Chapter 2 Marketing Impacts Society

Topics The Impact of Marketing Criticisms of Marketing Increasing Social Responsibility

Objectives Explain how marketing affects businesses. Describe marketing’s impact on individuals. Discuss ways marketing benefits society.

Marketing Affects Businesses Helping businesses find a suitable market for their products and/or services. Does marketing play a positive or negative roles? How can they improve negative marketing techniques?

Critical Business Function Without marketing, businesses would not be able to survive The Marketing Concept Allows business to benefit more Identifies the customers; likes, dislikes, and attitude Customer Satisfaction

Marketing Helps People What to look for when shopping… Location Price Customer Service High Prices High costs of distribution High advertising and promotion costs Excessive markups

Lower Cost High number of products at a lower cost Increase in sales = Increase in production Customer Satisfaction Production and Marketing Costs

Expanded Opportunities Opening Up New Opportunities Salespeople Customer Service Representatives Warehouse Managers Inventory Specialists Marketing Research Personnel

Marketing Benefits Society New and better products Better standards of living Promotes international trade Where products can be sold How to sell them in countries that may have very different business procedures, money systems, and buying practices.

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

CRITICISMS OF MARKETING Discuss three common criticisms of marketing. Explain how marketing can be used to solve social problems.

Common Complaints Marketing causes unneeded purchases Marketing wastes money Some products don’t need marketing

Criticisms for Businesses Acquisitions of Competitors Marketing Practices Creating Barriers to Entry

Typical Cost of Marketing Product Price Total product price (100%) Average cost of all marketing activities (50%) Average cost of sales and advertising (2 – 10%)

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

Supply and Demand Demand What the consumer is willing to buy. Supply What the producer is willing to produce

Supply and Demand

Increase Social Responsibility Define consumerism. Explain ways which businesses improve their own practices. Discuss how ethical issues affect marketers’ professional responsibilities.

Consumer Protection BUSINESS GOVERNMENT CONSUMER GROUPS

Consumerism Organized actions of a group of consumers seeking to increase their influence on business practices. Social Responsibility Concern about the consequences of actions on others Figure 2-7 pg 45

Marketing’s Impact on Individual Consumers Deceptive Practices Pricing Promotion Packaging High-Pressure Selling

Government Regulations Laws and regulations are designed tooooooooooooooooooo… Improve social impacts of business practices Protect consumers

Improving Practices Codes of ethics Statement of responsibilities for honest and proper conduct Self-regulation Personal responsibility Social action Figure 2-8 pg 47

Ethics in Marketing? Responsibility to customers Satisfy needs and wants Harm and accountability Provide products and services that meet the requirements that are set forth by the business. Provide the best products and services.