key concepts. corporate social responsibility corporate social responsibility ethical do what is...
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Key Concepts
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Corporate Social Responsibility
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Corporate 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.
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EthicsEthics
MoralsMorals
The moral principles or values
that generally govern the
conduct of an individual.
The rules people develop as a result of cultural values and norms.
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A guideline to help marketing
managers and other employees
make better decisions.
Code of EthicsCode of Ethics
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Dot.com bubble of 1990s Enron Madoff Subprime crisis Financial institutions - AIG, Wachovia, Lehman Brothers, Merrill Lynch and Citigroup
GREED ** IRRESPONSIBILITY GLOBAL CRISIS
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Helps identify acceptable business practices
Helps control behavior internally
Avoids confusion in decision making
Facilitates discussion about right and wrong
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DemographicsDemographics
SocialChangeSocial
Change
EconomicConditionsEconomicConditions
Political & Legal FactorsPolitical &
Legal FactorsTechnologyTechnology
CompetitionCompetition
EnvironmentalScanning
Target Market
External Environment (uncontrollable)
Ever-ChangingMarketplace
ProductDistributionPromotion
Price
ProductDistributionPromotion
Price
Internal (within the
organization)Marketing mix
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A defined group most likely to
buy a firm’s product.
Target MarketTarget Market
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Social factors that affect marketing
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ValuesValues
AttitudesAttitudes
LifestyleLifestyle
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Social Factors Influence:Social Factors Influence:
Products purchasedProducts purchased
Prices paid for productsPrices paid for products
Effectiveness of promotionsEffectiveness of promotions
How, where, and when people purchaseHow, where, and when people purchase
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Self-SufficiencySelf-Sufficiency
Upward MobilityUpward Mobility
Work EthicWork Ethic
ConformityConformity
Core American Values
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Ranked Characteristics of Product Quality
Reliability
Durability
Easy maintenance
Ease of use
Trusted brand name
Low price
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Growth of dual-income families results in increased purchase power
Approximately 63% of work-age females are in the workforce
Women expect different things in life ◦ purchase bulk of technology products ◦ do most of the grocery shopping◦ second largest group of home buyers
after couples
Single households outnumber married households with kids
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DemographyDemography The study of people’s
vital statistics, such as
their age, race and
ethnicity, and location.
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Pre- and early adolescents, age 8 to 14
Population of 29 million
Purchasing power of $39 billion in 2007
View TV ads as “just advertising”
Emerging as “the richest generation” and the “most influential generation in history”
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Born between 1979 and 1994 Population of 60 million Purchasing power of $200 billion annually
Researchers have found Gen Yers to be:◦ Impatient◦ Family-oriented◦ Inquisitive◦ Opinionated◦ Diverse◦ Time managers◦ “Street Smart”
Word of mouth marketing is effective
http://www.mountaindew.comhttp://www.northface.com
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Born between 1965 and 1978
Population of 40 million
Savvy and cynical consumers
Time is at a premium, and outsourcing is utilized
Entering their money-making years
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Born between 1946 and 1964 Population of 77 million—the largest
demographic segment $1 trillion in spending power for
people aged 50 to 60 Income will continue to grow
as they keep working
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AgeTweens
8 to 14 yrs29 million
Gen Y
1979-199460 million
Gen X
1965-197840 million
Baby Boom
1946-196477 million
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The importance of multiculturalism and growing ethnic markets to marketing managers
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Spending power of ethnic markets by 2008:
Hispanics: $1 trillion
African Americans: $921 billion
Asian Americans: $526 billion
Diversity can result in bottom-line benefits to companies.
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The population’s diversity creates challenges for targeting this group.
Hispanics tend to be brand loyal, but are not aware of many U.S. brands.
Nearly half of adult U.S. Hispanics have home Internet access.
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Many firms are creating products for the African American market.
Promotional dollars and media choices directed toward African Americans continue to increase.
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Younger, better educated, and have highest average income of all groups
Many products have been developed for Asian American market.
Cultural diversity within the Asian American market complicates promotional efforts.
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Consumer and marketer reactions to the state of the economy
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Economic Factors
Distribution of Consumer Income
Inflation
Recession
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Consumers’ Incomes
LO7
Median U.S. household income in 2007 projected at $45,000
Incomes have risen at a slow pace.
Education is the primary determinant of earning potential.
Consumers are strapped for cash.
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The Financial Power of Women
Women bring in half of the household income.
Women control 51.3 percent of the private wealth in the U.S.
Women control 80 percent of household spending.
Women are now the primary buyers in male-dominated categories: 68% of new cars 66% of computers 66% of home improvements 53% of investments 51% of consumer electronics
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Recession
A period of economic activity
characterized by negative growth,
which reduces demand for goods
and services.
RecessionRecession
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Recession Marketing Strategies
Improve existing products and introduce new ones
Maintain and expand customer services
Emphasize top-of-the-line products and promote product value
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The impact of technology on a firm
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Technological Factors
U.S. excels at basic and applied research.
Many firms use the market concept to guide research.
New technology internally creates a long-term competitive advantage.
External technology Creates more efficient operation or better
products May render existing products obsolete
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Technological Factors
Innovation is becoming a global process.
New technologies create new opportunities
RSS (Really Simple Syndication)
Blogging
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BasicResearch
BasicResearch
MarketingMix
MarketingMix
AppliedResearch
AppliedResearch
TechnologyAdvances
TechnologyAdvances
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Political and Legal Factors
New technology Society Businesses Consumers
Laws and Regulations Protect:Laws and Regulations Protect:
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Federal Legislation
Sherman ActClayton ActFederal Trade Commission Act Celler-Kefauver Antimerger ActHart-Scott-Rodino Act
Sherman ActClayton ActFederal Trade Commission Act Celler-Kefauver Antimerger ActHart-Scott-Rodino Act
Regulate competitive
environment
Robinson-Patman ActRobinson-Patman ActRegulate
pricing practices
Wheeler-Lea ActWheeler-Lea ActControl falseadvertising
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Regulatory 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
http://www.ftc.gov
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Powers of the FTC
Cease-and-Desist OrderCease-and-Desist Order
Consent DecreeConsent Decree
Affirmative DisclosureAffirmative Disclosure
Corrective AdvertisingCorrective Advertising
RestitutionRestitution
CounteradvertisingCounteradvertising
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Consumer Privacy
Gramm-Leach-Bliley Act
Health Insurance Portability and Accountability Act (HIPPA)
California’s Notice of Security Breach Law
Government ActionsGovernment Actions
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