Chapter 3 Social Responsibility, Ethics, and the Marketing Environment 1 1 Lamb, Hair, McDaniel CHAPTER 4 The Marketing Environment 2010-2011 2 LO 1 Discuss the external environment of marketing, and explain how it affects a firm LO 2 Describe the social factors that affect marketing LO 3 Explain the importance to marketing managers of current demographic trends LO 4 Explain the importance to marketing managers of multiculturalism and growing ethnic markets Learning Outcomes Learning Outcomes 3 LO 5 Identify consumer and marketer reactions to the state of the economy LO 6 Identify the impact of technology on a firm LO 7 Discuss the political and legal environment of marketing LO 8 Explain the basics of competition Learning Outcomes Learning Outcomes
Transcript
Chapter 3 Social Responsibility, Ethics, and the Marketing Environment
1
1
Lamb, Hair, McDaniel
CHAPTER 4
The Marketing Environment
2010-2011
2
LO 1 Discuss the external environment of marketing, and explain how it affects a firm
LO 2 Describe the social factors that affect marketing
LO 3 Explain the importance to marketing managers of current demographic trends
LO 4 Explain the importance to marketing managers of multiculturalism and growing ethnic markets
Learning OutcomesLearning Outcomes
3
LO 5 Identify consumer and marketer reactions to the state of the economy
LO 6 Identify the impact of technology on a firm
LO 7 Discuss the political and legal environment of marketing
LO 8 Explain the basics of competition
Learning OutcomesLearning Outcomes
Chapter 3 Social Responsibility, Ethics, and the Marketing Environment
2
4
The ExternalMarketing Environment
4
Discuss the external environment of
marketing, and explain
how it affects a firm
LO1
5
Target Market
5
Defined group most likely to buy a product
• Changes as consumers age
• External elements change consumers’ desires
LO1
6
External Marketing
Environment
DemographicsDemographics
SocialChangeSocial
Change
EconomicConditionsEconomicConditions
Political & Legal Factors
Political & Legal Factors
TechnologyTechnology
CompetitionCompetition
EnvironmentalScanning
Target Market
External Environment (uncontrollable)
Ever-ChangingMarketplace
ProductDistributionPromotion
Price
ProductDistributionPromotion
Price
Internal (within the
organization)
Marketing mix
LO1
Chapter 3 Social Responsibility, Ethics, and the Marketing Environment
3
7
Understanding Competition
• TJ Maxx offers designer brands at discount
prices• 2009 campaign compares the stores prices to those at
Chapter 3 Social Responsibility, Ethics, and the Marketing Environment
9
25
Marketing to
African Americans
� Many firms are creating products for the African American market.
� Promotional dollars and media choices directed toward African Americans continue to increase.
LO4
26
Marketing to
Asian Americans
26
� Younger, better educated, and have highest average income of all groups
� Sometimes called a “marketer’s dream”
� Many products have been developed for Asian American market.
� Cultural diversity within the Asian American market complicates promotional efforts.
LO4
27
Ethnic and
Cultural Diversity
27
� Multiculturalism: occurs when all major ethnic groups in an area (city, county, or census tract) are roughly equally represented
� U.S. trend is toward greater multiculturalism
� America’s racial and ethnic patterns have taken on distinctly regional dimensions
LO4
Chapter 3 Social Responsibility, Ethics, and the Marketing Environment
10
28
Multiculturalism and
Growing Ethnic Markets
28LO4
29
Why Multicultural Marketing?
“[With ethnic marketing] you're going to get more share
of the heart, more share of the mind, and ultimately, more
share of the wallet.”
� About one in three U.S. residents is a minority, representing over 100.7
million people.
� 7 states more than tripled their Hispanic population between 1990 and
2000: Alabama, Arkansas, Georgia, North Carolina, South Carolina,
Tennessee, and Nevada.
� Twenty percent of babies born in the United States are Latino.
SOURCE: Mike Robinson, CEO LaVerdad Marketing & Media, http://www.laverdadmarketing.com/la_casa.htm; Lisa Biank Fasig, "An Expanding Business for an Expanding Market," Business Courier of Cincinnati, September 7, 2007
LO4
30
Economic Factors
30
Identify consumer and marketer reactions to the
state of the economy
LO5
Chapter 3 Social Responsibility, Ethics, and the Marketing Environment
11
31
Economic Factors
Consumer’s Income
Inflation
Recession
LO5
32
Consumers’ Incomes
• Median U.S. household income
in 2008 was approximately $49,000.
• Incomes have risen at a slow pace.
• Education is the primary determinant
of
earning potential.
32LO5
33
The Financial
Power of Women
• Women bring in half or more of the
household income
• Women control 51.3 percent of the
private
wealth in the U.S.
• Women control 80 percent of
household spending
33LO5
Chapter 3 Social Responsibility, Ethics, and the Marketing Environment
12
34
Recession
Marketing Strategies
• Improve existing products and introduce new ones
• Maintain and expand customer services
• Emphasize top-of-the-line productsand promote product value
34LO5
35
Thriving in an Economic Downturn
Wal-Mart saw double-digit profit growth during the
recent economic downturn. How? A shift in strategy
it calls Win/Play/Draw:
• Win: Outmaneuver competitors with low prices on hot products (flat-
screen TVs)
• Play: Reduce range of offerings to feature “hot sellers” (its $20 L.e.i.
jeans)
• Draw: Keep a stock of one-stop-shopping essentials (hardware,
pharmacy items)
LO5
36
Economic Factors
36
LO5
Chapter 3 Social Responsibility, Ethics, and the Marketing Environment
13
37
Technological Factors
37
Identify the impact of technology on a firm
LO6
38
Research
38
Basic ResearchBasic Research
Applied ResearchApplied Research
Pure research that aims to confirm an existing theory or to learn more about a concept phenomenon.
An attempt to develop new or improved products
LO6
39
RSS and Blogging
• RSS feeds deliver updated news
content according to users interests
• Blogs allow marketers a way to look
into consumer opinions with a simple
search
• Many blogs devoted to discussing
advertisements, here are 10 popular ones:
– http://www.blogs.com/topten/10-popular-
advertising-blogs/
LO6
Chapter 3 Social Responsibility, Ethics, and the Marketing Environment
14
40
Political and Legal Factors
40
Discuss the political and legal environment
of marketing
LO7
41
Political and Legal Factors
41
� New technology
� Society
� Businesses
� Consumers
Laws and Regulations Protect:Laws and Regulations Protect:
Discuss the Discuss the Discuss the Discuss the importance of importance of importance of importance of
global marketingglobal marketingglobal marketingglobal marketing
Rewards of Global MarketingRewards of Global Marketing
LO1
54
Rewards of
Global Marketing
� Recognizing and reacting to international marketing opportunities
� Using effective global marketing strategies
� Being aware of threats from foreign competitors
Having a global vision means…Having a global vision means…Having a global vision means…Having a global vision means…
LO1
Chapter 3 Social Responsibility, Ethics, and the Marketing Environment
19
55
Beyo
nd the Boo
k
Emerging Markets
Source: Deloitte's Global Manufacturing Industry Practice, Deloitte Touche Tohmatsu, May 1, 2007
0
10
20
30
40
50
60
70
80
90
Expect to
Expand or
Locate (%)
ChinaIndiaSoutheast
Asia
Latin
America
Eastern
Europe
Market
Executives' Five-Year Plans for Emerging Markets
All Companies
$1B+ Companies
LO1
56
Importance of Global
Marketing to the U. S.
� U.S. exports a fifth of industrial production.
� One of every 10 jobs in U.S. is supported by
exports.
� U.S. businesses export over $800 billion in
goods.
� Exports account for 25 percent of U.S.
economic growth.
� U.S. is world’s leading exporter of farm
products.
LO1
57
The Fear of Trade
and Globalization
� Millions of Americans
have lost jobs
� Millions fear losing jobs
� Threat of outsourcing
if workers do not
accept pay cuts
� Vulnerability to
operations moving
offshore
LO1
Chapter 3 Social Responsibility, Ethics, and the Marketing Environment
20
58
Benefits of
Globalization� Expands economic freedom
� Spurs competition
� Raises productivity and living standards
� Offers access to foreign capital, global
export markets, and advanced technology
� Promotes higher labor and environmental
standards
� Acts as a check on government power
LO1
59
Discuss the impact Discuss the impact Discuss the impact Discuss the impact of of of of
multinational firms multinational firms multinational firms multinational firms on the world on the world on the world on the world economyeconomyeconomyeconomy
Multinational FirmsMultinational Firms
LO2
60
Stages of Global
Business Development
11111111
22222222
44444444
33333333
Companies operate in one country and Companies operate in one country and Companies operate in one country and Companies operate in one country and sell into otherssell into otherssell into otherssell into othersCompanies operate in one country and Companies operate in one country and Companies operate in one country and Companies operate in one country and sell into otherssell into otherssell into otherssell into others
Set up foreign subsidiaries to handle Set up foreign subsidiaries to handle Set up foreign subsidiaries to handle Set up foreign subsidiaries to handle salessalessalessalesSet up foreign subsidiaries to handle Set up foreign subsidiaries to handle Set up foreign subsidiaries to handle Set up foreign subsidiaries to handle salessalessalessales
Operate an entire line of business in Operate an entire line of business in Operate an entire line of business in Operate an entire line of business in another countryanother countryanother countryanother countryOperate an entire line of business in Operate an entire line of business in Operate an entire line of business in Operate an entire line of business in another countryanother countryanother countryanother country
LO2
Chapter 3 Social Responsibility, Ethics, and the Marketing Environment
21
61
Global Marketing
Standardization
Production of uniform products
that can be sold the same way
all over the world.
Global MarketingGlobal MarketingGlobal MarketingGlobal MarketingStandardizationStandardizationStandardizationStandardizationGlobal MarketingGlobal MarketingGlobal MarketingGlobal MarketingStandardizationStandardizationStandardizationStandardization
LO2
62
Describe the Describe the Describe the Describe the external external external external
Economic and Economic and Economic and Economic and Technological Technological Technological Technological DevelopmentDevelopmentDevelopmentDevelopment
Economic and Economic and Economic and Economic and Technological Technological Technological Technological DevelopmentDevelopmentDevelopmentDevelopment
Political Political Political Political StructureStructureStructureStructurePolitical Political Political Political StructureStructureStructureStructure
LO3
Chapter 3 Social Responsibility, Ethics, and the Marketing Environment
22
64
Culture
CultureCultureCultureCultureCultureCultureCultureCulture The common set of
values shared by its
citizens that determine
what is socially
acceptable.
LO3
65
Economic and
Technological Development
Developed Developed Developed Developed CountryCountryCountryCountry
Developed Developed Developed Developed CountryCountryCountryCountry
Less DevelopedLess DevelopedLess DevelopedLess DevelopedCountryCountryCountryCountry
Less DevelopedLess DevelopedLess DevelopedLess DevelopedCountryCountryCountryCountry
Little central governmentLittle central governmentLittle central governmentLittle central governmentMaximum personal freedomMaximum personal freedomMaximum personal freedomMaximum personal freedom
LO3
Chapter 3 Social Responsibility, Ethics, and the Marketing Environment
23
67
Legal Considerations
TariffTariffTariffTariff
QuotaQuotaQuotaQuota
BoycottBoycottBoycottBoycott
Exchange ControlExchange ControlExchange ControlExchange Control
A tax levied on goods entering A tax levied on goods entering A tax levied on goods entering A tax levied on goods entering a countrya countrya countrya country
Limit on the amount of a Limit on the amount of a Limit on the amount of a Limit on the amount of a product entering a countryproduct entering a countryproduct entering a countryproduct entering a country
Exclusion of products from Exclusion of products from Exclusion of products from Exclusion of products from a countrya countrya countrya country
Foreign exchange must be Foreign exchange must be Foreign exchange must be Foreign exchange must be sold to a control agencysold to a control agencysold to a control agencysold to a control agency
Common trade alliance Common trade alliance Common trade alliance Common trade alliance
An agreement to stimulateAn agreement to stimulateAn agreement to stimulateAn agreement to stimulateinternational tradeinternational tradeinternational tradeinternational trade
LO3
68
Political and Legal
Considerations
The Uruguay Round made changes in world trading practices
Entertainment, pharmaceuticals, Entertainment, pharmaceuticals, Entertainment, pharmaceuticals, Entertainment, pharmaceuticals, integrated circuits, and softwareintegrated circuits, and softwareintegrated circuits, and softwareintegrated circuits, and software
Financial, legal, and accounting servicesFinancial, legal, and accounting servicesFinancial, legal, and accounting servicesFinancial, legal, and accounting services
AgricultureAgricultureAgricultureAgriculture
Textiles and apparelTextiles and apparelTextiles and apparelTextiles and apparel
And created a new trade organization: And created a new trade organization: And created a new trade organization: And created a new trade organization: The World Trade OrganizationThe World Trade OrganizationThe World Trade OrganizationThe World Trade Organization
LO3
69
Doha Round
• Began in 2001
• Highly contentious from the beginning
• Failed in summer, 2008
• First multilateral free trade act failure since WWI
• Cost of Failure: $100 billion annually
LO3
Chapter 3 Social Responsibility, Ethics, and the Marketing Environment
24
70
Political and Legal
Considerations
CAFTACAFTACAFTACAFTACAFTACAFTACAFTACAFTA NAFTANAFTANAFTANAFTANAFTANAFTANAFTANAFTAEuropean European European European UnionUnionUnionUnion
European European European European UnionUnionUnionUnion
AgreementsAgreementsAgreementsAgreementsand and and and
Identify the various Identify the various Identify the various Identify the various ways of entering ways of entering ways of entering ways of entering
Chapter 3 Social Responsibility, Ethics, and the Marketing Environment
27
79
Entering the Global
Marketplace
LicensingLicensingLicensingLicensingLegal process allowing use of Legal process allowing use of Legal process allowing use of Legal process allowing use of
PrivatePrivatePrivatePrivate----label manufacturing label manufacturing label manufacturing label manufacturing by a foreign countryby a foreign countryby a foreign countryby a foreign country
Joint VentureJoint VentureJoint VentureJoint VentureDomestic firm buys/joins a foreign Domestic firm buys/joins a foreign Domestic firm buys/joins a foreign Domestic firm buys/joins a foreign company to create new entitycompany to create new entitycompany to create new entitycompany to create new entity
ExportExportExportExportSell domestically produced Sell domestically produced Sell domestically produced Sell domestically produced products to buyers in other products to buyers in other products to buyers in other products to buyers in other
countriescountriescountriescountries
Direct InvestmentDirect InvestmentDirect InvestmentDirect InvestmentActive ownership of a foreign Active ownership of a foreign Active ownership of a foreign Active ownership of a foreign company/manufacturing facilitycompany/manufacturing facilitycompany/manufacturing facilitycompany/manufacturing facility
LO4
80
Export Intermediaries
Buyer for Buyer for Buyer for Buyer for ExportExportExportExportBuyer for Buyer for Buyer for Buyer for ExportExportExportExport
Assumes all ownership risks and Assumes all ownership risks and Assumes all ownership risks and Assumes all ownership risks and sells globally for its own account.sells globally for its own account.sells globally for its own account.sells globally for its own account.Assumes all ownership risks and Assumes all ownership risks and Assumes all ownership risks and Assumes all ownership risks and sells globally for its own account.sells globally for its own account.sells globally for its own account.sells globally for its own account.
Export BrokerExport BrokerExport BrokerExport BrokerExport BrokerExport BrokerExport BrokerExport BrokerPlays the traditional broker’s role Plays the traditional broker’s role Plays the traditional broker’s role Plays the traditional broker’s role by bringing buyer and seller by bringing buyer and seller by bringing buyer and seller by bringing buyer and seller
together.together.together.together.
Plays the traditional broker’s role Plays the traditional broker’s role Plays the traditional broker’s role Plays the traditional broker’s role by bringing buyer and seller by bringing buyer and seller by bringing buyer and seller by bringing buyer and seller
together.together.together.together.
Export AgentExport AgentExport AgentExport AgentExport AgentExport AgentExport AgentExport AgentActs like a manufacturer’s agent Acts like a manufacturer’s agent Acts like a manufacturer’s agent Acts like a manufacturer’s agent for the exporter in the foreign for the exporter in the foreign for the exporter in the foreign for the exporter in the foreign
market.market.market.market.
Acts like a manufacturer’s agent Acts like a manufacturer’s agent Acts like a manufacturer’s agent Acts like a manufacturer’s agent for the exporter in the foreign for the exporter in the foreign for the exporter in the foreign for the exporter in the foreign
market.market.market.market.
LO4
81
List the basic List the basic List the basic List the basic elements elements elements elements involved in involved in involved in involved in developing developing developing developing
a global marketing a global marketing a global marketing a global marketing mixmixmixmix
The Global Marketing MixThe Global Marketing Mix
LO5
Chapter 3 Social Responsibility, Ethics, and the Marketing Environment
28
82
Product and Promotion
One ProductOne ProductOne ProductOne ProductOne MessageOne MessageOne MessageOne Message
Chapter 3 Social Responsibility, Ethics, and the Marketing Environment
30
88
Discover how the Discover how the Discover how the Discover how the Internet is Internet is Internet is Internet is affectingaffectingaffectingaffecting
global marketingglobal marketingglobal marketingglobal marketing
The Impact of the InternetThe Impact of the Internet
LO6
89
The Impact of the Internet
• Opening an e-commerce site puts a company in the international marketplace
• Internet Economy remains hindered by brick and mortar rules, regulations, and habits
LO6
90
International Marketing
• Coca-Cola is the best global brand in 2009
– Five Creative Coca-Cola Commercials from 2009
• Toyota, also one of the top Global Brands in
2009, offers different ads for different
markets:
– Australian ad for dual drivetrains
LO6
Chapter 3 Social Responsibility, Ethics, and the Marketing Environment
consumers make consumers make consumers make consumers make purchase decisionspurchase decisionspurchase decisionspurchase decisionsconsumers make consumers make consumers make consumers make purchase decisionspurchase decisionspurchase decisionspurchase decisions
consumers use andconsumers use andconsumers use andconsumers use anddispose of productdispose of productdispose of productdispose of productconsumers use andconsumers use andconsumers use andconsumers use anddispose of productdispose of productdispose of productdispose of product
= = = = HOWHOWHOWHOW
LO1
96
Analyze the Analyze the Analyze the Analyze the components components components components
of the consumer of the consumer of the consumer of the consumer decisiondecisiondecisiondecision----making making making making
processprocessprocessprocess
The Consumer The Consumer
DecisionDecision--Making ProcessMaking Process
LO2
Chapter 3 Social Responsibility, Ethics, and the Marketing Environment
of Alternativesof Alternativesof Alternativesof Alternatives
Information SearchInformation SearchInformation SearchInformation SearchInformation SearchInformation SearchInformation SearchInformation Search
Need RecognitionNeed RecognitionNeed RecognitionNeed RecognitionNeed RecognitionNeed RecognitionNeed RecognitionNeed Recognition
Cultural, Social, Cultural, Social, Cultural, Social, Cultural, Social, Cultural, Social, Cultural, Social, Cultural, Social, Cultural, Social, Individual and Individual and Individual and Individual and Individual and Individual and Individual and Individual and Psychological Psychological Psychological Psychological Psychological Psychological Psychological Psychological
Cultural, Social, Cultural, Social, Cultural, Social, Cultural, Social, Cultural, Social, Cultural, Social, Cultural, Social, Cultural, Social, Individual and Individual and Individual and Individual and Individual and Individual and Individual and Individual and Psychological Psychological Psychological Psychological Psychological Psychological Psychological Psychological
Chapter 3 Social Responsibility, Ethics, and the Marketing Environment
34
100
Need Recognition
Marketing helps consumers recognize Marketing helps consumers recognize Marketing helps consumers recognize Marketing helps consumers recognize an imbalance between an imbalance between an imbalance between an imbalance between present status and preferred state.present status and preferred state.present status and preferred state.present status and preferred state.
Unfulfilled Wants• When a current product isn’t performing
properly
• When the consumer is
running out of a product
• When another product seems superior to the
one currently used
LO2
Chapter 3 Social Responsibility, Ethics, and the Marketing Environment
35
103
Information Search
Internal Information SearchInternal Information SearchInternal Information SearchInternal Information Search
• Recall information in Recall information in Recall information in Recall information in memorymemorymemorymemory
External Information searchExternal Information searchExternal Information searchExternal Information search
• Seek information in outside Seek information in outside Seek information in outside Seek information in outside environmentenvironmentenvironmentenvironment• Nonmarketing controlledNonmarketing controlledNonmarketing controlledNonmarketing controlled• Marketing controlledMarketing controlledMarketing controlledMarketing controlled
LO2
104
External
Information SearchesNeed MoreNeed MoreNeed MoreNeed MoreNeed MoreNeed MoreNeed MoreNeed MoreInformationInformationInformationInformationInformationInformationInformationInformation
More Risk More Risk More Risk More Risk Less knowledgeLess knowledgeLess knowledgeLess knowledgeLess product Less product Less product Less product experienceexperienceexperienceexperience
High level of interestHigh level of interestHigh level of interestHigh level of interestLack of confidenceLack of confidenceLack of confidenceLack of confidence
Less Risk Less Risk Less Risk Less Risk More knowledgeMore knowledgeMore knowledgeMore knowledgeMore product More product More product More product experienceexperienceexperienceexperience
Low level of interestLow level of interestLow level of interestLow level of interestConfidence in decisionConfidence in decisionConfidence in decisionConfidence in decision
Need LessNeed LessNeed LessNeed LessNeed LessNeed LessNeed LessNeed LessInformationInformationInformationInformationInformationInformationInformationInformation
LO2
105
Evoked Set
Group of brands, resulting from
an information search, from
which a buyer can choose
Evoked SetEvoked SetEvoked SetEvoked SetEvoked SetEvoked SetEvoked SetEvoked Set
LO2
Chapter 3 Social Responsibility, Ethics, and the Marketing Environment
To buy To buy To buy To buy or not to buy...or not to buy...or not to buy...or not to buy...
Determines which attributes Determines which attributes Determines which attributes Determines which attributes Determines which attributes Determines which attributes Determines which attributes Determines which attributes are most important are most important are most important are most important are most important are most important are most important are most important in influencing a in influencing a in influencing a in influencing a in influencing a in influencing a in influencing a in influencing a consumer’s choiceconsumer’s choiceconsumer’s choiceconsumer’s choiceconsumer’s choiceconsumer’s choiceconsumer’s choiceconsumer’s choice
LO2
108
Explain the Explain the Explain the Explain the consumer’s consumer’s consumer’s consumer’s postpurchase postpurchase postpurchase postpurchase
evaluation processevaluation processevaluation processevaluation process
Postpurchase BehaviorPostpurchase Behavior
LO3
Chapter 3 Social Responsibility, Ethics, and the Marketing Environment
Postpurchase BehaviorConsumers can reduce dissonance by:Consumers can reduce dissonance by:Consumers can reduce dissonance by:Consumers can reduce dissonance by:
� Seeking information that reinforces positive Seeking information that reinforces positive Seeking information that reinforces positive Seeking information that reinforces positive ideas about the purchaseideas about the purchaseideas about the purchaseideas about the purchase
� Avoiding information that contradicts the Avoiding information that contradicts the Avoiding information that contradicts the Avoiding information that contradicts the purchase decisionpurchase decisionpurchase decisionpurchase decision
� Revoking the original decision by returning Revoking the original decision by returning Revoking the original decision by returning Revoking the original decision by returning the productthe productthe productthe product
Marketing can minimize through:Marketing can minimize through:Marketing can minimize through:Marketing can minimize through:Effective CommunicationEffective CommunicationEffective CommunicationEffective Communication
Identify the types of Identify the types of Identify the types of Identify the types of consumer buying consumer buying consumer buying consumer buying
decisions and discuss decisions and discuss decisions and discuss decisions and discuss the significance a of the significance a of the significance a of the significance a of
1. Level of consumer involvement1. Level of consumer involvement1. Level of consumer involvement1. Level of consumer involvement1. Level of consumer involvement1. Level of consumer involvement1. Level of consumer involvement1. Level of consumer involvement
2. Length of time to make decision2. Length of time to make decision2. Length of time to make decision2. Length of time to make decision2. Length of time to make decision2. Length of time to make decision2. Length of time to make decision2. Length of time to make decision
3. Cost of good or service3. Cost of good or service3. Cost of good or service3. Cost of good or service3. Cost of good or service3. Cost of good or service3. Cost of good or service3. Cost of good or service
4. Degree of information search4. Degree of information search4. Degree of information search4. Degree of information search4. Degree of information search4. Degree of information search4. Degree of information search4. Degree of information search
5. Number of alternatives considered5. Number of alternatives considered5. Number of alternatives considered5. Number of alternatives considered5. Number of alternatives considered5. Number of alternatives considered5. Number of alternatives considered5. Number of alternatives considered
LO4
114
Continuum of Consumer
Buying Decisions
LO4
Chapter 3 Social Responsibility, Ethics, and the Marketing Environment
39
115
Routine
Response Behavior
� Little involvement in selection
process
� Frequently purchased low cost
goods
� May stick with one brand
� Buy first/evaluate later
� Quick decision
LO4
116
Limited Decision Making
� Low levels of involvement
� Low to moderate cost goods
� Evaluation of a few alternative
brands
� Short to moderate time to decide
LO4
117
Extensive Decision Making
� High levels of involvement
� High cost goods
� Evaluation of many brands
� Long time to decide
� May experience cognitive
dissonance
LO4
Chapter 3 Social Responsibility, Ethics, and the Marketing Environment
Perceived Risk of Perceived Risk of Perceived Risk of Perceived Risk of Negative ConsequencesNegative ConsequencesNegative ConsequencesNegative Consequences
Perceived Risk of Perceived Risk of Perceived Risk of Perceived Risk of Negative ConsequencesNegative ConsequencesNegative ConsequencesNegative Consequences
Extensive and informative Extensive and informative Extensive and informative Extensive and informative promotion to target marketpromotion to target marketpromotion to target marketpromotion to target marketExtensive and informative Extensive and informative Extensive and informative Extensive and informative promotion to target marketpromotion to target marketpromotion to target marketpromotion to target market
InInInIn----store promotion, store promotion, store promotion, store promotion, eyeeyeeyeeye----catching package catching package catching package catching package design, and good displays.design, and good displays.design, and good displays.design, and good displays.Coupons, centsCoupons, centsCoupons, centsCoupons, cents----off,off,off,off,2222----forforforfor----1 offers1 offers1 offers1 offers
InInInIn----store promotion, store promotion, store promotion, store promotion, eyeeyeeyeeye----catching package catching package catching package catching package design, and good displays.design, and good displays.design, and good displays.design, and good displays.Coupons, centsCoupons, centsCoupons, centsCoupons, cents----off,off,off,off,2222----forforforfor----1 offers1 offers1 offers1 offers
LO4
120
Consumer Behavior
• In Japan, only 25% of men in their 20’s want to buy a car
– Available public transportation
– Environmental impact
– Uncool to own a car
• Japanese automakers work to change perceptions by:
– Offering public test drives
– Endorsements from popular music groups
– Target women
– Increase technological features appealing to young men
SOURCE: Murphy, John. “Japan’s Young Won’t Rally Round the Car,” The Wall Street Journal, February 29, 2008, B1, B2.
LO4
Chapter 3 Social Responsibility, Ethics, and the Marketing Environment
41
121
Identify and Identify and Identify and Identify and understand the understand the understand the understand the
cultural factors that cultural factors that cultural factors that cultural factors that affect consumer affect consumer affect consumer affect consumer buying decisionsbuying decisionsbuying decisionsbuying decisions
Chapter 3 Social Responsibility, Ethics, and the Marketing Environment
44
130
The Impact of
Social Class on Marketing
� Indicates which medium
to use for advertising
� Helps determine the best
distribution for products
LO5
131
Identify and Identify and Identify and Identify and understand the understand the understand the understand the social factors that social factors that social factors that social factors that affect consumer affect consumer affect consumer affect consumer buying decisionsbuying decisionsbuying decisionsbuying decisions
Chapter 3 Social Responsibility, Ethics, and the Marketing Environment
46
136
Opinion Leaders
LO6
Marketers are looking to Web logs, or Marketers are looking to Web logs, or Marketers are looking to Web logs, or Marketers are looking to Web logs, or blogs, to find opinion leadersblogs, to find opinion leadersblogs, to find opinion leadersblogs, to find opinion leaders•TeenagersTeenagersTeenagersTeenagers
SOURCE: Beth Snyder Bulik, “Apple, Target, Facebook Tops for College Students,” Advertising Age, 10/04/07
Today’s college students make up one of this country’s most
influential consumer groups, even though demographically it
is one of the smallest. Here’s what a recent survey revealed
about this reference group’s preferences:Brand: Apple
Product(s): iPod / iPhone
Store: Target
Online community: Facebook
Love/hate: Geico’s gecko
Down time: watch TV / surf the Web
LO6
138
Family
• Initiators
• Influencers
• Decision Makers
• Purchasers
• Consumers
Purchase Process Roles in the Purchase Process Roles in the Purchase Process Roles in the Purchase Process Roles in the FamilyFamilyFamilyFamily
LO6
Chapter 3 Social Responsibility, Ethics, and the Marketing Environment
47
139
Relationships among Purchasers
and Consumers in the Family
LO6
140
Identify and Identify and Identify and Identify and understand the understand the understand the understand the individual factors individual factors individual factors individual factors
that affect that affect that affect that affect consumer buying consumer buying consumer buying consumer buying
Chapter 3 Social Responsibility, Ethics, and the Marketing Environment
48
142
Identify and Identify and Identify and Identify and understand the understand the understand the understand the psychological psychological psychological psychological
factors that affect factors that affect factors that affect factors that affect consumer buying consumer buying consumer buying consumer buying
decisionsdecisionsdecisionsdecisions
Psychological Influences onPsychological Influences on
Consumer notices certain stimuli Consumer notices certain stimuli Consumer notices certain stimuli Consumer notices certain stimuli and ignores othersand ignores othersand ignores othersand ignores others
Consumer changes or distorts Consumer changes or distorts Consumer changes or distorts Consumer changes or distorts information that conflicts information that conflicts information that conflicts information that conflicts with feelings or beliefswith feelings or beliefswith feelings or beliefswith feelings or beliefs
Consumer remembers only Consumer remembers only Consumer remembers only Consumer remembers only that information that that information that that information that that information that
supports personal beliefssupports personal beliefssupports personal beliefssupports personal beliefs
LO8
146
Marketing Implications
of Perception
� Important attributes
� Price
� Brand names
� Quality and reliability
� Threshold level of perception
� Product or repositioning changes
� Foreign consumer perception
LO8
147
Beyo
nd the Boo
k
Marketing Implications of Perception
Is Subliminal Perception Real?
Eat some Eat some Eat some Eat some popcorn, ok?popcorn, ok?popcorn, ok?popcorn, ok?
LO8
Chapter 3 Social Responsibility, Ethics, and the Marketing Environment
