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CHAPTER 2. SOCIALLY RESPONSIVE MARKETING. THE IMPACT OF MARKETING. Marketing Affects Businesses Marketing is responsible for the activities leading to the exchange of the businesss products or services for the customers money. - PowerPoint PPT Presentation

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SOCIALLY RESPONSIVE MARKETING

1SOCIALLYRESPONSIVE MARKETINGCHAPTER2CHAPTER 021/11/2011MARKETING12THE IMPACT OF MARKETINGMarketing Affects Businesses Marketing is responsible for the activities leading to the exchange of the businesss products or services for the customers money.Marketing research allows the business to determine customer needs.Effective marketing helps a business satisfy customer needs and wants. Marketing helps the business make better decisions about what to sell and how to sell it. 3Childrens Toothpaste

4THE IMPACT OF MARKETINGMarketing Helps PeopleConvenient locations, large selection of products, multiple methods of payment.Better products at lower prices. Higher sales volume results in lower per unit costs. Example: The development of computers.Greater job opportunities. One-third of all jobs are marketing jobs. A Bachelors degree in marketing in one of the top 10 degrees in demand by employers. 5THE IMPACT OF MARKETINGMarketing Benefits Society Marketing constantly creates new and better products. Safer cars, safer products, reduction in pollution, increase in recycling.

6THE IMPACT OF MARKETINGMarketing improves the standard of living because marketing provides an abundance of products and a greater selection of products.

Marketing Benefits SocietySlum in Bangladesh7Bangladesh Average income $1,400 per year2/3s of population are farmersEmphasis is on subsistence

8China - fastest growing major economy in the world, but average income is $3,300 per person.

9Per Capita IncomesLuxembourg - $57,545United States - $39,751Bermuda - $36,000Norway - $37,300Switzerland $32,550Canada - $29,740Japan $28,250Mexico - $8,95010Extensive marketing provides higher paying jobs. Marketing improves international trade. International trade could not exist without effective marketing.Marketing Benefits SocietyTHE IMPACT OF MARKETINGFrameworks 2.2.211Benefits of MarketingBusinesses meet consumer needsConsumers make better decisionsNatural resources are used more effectivelyStandard of living is improvedInternational trade increasesFrameworks 2.2.212Common ComplaintsMarketing causes unneeded purchasesMarketing wastes moneyMarketing is not always needed13Do we really need this?Talking George Bush Action Figure. Press the button on George's back to hear him say 17 phrases in his own voice. Makes a great gift. Some phrases are political, some patriotic, while others show his comedic use (or misuse) of the English language. President George W. Bush doll is 12 inches tall.

14Do we really need this?

www.chiaobama.com 15Total product price (100%)Product PriceAverage cost of all marketing activities (50%)Average cost of sales and advertising (210%)The Typical Costs of Marketing16Marketing Solves ProblemsMarketing increases public awarenessGreen (environmental) Marketing consists of marketing activities designed to satisfy customer needs without negatively impacting the environment.

Frameworks 3.1CHAPTER 021/11/2011MARKETING1617

Green Marketing Solves Problems18Marketing Solves ProblemsMarketing helps match supply with demandApples iPhone 3GS are completely sold out as of Sunday. Half of the Apple stores have already sold out of the white 16GB version, followed by the black 32GB version, which 40 percent of the stores are out of stock of. Last years 8GB iPhone 3G is still available everywhere.

CHAPTER 021/11/2011MARKETING1819Marketing Solves ProblemsMarketing increases public awarenessGreen (environmental) Marketing is also related to sustainability - as in environmentally sustainable development. The Energy Star label now appears on 11,000 different items in 38 product categories, from washing machines and light bulbs.

CHAPTER 021/11/2011MARKETING1920Marketing Solves Problems

CHAPTER 021/11/2011MARKETING2021Social ResponsibilityConcern about the consequences of actions on others. Refers to the duty of a business to contribute to the well being of society.

Ben & Jerry's Homemade, Inc. donates 7.5 percent of its pretax earnings to the disadvantaged and the needy.Frameworks 3.2Ben & Jerrys Ice Cream company is well known for its commitment to social responsibility.

22Frameworks 3.2.123Benefits of Social Responsibility

Presentation at Shoneys by Joe WilsonPresentation at Western Sizzlin by Niki JonesRecognition in the community and creating goodwill.CHAPTER 021/11/2011MARKETING2324

This is the house where families meet to continue their lives... to eat and sleep... to find their strengths and dry their tears... to look forward with hope to better years, this is the house that becomes their home... this is the house that love built.Over 200 Ronald McDonald Houses exist in the United States and around the world. These facilities help families overcome the stresses associated with a child's illness by encouraging supportive interaction with other parents in a comfortable, homelike environment.www.ronaldmcdonaldhouseuc.orgFrameworks 3.2.1CHAPTER 021/11/2011MARKETING2425

Two times a year, McDonald's Restaurants sponsor McTeacher Night. This year's fall event is scheduled for Tuesday evening November 8. Twenty percent of the evening's proceeds will go directly to the band to offset the cost of their spring trip. Groups from the band will be on hand to perform for customers throughout the evening. McDonald's representative Robin Reeves said, "They will be providing the entertainment for our customer's listening pleasure during the four hour event." Customers can drive through or dine in between the hours of 4 p.m. and 8 p.m. to benefit the band. Reeves said, "McDonald's likes to be involved in the community. We are all about supporting Harrison and the area schools. We appreciate the support we get from our customers and this is one way we can do our part to help them."

Donna Braymer www.harrisondailytimes.comFrameworks 3.2.1CHAPTER 021/11/2011MARKETING2526What happens when a business doesnt practice social responsibility?Negative publicity can damage the companys image.

Company profits can be negatively effected.

There could be legal consequences.

Watch video from 60 minutes. Should US businesses send electronic waste to China?

27ConsumerismThe organized actions of groups of consumers seeking to increase their influence on business practices. The societal effort to protect consumer rights by putting legal, moral, and economic pressure on business.

Ralph Nader is often called the father of consumerism. He was the Green Party Nominee for President in 1996. He ran again as a write in candidate in the 2000 Presidential election. Frameworks 3.428 The right to adequate and accurate information. The right to safe products. The right to product choices. The right to communicate their opinions to business and government.

The Consumer Bill of RightsThe Consumer Bill of Rights was presented by President Kennedy in 1960.CHAPTER 021/11/2011MARKETING2829Influencing Business PracticesUsing the consumer vote dont spend your money on the product if its not what you need or want.Boycott an organized effort to influence a company by refusing to purchase its products.Government regulation.Frameworks 3.1 & 3.4.130

Boycott of Aruba31Boycott ArubaThe consumer boycott of Aruba triggered by the lack of action, or incompetence of Aruban officials, surrounding the disappearance of Natalee Holloway is being countered by Aruba. Over the past few months, at least one hotel in Aruba has been sold, which indicates that investors saw bargains, probably because soft sales lowered property values. Over the past few months, Aruba has been investing heavily into enticements to lure cruise lines into making Aruba a port of call, which has the effect of bringing in tourism dollars less hotel stays, as those vacationers can sleep in their ship-board rooms. The cruise-lines are bringing people into Aruba who would otherwise not pick Aruba as a primary vacation destination, but will go there if it happens to be one of several ports of call. Aruba has been hurt by the boycott against them, and while they are working to recover from the boycott, it remains to be seen if the tourism numbers ever return to its former glory.

Frameworks 3.4.132Sherman Antitrust Act, 1890To increase competition among businesses by regulating monopolies

33Food and Drug Act, 1906To control the content and labeling of food and drug products by forming the Food and Drug Administration (FDA)

The Nutrition Facts label is required by the Food & Drug Administration.What does the FDA do?34

The FDA conducts inspections of food and drug manufacturing facilities to ensure that we (consumers) receive safe products.Cheryl Eckard who worked for the drug company GlaxoSmithKline was a whistleblower and alerted the FDA to problems at one of the companys manufacturing facilities.35Federal Trade Commission Act, 1914To form the Federal Trade Commission (FTC) to protect consumer rights

The Federal Trade Commission is shown on the south side of Pennsylvania Avenue between 6th and 7th Streets. The statue alongside the building symbolizes humanity harnessing trade.36Robinson-Patman Act, 1936To protect small businesses from unfair pricing practices between manufacturers and large businessesThe Act prohibits selling the same product, under the same circumstances, to different customers at different prices with the intent of harming competition.

37Fair Packaging and Labeling Act, 1966To require packages to be accurately labeled and fairly represent the contents.The identity of the product; The name and place of business of the manufacturer, packer, or distributor; and The net quantity of contents.

38Consumer Credit Protection Act, 1968 To require disclosure of credit requirements and rates to loan applican