Marketing Impacts Society

1
Marketing Impacts Society

• 2.1 The Impact of Marketing
• 2.2 Criticisms of Marketing
• 2.3 Increasing Social Responsibility

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The Impact of Marketing

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

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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

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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

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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

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Marketing Helps People

• Locations of stores
• Favorite brands
• Prices clearly labeled
• Types of payments
• Helps satisfy customer needs

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Marketing Helps People

• Better Products at Lower Costs
• Wants/Needs and Likes/Dislikes lead to
  improvements of products and new products are
  developed
• Product meets customer needs
• Results in higher sales volume
• Increase sales allow business to produce products
  more efficiently
• Causes costs to decrease

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Customer Satisfaction
Product Costs and Prices
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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)

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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 businesss name on a public sports
  arena?

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Marketing Benefits Society

• New and better products
• Better standards of living
• Promotes international trade

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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

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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

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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

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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

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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.

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Criticisms of Marketing

• Goals for Lesson 2.2
• Discuss three common criticisms of marketing
• Explain how marketing can be used to solve social
  problems

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Common Complaints

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

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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 match. Must value long-term
relationships.
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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

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Some Products Dont 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

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Marketing Solves Problems

• Marketing increases public awareness
• Marketing helps match supply with demand

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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

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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

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Journal Review Questions

• 1. 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 doesnt 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?

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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

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Consumer Protection

• Increasing Social Responsibility
• Growth of Consumerism
• Government regulations

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Social Responsibility

• Marketers must be willing to pay attention to
  societys 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

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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

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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

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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
• Buyers Bill of Rights
• Responsibilities of Marketers (Figure 2-8)

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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.

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Improving Practices

• Social Action business people helping to solve
  some of societys major problems
• Ex Members Only drug abuse and voter
  registration
• Ex Nike Literacy Program
• Ex McDonalds Ronald McDonald Houses

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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

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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

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Journal

• Write one sentence to summarize each of the
  following phrases
• Consumer Protection
• Improving Practices
• Ethics in Marketing