Understanding the Marketing Environment, Ethical Behavior, and … the Marketing... ·...

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Marketing 3331

Understanding the Marketing Environment, Ethical Behavior, and Social Responsibility


IN MARKETING NEWS TODAY

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Evian issues call-to-arms on plastic waste The drink company it is committing to use 100% recycled plastic by 2025, but says it cannot solve the plastic crisis alone.

Source: https:/ / www.marketingweek.com/ 2018/ 01/ 18/ evian-plastic-waste/

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Keep Them UP. Keep Them CLOSED. Keep Them SAFE. Tide's latest safety video shows you how to avoid everyday items becoming dangerous for your children.

Source: https:/ / www.youtube.com/ watch?v=-JJ-Q45-k30

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https://www.youtube.com/watch?v=-JJ-Q45-k30


Mr. Clean Sexy Brand Imaging Procter & Gamble attempt to appeal to women reimaging Mr. Clean as a sex symbol The tagline: "You gotta love a man who cleans.“ Source: https:/ / www.youtube.com/ watch?v=GDzMxlw2Fgo

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https://www.youtube.com/watch?v=GDzMxlw2Fgo


Pink Kit Kat bars and changes in the industry Ruby chocolate makes its appearance and Italian chocolatier Ferrero has agreed to buy Nestle's U.S. confectionary business for $2.8bn. Now think upcoming holidays. . . . Source: https:/ / www.bloomberg.com/ news/ articles/ 2018-01-18/ nestle-debuts-natural-ruby-chocolate-in-kitkat-crazed-japan

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Environmental forces affect the organization, its suppliers, and its customers.

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Facebook, Inc. This is one of the biggest influencers today regarding the environmental forces. Over a billion customers and counting!

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The introduced the concept of a real-time news feed.


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The birth of company and brand pages.


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They beat AOL messenger, Skype, etc. at their own game.


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They kept improving the user experience.


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They kept ADAPTING. Evolution (change) is mandatory!


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They continued targeting and segmentation.


Social forces and demographics ● Marketers need to look at continually changing social and

demographic changes to stay relevant! ● Millennials now overtake Baby Boomers as America’s

largest generation – that’s the future (for now) ○ 75.4 million vs 74.9 million ○ By mid-century Baby Boomers will be approx. 16.6

million ○ By 2020, they will be 50% of the workforce in America

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Demographics ● The Silent Generation ● Baby Boomers ● Generation X’ers ● Millennials (Generation Y) ● Centennials (Generation Z)

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The Silent Generation • Often identified by the importance they place on duty and loyalty. • The last generation to likely spend an entire career at one company • They embrace self-reliance and pragmatism • They struggle with technology, but they are the most engaged

generation and want opportunities to develop and learn. • They like teamwork. • They also expect their experience to be respected.

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Baby Boomers • Often see their self-worth tied to career and consequently are seen

by others as “workaholics” • They are driven by material acquisitions, titles and personal success • Their optimistic outlook and youth orientation – which remains

unshaken even as they age – have helped many of them embrace the latest technology

• Direct person-to-person communication is still their preference • Like the Silent Generation, they are also team-oriented.

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Generation X’ers • Include many of the first “latchkey kids.”

The popular image of Gen X’ers is a product of change and unrest in their families and the broader society

• Independent and self-directed, with skepticism toward authority • Adaptable, focused on results and motivated by a need for security • Their self-sufficiency causes them to ask for feedback only when

they need it, and they would rather work alone • They are very technologically literate

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Millennials • The first generation to grow up using the internet and information

technology from a very young age • Their early lives were overscheduled making them comfortable with

multitasking • Expect lots of feedback and rewards in the workplace and are

considered to be idealistic • They work to live, not live to work; Work/ life balance is more

important to them than salary and they want to do work that improves society, putting emphasis on corporate social responsibility, sustainability and diversity They crave more frequent learning and advancement opportunities

• They are technology experts

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Centennials • They are the first generation to never know life without the Internet

and social media • Their sense of style is a lot more simplistic than that of Millennials • They are a lot less judgmental, generally speaking • They are slightly more serious than Millennials • They have short attention spans • In the workplace:

• Email will no longer be the primary internal communication tool • Traditional office space designs will become extinct • Strict office hours will no longer exist

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Which generational cohort is being reached?

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Let’s get complicated. Multicultural marketing ● Composition (i.e. Male vs Female) ● Trends (i.e. African Americans, Hispanics, Asian Americans)

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Culture • The set of values, ideas, and attitudes that are learned and shared

among members of a group

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Who is more likely to purchase hybrid cars?


Economy • Refers to the income and resources that affect running a business or

household • You look at two things; inflation and recession

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Economic Forces Consumer Income ● Gross Income

○ Amount made in one year ● Disposable Income

○ Amount left after paying taxes ● Discretionary Income

○ Amount left after taxes and necessities

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Technology • Inventions from applied science or engineering research

• Connectivity (i.e. Bluetooth) • Intelligent Data Collectiob (i.e. Search Engines) • Green Infrastructure (i.e. Solar Power) • \3D Technologies (i.e. Clothes Shopping_)

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Master Lock 4400D Indoor Bluetooth Smart Padlock


Look to the FUTURE. What products might be replaced by these?

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Technologic Forces • Plummeting costs

• This results in thousands of new products a month! • Changes production of existing products

• Recycling is a beautiful example! • 29% of plastic bottles are recycled in the U.S.


Marketspace • An electronic exchange of environment

• This can be in regard to information, communication, digitized offerings

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Organizational Values • These are a set of values, ideas, attitudes, and norms of behavior in

an organization

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Electronic Commerce • Activities that use electronic communication for inventory, exchange,

distribution, payment, etc. (i.e. Amazon)

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Competitive Forces • Economists have determined four types of competition:

• Pure Competition • Monopolistic Competition • Oligopoly • Pure Monopoly

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Pure Competition • Highly competitive because many firms are producing identical

goods • Low barriers to entry for production • These markets are price takers -- they merely take the market price

for their goods • Examples are oil, wheat, corn and coffee

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Oligopoly • Few firms control the market • The firms are all able to earn abnormal profits due to high market

pricing (i.e. wireless and internet communications) • There is little downward pricing pressure because all firms tend to

keep prices high • These pricing practices may be either implicitly or explicitly collusive • In addition, high fixed costs pose a barrier to the entry of new firms in

the market. The airline industry is an example of an oligopoly.

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Monopolistic Competition • Many firms and many products and few barriers to entry into these

markets • Firms make production decisions and set prices based on their

individual costs • While consumers have many available choices of products and

firms, it is still possible for a single firm to gain a large share of the market

• The key to market power is firm or product differentiation. Restaurants and clothing stores are examples of firms that operate in a monopolistic competition.

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Monopoly • In a monopoly, one firm dominates the entire market. • This firm has no competition and is therefore able to set prices at will • In most instances, legislation in capitalistic societies prevents

monopolistic firms in a marketplace • The market power of a monopoly is considered harmful to

consumers • However, government allows a few monopolies • Utility companies are an example of a government-permitted

monopoly.

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Natural Monopolies • The government limits them and most fall into one of two categories:

natural and legal Natural monopolies

• i.e. public utilities, such as electricity and gas suppliers • Such enterprises require huge investments, and it would be

inefficient to duplicate the products that they provide • They inhibit competition, but they’re legal because they’re important

to society • In exchange for the right to conduct business without competition,

they’re regulated • For instance, they can’t charge whatever prices they want, but they

must adhere to government-controlled prices. As a rule, they’re required to serve all customers, even if doing so isn’t cost efficient.

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Continuum of Competition

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Regulatory Forces Protecting Competition ● Regulations

○ Restrictions placed on businesses ● Sherman Antitrust Act (1890)

○ Forbids conspiracies in trade ● Clayton Act (1914)

○ Forbids actions to lessen competition ● Robinson-Patman Act (1936)

○ Unlawful to discriminate in prices and charged to different purchasers

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Regulatory Forces Protecting Consumers ● Patent Law

○ Gives inventors the right to exclude others from making or selling patented inventions

● Copyright Law ○ Gives author the exclusive right to that work

● Digital Millenium Copyright Act (1998) ○ Protects copyrighted digital products

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Regulatory Forces Protecting Consumers ● Consumer Product Safety

Act (1972) ○ Established consumer rights, influence and power

● Consumer Product Safety Commission ● Consumerism

○ Grassroots movement to increase the influence, power and rights of consumers (i.e. shoddy products from China)

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Regulatory Forces Protecting Consumers ● Trademarks

○ a recognizable sign, design, or expression which identifies products or services of a particular source from those of others

● Lanham Act (1946) ○ Registration of trademarks, but not ownership ○ Can lose trademark if it becomes generic ○ Ex: Aspirin and escalator are generic terms

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Are these brand names or generic trademarks?

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Regulatory Forces Protecting Consumers ● FTC Act of 1914

○ Cease and Desist Orders ○ Corrective Advertising

● Laws to Regulate Promotion Practices ○ Deceptive Mail and Enforcement Act (1999) ○ Telephone Consumer Protection Act (1991) ○ Do Not Call Registry

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Regulatory Forces Protecting Consumers ● Laws Restricting Information Collection and Solicitation

○ Children’s Online Privacy Protection Act (2004) ○ CAM-SPAM Act (2004) ○ FTC’s Do Not Track

● Internet Tax Freedom Act (2007) ○ Control Through Self-Regulation

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A polycarbonate and aluminum free trial!

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It’s art now!

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An undulating landscape made of 65,000 discarded CDs carpets the floor of the Centquatre art space, housed in a former funeral home in Paris.

http://www.104.fr/


Better Business Bureau

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Voluntary alliance of companies whose goals are to help maintain fair practices. They have no legal power, but use “moral persuasion” to get members to comply with its standards.


Definition The moral principles and values that guide actions and decisions of individuals or groups.

Understanding ethics

Culture Values, ideas, and attitudes learned and shared among members of a group

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18 Societal Values and Attitudes: ● Are Relative to

particular societies ● Affect Ethical and

Legal Relationships


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Framework for ethical behavior


Business culture. ● The effective rules and boundaries between competitive

and unethical behavior ● Ethics of Exchange

○ Caveat Emptor: the principle that the buyer alone is responsible for checking the quality and suitability of goods before a purchase is made.

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Consumer Bill of Rights (1962) ● You have the right:

○ To Safety ○ To Choose ○ To Be Informed ○ To Be Heard

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Economic Espionage ● Clandestine collection of trade

secrets

The ethics of competition

Bribes and Kickbacks ● In industries with intense

competition and during early stages of economic development

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Tracking strategic performance 67% of marketing and advertising executives said they would take part in economic espionage is their were no repercussions “Competition must be tough, but must always be fair and legal.” – Pepsi-Cola


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This is how we DEW

https://www.youtube.com/watch?v=MdFRWf-CNC8


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https://www.youtube.com/watch?v=tRM_9aNw8O8


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Michigan Senate candidate Pete Hoekstra takes

heat for ad

Color film was built for white

people

https://www.youtube.com/watch?v=p6fvey0rdCg

https://www.youtube.com/watch?v=d16LNHIEJzs


Moral Idealism ● Considers certain individual

rights or duties as universal, regardless of consequences

The ethics of corporations

Utilitarianism ● Focuses on the greatest good for

the greatest number (benefits must exceed costs)

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In both of these ads, why would you take the side of the African American actors and models?

https://www.youtube.com/watch?v=tRM_9aNw8O8


Scotch-Gard values ethics

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Manufactured Fabric Protector over 40 years without any harmful effects to Human and animals. Due to miniscule amounts of the chemical accumulating in human tissue, they discontinued it thinking it Could possibly be harmful. They took a 200 million dollar loss that year.


Profit Responsibility Maximize profits for owners and stakeholders

Social responsibility

Stakeholder Responsibility Obligations an organization has to those who can affect achievement of its outcomes

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21 Societal Responsibility Obligations an organization has to: ● The preservation of the

ecological environment ● To the general public


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Three concepts of social responsibility


Triple-Bottom Line ● People, planet,

profit

Social responsibility

Green Marketing ● Environmental products

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Cause Marketing ● Charitable contributions


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Product RED for the Fight Against AIDS


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Is it legal? Yes. Is it ethical? Debatable.

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America Express pioneered cause marketing when they sponsored the

renovation of the Statue of Liberty in 2012. They raised over $10 billion dollars

85% of consumers favor a brand if they support causes they care about. They

will switch brands if the price is comparable.

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