Chapter 3: Understanding the marketing environment, ethical behavior, and social responsibility. After reading this chapter you should be able to: Explain the purpose of environmental scanning, describe social forces such as demographics and culture, discuss how economic forces affect marketing, describe how technological changes can affect marketing,...
McGrawHill/Irwin Copyright © 2013 by The McGrawHill Companies, Inc. All rights reserved LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 3, YOU SHOULD BE ABLE TO: LO1 Explain the purpose of environmental scanning LO2 Describe social forces such as demographics and culture LO3 Discuss how economic forces affect marketing LO4 Describe how technological changes can affect marketing 32 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 3, YOU SHOULD BE ABLE TO: LO5 Discuss the forms of competition that exist in a market LO6 Explain how regulatory forces ensure competition and protect producers and consumers LO7 Identify factors that influence ethical and unethical marketing decisions LO8 Describe the different concepts of social responsibility 33 WHAT IS THE WORLD’S THIRD LARGEST NATION? THE SOCIAL NATION CREATED BY FACEBOOK! 34 FIGURE 3-1 Environmental forces affect the organization, its suppliers, and its customers 35 LO2 SOCIAL FORCES DEMOGRAPHICS—POPULATION Environmental Scanning Social Forces Demographics • Population at a Glance Population Explosion • U.S Population 36 LO2 SOCIAL FORCES DEMOGRAPHICS—GENERATIONAL COHORTS Baby Boomers: 1946 - 1964 Generation X: 1965 - 1976 Generation Y: 1977 - 1994 Millennials: 1995+ 37 LO2 Ameritrade, American Airlines, and HTC Which generational cohort is being reached? 38 LO2 MAKING RESPONSIBLE DECISIONS Millennials Are Going to Change the World! 39 LO2 SOCIAL FORCES DEMOGRAPHICS—RACIAL & ETHNIC DIVERSITY Composition Trends • African Americans • Hispanics • Asian Americans Multicultural Marketing 310 REGULATORY FORCES LO6 FEDERAL LEGISLATION Protecting Producers and Consumers • Landham Act (1946) • Trademark Law Revision Act (1988) • Madrid Protocol (2003) • U.S Supreme Court: Trademark Colors • Federal Dilution Act (1995) Control Through Self-Regulation 329 LO6 Band-Aid, ChapStick, Jell-O, Kleenex, Vaseline, Frisbee, and Q-Tips Are these brand names generic trademarks? 330 LO7 ETHICAL MARKETING BEHAVIOR SOCIETAL CULTURE AND NORMS Ethics Current Perceptions of Ethical Behavior Culture Laws 331 FIGURE 3-2 A framework for understanding ethical behavior 332 LO7 ETHICAL MARKETING BEHAVIOR BUSINESS CULTURE AND INDUSTRY PRACTICES Business Cultures Ethics of Exchange • Caveat Emptor • Consumer Bill of Rights (1962): The Right To Safety To Choose To Be Informed To Be Heard 333 LO7 ETHICAL MARKETING BEHAVIOR BUSINESS CULTURE AND INDUSTRY PRACTICES Ethics of Competition • Economic Espionage • Bribes and Kickbacks 334 LO7 MAKING RESPONSIBLE DECISIONS Corporate Conscience in the Cola War 335 LO7 ETHICAL MARKETING BEHAVIOR CORPORATE CULTURE AND EXPECTATIONS Corporate Culture Code of Ethics Ethical Behavior of Top Management and Co-Workers • Whistle-Blowers 336 FIGURE 3-B American Marketing Association Statement of Ethics (abridged) 337 LO7 ETHICAL MARKETING BEHAVIOR PERSONAL MORAL PHILOSOPHY AND ETHICS Moral Idealism Utilitarianism Nestlé’s Gerber Good Start Infant Formula 338 LO8 SOCIAL RESPONSIBILITY IN MARKETING THREE CONCEPTS OF SOCIAL RESPONSIBILITY Social Responsibility • Profit Responsibility • Stakeholder Responsibility • Societal Responsibility 339 FIGURE 3-C Three concepts of social responsibility 340 LO8 SOCIAL RESPONSIBILITY IN MARKETING THREE CONCEPTS OF SOCIAL RESPONSIBILITY Societal Responsibility • Triple-Bottom Line • Green Marketing HäagenDazs • Cause Marketing 341 LO8 MARKETING MATTERS Will Consumers Switch Brands for a Cause? Yes, If… 342 LO8 SOCIAL RESPONSIBILITY IN MARKETING SUSTAINABLE DEVELOPMENT Social Audit Sustainable Development 343 ... Describe the different concepts of social responsibility 3 3 WHAT IS THE WORLD’S THIRD LARGEST NATION? THE SOCIAL NATION CREATED BY FACEBOOK! 3 4 FIGURE 3- 1 Environmental forces affect the organization,... Division: Chicagoland 3 14 SOCIAL FORCES LO2 CULTURE Culture Cultural Values 3 15 LO3 ECONOMIC FORCES MACROECONOMIC CONDITIONS Economy • Inflation • Recession 3 16 LO3 ECONOMIC FORCES CONSUMER... OBJECTIVES (LO) AFTER READING CHAPTER 3, YOU SHOULD BE ABLE TO: LO1 Explain the purpose of environmental scanning LO2 Describe social forces such as demographics and culture LO3 Discuss how economic