products Attractively packaged Advertising to encourage

purchase Special financing

Does the consumer really need it? Long term results Dissatisfaction Returning of products Will the consumer buy

your products again?

Businesses must be sensitive to the needs and experiences of customers. Products and services should be carefully matched. Must value long-term relationships.

Wastes Money

50% of the price of products comes from marketing activities.

Selling and advertising make up about 5% - 10%

Effective marketing actually lowers prices in the long run More competition helps keep prices low Increased sales volume and competition result in

lower prices for consumers

Some Products Don’t Need Marketing

Consumer would be responsible for locating the product

Consumer would have to gather information about it

No financing options No distribution of the product

Marketing Solves Problems

Marketing increases public awareness

Marketing helps match supply with demand

Increases Public Awareness

Serious problems facing society (health care, crime levels, poverty, diseases, racism, education, unemployment, drug use, the environment.

How can Marketing help? Communication Advertisements Public Service Announcements

Helps Match Supply & Demand

Products and services are not always available where they are most needed

Effective distribution is can help match supply with demand

Helps prevent or reduce the impact of problems that could affect society

Journal – Review Questions1. On average, marketing costs represent what percentage of the price

that a consumer pays for a product?

2. On average, costs of sales and promotions represent what percentage of the price that a consumer pays for a product?

3. If sellers do not perform certain marketing functions, why doesn’t that reduce the final cost of a product to the consumer?

4. Name several public awareness campaigns that are intended to benefit society?

5. If cranberry growers were suffering from an oversupply of cranberries that slashed prices and threatened to put them out of business, how could marketing help them?

Increasing Social Responsibility

Goals for Lesson 2.3 Define consumerism Explain ways which businesses improve their

own practices Discuss how ethical issues affect marketers’

professional responsibilities

Consumer Protection

Increasing Social Responsibility

Growth of Consumerism

Government regulations

Social Responsibility

Marketers must be willing to pay attention to society’s needs

The trend today is a greater expectation for business to be socially responsible

It is not all about customers wants/needs and making a profit

Businesses need to think about the long run

Growth of Consumerism

Definition – the organized actions of groups of consumers seeking to increase their influence on business practices.

Consumer Bill of Rights (JFK, 1960s) – four basic rights to all consumers Adequate and accurate information Safe products Product choices Communicate ideas to business and government

Consumerism

Consumer education, consumer information lobbying, product boycotts

Organizations that test products to determine safety and value

Boycotts – an organized effort to influence a company by refusing to buy their product

Government Regulations – Consumer Laws’ Handout

Improving Practices

Code of ethics – a statement of responsibilities for honest and proper conduct. Enforced by penalties established by the industry

Self-Regulation – taking responsibility for actions BBB – gathers info for consumers about problems Buyer’s Bill of Rights Responsibilities of Marketers (Figure 2-8)

Discussion

At your table name three or four additional items that would add to the code of ethics in Figure 2-8 if they were consumer rights advocates or if they owned a business. Students should explain why each additional item would be an important ethics issue to include.

Improving Practices

Social Action – business people helping to solve some of society’s major problems Ex: Members Only – drug abuse and voter

registration Ex: Nike – Literacy Program Ex: McDonalds – Ronald McDonald Houses

Ethics in Marketing

Ethics – decisions and behavior based on honest and fair standards

Responsibility to Customers Marketers have a direct relationship with

customers Marketing Code of Ethics (product planning,

promotion, pricing, distribution, and marketing research

Decisions and actions should be evaluated

Ethics in Marketing

Harm and Accountability Marketers must remember that their emphasis

must be on what is best for everyone in an exchange

No concern for society or customers Illegal behavior Educational programs for employees

Journal

Write one sentence to summarize each of the following phrases:

1. “Consumer Protection”

2. “Improving Practices”

3. “Ethics in Marketing”