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The Marketing Environment and Marketing Ethics

The Marketing Environment and Marketing Ethics. 3. chapter. Prepared by Deborah Baker Texas Christian University. Learning Objectives. 1. Discuss the external environment of marketing, and explain how it affects a firm. 2. Describe the social factors that affect marketing.

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The Marketing Environment and Marketing Ethics

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  1. The Marketing Environment and Marketing Ethics 3 chapter Prepared by Deborah Baker Texas Christian University Chapter 3 Version 6e

  2. Learning Objectives 1. Discuss the external environment of marketing, and explain how it affects a firm. 2. Describe the social factors that affect marketing. 3. Explain the importance to marketing managers of current demographic trends. 3 chapter Chapter 3 Version 6e

  3. Learning Objectives (continued) 4. Explain the importance to marketing managers of multiculturalism and growing ethnic markets. 5. Identify consumer and marketer reactions to the state of the economy. 6. Identify the impact of technology on a firm. 3 chapter Chapter 3 Version 6e

  4. Learning Objectives (continued) 7. Discuss the political and legal environment of marketing. 8. Explain the basics of foreign and domestic competition. 9. Describe the role of ethics and ethical decisions in business. 10. Discuss corporate social responsibility. 3 chapter Chapter 3 Version 6e

  5. 1 Learning Objective Discuss the external environment of marketing, and explain how it affects a firm. Chapter 3 Version 6e

  6. 1 Target Market A defined group most likely to buy a firm’s product. Chapter 3 Version 6e

  7. External Environment is not controllable Social Change Ever-Changing Marketplace Demographics Economic Conditions Product Distribution Promotion Price Competition Target Market Political & Legal Factors Technology Environmental Scanning 1 External Marketing Environment Chapter 3 Version 6e

  8. External Environmental Factors Social Demographic Economic Technologic Political and Legal Competitive 1 External Marketing Environment Chapter 3 Version 6e

  9. 2 Learning Objective Describe the social factors that affect marketing. Chapter 3 Version 6e

  10. Social Factors Values Lifestyle Attitudes 2 Social Factors Chapter 3 Version 6e

  11. Cultural Creativity Today’s Marketing- Oriented Values Traditionalism Modernism 2 Social Values Chapter 3 Version 6e

  12. Cultural Creativity Interested in new products and services. Traditionalism “Heartlanders” with nostalgic views Modernism Place high value on success, materialism, technology 2 Marketing-Oriented Values Chapter 3 Version 6e

  13. 2 The Poverty of Time A lack of time to do anything but work, commute to work, handle family situations, do housework, shop, eat, sleep... Chapter 3 Version 6e

  14. 2 Component Lifestyles The practice of choosing goods and services that meet one’s diverse needs and interests rather than conforming to a single, traditional lifestyle. Chapter 3 Version 6e

  15. 2 Role of Families & Women • 58% of all females are in the workforce • Rising purchasing power from dual-income families • Change of “traditional” purchasing roles Chapter 3 Version 6e

  16. 3 Learning Objective Explain the importance to marketing managers of current demographic trends. Chapter 3 Version 6e

  17. Demographics Age Ethnicity Location 3 Demographic Factors Chapter 3 Version 6e

  18. 3 Age Groups: Generation Y • Born between 1979 and 1994 • Size creates immense marketing impact • Respond to ads differently Chapter 3 Version 6e

  19. 3 Age Groups: Generation X • Born between 1965 and 1978 • Savvy and cynical consumers • Indulge themselves with meals/alcohol, clothing, and electronics Chapter 3 Version 6e

  20. 3 Age Groups: Baby Boomers • Born between 1946 and 1964 • Cherish youth, convenience, and individuality • Individualism has led to a personalized economy Chapter 3 Version 6e

  21. 3 Personalized Economy Delivering goods and services at a good value on demand. Chapter 3 Version 6e

  22. Customization Products are custom designed and marketed to small target markets Immediacy Products are delivered at the consumer’s convenience Value Businesses must price competitively or create innovative products 3 Product Characteristics in a Personalized Economy Chapter 3 Version 6e

  23. 3 Age Groups: Older Consumers • Age “50 plus” • Healthier, wealthier, better educated • Considerable purchasing power • Market potential not fully tapped Chapter 3 Version 6e

  24. 3 Location: Americans on the Move • Average U.S. citizen moves every six years • Immigrants add $10 billion yearly to economy • Migration is a global phenomenon Chapter 3 Version 6e

  25. 4 Learning Objective Explain the importance to marketing managers of multiculturalism and growing ethnic markets. Chapter 3 Version 6e

  26. 4 Growing Ethnic Markets • U.S. population is becoming a multicultural society and workforce • Trend in U.S. is toward greater multiculturalism Chapter 3 Version 6e

  27. 4 Multiculturalism When all major ethnic groups in an area--such as a city, county, or census tract--are roughlyrepresented. Chapter 3 Version 6e

  28. 100% 80% Whites African 60% Hispanic Asian 40% 20% 0% 1999 2023 4 U.S. Multicultural Makeup Chapter 3 Version 6e

  29. Niche Marketing Marketing Strategies for Multicultural Markets Adapting Promotion Stitching Niches 4 Multicultural Marketing Chapter 3 Version 6e

  30. 4 Stitching Niches A strategy for multicultural marketing that combines ethnic, age, income, and lifestyle markets, on some common basis, to form a large market. Chapter 3 Version 6e

  31. 5 Learning Objective Identify consumer and marketer reactions to the state of the economy. Chapter 3 Version 6e

  32. 5 Economic Factors Economic Areas of Concern to Marketers Distribution of Consumer Income Recession Inflation Chapter 3 Version 6e

  33. 5 Rising Incomes • 66% of U.S. households earn “middle-class” income • Over 10% earn over $75,000, primarilyfrom dual-income families • More discretionary income for high-end goods and services Chapter 3 Version 6e

  34. 5 Inflation • Prices rise with no wage increasePurchasing Power decreases • Increase profit margins by increasing efficiency • Consumers reaction: • Search for lowest prices • Rely on coupons and sales Prices Chapter 3 Version 6e

  35. 5 Recession • Income, production and employment fall • Reduced demand for goods and services Chapter 3 Version 6e

  36. 5 Recession Marketing Strategies • Improve existing products • Introduce new products • Maintain customer services • Emphasize top-of -the line products Chapter 3 Version 6e

  37. 6 Learning Objective Identify the impact of technology on a firm. Chapter 3 Version 6e

  38. 6 Basic Research Pure research that aims to confirm an existing theory or to learn more about a concept phenomenon. Chapter 3 Version 6e

  39. 6 Applied Research An attempt to develop new or improved products. Chapter 3 Version 6e

  40. 6 Technological & Resource Factors • New technology helps firm cope with other environmental factors • U.S. excels at basic research, but falls short at applied research • Information technology has helped U.S. economic growth Chapter 3 Version 6e

  41. 7 Learning Objective Discuss the political and legal environment of marketing. Chapter 3 Version 6e

  42. Laws and Regulations Protect Businesses Society New Technology Consumers 7 Political and Legal Factors Chapter 3 Version 6e

  43. 7 Federal Legislation Sherman Act of 1890 Clayton Act of 1914 Federal Trade Commission Act of 1914 Robinson-Patman Act of 1936 Wheeler-Lea Amendments to the FTC Act of 1938 Lanhma Act of 1946 Celler-Kefauver Antimerger Act of 1950 Hart-Scott-Rodino Act of 1976 Chapter 3 Version 6e

  44. Consumer Product Safety Commission • Federal Trade Commission • Food & Drug Administration 7 Regulatory Agencies Chapter 3 Version 6e

  45. Consumer Product Safety Commission Protects consumer safety in and around their homes Federal Trade Commission Prevents unfair methods of competition in commerce Food & Drug Administration Enforces safety regulations for food and drug products 7 Regulatory Agencies Chapter 3 Version 6e

  46. 8 Learning Objective Explain the basics of foreign and domestic competition. Chapter 3 Version 6e

  47. Control 8 Competitive Factors How many competitors? How big are competitors? How interdependent is industry? Chapter 3 Version 6e

  48. 8 Global Competition • More foreign firms are entering U.S. market • Foreign firms in U.S. now compete on product quality • Global markets are highly competitive Chapter 3 Version 6e

  49. 9 Learning Objective Describe the role of ethics and ethical decisions in business. Chapter 3 Version 6e

  50. 9 Ethics The moral principles or values that generally govern the conduct of an individual. Chapter 3 Version 6e

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