Ebook Diploma in business management: Marketing policy, planning and communication – Part 2

Ebook Diploma in business management: Marketing policy, planning and communication – Part 2 presents the following content: Study unit 6 understanding consumers and consumer behaviour, study unit 7 product management and development, study unit 8 pricing policies and price setting, study unit 9 distribution policy and management, study unit 10 marketing communications, study unit 11 the international dimension to marketing, study unit 12... Đề tài Hoàn thiện công tác quản trị nhân sự tại Công ty TNHH Mộc Khải Tuyên được nghiên cứu nhằm giúp công ty TNHH Mộc Khải Tuyên làm rõ được thực trạng công tác quản trị nhân sự trong công ty như thế nào từ đó đề ra các giải pháp giúp công ty hoàn thiện công tác quản trị nhân sự tốt hơn trong thời gian tới.

147 Study Unit Understanding Consumers and Consumer Behaviour Contents Page A The Buying Process A Rational Decision Making Model Who Buys? Types of Purchasing 148 148 150 151 B Influences on Individual Buying Behaviour Cultural Social Personal Psychological Personality and Environmental Influences 153 154 155 155 155 156 C Classifications of Consumers Socio-economic Groupings (Class) The Family Life Cycle SAGACITY Geographic/Residential Groups Life-style Groupings 157 157 157 159 159 160 D The Social Psychology of Consumer Behaviour An Initial Model Fulfilment of Needs The Influence of Groups Cognitive Dissonance Decision-Making Sets "Hierarchy of Effects" Theories 162 162 163 167 172 174 175 E Organisational Purchasing Types of Industrial Purchases Influences on Organisational Buying 176 177 178 © ABE and RRC 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 148 Understanding Consumers and Consumer Behaviour 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 A THE BUYING PROCESS The buying process is not just "the purchase" The process covers all the stages that a buyer goes through when making a purchase As marketers we need to understand the process fully so that we can help the buyer through every stage If we can this, we are more likely to get a successful sale and the buyer is more likely to be satisfied at the eventual outcome A Rational Decision Making Model The process itself may involve the following stages:  A need is felt which creates a problem to be solved  A solution is sought for that problem  Alternative solutions are analysed and assessed  A decision is made as to which is the best solution to the problem  The decision is implemented  A review is made of the decision At any stage it may be necessary to go back to a previous stage and review earlier thinking This is known as a feedback loop This basic process can be shown as a very simple model as follows: Need Review/Feedback Decide Act Search/Evaluate Figure 6.1: Rational Decision Making Model Remember that review and feedback are also important in this process Never forget that we are talking about a process – which involves a sequence of stages As marketers we need to be able to understand the processes our customers go through so that we can overcome any barriers that may make them decide not to buy, or to buy from the competition We want to establish ourselves as the preferred provider Not many companies are in the enviable position of being the sole source of supply To demonstrate the process, let us take a simple example of the buying process of an individual consumer – YOU Example Imagine you have been kept late at the office and not have an evening meal prepared You are feeling really hungry and know that you need to eat pretty soon  Stage You have a problem – you are hungry You need to eat so you must find food You move into Stage © ABE and RRC Understanding Consumers and Consumer Behaviour  149 Stage You have no meal prepared at home Your first choice involves deciding on whether or not you will cook when you get home  Solution 1: You know that you have a nice steak in your refrigerator, so you decide you will cook when you get home The search stops there – your problem has been solved  Solution 2: You decide you are too tired to cook and want to have food provided for you You remain at Stage – your problem still exists but it has changed slightly – it has added dimensions The first added feature involves deciding where you want to eat:  Solution 1: in a restaurant?  Solution 2: at home? You consider the alternatives and decide that a restaurant will be expensive and take too long (You have assessed your resources of time and money.) You decide you will eat at home You remain in Stage You now reconfirm your problem and assess your decisions to date Yes, you are hungry and you need to eat Yes, you are too tired to cook for yourself and yes, you don't want to go to a restaurant Your decision is "firm" – your problem still exists but has moved into another decision phase You are still in Stage You now have to decide what kind of fast food you want to eat You consider all solutions available to you, which may vary from fish and chips or beefburger to Chinese or Indian meals You assess each option against various factors – time, convenience, money and preference When you have finished your assessment you will make your decision You decide on an Indian meal You could move into Stage immediately because there is only one outlet to buy from; or you could have further decisions to make on where to buy from before you finally choose Your final decision might be based on the fact that there is an Indian take-away restaurant near your home You've used it before and know the food is good You also know that you can order by telephone and it will be ready for you to collect when you arrive The end result will be that you can eat as soon as you arrive home You are happy with your decision and you move into Stage  Stage You telephone in your order stating your requirements and giving the time when you will be collecting You leave the office, collect your food, go home and eat it The purchase is completed and the product has been "consumed" You now move into Stage  Stage After you have eaten your meal, you feel a little ill You blame the food and think about the other options which had been open to you Would they have been better? You might not be feeling ill if you had bought fish and chips Maybe you should have gone to a restaurant or tried a different outlet You are now doubting the wisdom of the decisions you made earlier You are experiencing dissonance – an interference with, or "jarring" of, your knowledge and experiences You think back over the process You compare the options you had available but still think your decisions were right You wonder why you are feeling ill © ABE and RRC 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 150 Understanding Consumers and Consumer Behaviour 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 Suddenly you realise that you are really only feeling ill because you have eaten too much You feel reassured – it is you that is at fault, not your decisions, the food or the outlet Your confidence in, or "loyalty" to, the outlet is restored and your preference for Indian food is re-established – you did the right thing! You are likely to repeat the process at another time in the future Although the decision making in this example is on a very simple level, it clearly indicates the stages in the buying process and the decision loops which will be taken At each stage, whether consciously or not, all decisions are "checked and verified" before moving into the next phase Resources are monitored to see if the decision is viable, etc The process will be the same, whether it is for an expensive item or for something which costs very little money What can vary is:  The strength of the initial problem  The nature of the product being bought  The value of the item being bought  Who is involved in the buying process  Who will use the item being bought  The length of time that will be taken in the search process  The ease of the actual decision making  The convenience of the actual purchase  The after sales confidence of the buyer and the user If you consider these possible differences, you will see that some of them will be a direct outcome of another For example, for a high value purchase it is likely that more time will be spent in the searching stage The level of reassurance necessary after the sale will also be greater It is also possible that more than one person will be involved in the process This brings us, as marketers, to a very important question – who is buying? Who Buys? You will note that in the section above I have introduced the term "the user" This is because we often sell things to people who are buying on behalf of others The customer buys The user is the consumer A person can, of course, be both at the same time, but we should never forget that we may be dealing with multiple levels in the buying process and we have to cater for all needs To simply make it easy for an intermediary to buy without thinking of the impact on the user is most unwise Conversely, to concentrate on the needs of the user at the expense of the intermediary is equally unwise We should be looking for a balance which most closely matches everyone's needs This matching can be easy or it can create a number of problems Problems often increase in direct ratio to the length and complexity of the distribution channel and the nature of the item being bought The Decision-making Unit Buying can be done by an individual or by a group of people We call the individual(s), involved in buying, the Decision-making Unit (DMU) We have to accept that often purchasing is carried out to meet the requirements of more than one person, which can mean that more than one person will be involved in the purchasing decision processes This applies equally in consumer and industrial purchasing © ABE and RRC Understanding Consumers and Consumer Behaviour 151 When more than one person is involved, the individuals may have a definite "role" to play in the process The roles have been identified as follows:  The initiator: the person who comes up with the idea of buying an item  The influencer: the person, or people, who will shape the outcome of the decision  The decider: the person with the power or authority to make the decision  The buyer: the person who makes the actual purchase  The user: the person who will eventually use the product And, of course, in many purchases there will also be:  The gatekeeper: the person who can prevent the decision from being made or make it more difficult, e.g a receptionist who prevents a salesperson from seeing a buyer, or a friend who tells someone that a product is a waste of money – simply because they not see the need for it themselves Although these descriptions are more often used to describe group purchases, the individual purchaser can also be playing a lot of the "roles" For example:  A father might think of the idea of buying some painting materials which would keep his children occupied while he is busy (initiator)  He allows his own tastes to influence his decision as he enjoys painting (influencer)  He goes ahead and decides to buy a set of water-colour paints (decider)  He goes to an outlet and buys (buyer)  Of course, he may decide that his children don't deserve the present and not buy (gatekeeper) The only "role" not being covered in this example is that of the user Types of Purchasing One way of considering the decisions which you, and most other consumers, take is to classify them broadly as either "new buys" or "repeat buys" It is worthwhile looking at these two categories in some detail, because many organisational decisions follow a similar pattern  New Buy Decisions Your new buy decisions may be for items of small value, such as changing your toothpaste or choosing a different food; they involve small amounts of money, so the risk of being dissatisfied is there but the outcome is not disastrous You may throw away an item you dislike and accept you have wasted a tiny part of your resources Some new buys are more serious because they involve products which cost more money and would not be thrown away so easily There are many grades of this type of buying and you can easily put your buying into an order of importance You might think of clothing, then kitchen equipment, furniture, a car, a holiday; and for some of us, a house is the most expensive new buy item  Repeat Buy Decisions When you buy something you have used previously, you have the benefit of experience to help you, so you have less difficulty in choosing the product There will still be different levels of decision-making, because the products you buy may range from lowvalue items such as toiletries or foodstuffs to a second car or another house In all these categories, the experience of previous deals will make the decision to buy or not to buy less difficult © ABE and RRC 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 152 Understanding Consumers and Consumer Behaviour 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 This is, though, a rather simplistic analysis for marketing purposes, and more light is shed by using a model which was originally introduced by Assael (1987) This asserts that the type, or nature, of purchasing is affected by two variables: (a) The involvement of the buyer with the product, and (b) The differences available (between products/brands) The following diagram demonstrates the interaction between these variables: Degree of Buyer Involvement in the Purchase Low High Habitual buying behaviour e.g basic foods Dissonance reducing behaviour e.g furniture Variety seeking behaviour e.g chocolate bars, breakfast cereals Complex buying behaviour e.g computers Few Significant Differences Between Brands Many Figure 6.2: From Assael – Four Types of Buying Behaviour  Habitual Buying This is repetitive buying which takes little thinking about Few differences are apparent between products and brands and the customer allocates little, or low, importance to the purchase It may be that the customer has, in the past, considered alternatives and has found "the ideal" The customer is happy to stick with their decision and has, in fact, become "loyal"  Variety Seeking This type of purchase will still involve relatively low importance in the mind of the purchaser, but there will be lots of choice and variety, e.g biscuits, sweets, newspapers, magazines If a product is tried and found to be lacking in some aspect, the buyer will simply try another one the next time they buy, or they may actively decide to keep trying different brands to see which is best, e.g people who drink beer often try different types just as an experiment  Dissonance Reducing Dissonance reducing purchasing is the kind of purchasing which is designed to reduce post-purchase "doubt" Because the degree of involvement is high, usually because of value and the item being something which is only bought rarely (e.g an electric bed), the buyer may have no previous experience to use as a base for comparison in the search process If you add this lack of experience to the fact that there are only minor differences between the types of product available, it is easy to see why the buyer needs to ensure that the item he/she buys is good The search process may therefore be extended This type of purchasing can also mean that, because there are so few differences in the models or brands available in the market, the actual purchase itself may be made relatively quickly © ABE and RRC Understanding Consumers and Consumer Behaviour  153 Complex Buying High product involvement and lots of choice make this an extremely hazardous type of purchase for a buyer If we take buying a computer for home use as an example, you can understand the problems You may have already had one make of computer and been quite happy with it, but now you have outgrown your machine and need another It is going to be expensive so you have to make sure you get good value for money There is such a wide range of computers on the market that your choice will not be easy You have to consider machine capabilities, software, compatibility with your existing floppy discs and printer, etc This type of decision can take a lot of time in the search for information and assessment of alternatives before a purchase is made Impulse Buying Although this type of buying is not mentioned in the Assael model, we must consider it as it certainly happens Producers are aware of the existence of impulse, or non-rational, purchasing which is why so much money is spent on promotional literature and point of sale displays There is really no accounting for this type of purchase and yet we all it from time to time We are attracted by an advertisement, or a point of sale display and we leap in and buy without thinking about it Sometimes impulse buying works and sometimes it doesn't If it works that is OK We acquire confidence in the manufacturer, or the outlet, and feel quite happy If it doesn't we have all the time in the world to regret what we have done We may think "Never again!" and blame the manufacturer, or the outlet, for our own error The effects of this "blame" can last for a considerable time and can actually influence our more rational purchasing – with the organisation which was blamed losing custom You may think that impulse purchasing does not meet the recognised stages in the buying process In my opinion it does All that has happened is that the process has been gone through very quickly or some stages have been more or less by-passed:  When you buy something on impulse you will be thinking it is a good idea as it will be useful for some purpose or another – you are solving a problem You may not have been aware until then that the problem existed, but some factor makes you recognise it  Circumstances shorten the search phase – maybe it is because you know you can't get back to the outlet, or there are only a few of the items available  You still make the purchase decision and complete the purchase  You still carry out the post-purchase evaluation Therefore, you have still gone through the purchasing process B INFLUENCES ON INDIVIDUAL BUYING BEHAVIOUR Marketing managers are in the "people" business Even though they may be trying to make profits, they must understand individual and group behaviour both from the internal (supply) and external (demand) points of view Behaviour stems from:  Needs (requirements), and  Wants (desires) © ABE and RRC 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 154 Understanding Consumers and Consumer Behaviour 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 It has been said that today's wants are tomorrow's needs and a great deal of marketing effort is put into trying to make this the case where buyers are concerned  Needs can be basic (physical) or higher (psychological)  Wants are "desires" For example, I "need" to earn enough money to live – but I "want" to earn enough money to buy a speedboat Internally, within the organisation itself, managers need to ensure that basic needs are met and that personnel are satisfied with pay, conditions of work, involvement, style of leadership, etc and that the personnel are not demotivated by any activities taking place They should also take into consideration the wants of the staff as a means of motivation Knowing the aspirations of a member of staff, or what will motivate them, can be of considerable help when trying to achieve their cooperation It could be said that if behaviour is not understood, marketers are unlikely to be successful in obtaining their objectives and in overcoming conflict It would be every manufacturer's dream to produce products that every buyer in the world wanted to buy, but we know that is impossible simply because buyers are people, and people differ in many ways Marketers therefore have to understand what makes people different from one another, if they want to help the customers to satisfy their needs These differences are caused by various influencing factors, as the following model shows CULTURAL PERSONAL The Buying Consumer SOCIAL PSYCHOLOGICAL Figure 6.3: Influences on Consumer Buying Behaviour Cultural The influences under this heading can be sub-divided into three sections:  Culture Culture includes both abstract ideas and beliefs, as well as physical artefacts, which are important to a society It summarises the learned values and attitudes of a society as a whole It is while we are growing up that we acquire expectations and standards that fit with the society in which we live, and these acquired values and expectations stay with us throughout our lives For example, the different standards between the Muslim and Christian religions impose different levels of acceptance on certain behaviour and, therefore, on purchasing habits As an individual grows, they will absorb and acquire behavioural norms which are acceptable to their particular society; these inbred beliefs will be very strong It is an accepted fact that the society in which a person lives and has been reared is one of the greatest influences on the final character of that individual © ABE and RRC Understanding Consumers and Consumer Behaviour 155 It is relatively easy for any marketer to understand the culture in their own country as they will be part of it, but understanding cultural influences in foreign markets takes a little more care It is therefore particularly important that, when dealing with markets different to the home market, time is taken to identify and understand the cultural norms of acceptability in the foreign market, as these may vary dramatically from those in the home country  Sub-culture Cultures of all kinds will contain smaller groups or sub-sections The differences may be based on life style, religion or on belief in some ideal, e.g in Spain you will find the Basque separatists, who are part of the overall culture of Spain but can be regarded in their own right as a sub-culture  Social Class Despite the claims for "classless societies" which we hear from politicians, class systems still exist around the world Social classes are the "divisions" which a society accepts and they may be based on status, money or education In the UK the social class system (A, B, C1, C2, D and E), which is still widely used, is defined on the job of the head of the household but, because of the changes which have taken place in the UK society, this method may not always be an appropriate measure Social Influences under this heading can come from family and friends or other reference groups, such as clubs and interest societies The individual role and status of the buyer is also another influence – how we want other people to see us! For example, if your father has always bought Rover cars, you may be influenced into buying a Rover when you make your first car purchase However, should you be part of a group that has adopted another make of car, e.g university students who buy Yugo cars as a status symbol or statement, you could be influenced by that attitude in your wish to conform to the "norm" of the group Once you get your first major job as a manager, though, you may realise that a BMW car would fit your status better than a Yugo and you will make another change Personal Personal factors relate to the individual, e.g age, life style, occupation, wealth and character For example, a young man of 21 who enjoys danger is more likely to be attracted to a motor cycle, with flames painted on its side, than another wealthy young man, of the same age, who enjoys the theatre A lady of 45 will want different clothes from a lady of 25 A company director will have different purchasing expectations from those of a mechanic in a garage As we move through our lives, we change our purchasing habits according to the prevailing conditions Psychological Wilson, Gilligan and Pearson (in "Strategic Marketing Management", 1992) identify four psychological characteristics as being important: motivation; perception; learning; and beliefs and attitudes  Motivation This is what drives us to or want something It stems from a range of human needs, from basic to higher, as identified by Maslow in his "Hierarchy of Needs" model (see later in study unit) © ABE and RRC 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 156 Understanding Consumers and Consumer Behaviour  Perception 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 This is how we "see" things We are conditioned to expect certain things and this conditioning means that we take in images but convert them to what is acceptable to our minds It is our own way of organising the information we take in each day Two people, who are subjected to the same advertising message, at the same time, may "see" the message in completely different ways For example, one person at a holiday time-share demonstration may see the salesperson as being very good and knowledgeable on the subject, but another person at the same demonstration may see the same salesperson as being a "slick fast-talker", who is just interested in taking money  Learning This comes from experience As we learn, we change our expectations to meet with the newly acquired knowledge For example, if you enjoy working or playing with computers, you gradually build up your knowledge until such time as your present machine is not good enough for you You then move up into another category and begin the cycle all over again  Beliefs and Attitudes The dictionary definition of "belief" is "principle, proposition or idea accepted as being true without positive proof" From this you can see that "belief" will be personal to each individual If we are convinced through our socialisation, learning, etc that one particular brand is better than another, we will buy that brand until something happens to change our belief "Attitude" is defined as being "the way a person views something or behaves towards it, often in an evaluative way" Therefore we will be influenced in our buying by how we regard the item being purchased For example, you may see an item as being "good value for money" or "cheap and nasty" We shall examine these various factors in more detail in Section D below Moving on from this simple model, there are other influences that the marketer must take into consideration Personality and Environmental Influences People are influenced in their buying behaviour both by their own opinions and attitudes and by the opinions and attitudes of various groups Personal Group Family Work Education Leisure Residential area Hobbies Acquired knowledge Protest groups Likes/dislikes Support groups It is these types of influences which give rise to the broad classifications of consumers which are used extensively in marketing and are examined in the next section Note that group attitudes may be acquired from formal (structured) or informal groups The influence from peer groups and opinion leaders is very strong indeed – particularly so in the young In any kind of marketing these influences must be considered by the planner as © ABE and RRC 340 Marketing Issues: Responsibility and Change 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 It would make sense to run a social audit, in much the same way as a marketing audit can be done The difference would be that the results could be used for publicity purposes, either to show existing good practice, or to report progress on matters that need attention Perhaps Tom Brannan (Editorial Director of "Marketing Business") got near to the point when he proposed a new definition of marketing, in the issue dated November 1993: "Marketing is the corporate attitude of mind that recognises that success comes only from delighted customers " If we accept that delighted customers are happy customers we can see that this definition of marketing should ensure that organisations consider all aspects of customer satisfaction, including ethical behaviour They should not simply be concerned with what is being bought and sold Ethics in the Marketing Mix Ethics is concerned with behaviour and most of the people in the marketing profession work within the limits that are accepted as normal by the majority of people So it has not been necessary for most of us to be able to define ethics However, the world is getting more competitive and different nationalities have different views on what is good behaviour As international trade becomes ever more widespread, it is worthwhile having some sort of definition of "ethics" Steven Skinner writes in the book "Marketing" (Houghton Mifflin): "Marketing ethics is the moral evaluation of marketing activities and decisions as right or wrong, based on commonly accepted principles of behaviour." This is a very wide definition, and could be interpreted differently in various parts of the world A book that goes into more detail is that written by Dibb, Simkin, Pride and Ferrell entitled "Marketing: Concepts and Strategies" (Houghton Mifflin) The authors stated that: "product-related ethical issues arise when marketers fail to disclose risks associated with the product, or information about its function, nature or use As competition intensifies and profit margins diminish, pressures can build to substitute inferior materials or product components so as to reduce costs An ethical issue arises when marketers fail to inform customers about changes in product quality: this failure is a form of dishonesty about the nature of the product." There are not many written examples of items on ethics, but an interesting one to note is in the same book  Jerome Licari was Director of Research for Beech-Nut Nutrition Corporation and he found that the company's claim about their apple juice sold for babies was not true: it was not made from pure apple concentrate, but was a chemical concoction Instead of taking that up with the suppliers of the concentrate, Beech-Nut took no action and continued to sell the apple juice, calling it "100% juice from fruits low in acid" As Licari was a man of principle he resigned and reported the facts to the government When Beech-Nut were charged with 450 offences, they stalled the court hearings until they had time to sell off $3.5 million of stock In the court case Licari was criticised for his naivety when he said that he thought apple juice should be made from apples!  As a further example, you may want to follow the case of the tobacco industry and its struggles over the ethics of selling – and marketing in particular ways – a product which has such serious side effects Commercial activity is, by its very nature, competitive – and marketing is very much part of that competitive environment The temptation, and often the pressure, to use dubious practice to obtain a competitive advantage is always there – blatant fraud is rare, bribery less so, especially where there are large financial gains to be made from winning contracts (as in the armaments industry) © ABE and RRC Marketing Issues: Responsibility and Change 341 In marketing, perhaps the key areas of concern are the following  Manipulating the customer – for example, offering a low cost model then switching to a higher priced model, or providing dubious "free" gifts or benefits as promotional enticements to buy or stay loyal Offers of after-sales support which cannot be sustained to the service levels indicated are unfortunately not uncommon, particularly in the computer and consumer durables markets A similar example is the infamous Hoover promotion which appeared to offer free flights when purchasing a new vacuum cleaner – sales were certainly impressive, but the problems encountered by customers in taking up the heavily oversubscribed offer ended up costing the company an estimated £40 million as well as an enormous loss of faith in their marketing  Making false (or at least dubious) claims about products – such as in the Beech-Nut case referred to above, or falsifying market research For example, I saw a book advertised which appeared to be about half an inch thick The total cost was £7.99, including £1.99 postage, which looked about right for a book that size When the "book" came it was no more than about ten pages of paper stapled together, and the postage was 19 pence, not 199 pence charged The magazine in which the advertisement appeared received many complaints and refunded my money in full, as the advertiser had disappeared without trace In marketing research there are many temptations A researcher working in a shopping street when the weather turns bad and who needs two more "middle-aged ladies who look fairly prosperous" may well be tempted to make up the outstanding responses – and who is to know? Calling on people at home offers less scope for falsification – the research company can phone to confirm that the researcher has visited, and check his or her actions – but telephone surveying offers plenty of opportunities Filling in the forms with some average responses is unlikely to affect the result, and payment is often on questionnaires filled in  Electronic marketing activities such as sending unsolicited e-mails (spam) and text messages to customers and the use of "pop ups" – advertisements that pop up when a customer visits a website and often then continue to pop up during the time the customer is on the site  Misuse of data The internet means that there are increasing amounts of data being collected by organisations about their customers e.g names, addresses, ages, purchasing information, banking information In summary, we can no better than Kotler who puts it neatly: "The law defines what the company cannot This does not mean that everything else, because it is legal, is right." C CONSTRAINTS ON MARKETING The constraints on marketing come in two basic forms:  Legal controls – which, in the UK, originate from both common and statute law  Voluntary or self-regulatory controls – which are established by the industry itself The large proportion of controls that are voluntary rather than legal is peculiar to Britain, where the desire is for as much control to lie in voluntary hands as possible Partly this is attributable to the tradition of personal freedom; partly it is because in many cases voluntary controls are more effective than statutory © ABE and RRC 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 342 Marketing Issues: Responsibility and Change (a) Legal Controls 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 The law warns people not to behave in a certain way, and establishes penalties for those who and are successfully prosecuted But, although preventative to a point, a legal case can take several years to pass through the courts, especially if judgments of lower courts are appealed to higher Even then the law may have to be interpreted in the courts, thus establishing precedent that will amend the law in practice By the time that a decision is reached, it may be far too late to be of practical value to those involved in the case Perhaps the situation could have been righted if prompt action had been taken, but not after time has passed Taking a case to law can be a very expensive process – you need to secure some examples from the contemporary press – and this gives an unfair advantage to the substantial organisations, especially those unscrupulous enough to force the case through a long-drawn-out legal process that they can afford, but the complainant cannot In some cases an organisation will incur costs far in excess of the settlement claimed simply out of principle Obviously there are differences between criminal and civil law When there is risk of a prison sentence, the legal process has far more than money riding upon the outcome and litigants react accordingly But most consumer issues are civil in nature, and civil courts have a large backlog of cases waiting to be heard The greatest strength of legal controls, therefore, lies in their preventative nature (b) Voluntary Controls Perhaps better called self-regulated, voluntary controls are established and monitored by the industry itself, in many cases to prevent government stepping in to establish legal controls The voluntary system as a whole is the more flexible:  Voluntary controls can be applied quickly – an offending advertisement can be modified or withdrawn in hours (or not appear at all if there has been advance consultation)  It is far easier to modify self-regulations – there is no need for the whole parliamentary process  The regulations are administered by industry experts in association with lawyers – and so the interests of those controlled are understood and taken into account within the law  It is (almost) always possible to take an issue to law if it is not settled within the appropriate code (The Advertising Standards Authority can resort to legal action, but very rarely has to.) The two control systems deal with different offences A false trade description can be illegal, but a misleading or exaggerated claim can offend against a code A breach of contract is a legal tort, but knocking copy is unethical Illegalities incur legal fees and are subject to penalties, code violations are far more expeditiously dealt with Legal Controls Legal controls protect the customer/consumer with the force of law and penalties can be extracted from offenders Thus a false trade description is illegal, as is "passing off" a product by designing it to resemble an existing brand Famous examples include the imitation "Rolex" watches, "Chanel" perfumes and pop cassettes on sale from a variety of outlets from market stalls to High Street shops Not only these "pass off" by virtue of their © ABE and RRC Marketing Issues: Responsibility and Change 343 packaging, but they are also either or both imitations and in breach of copyright, trade-mark or patent law (a) Common Law This covers civil wrongs and "torts" which require the plaintiff to take legal proceedings against the defendant with a judge deciding the facts of the case and awarding remedies as appropriate Common law is unwritten and relies upon precedents that have been established in courts since 1066 The law of contract relies upon common law, and is particularly important to marketers because it will apply in the many transactions between themselves (or their organisation) and their agencies and suppliers It is essential to secure a contract in writing, however well one knows the other party because:  Both sides then know exactly what has been agreed between them  The individual making the agreement on behalf of the other party may leave (for a variety of reasons) and his or her successor may or may not know the agreement's terms and may or may not be willing to honour them  There may be genuine misunderstanding of exactly what has been agreed (This is particularly the case when dealing in a foreign country Not only will their legal system differ, but even basic terminology can have vastly different meanings.)  The individual may change his or her mind, or the matter may be taken up by a superior A legal contract requires four elements:  An offer  An acceptance of the offer  A consideration, with both sides making a sacrifice such as payment and supply of goods and services  Consent must be genuine and not obtained by deceit There are four kinds of contract:  A simple contract, not made under seal, which can be oral, written or implied  An express contract in which both sides set out the terms in words, whether orally or in writing  An implied contract where nothing is written, as when reserving a room at a hotel  An executed contract, which exists if a task is performed and paid for, and is usually applicable to oral contracts Two other important areas of concern to the marketer are: ©  Passing off, which has briefly been described, above Great care must be taken to ensure that from package design to in-store merchandising a product is shown to be unique Imitation refers to the product, passing-off to the package  Defamation, which can be slander of a person, slander of goods or libel If a person, organisation or product is intentionally or unintentionally brought into disrepute, the aggrieved person can seek damages through the court "Knocking copy" is normally bad policy because it can so easily set up a negative reaction, runs the risk of overstepping the line into defamation, and shows that there is little unique to say about the product anyway! ABE and RRC 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 344 Marketing Issues: Responsibility and Change 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 "Comparative" copy – such as when the attributes of a range of cars are listed with an indication of which cars have which attributes – has been acceptable, but not if it is so biased as to exclude the major benefits of the competition The EU Directive on Comparative Advertisements is targeted on regulating this complex area and bringing all member states into one common legal position The Directive came into force in January 1993, and it is likely that comparative advertising will disappear from the EU (but not from the USA and most of the rest of the world) The EU directive is complex and requires strict compliance with objective comparisons of fairly selected features Thus features that not show the advertiser's product in a good light cannot be omitted, and all claims have to be scientifically verified Within the UK it will take this area of defamation out of common and into statute law Statute Law This consists of written laws that have been entered upon the Statute Book, having passed through Parliament and received the Royal Assent Ministers of the Crown in some cases have the legal right and/or duty to issue Statutory Orders or Regulations or Statutory Instruments and these have the full force of law even though they will not have passed through Parliament in their own right Statute law covers an exceedingly wide range of concern to the marketing communicator but, fortunately, there is no requirement for you to be familiar with detailed legislation The cardinal principle you must be guided by, however, is to ensure that any planned promotion is checked by your organisation's lawyer before you commit to it This is especially important when entering an area of promotion in which you have no experience, but it is good practice even when repeating a series of advertisements that have been run before Can you be certain that new statutory legislation has not been introduced in the meantime? For example, the European Commission officially "frown upon designation by country" and "prefer designation by the EU" There is no law – not even a proposal – to make the EU designation a statutory requirement Possibly such a regulation will be accepted in time If a marketer judges this to be the case, when will it be appropriate to begin the switch from "Britain" to "EU"? Will he or she know about the change? Is the management information system providing updated information in this complex area? Are the legal advisers involved as deeply as they should be? There are at least 200 laws and statutory regulations that impact on promotion – not all will apply to the area in which any one individual works, but it is crucially important not to miss one that does have an impact on your plans A marketer cannot reasonably be expected to keep up-to-date in this specialised area It follows, therefore, that even when specialist agencies are used they should not be trusted to interpret the law correctly Always run proposals across the desk of your lawyer  The Data Protection Act Before March 2000 any company undertaking direct marketing had to comply with the Data Protection Act 1984 This act required any organisation or individual who held names, addresses or data on computer to be registered As communication systems improved over the years, it became obvious that there were limitations to the Act Towards the end of the 1990s the opportunity was taken to review the 1984 Act culminating in a new Act, the Data Protection Act 1988 the main requirements of which came into force on March 2000 The overriding requirement is that personal data, however it is stored, must be kept secure The new act also contains provisions such as the right of the data subject not to have direct marketing information sent to them if that is what they request © ABE and RRC Marketing Issues: Responsibility and Change 345 Voluntary Controls Without legal force, voluntary controls rely upon the integrity and self-interest of the individual members of an industry Constraint is exercised through specific requirements in respect of advertising and more general codes of conduct relating to ethical practice in marketing (a) Advertising Until 1926 there was virtually no control over what advertisers chose to say in their advertisements Most advertisers were ethical, of course, but too many were unscrupulous and unethical In particular, the purveyors of patent medicines made outrageous claims for their products – considerably above the legitimate "puff" which everybody expects an advertisement to contain Two unique strengths of the British are their unwillingness to submit to bureaucracy, and their ability to form effective committees To pre-empt legislation, the advertising business set about defining its good name by setting up the National Vigilance Committee in 1926 This led in a short time to the creation of the Advertising Association The AA campaigned against misleading advertising throughout the 1930s and its Advertisement Investigation Department Committee established the ground rules which led in 1948 to the British Code of Standards in relation to the advertising of Medicines and Treatments This code and the AIDC were the bedrock upon which the Independent Advertising Standards Authority and the British Code of Advertising Practice were based Both were established in 1962 The ASA supervises the system of control in all non-broadcast media – print, cinemas, leaflets, direct marketing, viewdata, teletext, etc Its role is to protect the interest of the consumer by improving and maintaining good standards of advertising The ASA is independent of the advertising industry It is funded by a surcharge of 0.1% on all display advertising The levy is collected by the Advertising Standards Board of Finance which was set up in 1974 to ensure that the ASA can exercise independent judgment The ASA is not a passive body, nor does it wait for complaints to reach it It is very active in monitoring:  National press advertisements every day  Regional and specialist publications on a statistically-based rolling sample  Direct mailings when sent to the ASA from the Direct Mail Services Standards Board Codes of Conduct It is a long road to the professional status that many people would like to achieve and those at the top of their professions guard their status carefully It is well known that the British Medical Association can order a doctor's name to be struck off the list of people allowed to work as doctors – whatever qualifications the person has This punishment is not applied lightly: the investigation of a complaint is similar in intensity to that which would happen in a court of law Most doctors therefore take good care to avoid running the risk of even being accused of anything which would run against the code of conduct to which they subscribe There are few professions which impose such strict rules on their members, but many regard them as a model for other professional bodies to follow, within the limitations of their working activities Most professional bodies do, though, publish codes of conduct which set out the minimum standards of conduct which are considered to be necessary for their members, and the punishments for members who are found to have contravened the code Such codes primarily consist of normal good behaviour, and most people work that way anyway © ABE and RRC 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 346 Marketing Issues: Responsibility and Change 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 The Institute of Marketing worked very hard to achieve the Royal Charter, which was granted by the Queen in February 1989, and members are rightly proud of the achievement of this status The CIM code of conduct sets out guidelines for its members to ensure that the practice of marketers is carried out ethically, and provide a detailed summary in the following pages to ensure you are aware of the constraints that apply Note that the marketing associations of other countries have similar codes of conduct Chartered Institute of Marketing's Code of Practice Marketing's Professional Responsibility The professional marketing executive has responsibilities to his employer, to customers – both ultimate and intermediate – to his colleagues and to the public The Institute requires its members, as a condition of membership, to recognise these responsibilities in the conduct of their business, and to adhere to the following Code of Practice All members shall be answerable to the Council of the Institute for any conduct which in the opinion of the Council is in breach of this Code and the Council may take disciplinary action against any member found to be in breach thereof Professional Conduct  General A member shall at all times conduct himself as a person of integrity and shall observe the principles of this Code in such a way that his reputation, that of the Institute and that of marketing shall be enhanced  Instruction of others A member who knowingly causes or permits another person or organisation to act in a manner inconsistent with this Code or is party to such action shall himself be deemed to be in breach of it  Injury to other members A member shall not knowingly, recklessly or maliciously injure the professional reputation or practice of another member  Honesty A member shall at all times act honestly and in such manner that customers – both ultimate and intermediate – are not caused to be misled Nor shall he in the course of his professional activities knowingly or recklessly disseminate false or misleading information It is also his responsibility to ensure that his subordinates conform with these requirements  Professional competence It is expected that, in the exercise of a member's profession as a marketing executive, he shall seek at all times to ensure that he attains and retains the appropriate levels of competence necessary for the efficient conduct of such tasks as are entrusted to him by his employers He shall seek to ensure that all who work with him or for him have the appropriate levels of competence for the effective discharge of the marketing tasks entrusted to them and where any shortcomings might exist he will seek to ensure that they are made good as speedily as possible © ABE and RRC Marketing Issues: Responsibility and Change  Conflict of interest A member shall use his utmost endeavour to ensure that the provisions of this Code and the interests of his customers are adequately and fairly reported to his company in any circumstances where a conflict of interest may arise A member holding an influential personal interest in any business which is in competition with his own employer, shall disclose that interest to his employer A member having an influential personal interest in the purchase or sale of goods or services as between his own company and another organisation shall give his company prior information as to that interest  Confidentiality of information A member shall not disclose, or permit the disclosure of, to any other person, firm or company, any confidential information concerning a customer's business without the written consent of the customer except where required by statute A member shall not disclose, or permit the disclosure of, to any other person, firm or company or use to his own advantage, any confidential information concerning his employer's business without the written consent of his employer except where required by statute  Securing and developing business No member may seek to obtain or obtain business in a manner which, in the opinion of the Council of the Institute, is unprofessional In determining whether or not any behaviour is unprofessional, the Council will be guided, inter alia, by this Code and by any professional Codes of Practice in effect at the time the behaviour occurs The Council of the Institute will always, unless it has determined to the contrary and so informed members, accept such other Codes of Practice as a minimum level to be expected of members of the Institute  Other relevant codes of practice Members should be aware of other relevant Codes of Practice The most important amongst these are: – Advertising British Code of Advertising Practice (Advertising Standards Authority); International Code of Advertising Practice (International Chamber of Commerce) – Sales promotion International Code of Sales Promotion Practice (International Chamber of Commerce) – Market research Code of Conduct (Market Research Society/Industrial Marketing Research Association) – Public relations Code of Professional Conduct (Institute of Public Relations) © ABE and RRC 347 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 348 Marketing Issues: Responsibility and Change 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 The Council of the Institute also issues from time to time Schedules for the Guidance of Members on facets of the marketing process to supplement such Codes of Practice These Schedules for the Guidance of Members are statements of minimal expected practice and not preclude the Council from concluding that behaviour not covered in such Schedules is, in fact, unprofessional Enforcement of the Code  Role of the individual member It is the duty of all members to assist the Institute in implementing this Code and the Institute will support any member so doing  Misuse of the code Unfair, reckless or malicious use of this Code by members or others to damage the reputation and/or professional practice of a member and/or his organisation shall be deemed a breach of this Code  Procedures for handling complaints The Council of the Institute may nominate, at its discretion, a person or persons whose task will be to decide if there is a prima facie case to answer If there is such a case, the Council shall initiate the necessary procedure for its investigation  Sanctions for breach of this code If the Council of the Institute, having duly and properly examined an alleged breach of this Code by a member, finds that member in breach of the Code, it shall be empowered to take such disciplinary action as it shall deem appropriate If the Council decides to expel a member from the Institute, it shall act in strict accordance with the provisions of the Articles of Association of the Institute, of which Article 19 is set out below: "Any member of any class who shall fail in observance of any of the regulations or by-laws of the Institute or whom the Council in their absolute discretion deem an unfit or unsuitable person to be a member of the Institute may be expelled from the Institute by the Council Such member shall have seven clear days' notice sent to him of the meeting of the Council at which the proposal for his expulsion is to be considered and he may attend and speak at the meeting, but shall not be present at the voting upon such proposal nor (except as aforesaid) take part in the proceedings otherwise and as the Council allows A member so expelled shall forfeit all claims to the moneys paid by him to the Institute, whether upon admission or for fees or subscriptions or otherwise and shall cease to be a member of the Institute." © ABE and RRC Marketing Issues: Responsibility and Change 349 D THE CHANGING MARKETING LANDSCAPE If there is anything that we can be certain of in life, it is that there will be change What the change will be, of course, is often a matter of conjecture Consider the following examples of aspects of life which we now accept as commonplace, but could not have been realistically envisaged in the (sometimes not too distant) past  There are people still living today who were born when transport was not "the car" as we are all used to today There was a time when only relatively rich people could travel widely, whereas now people think little of taking a plane to some exotic location for a holiday or for business  It is not so long ago that telephones in the home were the exception rather than the norm Now we carry our mobile phones and can speak to anyone anywhere in the world whenever we want to  We have advanced in terms of entertainment from listening to crackling valve radios in our homes, to watching coloured films and programmes on wide screen televisions with wrap-around sound  We can eat seasonal foods at any time thanks to new storage and growth techniques and so on But it is perhaps in the business world where we can see, most readily, the dramatic effects of change In respect of marketing, and taking the elements of the marketing mix in turn, some of the changes we now accept as being standard are as follows Product  There is an ever-increasing choice available for purchase  Manufacturing is safe and hygienic with high levels of quality control Price  Intense competition has led to many prices being stabilised or reduced  Price transparency aided by availability of information on the internet  Credit and finance facilities make it easy for customers to buy Place  There are numerous outlets for products with fast deliveries  Products are available for sale over telephone and computer links  Growth in e-commerce and therefore the disintermediation or organisations, i.e organisations selling directly to consumers Promotion  There is a wider variety of media than in years gone by  Communications between companies and customers are now more "open"  One to one communication via internet, e-mail, use of data, databases etc – learning outcome 8.4 People  Companies train their personnel on service aspects  Customer care is now the norm © ABE and RRC 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 350 Marketing Issues: Responsibility and Change 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 Physical evidence  Retail outlets are more attractive and bright  Product and company information material is more honest and easier to understand Processes  Shopping from home is now possible  Ordering and follow-up systems have been improved All the changes listed above, and many others, have resulted in the current situation where buyers now expect an almost instantaneous response Customers not appreciate having to wait for products or for answers to problems Those companies who not keep up with the speed of change often find that they are losing customers to their competitors We can examine two elements of the marketing environment to illustrate just how fundamental change may be Information Technology Advances in technology are allowing companies to manage huge volumes of information in databases The main impact of this, for marketing, has been to enable closer targeting of potential customers and more specific promotional activities aimed at them More recently, the greatest growth has been in the world of e-commerce, based on the vast rise in the use of the Internet The Internet or World Wide Web (www) is an open system that anyone can log onto via a personal computer with a modem to link their computer to the worldwide computer network No one person, organisation or government controls or owns the Internet It was developed, initially, as a military system in the USA, but was soon used as a means of transferring large volumes of information between academic and government research centres As the personal computer developed and more universities and commercial companies became involved, so did the software to facilitate searching for information and to relay messages and information quickly between users Initially the system was used by technical experts to send data, and then messages Commercial companies began to post web pages on the Internet so those interested could browse through the information Soon web sites were developed which provided more information and eventually led to two-way interaction With the development of protocols for encoding financial and other sensitive information, the Internet can now be used to purchase services and products using a credit card Recent developments mean that the screen can be integrated with a telephone call so that the web page can be viewed at the same time as using the phone to talk to the telesales operator The system is now proving popular with business-to-business users and individual consumers It is borderless and cheap to use, access being via the price of a local phone call Such a deregulated system operating across international boundaries poses new challenges as it develops from an information service, to a promotional tool, and finally a sales and distribution channel Concerns have been expressed in four areas:  Confidentiality of individual information;  Consumer protection for those purchasing goods;  Identifying under which legal system transactions take place; and  Concern over the difficulty of governments collecting sales taxes The rapidly changing business environment of e-commerce is making it very hard to predict what will happen in the near future Pure service industries such as banking, insurance and travel agents are likely to experience a major restructuring of their industries Simple items such as books, music CDs and videos can be sold easily via the Internet Without the high © ABE and RRC Marketing Issues: Responsibility and Change 351 costs of the high-street store, price discounts can be offered However, if shopping is seen as a leisure activity and impulse purchases are a way of life then the best high-street stores are likely to survive While actual transactions over the Internet are growing very fast, the bulk of activity is still information search The most likely scenario for consumer purchases is that the Internet will become an additional channel to market for many companies, providing the customer with an alternative means of purchase Some new companies will be created and operate as niche providers in the electronic marketplace Some of the most pronounced changes will be in business-to-business sales and service, where contacts are ongoing and where exchange of information and data is intense Here the Internet is likely to continue to develop at a fast pace Over the longer term, a major difficulty arises in forecasting technological developments This is key for the health of a nation's economy Those nations and companies who are first to develop a technological lead tend to grow as the technology is embedded in new industries and products Changing Social Roles The "typical" family of husband, wife and two or three children is becoming less common as a higher divorce rate, later marriage, and smaller families reshape the typical household unit Yet this family model still appears to be the format to strive for and is depicted in many advertisements for household goods and services There is evidence of change in the way that families operate as a unit Many household products have been traditionally considered to be dominated by either the male or female partner, but these distinctions are becoming increasingly blurred as gender roles change In the United Kingdom, a report entitled Social Focus on Women published in 1998 by the Office for National Statistics highlighted some of the changes in family roles that have been occurring For example:  Although men may say they believe household tasks should be shared, only 1% say they always the washing and ironing Household cleaning is carried out mainly by women in nearly two-thirds of households, and this proportion has been falling gradually  Just over a quarter of all men and a fifth of women agreed with the view that "a husband's job is to earn money; a wife's job is to look after the family and home" This is about half the level of agreement noted in 1987  The number of women stating that the home and children are more important than a job fell from 15% in 1987 to 7% in 1997  The main evening meal is made mainly by women in just over a third of households, this proportion having halved in two decades There has been much debate about the fragmentation of families into cellular households in which family members essentially their own activities independently of other members This is reflected in individually-consumed meals rather than family meals, and leisure interests that are increasingly with a family member's peer groups rather than other family members Marketers have responded to the needs of the cellular household with products such as microwave cookers and portable televisions which allow family units to function in this way It can also be argued, however, that new product developments are actually responsible for the fragmentation of family activities The microwave cooker and portable television may have lessened the need for families to operate as a collective unit, although these possible consequences were not immediately obvious when they were launched © ABE and RRC 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 352 Marketing Issues: Responsibility and Change 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 The family unit can expect to come under further pressures as new products, such as on-line entertainment and information services, allow individual members to consume in accordance with their own preferences rather than the collective preferences of the family A New Marketing Landscape? Many academics and practitioners have been talking about "paradigm changes" in marketing, or the emergence of a completely new marketing landscape Supporters of this view point to the increasing level of competition which has developed in many markets Moreover, buyers have become increasingly discerning and what they may have happily accepted a few years ago, they will now reject If a company does not meet their needs, then there is probably somebody else who will Consumers' tastes have changed more rapidly than ever before and it is becoming increasingly difficult to categorise individuals into neat market segments An individual may flit between segments depending upon a whole range of circumstances – some rational, others apparently quite irrational Amidst this new marketing landscape, a number of issues have arisen which may well define the approach to marketing in the future For example:  Sell the Relationship, Not the Product We saw in an earlier study unit that many firms have attempted to create close relationships with their customers At first this happened mainly in the business-tobusiness sector, but has since become very common among firms selling to private consumers Firms have put a lot of effort into understanding their customers so well that they know what they will want to buy next You can refer back to our discussion of relationship marketing and assess whether its aims have really been met Do customers really want a relationship with suppliers? What benefits they really receive?  Information is at a Premium Knowing about customers has become crucial to business success; so many companies have put a lot of effort into collecting, analysing and disseminating marketing information to their managers Some people call this knowledge management and doing this well can give a firm a great competitive advantage Think about companies that you most admire for their knowledge management Are these companies that you would go back to repeatedly? And is that likely to make them profitable? Also think about the consequences for companies who the opposite – collect inadequate information and never have the right knowledge available to the right people in the right place at the right time  Is Marketing an Art or a Science? To many people, marketing has no credibility if it does not take a rigorous, scientific method of enquiry This implies that research should be carried out in a systematic manner and results should be replicable So a model of buyer behaviour should be able repeatedly to predict consumers' actions correctly, based on a sound collection of data and analysis In the scientific approach, data is assessed using tests of significance and models accepted or rejected accordingly There is an alternative view which sees this scientific process as essentially backwardlooking The scientific approach is good at making sense of historic trends, but less so at predicting what will happen following periods of turbulent change During the early 1990s, for example, models based on the scientific approach failed to predict accurately the change in consumer spending following changes in such variables as household income, taxation levels and interest rates These had traditionally been associated with changes in consumer spending A more in-depth analysis of © ABE and RRC Marketing Issues: Responsibility and Change 353 consumers' attitudes suggested that feelings of greater insecurity (brought about by the casualisation of many jobs), and the memory of the fall in house prices, had served as a warning to consumers which rendered many previously-developed models of consumer spending obsolete It is a challenge to combine scientific analysis with creativity that can sometimes be quite idiosyncratic The scientific approach to marketing planning has a tendency to minimise risks, yet many major business successes have been based on entrepreneurs using their own judgment in preference to that of their professional advisers – examples include Virgin airlines and the Sony Walkman On the other hand, the reformulation of the taste of Coca Cola in the late 1980s had followed the scientific process of conducting large-scale research into consumers' preferences and product testing, but when it was relaunched it was a major failure, forcing the company to reinstate its original formulation as Classic Coke It is a challenge for marketers to use both scientific and more creative processes to understand and respond to their environments Coping with Change As I said earlier, the one thing we can be certain of is that there will be change Marketing managers need to be aware of this and, wherever possible, should prepare for changes which may take place This is no easy task, of course, as we can never know what lies around the corner However, it is fair to say that we can expect some, if not all, of the following:  Shortened product life cycles  Increased demand for specialist products  Ever-improving technology in transport and electronics  Pressure on companies from customers and governments  Changing tastes of buyers To cope with these, and any other likely changes, marketing managers must:  Be aware of the growth in awareness of rights on the part of customers  Deal fairly and honestly with customers, suppliers and competitors  Be ready to adapt to social changes such as changing tastes or priorities  Make the best use of research information gathered to keep abreast of change  Develop an awareness of the longer-term implications of short-term changes  Constantly monitor both internal and external environments In other words, marketing managers of the future will have to behave in much the same manner as the marketing managers of today They need to identify and anticipate in order to satisfy customer requirements profitably They must continue to practise marketing © ABE and RRC 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 354 Marketing Issues: Responsibility and Change 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 © ABE and RRC