Social Responsibility, and the Marketing Environment

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Social Responsibility, Ethics, and theMarketing
Environment
CHAPTER 3
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Corporate Social Responsibility
LOI
The idea that socially responsible companies
will outperform their peers by focusing on the
worlds social problems and viewing them as
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Corporate Social Responsibility
4
Ethical Behavior in Business
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Ethical Decision Making Tool

• Treat others how you would want to be treated.
• What would _________think?
• How would I feel if this was published in the
  newspaper?

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Code of Ethics
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Social Factors
Influence products purchased, prices paid, etc.
Core American Values Upward mobility, work
ethic, self sufficiency
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The Influence of Values on Buying Habits
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Component Lifestyles
LO4
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Role of Families and Working Women
LO4

• Growth of dual-income families results in
• Approximately ___ of work-age females are in the
  workforce
• Women expect different things in life
• _______ households outnumber married households
  with kids

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Demographic Factors
LO5
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Tweens

• Pre- and early adolescents, age 8 to 14
• Population of 29 million
• Purchasing power of 39 billion in 2007
• View TV ads as ___________
• Emerging as ________________ and the most
  influential generation in history

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Generation Y
LO5

• 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

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Generation X
LO5

• Born between 1965 and 1978
• Population of 40 million
• Savvy and cynical consumers
• _______is at a premium, and outsourcing is
  utilized

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Baby Boomers
LO5

• Born between 1946 and 1964
• Population of 77 million
• 1 trillion in spending power for people aged 50
  to 60
• Income will continue to grow as they keep working
• Four segments of baby boomers Looking for
  balance Confident and living well At ease
  Overwhelmed

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Growing Ethnic Markets
LO6

• Spending power of ethnic markets by 2008
• Hispanics--
• African Americans--
• Asian Americans--
• Diversity can result in bottom-line benefits to
  companies.

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Marketing to Hispanic, African American, Asian
American
LO6

• The populations diversity creates challenges for
  targeting this group.
• Hispanics tend to be ____________, but are not
  aware of many U.S. brands.
• Many firms are creating products for the African
  American market.
• Promotional dollars and media choices directed
  toward African Americans continue to increase.
• Asian-Younger, better educated, and have highest
  average income of all groups

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Economic Factors
LO7
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Purchasing Power
LO7
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Inflation
LO7
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Recession
LO7
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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 createsa long-term
  competitive advantage.
• External technology
• Creates more efficient operation or better
  products
• May render existing products obsolete
• New technologies create new opportunities
• RSS
• Blogging

LO8
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Political and Legal Factors
LO9
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Federal Legislation
LO9
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Regulatory Agencies
Consumer Product Safety Commission
Protects consumer safety in and around their
homes
Federal Trade Commission
Prevents unfair methods of competition in commerce
Food Drug Administration
Enforces safety regulations for food and drug
products
http//www.ftc.gov
LO9