Key Concepts

Corporate Social Responsibility

Corporate Social Responsibility
Philanthropic
Be a good citizen.

Ethical
Do what is right.

Legal
Obey the Law.

Economic
Be profitable.
 The moral principles or values
that generally govern the
Ethics
Ethics conduct of an individual.

The rules people develop as a

result of cultural values and
Morals
Morals norms.
Code
Codeof
of Ethics
Ethics

A guideline to help marketing

managers and other employees
make better decisions.
 Dot.com bubble of 1990s
Enron
Madoff
Subprime crisis
Financial institutions - AIG, Wachovia,

Lehman Brothers, Merrill Lynch and

Citigroup

GREED ** IRRESPONSIBILITY GLOBAL

CRISIS
 Helps identify acceptable business
practices

Helps control behavior internally

Avoids confusion in decision making

Facilitates discussion about right

and wrong
 External Environment
Internal (uncontrollable) Social
Social
(within the Change
Change Ever-Changing
organization) Demographics
Demographics Marketplace
Marketing mix

Product Economic
Economic
Product Conditions
Distribution
Distribution Conditions
Promotion
Promotion
Price
Price
Competition
Competition Target Market
Political
Political&&
Legal
LegalFactors
Factors
Technology
Technology
Environmental
Scanning
Target
TargetMarket
Market

A defined group most likely to

buy a firms product.
 Socialfactors that affect
marketing
Attitudes
Attitudes

Values
Values

Lifestyle
Lifestyle
 Social
Social Factors
Factors Influence:
Influence:

Products
Products purchased
purchased

Prices
Prices paid
paid for
for products
products

Effectiveness
Effectiveness of
of promotions
promotions

How,
How,where,
where, and
and when
when people
people purchase
purchase
Core American Values Self-Sufficiency
Self-Sufficiency

Upward
Upward Mobility
Mobility

Work
Work Ethic
Ethic

Conformity
Conformity
Ranked Characteristics
of Product Quality
Reliability
Durability
Easy maintenance
Ease of use
Trusted brand name
Low price
 Growth of dual-income families results
in increased purchase power

Approximately 63% of work-age females

are in the workforce

Women expect different things in life

purchase bulk of technology products
do most of the grocery shopping
second largest group of home buyers
after couples

Single households outnumber married

households with kids
Demography The study of peoples
Demography
vital statistics, such as
their age, race and
ethnicity, and location.
Pre- and early adolescents,
age 8 to 14
Population of 29 million
Purchasing power of $39
billion in 2007
View TV ads as just advertising
Emerging as the richest generation
and the most influential generation in
history
 Born between 1979 and 1994
Population of 60 million
Purchasing power of $200 billion
annually
Researchers have found Gen Yers to be:
Impatient
Family-oriented
Inquisitive
Opinionated
Diverse
Time managers
Street Smart
Word of mouth marketing is http://www.mountaindew.com
http://www.northface.com
effective
 Born between 1965
and 1978
Population of 40
million
Savvy and cynical
consumers
Time is at a
premium, and
outsourcing is
utilized
Entering their
money-making years
 Born between 1946 and 1964
Population of 77 millionthe largest
demographic segment
$1 trillion in spending power for
people aged 50 to 60
Income will continue to grow
as
they keep working
 Tweens Gen Y Gen X Baby Boom
Age
8 to 14 yrs 1979-1994 1965-1978 1946-1964
29 million 60 million 40 million 77 million
The importance of multiculturalism
and growing ethnic markets to
marketing managers
 Spending power of ethnic markets by 2008:
Hispanics: $1 trillion
African Americans: $921 billion
Asian Americans: $526 billion

Diversity can result in bottom-line benefits

to companies.
 The populations
diversity creates
challenges for
targeting this
group.

Hispanics tend to
be brand loyal, but
are not aware of many U.S. brands.

Nearly half of adult U.S. Hispanics have home

Internet access.
 Many firms are
creating products
for the African
American market.

Promotional dollars
and media choices
directed toward
African Americans
continue to increase.
 Younger, better educated,
and have highest average
income of all groups

Many products have been

developed for Asian
American market.

Cultural diversity within

the Asian American
market complicates
promotional efforts.
 Consumer and marketer reactions to
the state of the economy
Economic Factors

Distribution of
Consumer Income

Inflation

Recession
 Consumers Incomes

Median U.S. household income in 2007

projected at $45,000

Incomes have risen at a slow pace.

Education is the primary
determinant of earning
potential.

Consumers are strapped

for cash.
LO 7
The Financial Power of Women
Women bring in half of the
household income.
Women control 51.3 percent of
the private
wealth in the U.S.
Women control 80 percent of
household spending.
Women are now the primary buyers
in male-dominated categories:
68% of new cars
66% of computers
66% of home improvements
53% of investments
51% of consumer electronics
 Recession

Recession
Recession

A period of economic activity

characterized by negative growth,
which reduces demand for goods
and services.
Recession Marketing Strategies

Improve existing
products and
introduce new ones

Maintain and expand

customer services

Emphasize top-of-
the-line products
and promote product
value
 The impact of technology on a firm
 Technological Factors

U.S. excels at basic and applied

research.

Many firms use the market concept to

guide research.
New technology internally creates a
long-term competitive advantage.
External technology
Creates more efficient operation or better
products
May render existing products obsolete
 Technological Factors

Innovation is
becoming a global
process.

New technologies
create new
opportunities
RSS (Really Simple
Syndication)
Blogging
 Basic
Basic Applied
Applied Technology
Technology
Research
Research Research
Research Advances
Advances

Marketing
Marketing
Mix
Mix
Political and Legal Factors

Laws and Regulations Protect:

New technology
Society
Businesses
Consumers
 Federal Legislation

Sherman
ShermanActAct
Regulate Clayton
ClaytonAct
Act
competitive Federal
FederalTrade
TradeCommission
CommissionAct
Act
environment Celler-Kefauver
Celler-KefauverAntimerger
AntimergerAct
Act
Hart-Scott-Rodino
Hart-Scott-RodinoAct
Act
Regulate
pricing practices Robinson-Patman
Robinson-PatmanAct
Act

Control false Wheeler-Lea

advertising Wheeler-LeaAct
Act
 Regulatory Agencies

Consumer
Consumer Protects consumer safety in
Product
Product Safety
Safety and around their homes
Commission
Commission
Federal
Federal Trade
Trade Prevents unfair methods of
Commission
Commission competition in commerce

Food
Food&&Drug
Drug Enforces safety regulations for
Administration
Administration food and drug products

http://www.ftc.gov
Powers of the FTC

Cease-and-Desist
Cease-and-DesistOrder
Order

Consent
ConsentDecree
Decree

Affirmative
AffirmativeDisclosure
Disclosure

Corrective
CorrectiveAdvertising
Advertising

Restitution
Restitution

Counteradvertising
Counteradvertising
 Consumer Privacy

Government Actions

Gramm-Leach-Bliley Act

Health Insurance Portability and

Accountability Act (HIPPA)

Californias Notice of Security Breach Law