1. Marketing Impacts Society
2.1 The Impact of Marketing
2.2 Criticisms of Marketing
2.3 Increasing Social Responsibility

2. The Impact of Marketing
Goals for Lesson 2.1
Explain how marketing affects businesses
Describe marketing’s impact on individuals
Discuss ways marketing benefits society

3. Marketing – Positive vs Negative
Important to determine if marketing plays a positive or negative role
Does marketing contribute to businesses, individuals, society
Positive – A community hospital that describes the various services
Negative – Fashion designers who have extremely thin models present their clothing lines to the public

4. Marketing Affects Businesses
Critical Business Function
Understanding the seven marketing functions (product management, distribution, selling, marketing-information management, financing, pricing, promotions
Using the marketing concept (using the needs of customers as the primary focus during planning, production, distribution and promotion

5. Marketing Affects Business
Customer Satisfaction
Understanding the needs and wants of customers
Understanding the likes and dislikes of customers
Helps businesses make better decisions about what to sell and how to sell it
Allows companies to operate more efficiently

6. Marketing Helps People
Locations of stores
Favorite brands
Prices clearly labeled
Types of payments
Helps satisfy customer needs

7. Customer
Satisfaction
Product Costs
and Prices

8. Marketing Helps People
Better Products at Lower Costs
Wants/Needs and Likes/Dislikes lead to improvements of products and new products are developed
Product meets customer needs
Results in higher sales volume
Increase sales allow business to produce products more efficiently
Causes costs to decrease

9. Marketing Helps People
Expanded Opportunities
One-fourth of all jobs in the US are marketing jobs
Financially rewarding
Helps you become a better consumer
Marketing Skills can with other activities (elections, college planning, fundraising)

10. Think Critically
Buying the naming rights for publicly owed sports stadiums and arenas is obviously good for taxpayers’ wallets, and it is apparently good for business too. At astronomical prices such rights have been selling lately, they had better be very good businesses shelling out, in one case, more than $100 million over 15 years.
Businesses that slap their names on stadiums figure to get billions of impressions per year from fans, passers-by, and television viewers. Typically the corporate name goes on signs seen from adjacent roadways, on stadium entrances, and inside near the scoreboards. In addition, naming rights deals usually include other amenities such as luxury boxes, complimentary tickets, and game sponsorships.
In a recent survey, 9 of 10 people knew the corporate sponsors of their local sports arenas. And 6 of 10 respondents said that naming a sports venue after a corporate sponsor was good for the community. The practice has become so common that the public now expects it, and the taxpayers increasingly demand it as a way to recoup costs.
1. In what ways does buying naming rights differ from buying TV spots for a popular sporting event such as the Super Bowl or World Series?
2. What are some of the possible drawbacks of putting a business’s name on a public sports arena?

11. Marketing Benefits Society
New and better products
Better standards of living
Promotes international trade

12. New and Better Products
Products and services that help society in general
Example: more efficient automobiles that use less gasoline and cause less pollution
Giving consumers what they want, allowing natural and raw resources to be used less

13. Better Standards of Living
Based on the products and services available to consumers
Countries with a well developed marketing system are able to make better products
More jobs for citizens and higher paying jobs

14. Promotes International Trade
Marketing has been particularly effective in improving international trade
US is the large consumer of foreign products
Marketers help determine where products can be sold and how to sell them in those countries

15. 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

16. Journal
List at least three benefits that both consumers and businesses gain by positive marketing practices. You should provide specific examples of businesses and list benefits gained by both businesses and consumers.

17. Group Activity
Complete the following task using magazine advertisements:
1. Identify 2 ads that portray marketing in a positive manner. Explain why?
2. Identify 2 ads that portray marketing in a negative manner. Explain why? How could the company promote the product or service in a positive manner?

18. Criticisms of Marketing
Goals for Lesson 2.2
Discuss three common criticisms of marketing
Explain how marketing can be used to solve social problems

19. Common Complaints Marketing causes unneeded purchases
Marketing wastes money
Some products do not need marketing

20. Causes Unneeded Purchases
Marketing can increase sales of products
Attractively packaged
Advertising to encourage purchase
Special financing
Does the consumer really need it?
Long term results
Dissatisfaction
Returning of products
Will the consumer buy your products again?
Businesses must be sensitive to the needs and experiences of customers. Products and services should be carefully matched. Must value long-term relationships.

21. Wastes Money
50% of the price of products comes from marketing activities.
Selling and advertising make up about 5% - 10%
Effective marketing actually lowers prices in the long run
More competition helps keep prices low
Increased sales volume and competition result in lower prices for consumers

22. Some Products Don’t Need Marketing
Consumer would be responsible for locating the product
Consumer would have to gather information about it
No financing options
No distribution of the product

23. Marketing Solves Problems
Marketing increases public awareness
Marketing helps match supply with demand

24. Increases Public Awareness
Serious problems facing society (health care, crime levels, poverty, diseases, racism, education, unemployment, drug use, the environment.
How can Marketing help?
Communication
Advertisements
Public Service Announcements

25. Helps Match Supply & Demand
Products and services are not always available where they are most needed
Effective distribution is can help match supply with demand
Helps prevent or reduce the impact of problems that could affect society

26. Journal – Review Questions
1. On average, marketing costs represent what percentage of the price that a consumer pays for a product?
2. On average, costs of sales and promotions represent what percentage of the price that a consumer pays for a product?
3. If sellers do not perform certain marketing functions, why doesn’t that reduce the final cost of a product to the consumer?
4. Name several public awareness campaigns that are intended to benefit society?
5. If cranberry growers were suffering from an oversupply of cranberries that slashed prices and threatened to put them out of business, how could marketing help them?

27. Increasing Social Responsibility
Goals for Lesson 2.3
Define consumerism
Explain ways which businesses improve their own practices
Discuss how ethical issues affect marketers’ professional responsibilities

28. Consumer Protection Increasing Social Responsibility
Growth of Consumerism
Government regulations

29. Social Responsibility
Marketers must be willing to pay attention to society’s needs
The trend today is a greater expectation for business to be socially responsible
It is not all about customers wants/needs and making a profit
Businesses need to think about the long run

30. Growth of Consumerism
Definition – the organized actions of groups of consumers seeking to increase their influence on business practices.
Consumer Bill of Rights (JFK, 1960s) – four basic rights to all consumers
Adequate and accurate information
Safe products
Product choices
Communicate ideas to business and government

31. Consumerism
Consumer education, consumer information lobbying, product boycotts
Organizations that test products to determine safety and value
Boycotts – an organized effort to influence a company by refusing to buy their product
Government Regulations – Consumer Laws’ Handout

32. Improving Practices
Code of ethics – a statement of responsibilities for honest and proper conduct.
Enforced by penalties established by the industry
Self-Regulation – taking responsibility for actions
BBB – gathers info for consumers about problems
Buyer’s Bill of Rights
Responsibilities of Marketers (Figure 2-8)

33. Discussion
At your table name three or four additional items that would add to the code of ethics in Figure 2-8 if they were consumer rights advocates or if they owned a business. Students should explain why each additional item would be an important ethics issue to include.

34. Improving Practices
Social Action – business people helping to solve some of society’s major problems
Ex: Members Only – drug abuse and voter registration
Ex: Nike – Literacy Program
Ex: McDonalds – Ronald McDonald Houses

35. Ethics in Marketing
Ethics – decisions and behavior based on honest and fair standards
Responsibility to Customers
Marketers have a direct relationship with customers
Marketing Code of Ethics (product planning, promotion, pricing, distribution, and marketing research
Decisions and actions should be evaluated

36. Ethics in Marketing Harm and Accountability
Marketers must remember that their emphasis must be on what is best for everyone in an exchange
No concern for society or customers
Illegal behavior
Educational programs for employees

37. Journal Write one sentence to summarize each of the following phrases:
“Consumer Protection”
“Improving Practices”
“Ethics in Marketing”