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Welcome to the World of Marketing
Dr. Chun-Tuan Chang
(07)5252000 ext. 4627
Email: [email protected]
LECTURE ETIQUETTE
MOBILE MANNERSSWITCH OFF MOBILE PHONES IN LECTURESINC. NO TEXTING!
LECTURES ARE NOT A TAKE-AWAY OUTLET
LECTURES ARE NOT FRIENDS REUNITED
COURSE OBJECTIVES• Knowledge and
Understanding
• Cognitive Skills
• Subject-Specific Skills
• Key Skills– in exercises and discussions
– in a group project
– examination answers
• 16 Lectures, Exercise, Assignments, Discussions, Videos
What is Marketing?
“is a societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and servi
ces of value with others”
Source: Kotler (2003) p.9
Marketing as an ExchangeRelationship
Buyer Seller
Something of Value I.e. money, labour, goods
Something of Value I.e. goods, services, ideas
Marketing involves Individuals and Groups (Organizations)
• Final buyers/consumers– Individuals/Households
• Organisational buyers– Industrial companies– Institutions (hospitals, universities)– Profit-making Organisations– Non-Profit Organisations
• This Norwegian ad addresses young people’s smoking attitudes by arousing strong negative feelings. The ad reads (left panel) “Smokers are more sociable than others.” (Right panel): “While it lasts.”
Marketing Management from Transactions...
“the management process responsible for identifying, anticipating and
satisfying consumers’ requirements profitability”
Source: Chartered Institute of Marketing 1991
…to Relationship Marketing
“...is to establish, maintain and enhance relationships with customers and other partners, at a profit so that the objectives of both parties are met. This is achieved by mutual exchange and the keeping of promises. Such relationships are usually but not
necessarily always long-term.”
Source: Grönroos (1994) JMM p.355
New Contexts, New Theories...
• Marketing is highly context-dependent• Marketing’s context is changing rapidly
and radically:• electronic commerce• market diversity• new economics• co-operation
• Marketers need to question relevance of established thinking to new contexts
Source: Sheth and Sisodia (1999) “Revisiting Marketing’s Lawlike Generalizations,” Journal of the Academy of Marketing Science
The Societal Marketing Concept
“…to determine the needs and wants and interests of target markets and to deliver the desired satisfactions more effectively and more efficiently than competitors in a way that preserves or enhances the consu
mer’s and the society’s well-being”
Source: Kotler (2000) p.25
Social Responsibility
• What accepted relationships, obligations and duties exist between the marketing organisation and society?– Consumer Issues– Community Relations– Environmental Issues
Societal Marketing Orientation
We do not, have not and will not purchase beef from rain forest or recently deforested rain forest land. Any McDonald supplier that is found to deviate from this policy or that cannot prove compliance with it will be immediately discontinued.
McDonald’s Rain Forest Policy:
Marketing EthicsEthics:
individual moral evaluations of right and wrong in particular situations
Ethical issues in marketing:
•target markets•marketing mixes•consumer/marketing research•international marketing strategy
False Wants & Too Much Materialism
Too Much Political Power
Producing Too FewSocial Goods
Cultural Pollution
Marketing’s PerceivedNegative Impact on
Society as aWhole
Marketing’s Impact on Society as a Whole
Marketing’s Impact on Society as a Whole
False Wants & Too Much Materialism (i.e.,
what you own vs. who you are).
Too Much Political Power
Producing Too FewSocial Goods
Cultural Pollution
Cultural Pollution
Our senses are sometimes assaulted by commercial messages.
American Association of Advertising Agencies
• This ad demonstrates that advertising can’t make consumers buy things that they don’t need despite high-pressure selling.
Influences on Ethical Decisions
Influences On Ethical Decisions
• Individual values, beliefs, philosophies
• Perceptions of situation, alternatives, consequences
• Organisational environment
• Industry/professional environment
• Cultural environment
Buyers’
Rights
Sellers’
Rights
Consumerism is an Organized Movement of Citizens and Government Agencies to Improve the Rights and Power of Buyers in Relation to
Sellers.
Consumerism
The Right Not to Buy a Product Offered for SaleThe Right Not to Buy a Product Offered for Sale
The Right to Expect the Product to be SafeThe Right to Expect the Product to be Safe
The Right to Expect the Product to Perform as ClaimedThe Right to Expect the Product to Perform as Claimed
The Right to Be Protected Against Questionable ProductsThe Right to Be Protected Against Questionable Products
The Right to Be Heard About “Quality of Life” IssuesThe Right to Be Heard About “Quality of Life” Issues
The Right to Be Well Informed About the ProductThe Right to Be Well Informed About the Product
Consumerism – Buyers’ Rights
Environmentalism
• An organized movement of concerned citizens and government agencies to protect and improve people’s living environment.
Plan for New EnvironmentalTechnologies
Adopt Designfor the
Environment Practices
Have a Sustainability
Vision
PracticeProduct
Stewardship
PracticePollution
Prevention
Environmentalism
（ source： Body Shop）
Body Shop: Against Animal Testing
• This is from the newsletter called ‘scoop’ that came with T-Mobile’s March 2008 billing statement.
When you switch to paperless billing, T-Mobile, in conjunction with the Arbor Day Foundation, will plant a tree in your name in a blighted area of the United States. The Arbor Day Foundation, a tree-planting charity headquartered in Lincoln, Nebraska, calls it the Restoration Project.
The tree planting is concentrated in the region around New Orleans devastated by Hurricane Katrina in 2005 and areas of Southern California which were denuded of trees by the fires of 2007.
Environmental Sustainability
• A management approach that involves developing strategies that both sustain the environment and produce profits for the company.
Legal Issues Facing Marketing Management.
Enlightened Marketing
• A marketing philosophy holding that a company’s marketing should support the best long-run performance of the marketing system.
Enlightened Marketing
• Consumer-Oriented Marketing:– The philosophy of enlightened marketing that
holds that the company should view and organize its marketing activities from the consumer’s point of view.
• Innovative Marketing:– A principle of enlightened marketing that requires
that a company seek real product and marketing improvements.
Innovative Marketing
Colgate’s Total toothpaste is perhaps the best example of Colgate's passion for innovation. The breakout brand provides a combination of benefits, including cavity prevention, tartar control, fresh breath, and long-lasting effects.
Enlightened Marketing
• Value Marketing:– A principle of enlightened marketing that holds
that a company should put most of its resources into value-building marketing investments.
• Sense-of-Mission Marketing:– A principle of enlightened marketing that holds
that a company should define its mission in broad social terms rather than narrow product terms.
Societal Classification of Products
• Based on the societal classification scheme, how would you classify the following products?– McDonald’s Big Mac
– A handgun
– Airbags in an automobile
– Daily vitamins
Marketing Ethics
Distributor Relations Advertising Standards Customer Service
Pricing Product Development General Ethical
Standards
Companies Need to Develop Corporate Marketing Ethics Policies – Broad Guidelines
That Everyone in the Organization Must Follow and Should Address:
Decided by the Free Market and
Legal System
Decided by the Free Market and
Legal System
Responsibility of Individual Companies
And Managers
Responsibility of Individual Companies
And Managers
Marketing EthicsPrinciples That Should Guide Companies and Marketing Managers On Issues of Ethics and
Social Responsibility:
Ethics Programs
PricewaterhouseCoopers established a comprehensive ethics program, which begins with a code of conduct called “The Way We Do Business.” Says PwC’s CEO, “Ethics is in everything we say and do.”
–Should companies follow the axiom “When In Rome…” when making ethical decisions in foreign countries?
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