Welcome to the World of Marketing

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Welcome to the World of Marketing

• Dr. Chun-Tuan Chang
• [phone] ext. 4627
• Email ctchang_at_faculty.nsysu.edu.tw

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LECTURE ETIQUETTE
MOBILE MANNERSSWITCH OFF MOBILE PHONES IN
LECTURES INC. NO TEXTING!
LECTURES ARE NOT A TAKE-AWAY OUTLET
LECTURES ARE NOT FRIENDS REUNITED
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COURSE OBJECTIVES

• Knowledge and Understanding
• Cognitive Skills
• Subject-Specific Skills
• Key Skills
• in exercises and discussions
• in a group project
• examination answers
• 16 Lectures, Exercise, Assignments, Discussions,
  Videos

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What is Marketing?
is a societal process by which individuals and
groups obtain what they need and want through
creating, offering and freely exchanging products
and services of value with others Source Kotler
(2003) p.9
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Marketing as an ExchangeRelationship
Something of Value I.e. money, labour, goods
Seller
Buyer
Something of Value I.e. goods, services, ideas
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Marketing involves Individuals and Groups
(Organizations)

• Final buyers/consumers
• Individuals/Households
• Organisational buyers
• Industrial companies
• Institutions (hospitals, universities)
• Profit-making Organisations
• Non-Profit Organisations

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• This Norwegian ad addresses young peoples
  smoking attitudes by arousing strong negative
  feelings. The ad reads (left panel) Smokers are
  more sociable than others. (Right panel) While
  it lasts.

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Marketing Management from Transactions...
the management process responsible for
identifying, anticipating and satisfying
consumers requirements profitability Source
Chartered Institute of Marketing 1991
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to Relationship Marketing
...is to establish, maintain and enhance
relationships with customers and other partners,
at a profit so that the objectives of both
parties are met. This is achieved by mutual
exchange and the keeping of promises. Such
relationships are usually but not necessarily
always long-term. Source Grönroos (1994) JMM
p.355
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New Contexts, New Theories...

• Marketing is highly context-dependent
• Marketings context is changing rapidly and
  radically
• electronic commerce
• market diversity
• new economics
• co-operation
• Marketers need to question relevance of
  established thinking to new contexts

Source Sheth and Sisodia (1999) Revisiting
Marketings Lawlike Generalizations, Journal of
the Academy of Marketing Science
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The Societal Marketing Concept
to determine the needs and wants and interests
of target markets and to deliver the desired
satisfactions more effectively and more
efficiently than competitors in a way that
preserves or enhances the consumers and the
societys well-being Source Kotler (2000) p.25
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Social Responsibility

• What accepted relationships, obligations and
  duties exist between the marketing organisation
  and society?
• Consumer Issues
• Community Relations
• Environmental Issues

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Societal Marketing Orientation
McDonalds Rain Forest Policy
We do not, have not and will not purchase beef
from rain forest or recently deforested rain
forest land. Any McDonald supplier that is found
to deviate from this policy or that cannot prove
compliance with it will be immediately
discontinued.
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Marketing Ethics

• Ethics
• individual moral evaluations of right and wrong
  in particular situations
• Ethical issues in marketing
• target markets
• marketing mixes
• consumer/marketing research
• international marketing strategy

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Marketings Impact on Society as a Whole
Producing Too Few Social Goods
False Wants Too Much Materialism
Marketings Perceived Negative Impact on
Society as a Whole
Cultural Pollution
Too Much Political Power
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Marketings Impact on Society as a Whole
Producing Too Few Social Goods
False Wants Too Much Materialism (i.e., what
you own vs. who you are).
Cultural Pollution
Too Much Political Power
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Cultural Pollution
Our senses are sometimes assaulted by commercial
messages.
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American Association of Advertising Agencies

• This ad demonstrates that advertising cant make
  consumers buy things that they dont need despite
  high-pressure selling.

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Influences on Ethical Decisions
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Influences On Ethical Decisions

• Individual values, beliefs, philosophies
• Perceptions of situation, alternatives,
  consequences
• Organisational environment
• Industry/professional environment
• Cultural environment

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Consumerism
Consumerism is an Organized Movement of Citizens
and Government Agencies to Improve the Rights and
Power of Buyers in Relation to Sellers.
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Consumerism Buyers Rights
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Environmentalism

• An organized movement of concerned citizens and
  government agencies to protect and improve
  peoples living environment.

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Environmentalism
Have a Sustainability Vision
Practice Pollution Prevention
Plan for New Environmental Technologies
Practice Product Stewardship
Adopt Design for the Environment Practices
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Body Shop Against Animal Testing
(sourceBody Shop)
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• This is from the newsletter called scoop that
  came with T-Mobiles March 2008 billing
  statement.When you switch to paperless billing,
  T-Mobile, in conjunction with the Arbor Day
  Foundation, will plant a tree in your name in a
  blighted area of the United States. The Arbor Day
  Foundation, a tree-planting charity headquartered
  in Lincoln, Nebraska, calls it the Restoration
  Project.The tree planting is concentrated in
  the region around New Orleans devastated by
  Hurricane Katrina in 2005 and areas of Southern
  California which were denuded of trees by the
  fires of 2007.

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Environmental Sustainability

• A management approach that involves developing
  strategies that both sustain the environment and
  produce profits for the company.

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Legal Issues Facing Marketing Management.
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Enlightened Marketing

• A marketing philosophy holding that a companys
  marketing should support the best long-run
  performance of the marketing system.

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Enlightened Marketing

• Consumer-Oriented Marketing
• The philosophy of enlightened marketing that
  holds that the company should view and organize
  its marketing activities from the consumers
  point of view.
• Innovative Marketing
• A principle of enlightened marketing that
  requires that a company seek real product and
  marketing improvements.

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Innovative Marketing
Colgates Total toothpaste is perhaps the best
example of Colgate's passion for innovation. The
breakout brand provides a combination of
benefits, including cavity prevention, tartar
control, fresh breath, and long-lasting effects.
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Enlightened Marketing

• Value Marketing
• A principle of enlightened marketing that holds
  that a company should put most of its resources
  into value-building marketing investments.
• Sense-of-Mission Marketing
• A principle of enlightened marketing that holds
  that a company should define its mission in broad
  social terms rather than narrow product terms.

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Societal Classification of Products
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• Based on the societal classification scheme, how
  would you classify the following products?
• McDonalds Big Mac
• A handgun
• Airbags in an automobile
• Daily vitamins

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Marketing Ethics
Companies Need to Develop Corporate Marketing
Ethics Policies Broad Guidelines That Everyone
in the Organization Must Follow and Should
Address

• Distributor Relations
• Advertising Standards
• Customer Service

• Pricing
• Product Development
• General Ethical Standards

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Marketing Ethics
Principles That Should Guide Companies and
Marketing Managers On Issues of Ethics and Social
Responsibility
Decided by the Free Market and Legal System
Responsibility of Individual Companies And
Managers
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Ethics Programs
PricewaterhouseCoopers established a
comprehensive ethics program, which begins with a
code of conduct called The Way We Do Business.
Says PwCs CEO, Ethics is in everything we say
and do.
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• Should companies follow the axiom When In Rome
  when making ethical decisions in foreign
  countries?