1. Copyright © 2010 by Nelson Education Ltd. Chapter 3 The Marketing Environment, Ethics, and Social Responsibility with Duane Weaver

2. Copyright © 2010 by Nelson Education Ltd. 3-2 Outline 1.Environmental Influences 2.Competitors 3.Other Factors 4.Consumerism & Social Responsibility

3. Copyright © 2010 by Nelson Education Ltd. 3-3 Environmental Influences

4. Copyright © 2010 by Nelson Education Ltd. 3-4 Companies with a monopoly usually accept regulation in exchange for the exclusive right to serve a market segment Recent deregulation has decreased monopolies in some industries, such as utilities Oligopoly Limited number of sellers in an industry, where high start-up costs form entry barriers for new competitors Types of Competition Direct―Among marketers of similar productsDirect―Among marketers of similar products Example: Coca-Cola and PepsiCoca-ColaPepsi Indirect―Involves products that are easily substituted for each otherIndirect―Involves products that are easily substituted for each other Example: cola, iced tea, coffee, water Competition among all firms that compete for the consumers’ purchasesCompetition among all firms that compete for the consumers’ purchases Example: a vacation in Banff, Alberta OR a new car; consumer may not be able to afford bothBanff, Competitive Environment

5. Copyright © 2010 by Nelson Education Ltd. 3-5 Other Environment Factors Political-legal environment Component of the marketing environment consisting of laws and their interpretations that require firms to operate under competitive conditions and to protect consumer rights Factors that influence consumer buying power and marketing strategies, including stage of the business cycle, inflation and deflation, unemployment, income, and resource availability E.G.: disposable income, demarketing…Economic environment Factors that influence consumer buying power and marketing strategies, including stage of the business cycle, inflation and deflation, unemployment, income, and resource availability E.G.: disposable income, demarketing… Technological environment Application to marketing of knowledge based on discoveries in science, inventions, and innovations Social-cultural environment Component of the marketing environment consisting of the relationship between marketing, society, and culture

6. Copyright © 2010 by Nelson Education Ltd. 3-6 CONSUMERISM & SOCIAL RESPONSIBLITY Consumerism Social force within the environment that aids and protects the consumer by exerting legal, moral, and economic pressures on business and government. Basic consumer rights: The right to choose freely, to be informed, to be heard, and to be safe Social responsibility Marketing philosophies, policies, procedures, and actions that have the enhancement of society’s welfare as a primary objective.

7. Copyright © 2010 by Nelson Education Ltd. 3-7