Socially Responsive Marketing Chapter 2

Marketing affects businesses Marketing helps businesses find customers and sell their products and services profitability Marketing is responsible for the activities leading to the exchange of a business’s products and services for the customers money The marketing functions are needed to make the exchange possible. Marketing is used to identify and understand the customer Through research businesses are able to determine customer needs, attitudes, likes, and dislikes Then the business can develop P&S that meet the needs of the customer and earn a profit

Marketing Helps People Marketing helps satisfy needs and wants Manufacturers developing a new brand of laundry detergent will make better decisions if they are aware of what consumers like and dislike about the current brand It also helps make better decisions about what to sell and how to sell it EX - The manager of a clothing store will want to know what consumers are expecting in terms of styles and prices before purchasing new items to sell When customers needs and wants are met, they are more likely to be loyal and continue to purchase from the business

Marketing helps people Individuals benefit from marketing because it improves the exchange between business and customers Here is an example of its value Consider going to a supermarket to buy party supplies You want the store to be conveniently located, adequately supply decorations, drinks, snacks, have easily located products, prices clearly marked, etc… Each of those activities is an example of marketing, and make it easier for you to shop The business benefits because you purchase the product, and you benefit because your needs were satisfied

Benefits of marketing Businesses meet consumer needs Consumers make better decisions Natural resources are used more effectively Standard of living is improved International trade increases

Criticisms of marketing Common Complaints If not used appropriately marketing can have negative effects This can/has lead to a negative image for some marketing activities If a consumer has a negative opinion about a business, it can affect whether or not they will be customers Know the two examples we went over in class (Gerber and Toyota) and be able to describe the incidents – ON TEST

Marketing wastes money All marketing activities are about 50% of the price of products Some products % are higher – while other products % are smaller Promotion and selling are only 2-10% of the products price... Marketing actually lowers product prices in the long run (Question on Test!!!!!!!!!!!!!!) Because of marketing, products can be sold to more customers This in turn creates more competition When consumers have more choices, they usually buy reasonably priced items This encourages businesses to keep prices as low as possible to be competitive

Marketing solves problems If misused marketing can have negative results, but if used effectively it can be positive Concerns about health care, crime levels, poverty etc…all require the attention of many people if solutions are to be found Marketing can help in several ways Through communication people are more aware and informed Consider the # of times you have received information about seat belts, recycling, drugs & alcohol Marketing is responsible for these public serve announcement

Marketing helps match supply with demand Products & Services are not always available when consumers need them Ex- if there is a drought in one part of the country, farmers may not have enough hay and grain to feed their livestock. At the same time, there might be excess supply in other areas An effective distribution system can move the hay and grain quickly from one part to the other…matching supply and demand

Consumer protection The trend today is greater expectation for businesses to be socially responsible and to aid in solving problems facing society Social responsibility comes into affect When making decisions, business people realize that they must consider factors beyond what their customers want Increasing social responsibility of a business is occurring three major ways…

1) Growth of consumerism Consumerism - Organized actions of groups of consumers seeking to increase their influence on business practices Consumers have little influence alone, but when organized as a group consumers have a much greater impact Septa Strike Teacher Strike Students Strike?? Consumer bill of rights Right to adequate information, safe products, product choices & to communicate ideas and opinions

2) Government regulation Government regulation- Make laws designed to improve social impact of business practices Businesses must comply with consumer protection laws or risk fines and a loss of business

3) Improving business practices Improving business practices- Business recognize their responsibility to consumers and to society because … If a social problem exists the government may increase tax to pay for programs Business do not want increase regulation of taxes

Code of ethics What is the definition of ethics, and why do businesses adopt a code of ethics? (This is on your Ch. 2 TEST) Ethics: What you believe to be right or wrong Encourages honest and proper conduct AMA (American Marketing Association) agree on standards of conduct to encourage this responsible behavior Codes can be influence by penalties by the industry AMA describes specific responsibilities for marketers in the 4 P’s area

Self regulation Self-Regulation – Business developed procedures to respond to consumer problems and to encourage customers to work directly with businesses to solve them Is taking personal responsibility for ones actions The Better Business Bureau is a consumer protection organization

miscellaneous Businesses that use the marketing concept use marketing to identify and understand its customers The Better Business Bureau is a consumer protection organization sponsored by businesses The following marketing techniques often results in consumers making unneeded purchases offering consumers a wide number of choices attractive display and packaging credit and special financing arrangements

Miscellaneous Marketing should start with good products Successful businesses value long-term relationships with customers. Increased sales volume and competition result in lower prices for consumers.