Marketing 3Marketing 3

Ethics and the Marketing Ethics and the Marketing EnvironmentEnvironment

3.13.1

Ethics and the Marketing Ethics and the Marketing Environment - 3Environment - 3

Corporate Social ResponsibilityCorporate Social Responsibility Ethical Behavior in BusinessEthical Behavior in Business External EnvironmentExternal Environment Social ForcesSocial Forces Technological FactorsTechnological Factors Political and Legal FactorsPolitical and Legal Factors

3.183.18

Corporate Social Corporate Social Responsibility (CSR)Responsibility (CSR)

Sustainability Sustainability – Must have a healthy society to sustain business.Must have a healthy society to sustain business.

Pyramid of CSRPyramid of CSR– EconomicEconomic

Be profitable. Must survive.Be profitable. Must survive.– LegalLegal

Obey the law. Obey the law. – EthicalEthical

Do what is right, just and fair.Do what is right, just and fair. Avoid harm.Avoid harm.

– PhilanthropicPhilanthropic Good corporate citizen.Good corporate citizen. Contribute resources to community.Contribute resources to community.

3.153.15

Marketing Ethics IMarketing Ethics I

DefinitionDefinition ??????

3.153.15

Marketing Ethics IIMarketing Ethics II

DefinitionDefinition– Moral principles or values that Moral principles or values that

generally govern the conduct of an generally govern the conduct of an individual or group.individual or group.

– The standard of behavior by which The standard of behavior by which conduct is judged.conduct is judged.

3.153.15

Marketing Ethics IIIMarketing Ethics III

MoralsMorals– Rules that people develop as a result Rules that people develop as a result

of cultural values and norms.of cultural values and norms.– A foundation of ethical behavior.A foundation of ethical behavior.

3.153.15

Marketing Ethics IVMarketing Ethics IV

Developing a personal set of Developing a personal set of ethicsethics– Consequence basedConsequence based

Who is helped/hurt?Who is helped/hurt? How long will consequences last?How long will consequences last? Greatest good for greatest number of Greatest good for greatest number of

people.people.

3.153.15

Marketing Ethics VMarketing Ethics V

Developing a personal set of Developing a personal set of ethicsethics– Rules basedRules based

CustomsCustoms LawsLaws Professional standardsProfessional standards Common senseCommon sense

– Do unto others…Do unto others…

3.153.15

Marketing Ethics VIMarketing Ethics VI

Developing a personal set of ethicsDeveloping a personal set of ethics– Moral character developmentMoral character development

Pre-conventional Morality: Will I be Pre-conventional Morality: Will I be punished or rewarded? (Most primitive.)punished or rewarded? (Most primitive.)

Conventional Morality: What does society Conventional Morality: What does society view my behavior?view my behavior?

Post-conventional Morality: Regardless of Post-conventional Morality: Regardless of what others think, what is right and wrong?what others think, what is right and wrong?

3.153.15

Marketing Ethics VIIMarketing Ethics VII

Why worry about ethics?Why worry about ethics?

Difficulties with ethicsDifficulties with ethics

3.163.16

Ethical GuidelinesEthical Guidelines

Code of EthicsCode of Ethics– More than “Stay out of jail.”More than “Stay out of jail.”– Can set standard, control behavior Can set standard, control behavior

and decisions, minimize confusion.and decisions, minimize confusion.– Must train employees.Must train employees.– Must live up to code. Must live up to code.

Enron had a 65 page code of ethics.Enron had a 65 page code of ethics.

Ethical ChecklistEthical Checklist See Exhibit 3.2, pg. 74See Exhibit 3.2, pg. 74

Fuel vs. FoodFuel vs. Food

Biofuel raises global Biofuel raises global dilemmas.doc dilemmas.doc

3.23.2

The Marketing Environment I

Uncontrollable Must be monitored

Environmental Scanning

Must be anticipated Always changing, dynamic, constant state

of flux. Affects customer demand and how to

satisfy that demand.

3.23.2

The Marketing Environment II

Social Change Economic Conditions Political/Legal Competition Demographics Technology

3.33.3

Major Factors Affecting Major Factors Affecting MarketingMarketing

ChangeChange is constant is constant and rapidand rapid

CompetitionCompetition is globalis global TechnologyTechnology is is

dramatically changing dramatically changing marketing exchangesmarketing exchanges

CollaborationCollaboration is as is as important as competitionimportant as competition

QualityQuality isn’t isn’t optional, it’s optional, it’s standardstandard

FocusFocus is on the is on the individualindividual

EthicalEthical and and social social responsibilityresponsibility

3.43.4

Managing the Marketing Managing the Marketing EnvironmentEnvironment

Reactive: taking steps to adapt to environmental factors that can not be controlled or influenced

Proactive: seek ways to influence your environmentwhen you think you can influence certain factors

3.53.5

Analyzing the Analyzing the EnvironmentEnvironment

Environmental scanningEnvironmental scanning

Identify opportunities and threatsIdentify opportunities and threats

Make decisions based on the gathered Make decisions based on the gathered informationinformation

3.63.6

Social ForcesSocial Forces

American ValuesAmerican Values– Self sufficiency; upward mobility, work ethic, Self sufficiency; upward mobility, work ethic,

equalityequality– Time dependentTime dependent– Values influence purchasingValues influence purchasing

Component LifestylesComponent Lifestyles– Banker/Gourmet/athleteBanker/Gourmet/athlete

Changing Role of Family/WomenChanging Role of Family/Women– Working WomenWorking Women– Later, Smaller/No FamiliesLater, Smaller/No Families– DinksDinks

3.73.7

Demographic FactorsDemographic Factors DemographyDemography Age, race, ethnicity, education, locationAge, race, ethnicity, education, location Generation Y 1979 – 1994 Generation Y 1979 – 1994 Generation X 1965 – 1978 Generation X 1965 – 1978 Baby Boomers 1946 – 1964 Baby Boomers 1946 – 1964

– (YEAH Baby!!!)(YEAH Baby!!!)

Older consumersOlder consumers Population ShiftsPopulation Shifts

Demographic FactorsDemographic Factors

Growing ethnic marketsGrowing ethnic markets– Hispanic (12.5%) $900 BHispanic (12.5%) $900 B– African American (12.3%) $850 BAfrican American (12.3%) $850 B– Asian American (3.6%) $455 BAsian American (3.6%) $455 B

3.83.8

U.S. Population by Race and Ethnic Group

2003 2025 2050Asian 4% 6% 8%African American 12% 13% 14%Hispanic 12% 18% 24%American Indian 1% 1% 1%White 71% 62% 53%

3.103.10

Marketing Implications Marketing Implications of Multiculturalismof Multiculturalism

MulticulturalismMulticulturalism– US is becoming more diverseUS is becoming more diverse

Research is importantResearch is important More specialized marketingMore specialized marketing More diversity in mainstream More diversity in mainstream

marketingmarketing

3.113.11

Economic FactorsEconomic Factors

Rising incomesRising incomes– National, GlobalNational, Global

Purchasing powerPurchasing power

InflationInflation

RecessionRecession

3.123.12

Technological Technological FactorsFactors

Information technologyInformation technology

InternetInternet

ResearchResearch

3.133.13

Political and Legal Political and Legal EnvironmentEnvironment

Federal LawsFederal Laws State LawsState Laws Regulatory AgenciesRegulatory Agencies

– FTCFTC– FDAFDA

3.143.14

Competitive FactorsCompetitive Factors

Market Share and ProfitsMarket Share and Profits

DomesticDomestic

GlobalGlobal– Impact of Terrorism on businessImpact of Terrorism on business