Lecture Marketing: The core (5/e): Chapter 3 – Kerin, Hartley, Rudelius

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