For use only with Perreault/Cannon/McCarthy or Perreault/McCarthy texts. © 2008 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges CHAPTER EIGHTEEN

1. Understand why marketing must be evaluated differently at the micro and macro levels. 2. Understand why the text argues that micro- marketing costs too much. 3. Understand why the text argues that macro- marketing does not cost too much. 4. Understand all of the elements of the marketing strategy planning process and strategy decisions for the four Ps. 5. Know how to prepare a marketing plan and how it relates to the marketing strategy planning process. 6. Know some of the challenges marketers face as they work to develop ethical marketing strategies that serve consumers’ needs. When we finish this lecture you should

Ethical Marketing in a Consumer-Oriented World (Exhibit 18-1)

How Should Marketers Be Evaluated?

Many Measures for Micro- Marketing Highly Personal Depends On Individual Aspirations Depends On Individual Aspirations Depends On Individual Aspirations A C S I Key Issues Can Consumer Satisfaction Be Measured?

Lack of Understanding of the Environment Improper Blending of the 4Ps Lack of Interest in Customers Sources of Marketing Inefficiency Micro-Marketing Often Does Cost Too Much

Macro-Marketing Does Not Cost Too Much

© 2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Interactive Exercise: Does Marketing Cost Too Much?

Advertising Wastes Resources Consumers are Too Easily Controlled Consumers Are Not Puppets Needs and Wants Change Other Criticisms of Macro-Marketing

Create Values? Does Marketing: OR Appeal to Existing Values? Does Marketing Make People Materialistic?

Macro-Marketing Can Be More Difficult Not All Needs Are Met Products Improve Quality of Life Not All Needs Are Met Products Improve Quality of Life Macro-Marketing Can’t Eliminate Social Problems Marketing Reflects Our Own Values

© 2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Elevating the Wrong Values?

A. Different people might be surveyed next year. B. Consumer satisfaction can’t be accurately measured. C. People don’t think of themselves as “consumers” when they deal with government agencies. D. Consumer expectations change over time and often increase. E. The survey was probably biased this year because of poor sampling. The Department of Motor Vehicles (DMV) in a large U.S. state decided to conduct a survey to determine the level of satisfaction with its services among a random sample of consumers. The survey cost $25,000, and the results were pretty positive—people in general seemed reasonably satisfied with DMV’s services. As the agency’s managers were busy congratulating themselves, one manager remarked, “So much for how people feel about us now. We’ll have to work even harder just to maintain the current level of customer satisfaction when we do the survey next year.” What would best explain this manager’s observation? Checking your knowledge

…We’ve become a model for how to do business on the Internet. Everything from being integrated with suppliers to e- commerce to customer support …creating efficiencies that result in business to business at its best. Online. Marketing Planning Process Is More Than Assembling the Four Ps

© 2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Developing Different Marketing Mixes

S.W.O.T. Analysis

Which of the following would a S.W.O.T. analysis classify as an “opportunity” for Microsoft: A.Microsoft has a great deal of cash available for marketing strategies. B.Microsoft develops new patented technology that makes its software run faster. C.European trade regulators consider rulings that would require Microsoft to develop a new version of Windows for its market. D.Emerging markets in Asia and Africa show increased demand for computers and software. E.The company hires an expert in online advertising. Checking your knowledge

Marketing Mix Flows from Target Market Dimensions (Exhibit 18-3)

Types of Demand-Oriented Pricing Key Parts of a Marketing Plan Name of Product- Market Name of Product- Market Special Implementation Special Implementation Customer Analysis Customer Analysis Competitor Analysis Competitor Analysis Company Analysis Company Analysis Marketing Environment Marketing Environment Product Place Promotion Price Marketing Information Needs Marketing Information Needs Forecasts and Timing Forecasts and Timing Control The Marketing Plan Brings All the Details Together

+ Other Marketing Plans Other Marketing Plans Other Marketing Plans Other Marketing Plans + Time- Related Details Time- Related Details Marketing Plan Marketing Plan = Time- Related Details Time- Related Details Marketing Plan Marketing Plan Target Market Target Market + Marketing Mix Marketing Mix = Marketing Strategy Marketing Strategy Target Market Target Market Marketing Mix Marketing Mix Marketing Strategy Marketing Strategy A Firm’s Marketing Program A Firm’s Marketing Program = Companies Plan and Implement Whole Marketing programs

Communication Technologies Role of Computerization Marketing Research Demographic Patterns Business & Organizational Customers Product Area Channels and Logistics Sales Promotion Personal Selling Mass Selling Pricing International Marketing Changes/Trends Affecting Marketing Strategy Planning Changes/Trends Affecting Marketing Strategy Planning Challenges Facing Marketers (Exhibit 18-5)

We Need To Use Technology Wisely We Need To Welcome International Competition We Need To Use Technology Wisely We Need More Social Responsibility Technology, Globalism, and Social Responsibility

We shouldn’t have to choose. We voluntarily introduced cleaner burning low- sulfur fuels six years before E.P.A. mandates. These fuels help reduce ozone pollution – and are now available in over 40 U.S. cities. The Environment Is Everyone’s Need

Impact on Top Managers Impact on Top Managers Impact on Top Managers Enactment and Enforcement Enactment and Enforcement Enactment and Enforcement Consumer Privacy Consumer Privacy Consumer Privacy Legal vs. Ethical Key Issues Legal and Ethical Concerns

How Far Does the Marketing Concept Go? Socially Responsible Consumers Consumer-Citizens Should Vote on Changes Responsibilities of Consumers and Marketers

A. “Competitors? I don’t worry about them. If we do our job, we’ll be OK regardless of what anyone else does.” B.“I never thought I’d be leading our company into the international market, but there are simply too many opportunities there to ignore.” C.“I don’t write the paychecks for my customer service staff—the customers do.” D.“We’ve learned that good selling is really all about helping consumers solve their problems.” E.“I welcome consumer complaints, because they let us know what we need to do to improve our service.” Which of the following statements indicates that a marketing manager is about to make a serious mistake? Checking your knowledge

Which of the following marketing trends would you LEAST expect to see in the future? A. Increased use of Web logs (blogs) by marketers. B. More emphasis on placement of products in movies and on TV shows as a means of promotion. C. More Spanish-language advertising in the U.S. D. Increased share of market for online retailing compared to traditional retailing. E. Less attention to distribution customer service. Checking your knowledge

1. Understand why marketing must be evaluated differently at the micro and macro levels. 2. Understand why the text argues that micro- marketing costs too much. 3. Understand why the text argues that macro- marketing does not cost too much. 4. Understand all of the elements of the marketing strategy planning process and strategy decisions for the four Ps. 5. Know how to prepare a marketing plan and how it relates to the marketing strategy planning process. 6. Know some of the challenges marketers face as they work to develop ethical marketing strategies that serve consumers’ needs. You now