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Marketing Environment, Ethics, & Social Responsibility
Intro to Marketing Chapter 3
Environmental Management• Marketers efforts toward achieving
organizational objectives by predicting and influencing the competitive, political/legal, economic, technological, and social/cultural environments. (Controlling the outside forces that may affect the organization)
5 Forces of External Environment• Competitive• Political/Legal• Economic• Technological• Social/Cultural
Competitive Environment
How does it affect an organization?
• New competition may decrease market share.
• Lack of competition will increase sales
Type of Competition
• Direct- between marketers of similar producers.
• Indirect-between products that can be substituted for one another.– Competition among all organizations
that compete for consumers purchasing power.
– Relate this to marketing myopia• Among all
Developing a Competitive Strategy• Should we compete?• In what markets should we
compete?• How should we compete?
– What prices should we charge?– Where will we sell them?– What products should we make?
Time Based Competition
• Developing and distributing goods and services more quickly than competitors
Political/Legal EnvironmentHow does it affect an organization?• Laws regulate a lot of businesses
– FDA Food & Drug Administration– Taxes– Packaging– Imports/Exports– War– Truth in Advertising– FTC, FCC, ICC, EPA, NAFTA– Pricing too low
BusinessCycle
Inflation
Un-employment
Resource Availability
Income
Economic Environment
Figure 2.6 – Increased Spending for Luxury Products during Periods of Prosperity
Figure 2.6 – Increased Spending for Luxury Products during Periods of Prosperity
GodivaExpanding Product Lines During the Prosperity Stage
Godiva adds ice cream to its product line
GodivaExpanding Product Lines During the Prosperity Stage
Godiva adds ice cream to its product line
Technological Environment
• What happens if an organization refuses to change?
• What are some new technological products?
Social/Cultural Environment• Relationship between marketing
and society and its culture. Behaviors of your customer.
• Consumerism– The social force within the
environment that aids and protects the buyer by exerting legal, moral, and economic pressures on business.
– Advocacy groups, boycotts, etc.
Doritos WOW!
Frito-Lay Launches Low-Fat Snacks for Health-Conscious Consumers
Doritos WOW!
Frito-Lay Launches Low-Fat Snacks for Health-Conscious Consumers
Marketing Ethics– Right & Wrong
• Ethical Problems– Research– Product Strategy– Promotion Strategy– Pricing
• Social Responsibility• Ecology
– Planned Obsolescence– Pollution
Social Responsibility• The obligations of marketers to
provide a balance in making profits, consumer satisfaction, and social well-being
Economic
Legal
Ethical
Philan-thropic