The Importance of Marketing in our Economy? Plays an important role in responding to the Economic Conditions Vital to business survival in creating Consumer Demand and Spending Behavior

The Goals Marketing Management and the of the Marketing System Maximize consumption: Uses promotion and advertising to stimulate demand Maximize consumer satisfaction:Stresses quality instead of quantity Maximize choice:Goals are to increase selection and choice Maximize life quality:Goals that stresses that all needs should be met

ECONOMIC CONDITIONS PROSPERITY-A business cycle where income is relatively high and unemployment is low RECESSION-A business cycle where buying power declines and unemployment rises. DEPRESSION-A business cycle where unemployment is extremely high, disposable income is low and there is a lack of trust in the economy. RECOVERY-A business cycle where the economy moves from depression or recession toward prosperity. Unemployment begins to decline and wages begin to rise

COMPETITIVE ECONOMIC CONDITIONS MONOPOLY-One producer of a given product or service OLIGOPOLY-Few producers market a large supply of a product or service MONOPOLISTIC COMPETITION-When one company establishes a large percentage of the market PERFECT COMPETITION-A condition that exists if there is a large number of suppliers of a particular product or service, none of which has enough leverage to control prices or supply

Consumer Demand and Spending Behavior Buying Power-The ability of the consumer to make purchases Disposable Income-Money left after taxes Wealth-The total of all resources, financial, natural, and past income Effective Buying Income(EBI)-Similar to disposable income and includes all income including but not limited to: salaries, wages, dividends, interest, less ALL TAXES Buying Power Index(BPI)-A weighted index number used for comparisons

The Evolution of the Marketing Concept and its Social Impact SIMPLE TRADE ERA-Products were made by the people who needed them & surplus items were traded or sold THE PRODUCTION ERA-Industrial revolution fueled by mass production and pay based on output THE SALES ERA-Beginning in the 1920’s into the 1950’s with a focus on advertising and encouraging the consumer to buy THE MARKETING ERA-Began in the 1950’ s when businesses began to realize that in order to make a profit, they needed to satisfy customer’s needs & wants and there was a shift in focus to customer satisfaction and “TOTAL QUALITY”

Societal Marketing Concept

Ethics 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. Morals The rules people develop as a result of cultural values and norms.

Ethical Behavior in Business Legal? ??? Judgments Vary

Code of Ethics A guideline to help marketing managers and other employees make better decisions.

Creating Ethical Guidelines Help identify acceptable business practices Help control behavior internally Reduce confusion in decision making Facilitate discussion about right and wrong

Corporate Social Responsibility Ethical Do what is right. Legal Obey the Law. Economic Be profitable. Philanthropic Be a good citizen.

Based on your personal experience, what ways you have seen organizations implement the societal marketing concept.

DEBATE Should fast-food restaurants use environmentally responsible packaging even when such packaging is less effective in preserving product quality?

Goals of the Consumer Movement Product Safety Honest Labeling Ethical Advertising Consumer Feedback

Examples of the company’s involvement in community relations Contributions to disadvantaged members of the community Fundraising efforts for education and public welfare Fundraising effort to support the arts and recreation

Uses of the Marketing Concept in the Non-Profit sector Non-Profit organization:An organization that markets ideas, activities or causes to achieve a goal other than making money Social Marketing:Practices that try to influence ideas or causes The target market for non-profit organizations are clients and contributors