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BUAD 307 SOCIAL RESPONSIBILITY AND THE MARKETING ENVIRONMENT Lars Perner 1
SOCIAL RESPONSIBILITY
ANDTHE MARKETING
ENVIRONMENT
BUAD 307 SOCIAL RESPONSIBILITY AND THE MARKETING ENVIRONMENT Lars Perner 2
Some Ethical Issues• Misleading advertisements and
marketing in general• Taking advantage of consumer
ignorance• Marketing of harmful products
– Physically dangerous– Over-consumption; marketing
to people living above their means
• Marketing of products banned or not marketed in the U.S. to other countries
BUAD 307 SOCIAL RESPONSIBILITY AND THE MARKETING ENVIRONMENT Lars Perner 3
“Win-Win” Deals and Social Responsibility
• By pooling resources, different organizations may each get more than what they put in– Firms may be able to contribute
not only cash but also relevant expertise
– Favorable publicity may be worth more than the same amount spent on advertising
– Charitable groups may provide access to potential customers
BUAD 307 SOCIAL RESPONSIBILITY AND THE MARKETING ENVIRONMENT Lars Perner 4
Sponsored Fundraising• Non-profit groups currently spend a
large proportion of their revenue on fundraising
• “Sponsored Fundraising:” Fund raising efforts could be done by firms on behalf of the charitable group– Firm sends and pays for letter on
behalf of organization– Firm gets promotional benefit– Charity saves money and improves
credibility• Obstacles: Privacy concerns;
matching of firms and relevant charities
BUAD 307 SOCIAL RESPONSIBILITY AND THE MARKETING ENVIRONMENT Lars Perner 5
Promotional Events• A large retail chain might sponsor
a concert series by paying all expenses in return for considerable publicity
• Triple “win-win-win” deal:– The charity receives the proceeds
without having to pay costs– The sponsor receives publicity.
Tickets are bought in the store or on its web site.
– An aging artist—whose fans are now in their prime earning years—gets an opportunity to revive a career or promote a new venture (e.g., movie role)
BUAD 307 SOCIAL RESPONSIBILITY AND THE MARKETING ENVIRONMENT Lars Perner 6
Commercial Comedy• Advertising mascots (e.g., the
Energizer Bunny, Ronald McDonald, and the AFLAC Duck) are sent (with other talent) to perform comedy at non-profit fundraising events
• The non-profit gains: High quality, low cost entertainment
• The sponsor gains– Significant visibility– Attention to advertising
message/awareness– Secondary media coverage– Good will among those exposed
BUAD 307 SOCIAL RESPONSIBILITY AND THE MARKETING ENVIRONMENT Lars Perner 7
IN-CLASS ASSIGNMENT
In teams of your choice (any size from 1 to the whole section is fine), please identify a way in which a firm of your choice may be able to profit on some socially responsible action.
Please prepare a brief (1-3 minute) presentation to the rest of the class on what you concluded, including:
• The social benefit that you expect to result.• The way in which the firm will make money on this, either in the short or long run.• Any specifics that you have discussed.
The team can present either as a whole or have one or several people do the talking.
BUAD 307 SOCIAL RESPONSIBILITY AND THE MARKETING ENVIRONMENT Lars Perner 8
THE MARKETING ENVIRONMENT
• Culture
• Demographics
• Social
• Technology
• Economic
• Political and Legal Factors
BUAD 307 SOCIAL RESPONSIBILITY AND THE MARKETING ENVIRONMENT Lars Perner 9
CULTURE
• Culture: Behavior and “shared meanings”• Variations
– Country– Regional
• Impact of culture on expectations and what is “right” to do– Individuality vs. collectivism– Relationships between people– Work habits
BUAD 307 SOCIAL RESPONSIBILITY AND THE MARKETING ENVIRONMENT Lars Perner 10
DEMOGRAPHICS
• Distribution of people across statistical categories– Occupation– Income– Ethnicity Language usage– Age Birth rates– Residence (e.g., urban/rural)
BUAD 307 SOCIAL RESPONSIBILITY AND THE MARKETING ENVIRONMENT Lars Perner 11
SOCIAL FACTORS
• Values—tensions– Value of privacy vs.
security– “Green” products vs.
• Cost• Convenience• Performance
• “Component lifestyles”• Demographic changes
BUAD 307 SOCIAL RESPONSIBILITY AND THE MARKETING ENVIRONMENT Lars Perner 12
ECONOMIC FACTORS
• Consumer debt– Credit card/specific– Real estate
• Purchasing power– Over time (inflation)– Across domestic regions– Across countries
• Economic cycles• “New” family expenses:
Internet, cable/satellite TV, cell phone
“Teach a parrot to say ‘supply” and ‘demand” and you have a learned economist!” Paul Samuelson.
BUAD 307 SOCIAL RESPONSIBILITY AND THE MARKETING ENVIRONMENT Lars Perner 13
TECHNOLOGICAL FORCES• Internet/Communications
– Direct consumer-consumer communication
– Information search opportunities– Growth of “portables”
• Manufacturing– Increased global scope of competition
due to easier entry– Greater competition for quality,
selection
• Emerging industries and obsolescence (shortening technology life cycles)
BUAD 307 SOCIAL RESPONSIBILITY AND THE MARKETING ENVIRONMENT Lars Perner 14
POLITICAL AND LEGAL FACTORS
• Political– Special interests and
lobbying– Response to crises
legislation, regulation
• Legal– Consumer Protection Laws
• Truth in Lending
• Deceptive Advertising
• Product Safety
– Antitrust (fair competition) will be covered under pricing
– Laws relating to international trade will be covered under international marketing
BUAD 307 SOCIAL RESPONSIBILITY AND THE MARKETING ENVIRONMENT Lars Perner 15
REGULATORY INFLUENCES• Regulation
– Joint Federal and state regulation
– Delegation by Congress and state legislatures to regulatory agencies to handle specifics of complex issues
• Consumer protection– Consumer Product Safety
Commission (CPSG), Federal Trade Commission (FTC), Food & Drug Administration (FDA)
BUAD 307 SOCIAL RESPONSIBILITY AND THE MARKETING ENVIRONMENT Lars Perner 16
INFLUENCES ON THE FIRM AND ITS
CHOICES
ENVIRONMENT
FIRMPROFIT
PRESSURE
SOCIAL RESPONSIBILITY
OPPORTUNITIES
RESOURCES
SOCIAL
ECONOMIC
TECHNOLOGY
LEGAL/POLITICAL
DEMOGRAPHICS
CULTURE