Marketing Environment 3 Social Responsibility, Ethics, and the Marketing Environment Prepared by Deborah Baker Texas Christian University

Learning Objectives Discuss corporate social responsibility Chapter 3 Learning Objectives Discuss corporate social responsibility Describe the role of ethics and ethical decisions in business Discuss the external environment of marketing, and explain how it affects a firm

Learning Objectives (continued) Chapter 3 Learning Objectives (continued) Describe the social factors that affect marketing Explain the importance to marketing managers of current demographic trends Explain the importance to marketing managers of multiculturalism and growing ethnic markets

Learning Objectives (continued) Chapter 3 Learning Objectives (continued) Identify consumer and market reactions to the state of the economy Identify the impact of technology on a firm Discuss the political and legal environment of marketing Explain the basics of foreign and domestic competition

Corporate Social Responsibility Chapter 3 Corporate Social Responsibility Ethical Do what is right. Legal Obey the Law. Economic Be profitable. Philanthropic Be a good citizen. On Line http://www.hp.com 1

Ethics and Morals Ethics Morals Chapter 3 Ethics and Morals Ethics Morals The moral principles or values that generally govern the conduct of an individual. The rules people develop as a result of cultural values and norms. 2

Ethical Development Levels Chapter 3 Ethical Development Levels More Mature Selfish Preconventional Morality Conventional Postconventional 2

Ethical Decision Making Chapter 3 Ethical Decision Making Social Consensus Extent of Problems Top Management Actions Potential Consequences Probability of Harm Number Affected Time Until Consequences 2

External Marketing Environment Chapter 3 External Marketing Environment Demographics Social Change Economic Conditions Political & Legal Factors Technology Competition Environmental Scanning Target Market Product Distribution Promotion Price External Environment (uncontrollable) Ever-Changing Marketplace Internal (within the organization) Marketing mix 3

External Marketing Environment Chapter 3 External Marketing Environment Social Demographic Economic Technologic Political and Legal Competitive External Environmental Factors 3

Chapter 3 Social Factors Values Attitudes Lifestyle Social Factors 4

Demographic Factors Demography Age Location Race and Ethnicity 5 Chapter 3 Demographic Factors Age Location Race and Ethnicity Demography 5

Distribution of Consumer Income Economic Areas of Concern to Marketers Chapter 3 Economic Factors Distribution of Consumer Income Inflation Recession Economic Areas of Concern to Marketers 7

Impact of Technology Basic Research Applied Technology Advances Chapter 3 Impact of Technology Basic Research Marketing Mix Applied Technology Advances 8

Regulate competitive environment Regulate pricing practices Chapter 3 Federal Legislation Sherman Act Clayton Act Federal Trade Commission Act Celler-Kefauver Antimerger Act Hart-Scott-Rodino Act Regulate competitive environment Robinson-Patman Act Regulate pricing practices Control false advertising Wheeler-Lea Act 9

Regulatory Agencies Consumer Product Safety Commission Chapter 3 Regulatory Agencies Consumer Product Safety Commission Federal Trade Commission Food & Drug Administration On Line http://www.ftc.gov 9

Control Competitive Factors How many competitors? Chapter 3 Competitive Factors How many competitors? How big are competitors? How interdependent is the industry? Control 10