Chapter 3 Social Responsibility, Ethics, and the Marketing Environment Learning Outcomes – Chapter 3 Social Responsibility, Ethics , The Marketing Environment Ch 3 1. Discuss corporate social responsibility 2. Describe the role of ethics and ethical decisions in business 3. Discuss the external environment of marketing, and explain how it affects a firm 4. Describe the social factors that affect marketing 5. Explain the importance to marketing managers of current demographic trends 6.Explain the importance to marketing managers of multiculturalism and growing ethnic markets 7. Identify consumer and market reactions to the state of the economy 8. Identify the impact of technology on a firm 9. Discuss the political and legal environment of marketing 10. Explain the basics of foreign and domestic competition 1 Discuss corporate social responsibility Responsibility in business refers to a firm’s concern for the way its decisions affect society. Social responsibility has four components: economic, legal, ethical, and philanthropic. These are intertwined, yet the most fundamental is earning a profit. If a firm does not earn a profit, the other three responsibilities are moot. Most businesspeople believe they should do more than pursue profits. Although a company must consider its economic needs first, it must also operate within the law, do what is ethical and fair, and be a good corporate citizen. The concept of sustainability is that socially responsible companies will outperform their peers by focusing on the world’s social problems and viewing them as an opportunity to earn profits and help the world at the same time. 2 Describe the role of ethics and ethical decisions in business Business ethics may be viewed as a subset of the values of society as a whole. The ethical conduct of businesspeople is shaped by societal elements, including family, education, religion, and social movements. As members of society, businesspeople are morally obligated to consider the ethical implications of their decisions. Ethical decision making is approached in three basic ways. The first approach examines the consequences of decisions. The second approach relies on rules and laws to guide decision making. The third approach is based on a theory of moral development that places individuals or groups in one of three developmental stages: preconventional morality, conventional morality, or postconventional morality. Many companies develop a code of ethics to help their employees make ethical decisions. A code of ethics can help employees identify acceptable business practices, can be an effective internal control on behavior, can help employees avoid confusion when determining whether decisions are ethical, and can facilitate discussion about what is right and wrong. 3 Discuss the external environment of marketing and explain how it affects a firm The external marketing environment consists of social, demographic, economic, technological, political and legal, and competitive variables. Marketers generally cannot control the elements of the external environment. Instead, they must understand how the external environment is changing and the impact of change on the target market. Then marketing managers can create a marketing mix to effectively meet the needs of target customers. 4 Describe the social factors that affect marketing Within the external environment, social factors are perhaps the most difficult for marketers to anticipate. Several major social trends are currently shaping marketing strategies. First, people of all ages have a broader range of interests, defying traditional consumer profiles. Second, changing gender roles are bringing more women into the workforce and increasing the number of men who shop. Third, a greater number of dual-career families has created demand for timesaving goods and services. 5 Explain the importance to marketing managers of current demographic trends Today, several basic demographic patterns are influencing marketing mixes. Because the U.S. population is growing at a slower rate, marketers can no longer rely on profits from generally expanding markets. Marketers are also faced with increasingly experienced consumers among the younger generations such as GenX and GenY. And because the population is also growing older, marketers are offering more products that appeal to middle-aged and elderly markets. 6 Explain the importance to marketing managers of multiculturalism and growing ethnic markets Multiculturalism occurs when all major ethnic groups in an area are roughly equally represented. Growing multiculturalism makes the marketer’s task more challenging. America is not a melting pot but numerous mini-melting pots. Hispanics are the fastest growing segment of the population followed by African Americans. Many companies are now creating departments and committees to effectively target multicultural market segments. Companies have quickly found that ethnic markets are not homogeneous. 7 Identify consumer and marketer reactions to the state of the economy Economic factors in the environment affect consumer demand. Marketers follow trends in consumer income to forecast what type of products will be demanded. Inflation, a period of rising prices, tends to make consumers less brand loyal and likely to stock up on sale items. 8 Identify the impact of technology on a firm Monitoring new technology is essential to keeping up with competitors in today’s marketing environment. The United States excels in basic research and, in recent years, has dramatically improved its track record in applied research. Information technology and the Internet have been driving increased U.S. productivity for the past decade. Without innovation, U.S. companies can’t compete in global markets. 9 Discuss the political and legal environment of marketing All marketing activities are subject to state and federal laws and the rulings of regulatory agencies. Marketers are responsible for remaining aware of and abiding by such regulations. Some key federal laws that affect marketing are the Sherman Act, Clayton Act, Federal Trade Commission Act, Robinson-Patman Act, Wheeler-Lea Amendments to the FTC Act, Lanham Act, Celler-Kefauver Antimerger Act, and Hart-Scott-Rodino Act. There have been many laws passed to protect the consumer as well. The Consumer Product Safety Commission, the Federal Trade Commission, and the Food and Drug Administration are the three federal agencies most involved in regulating marketing activities. 10 Explain the basics of foreign and domestic competition The competitive environment encompasses the number of competitors a firm must face, the relative size of the competitors, and the degree of interdependence within the industry. Declining population growth, rising costs, and shortages of resources have heightened domestic competition. September 11 had a major negative impact on many industries such as tourism and the airlines. Meanwhile, dwindling international barriers are bringing in more foreign competitors and offering expanding opportunities for U.S. companies abroad.

Terms You Need to Know Terms to Know applied research; baby boomers Chapter 3 Social Responsibility, Ethics, and the Marketing Environment Terms You Need to Know Terms to Know applied research; baby boomers basic research code of ethics component lifestyles Consumer Product Safety Commission (CPSC) corporate social responsibility Demography environmental management Ethics Federal Trade Commission (FTC) Food and Drug Administration (FDA) Generation X and Generation Y inflation Terms and concept you need to become familiar with. Morals multiculturalism purchasing power pyramid of corporate social responsibility Recession sustainability target market

REVIEW LEARNING OUTCOME Corporate Social Responsibility Chapter 3 Social Responsibility, Ethics, and the Marketing Environment REVIEW LEARNING OUTCOME LO1 Sustainability – not part of The Pyramid Ethical Do what is right. Legal Obey the Law. Economic Be profitable. Philanthropic Be a good citizen. The idea that socially responsible companies will outperform their peers by focusing on the world’s social problems and viewing them as opportunities to build profits and help the world at the same time. Discuss corporate social responsibility Responsibility in business refers to a firm’s concern for the long-range welfare of both the company and society. Social responsibility has four components: economic, legal, ethical, and philanthropic. These are intertwined, yet the most fundamental is earning a profit. If a firm does not earn a profit, the other three responsibilities are moot. Most businesspeople believe they should do more than pursue profits. Although a company must consider its economic needs first, it must also operate within the law, do what is ethical and fair, and be a good corporate citizen. The concept of sustainability assumes that socially responsible companies will outperform their peers by focusing on the world’s social problems and viewing them as an opportunity to earn profits and help the world at the same time. Being socially responsibility means doing some good for the company and society.

Ethical Behavior in Business Chapter 3 Social Responsibility, Ethics, and the Marketing Environment Ethical Behavior in Business Ethics Morals The moral principles or values that generally govern the conduct of an individual. The rules people develop as a result of cultural values and norms (our beliefs about right and wrong behavior). Business ethics may be viewed as a subset of the values of society as a whole. The ethical conduct of businesspeople is shaped by societal elements, including family, education, religion, and social movements. As members of society, businesspeople are morally obligated to consider the ethical implications of their decisions – this means all decisions? LO2

Chapter 3 Social Responsibility, Ethics, and the Marketing Environment Joe Camel So cool he was accused of making kids smoke. So, he had to go!!! This ad for Camel cigs was developed in Germany and used around the world. However, my criticized the ad because it was believed it caused young people to smoke. Was this not meeting the social responsibility of the company, or was it unethical?

Ethical Development Levels Chapter 3 Social Responsibility, Ethics, and the Marketing Environment Ethical Development Levels Preconventional Morality Conventional Postconventional More Mature Childlike Based on what will be punished or rewarded Self-centered, calculating, selfish Moves toward the expectations of society Concerned over legality and the opinion of others Concern about how they judge themselves Concern if it is right in the long run Ethical decision making is approached in three basic ways. The first approach examines the consequences of decisions. The second approach relies on rules and laws to guide decision making. The third approach is based on a theory of moral development that places individuals or groups in one of three developmental stages: preconventional morality, conventional morality, or postconventional morality. Many companies develop a code of ethics to help their employees make ethical decisions. A code of ethics can help employees identify acceptable business practices, can be an effective internal control on behavior, can help employees avoid confusion when determining whether decisions are ethical, and can facilitate discussion about what is right and wrong. It appears that what we called the “societal marketing concept” is in keeping with the postconventional morality view. LO2

Ethical Decision Making Chapter 3 Social Responsibility, Ethics, and the Marketing Environment Ethical Decision Making Is Influential Factors Extent of Problems Probability of Harm Top Management Actions Time Until Consequences Potential Consequences Number Affected Because each ones morals and ethics may not be the same, the factors listed in this slide tend to influence ethical decision making and management judgement. Social Consensus LO2

Code of Ethics LO2 Code of Ethics Chapter 3 Social Responsibility, Ethics, and the Marketing Environment Code of Ethics Code of Ethics A guideline to help marketing managers and other employees make better decisions. Most associations, corporations, and organizations develop a written code of ethics – the next side is the code of ethics of the American Marketing Associations for marketers. http://www.ethicsweb.ca Online LO2

Ethical Norms and Values for Marketers Chapter 3 Social Responsibility, Ethics, and the Marketing Environment Ethical Norms and Values for Marketers The code of ethics offered by the American Marketing Association LO2

External Marketing Environment Chapter 3 Social Responsibility, Ethics, and the Marketing Environment LO3 Demographics Social Change Economic Conditions Political & Legal Factors Technology Competition Environmental Scanning Target Market External Environment (uncontrollable) Ever-Changing Marketplace Product Distribution Promotion Price Internal (within the organization) Marketing mix Discuss the external environment of marketing and explain how it affects a firm The external marketing environment consists of social, demographic, economic, technological, political and legal, and competitive variables. Marketers generally cannot control the elements of the external environment. Instead, they must understand how the external environment is changing and the impact of change on the target market. Then marketing managers can create a marketing mix to effectively meet the needs of target customers. These external factors can and do impact the behavior of our consumers in the target market and how we create our marketing mix [the target market – group of people managers feel is most likely to buy the firm’s product, and marketing mix is what we have called our marketing strategy]. Note: The external environmental factors impact marketing decision making, but are not controlled by the company or firm managers. They are uncontrollable by managers, but they might attempt to influence it – such as getting congress to pass a certain law that benefits them.

Social Factors Impacting Marketing Decision Making [the mix] Chapter 3 Social Responsibility, Ethics, and the Marketing Environment Social Factors Impacting Marketing Decision Making [the mix] Values Attitudes Lifestyle Describe the social factors that affect marketing Within the external environment, social factors are perhaps the most difficult for marketers to anticipate. Several major social trends are currently shaping marketing strategies. First, people of all ages have a broader range of interests, defying traditional consumer profiles. Second, changing gender roles are bringing more women into the workforce and increasing the number of men who shop. Third, a greater number of dual-career families has created demand for timesaving goods and services. LO4

Social Factors LO4 Social Factors Influence: Products purchased Chapter 3 Social Responsibility, Ethics, and the Marketing Environment Social Factors Social Factors Influence: Products purchased Prices paid for products Effectiveness of promotions How, where, and when people purchase Social factors impact marketing mix decisions. For an example see the next slide two slides. These two slides show “Betty Crocker,” the Mother of General Mill, Inc. used as a symbol on many of its products. Notice how she has changed from being a “housewife” to “corporate executive” to being more multiculturalism. The change in demographics [more Hispanics] and role of women [more women working outside of the home] in society impacted the product and promotion. LO4

Chapter 3 Social Responsibility, Ethics, and the Marketing Environment

Chapter 3 Social Responsibility, Ethics, and the Marketing Environment

Role of Families and Working Women Chapter 3 Social Responsibility, Ethics, and the Marketing Environment Role of Families and Working Women Growth of dual-income families results in increased purchase power Approximately 63% of work-age females are in the workforce Women expect different things in life purchase bulk of technology products do most of the grocery shopping second largest group of home buyers after couples Single households outnumber married households with kids Component Life Style The practice of choosing goods and services that meet one’s diverse needs and interests rather than conforming to a single, traditional lifestyle. In the past 30 years, one of the greatest changes has been on families and working women – more single families, more women working, more purchase power form many families, and many new products and services to serve these changing life styles. LO4

Demographic Factors LO5 Chapter 3 Social Responsibility, Ethics, and the Marketing Environment Demographic Factors LO5 Demography The study of people’s vital statistics, such as their age, race and ethnicity, and location. Note the definition of demography. The next slide illustrates how changing demographics help define a new market and a new product. Today, several basic demographic patterns are influencing marketing mixes. Because the U.S. population is growing at a slower rate, marketers can no longer rely on profits from generally expanding markets. Marketers are also faced with increasingly experienced consumers among the younger generations such as GenX and GenY. And because the population is also growing older, marketers are offering more products that appeal to middle-aged and elderly markets.

A New Niche Market requires a new niche product!! Chapter 3 Social Responsibility, Ethics, and the Marketing Environment A New Niche Market requires a new niche product!! Note: demographic data shows more and more Americans are obese.

Tweens LO5 Pre- and early adolescents, age 8 to 14 Chapter 3 Social Responsibility, Ethics, and the Marketing Environment Tweens LO5 Pre- and early adolescents, age 8 to 14 Population of 29 million Purchasing power of $39 billion in 2007 View TV ads as “just advertising” Emerging as “the richest generation” and the “most influential generation in history”

Generation Y LO5 Born between 1979 and 1994 Population of 60 million Chapter 3 Social Responsibility, Ethics, and the Marketing Environment Generation Y LO5 Born between 1979 and 1994 Population of 60 million Purchasing power of $200 billion annually Researchers have found Gen Yers to be: Impatient Family-oriented Inquisitive Opinionated Diverse Time managers “Street Smart” Word of mouth marketing is effective Online http://www.mountaindew.com http://www.northface.com

Generation X LO5 Born between 1965 and 1978 Population of 40 million Chapter 3 Social Responsibility, Ethics, and the Marketing Environment Generation X LO5 Born between 1965 and 1978 Population of 40 million Savvy and cynical consumers Time is at a premium, and outsourcing is utilized Entering their money-making years

Baby Boomers LO5 Born between 1946 and 1964 Chapter 3 Social Responsibility, Ethics, and the Marketing Environment Baby Boomers LO5 Born between 1946 and 1964 Population of 77 million—the largest demographic segment $1 trillion in spending power for people aged 50 to 60 Income will continue to grow as they keep working This group is driving the need for more health care products

REVIEW LEARNING OUTCOME Chapter 3 Social Responsibility, Ethics, and the Marketing Environment REVIEW LEARNING OUTCOME LO5 Current Demographic Trends Age Tweens 8 to 14 yrs 29 million Gen Y 1979-1994 60 million Gen X 1965-1978 40 million Baby Boom 1946-1964 77 million

Growing Ethnic Markets Chapter 3 Social Responsibility, Ethics, and the Marketing Environment LO6 Spending power of ethnic markets by 2008: Hispanics: $1 trillion African Americans: $921 billion Asian Americans: $526 billion Diversity can result in bottom-line benefits to companies. Explain the importance to marketing managers of multiculturalism and growing ethnic markets Multiculturalism occurs when all major ethnic groups in an area are roughly equally represented. Growing multiculturalism makes the marketer’s task more challenging. America is not a melting pot but numerous mini-melting pots. Hispanics are the fastest growing segment of the population followed by African Americans. Many companies are now creating departments and committees to effectively target multicultural market segments. Companies have quickly found that ethnic markets are not homogeneous.

Distribution of Consumer Income Chapter 3 Social Responsibility, Ethics, and the Marketing Environment Economic Factors Distribution of Consumer Income Inflation Recession Identify consumer and marketer reactions to the state of the economy Economic factors in the environment affect consumer demand. Marketers follow trends in consumer income to forecast what type of products will be demanded. Inflation, a period of rising prices, tends to make consumers less brand loyal and likely to stock up on sale items. Recession can reduce demand and reduce consumer spending. LO7

Chapter 3 Social Responsibility, Ethics, and the Marketing Environment Consumers’ Incomes Median U.S. household income in 2007 projected at $45,000 Incomes have risen at a slow pace. Education is the primary determinant of earning potential. Consumers are strapped for cash. This is why the USA is a good market. LO7

The Financial Power of Women Chapter 3 Social Responsibility, Ethics, and the Marketing Environment The Financial Power of Women Women bring in half of the household income. Women control 51.3 percent of the private wealth in the U.S. Women control 80 percent of household spending. Women are now the primary buyers in male-dominated categories: 68% of new cars 66% of computers 66% of home improvements 53% of investments 51% of consumer electronics My, my, how things have changed. What might this mean for marketing managers? LO7

Purchasing Power LO7 Definitions Inflation Is Recession Is Purchasing Chapter 3 Social Responsibility, Ethics, and the Marketing Environment Purchasing Power A comparison of the relative cost of a set standard of goods and services in different geographic areas. Purchasing Power Inflation Is Inflation A measure of the decrease in the value of the money, expressed as the percentage reduction in value since the previous year. Recession Is A period of economic activity characterized by negative growth, which reduces demand for goods and services. Recession LO7

Chapter 3 Social Responsibility, Ethics, and the Marketing Environment Research LO8

Technological Factors Chapter 3 Social Responsibility, Ethics, and the Marketing Environment Basic Research Applied Research Pure research that aims to confirm an existing theory or to learn more about a concept phenomenon. An attempt to develop new or improved products U.S. excels at basic and applied research. Many firms use the market concept to guide research. New technology internally creates a long-term competitive advantage. External technology Creates more efficient operation or better products May render existing products obsolete Identify the impact of technology on a firm Monitoring new technology is essential to keeping up with competitors in today’s marketing environment. The United States excels in basic research and, in recent years, has dramatically improved its track record in applied research. Information technology and the Internet have been driving increased U.S. productivity for the past decade. Without innovation, U.S. companies can’t compete in global markets. LO8

Political and Legal Factors Chapter 3 Social Responsibility, Ethics, and the Marketing Environment Political and Legal Factors New technology Society Businesses Consumers Laws and Regulations Protect: Discuss the political and legal environment of marketing All marketing activities are subject to state and federal laws and the rulings of regulatory agencies. Marketers are responsible for remaining aware of and abiding by such regulations. Some key federal laws that affect marketing are the Sherman Act, Clayton Act, Federal Trade Commission Act, Robinson-Patman Act, Wheeler-Lea Amendments to the FTC Act, Lanham Act, Celler-Kefauver Antimerger Act, and Hart-Scott-Rodino Act. There have been many laws passed to protect the consumer as well. The Consumer Product Safety Commission, the Federal Trade Commission, and the Food and Drug Administration are the three federal agencies most involved in regulating marketing activities LO9

Regulate competitive environment Regulate pricing practices Chapter 3 Social Responsibility, Ethics, and the Marketing Environment Federal Legislation Sherman Act Clayton Act Federal Trade Commission Act Celler-Kefauver Antimerger Act Hart-Scott-Rodino Act Regulate competitive environment Robinson-Patman Act Regulate pricing practices Wheeler-Lea Act Control false advertising Basically three types: To regulated competition To Regulate pricing practices Control false advetising LO9

Regulatory Agencies LO9 Consumer Product Safety Commission Chapter 3 Social Responsibility, Ethics, and the Marketing Environment Regulatory Agencies Consumer Product Safety Commission Protects consumer safety in and around their homes Federal Trade Commission Prevents unfair methods of competition in commerce Food & Drug Administration Enforces safety regulations for food and drug products Online http://www.ftc.gov LO9

Cease-and-Desist Order Affirmative Disclosure Corrective Advertising Chapter 3 Social Responsibility, Ethics, and the Marketing Environment Powers of the FTC Cease-and-Desist Order Consent Decree Affirmative Disclosure Corrective Advertising Restitution Counteradvertising LO9

Control Competitive Factors LO10 How many competitors? Chapter 3 Social Responsibility, Ethics, and the Marketing Environment Competitive Factors How many competitors? How big are competitors? How interdependent is the industry? Control Explain the basics of foreign and domestic competition The competitive environment encompasses the number of competitors a firm must face, the relative size of the competitors, and the degree of interdependence within the industry. Declining population growth, rising costs, and shortages of resources have heightened domestic competition. September 11 had a major negative impact on many industries such as tourism and the airlines. Meanwhile, dwindling international barriers are bringing in more foreign competitors and offering expanding opportunities for U.S. companies abroad. LO10

Chapter 3 Social Responsibility, Ethics, and the Marketing Environment Learning Outcomes – Now you should be familiar with Social Responsibility, Ethics , and The Marketing Environment Ch 3 1. Discuss corporate social responsibility 2. Describe the role of ethics and ethical decisions in business 3. Discuss the external environment of marketing, and explain how it affects a firm 4. Describe the social factors that affect marketing 5. Explain the importance to marketing managers of current demographic trends 6.Explain the importance to marketing managers of multiculturalism and growing ethnic markets 7. Identify consumer and market reactions to the state of the economy 8. Identify the impact of technology on a firm 9. Discuss the political and legal environment of marketing 10. Explain the basics of foreign and domestic competition 1 Discuss corporate social responsibility Responsibility in business refers to a firm’s concern for the way its decisions affect society. Social responsibility has four components: economic, legal, ethical, and philanthropic. These are intertwined, yet the most fundamental is earning a profit. If a firm does not earn a profit, the other three responsibilities are moot. Most businesspeople believe they should do more than pursue profits. Although a company must consider its economic needs first, it must also operate within the law, do what is ethical and fair, and be a good corporate citizen. The concept of sustainability is that socially responsible companies will outperform their peers by focusing on the world’s social problems and viewing them as an opportunity to earn profits and help the world at the same time. 2 Describe the role of ethics and ethical decisions in business Business ethics may be viewed as a subset of the values of society as a whole. The ethical conduct of businesspeople is shaped by societal elements, including family, education, religion, and social movements. As members of society, businesspeople are morally obligated to consider the ethical implications of their decisions. Ethical decision making is approached in three basic ways. The first approach examines the consequences of decisions. The second approach relies on rules and laws to guide decision making. The third approach is based on a theory of moral development that places individuals or groups in one of three developmental stages: preconventional morality, conventional morality, or postconventional morality. Many companies develop a code of ethics to help their employees make ethical decisions. A code of ethics can help employees identify acceptable business practices, can be an effective internal control on behavior, can help employees avoid confusion when determining whether decisions are ethical, and can facilitate discussion about what is right and wrong. 3 Discuss the external environment of marketing and explain how it affects a firm The external marketing environment consists of social, demographic, economic, technological, political and legal, and competitive variables. Marketers generally cannot control the elements of the external environment. Instead, they must understand how the external environment is changing and the impact of change on the target market. Then marketing managers can create a marketing mix to effectively meet the needs of target customers. 4 Describe the social factors that affect marketing Within the external environment, social factors are perhaps the most difficult for marketers to anticipate. Several major social trends are currently shaping marketing strategies. First, people of all ages have a broader range of interests, defying traditional consumer profiles. Second, changing gender roles are bringing more women into the workforce and increasing the number of men who shop. Third, a greater number of dual-career families has created demand for timesaving goods and services. 5 Explain the importance to marketing managers of current demographic trends Today, several basic demographic patterns are influencing marketing mixes. Because the U.S. population is growing at a slower rate, marketers can no longer rely on profits from generally expanding markets. Marketers are also faced with increasingly experienced consumers among the younger generations such as GenX and GenY. And because the population is also growing older, marketers are offering more products that appeal to middle-aged and elderly markets. 6 Explain the importance to marketing managers of multiculturalism and growing ethnic markets Multiculturalism occurs when all major ethnic groups in an area are roughly equally represented. Growing multiculturalism makes the marketer’s task more challenging. America is not a melting pot but numerous mini-melting pots. Hispanics are the fastest growing segment of the population followed by African Americans. Many companies are now creating departments and committees to effectively target multicultural market segments. Companies have quickly found that ethnic markets are not homogeneous. 7 Identify consumer and marketer reactions to the state of the economy Economic factors in the environment affect consumer demand. Marketers follow trends in consumer income to forecast what type of products will be demanded. Inflation, a period of rising prices, tends to make consumers less brand loyal and likely to stock up on sale items. 8 Identify the impact of technology on a firm Monitoring new technology is essential to keeping up with competitors in today’s marketing environment. The United States excels in basic research and, in recent years, has dramatically improved its track record in applied research. Information technology and the Internet have been driving increased U.S. productivity for the past decade. Without innovation, U.S. companies can’t compete in global markets. 9 Discuss the political and legal environment of marketing All marketing activities are subject to state and federal laws and the rulings of regulatory agencies. Marketers are responsible for remaining aware of and abiding by such regulations. Some key federal laws that affect marketing are the Sherman Act, Clayton Act, Federal Trade Commission Act, Robinson-Patman Act, Wheeler-Lea Amendments to the FTC Act, Lanham Act, Celler-Kefauver Antimerger Act, and Hart-Scott-Rodino Act. There have been many laws passed to protect the consumer as well. The Consumer Product Safety Commission, the Federal Trade Commission, and the Food and Drug Administration are the three federal agencies most involved in regulating marketing activities. 10 Explain the basics of foreign and domestic competition The competitive environment encompasses the number of competitors a firm must face, the relative size of the competitors, and the degree of interdependence within the industry. Declining population growth, rising costs, and shortages of resources have heightened domestic competition. September 11 had a major negative impact on many industries such as tourism and the airlines. Meanwhile, dwindling international barriers are bringing in more foreign competitors and offering expanding opportunities for U.S. companies abroad.

Now Take the practice quiz Chapter 3 Social Responsibility, Ethics, and the Marketing Environment Now Go to www.mktg4me.com and review the flash cards. Take the practice quiz Explore other aspects of this site for chapter 3 Take the Chapter 3 quiz in the allocated time