Socially Responsive Marketing

1. Socially Responsive Marketing Chapter 2

2. Marketing affects businesses • Marketing helps businesses find customers and sell their products and services profitability • Marketing is responsible for the activities leading to the exchange of a business’s products and services for the customers money • The marketing functions are needed to make the exchange possible. • Marketing is used to identify and understand the customer • Through research businesses are able to determine customer needs, attitudes, likes, and dislikes • Then the business can develop P&S that meet the needs of the customer and earn a profit

3. Marketing Helps People • Marketing helps satisfy needs and wants • Manufacturers developing a new brand of laundry detergent will make better decisions if they are aware of what consumers like and dislike about the current brand • It also helps make better decisions about what to sell and how to sell it • EX - The manager of a clothing store will want to know what consumers are expecting in terms of styles and prices before purchasing new items to sell • When customers needs and wants are met, they are more likely to be loyal and continue to purchase from the business

4. Marketing helps people • Individuals benefit from marketing because it improves the exchange between business and customers • Here is an example of its value • Consider going to a supermarket to buy party supplies • You want the store to be conveniently located, adequately supply decorations, drinks, snacks, have easily located products, prices clearly marked, etc… • Each of those activities is an example of marketing, and make it easier for you to shop • The business benefits because you purchase the product, and you benefit because your needs were satisfied

5. Benefits of marketing • Businesses meet consumer needs • Consumers make better decisions • Natural resources are used more effectively • Standard of living is improved • International trade increases

6. Criticisms of marketing • Common Complaints • If not used appropriately marketing can have negative effects • This can/has lead to a negative image for some marketing activities • If a consumer has a negative opinion about a business, it can affect whether or not they will be customers • Know the two examples we went over in class (Gerber and Toyota) and be able to describe the incidents – ON TEST

7. Marketing wastes money • All marketing activities are about 50% of the price of products • Some products % are higher – while other products % are smaller • Promotion and selling are only 2-10% of the products price... • Marketing actually lowers product prices in the long run (Question on Test!!!!!!!!!!!!!!) • Because of marketing, products can be sold to more customers • This in turn creates more competition • When consumers have more choices, they usually buy reasonably priced items • This encourages businesses to keep prices as low as possible to be competitive

8. Marketing solves problems • If misused marketing can have negative results, but if used effectively it can be positive • Concerns about health care, crime levels, poverty etc…all require the attention of many people if solutions are to be found • Marketing can help in several ways • Through communication people are more aware and informed • Consider the # of times you have received information about seat belts, recycling, drugs & alcohol • Marketing is responsible for these public serve announcement

9. Marketing helps match supply with demand • Products & Services are not always available when consumers need them • Ex- if there is a drought in one part of the country, farmers may not have enough hay and grain to feed their livestock.At the same time, there might be excess supply in other areas • An effective distribution system can move the hay and grain quickly from one part to the other…matching supply and demand

10. Consumer protection • The trend today is greater expectation for businesses to be socially responsible and to aid in solving problems facing society • Social responsibility comes into affect • When making decisions, business people realize that they must consider factors beyond what their customers want • Increasing social responsibility of a business is occurring three major ways…

11. 1) Growth of consumerism • Consumerism - Organized actions of groups of consumers seeking to increase their influence on business practices • Consumers have little influence alone, but when organized as a group consumers have a much greater impact • Septa Strike • Teacher Strike • Students Strike?? • Consumer bill of rights • Right to adequate information, safe products, product choices & to communicate ideas and opinions

12. 2) Government regulation • Government regulation- Make laws designed to improve social impact of business practices • Businesses must comply with consumer protection laws or risk fines and a loss of business

13. 3) Improving business practices • Improving business practices- Business recognize their responsibility to consumers and to society because … • If a social problem exists the government may increase tax to pay for programs • Business do not want increase regulation of taxes

14. Code of ethics • What is the definition of ethics, and why do businesses adopt a code of ethics? (This is on your Ch. 2 TEST) • Ethics: What you believe to be right or wrong • Encourages honest and proper conduct • AMA (American Marketing Association) agree on standards of conduct to encourage this responsible behavior • Codes can be influence by penalties by the industry • AMA describes specific responsibilities for marketers in the 4 P’s area

15. Self regulation • Self-Regulation – Business developed procedures to respond to consumer problems and to encourage customers to work directly with businesses to solve them • Is taking personal responsibility for ones actions • The Better Business Bureau is a consumer protection organization

16. miscellaneous • Businesses that use the marketing concept use marketing to identify and understand its customers • The Better Business Bureau is a consumer protection organization sponsored by businesses • The following marketing techniques often results in consumers making unneeded purchases • offering consumers a wide number of choices • attractive display and packaging • credit and special financing arrangements

17. Miscellaneous • Marketing should start with good products • Successful businesses value long-term relationships with customers. • Increased sales volume and competition result in lower prices for consumers.