Principles of Marketing Lecture-43

Summary of Lecture-42

e-Marketing

The Birth of the Internet

The Role of the Internet in Marketing

Definitions E- Commerce E-Marketing E-Business

Rules of E-Marketing

Basic Forms of Virtual Business

Business-to-Consumer (B2C) Business-to-Consumer (B2C) Basic Forms of Electronic Commerce Basic Forms of Electronic Commerce Business-to-Business (B2B) Business-to-Business (B2B)

Decision Variables of the Marketing Mix

Catch for Pakistani Business

Today’s Topics

Marketing and Society

Current Issues in Marketing

The current issues and marketing can be divided into two major subjects: – Ethics – Social responsibility The two concepts are very closely related

Marketing Ethics

Marketers’ standards of conduct and moral values. People develop standards of ethical behavior based on their own systems of values and that may differ from employers organizational ethics, which, produces conflicts

Social Criticisms of Marketing

High Prices High Prices Shoddy or Unsafe Products Shoddy or Unsafe Products Poor Service Poor Service Deceptive Practices Deceptive Practices Planned Obsolescence Planned Obsolescence High Pressure Selling High Pressure Selling Marketing’s Impact on Individual Consumers

Marketing’s Impact on Society

Too Few Social Goods Too Few Social Goods False Wants and Too Much Materialism False Wants and Too Much Materialism Too Much Political Power Too Much Political Power Cultural Pollution Cultural Pollution The Marketing Function is Accused by Society of Creating:

Ethical Questions in Marketing

Product Planned obsolescence Product quality and safety Product warranties Fair packaging and labeling Pollution

Packages larger than necessary to gain shelf space Odd-sized packages to complicate price comparisons Product testing on animals

Price Price fixing Price discrimination Price increases Deceptive pricing

Distribution Exclusive territories Dumping Dealer rights Predatory competition

What degree of control should the firm exert over its channel? Should a company distribute its products in marginally profitable outlets that lack alternative sources of supply?

Promotion Bait-and-switch advertising Promotional allowances Bribery

Promotion gives rise to more ethical questions than other components of the marketing mix. Advertising does everything from simple exaggeration to outright deceit (car advertisements where the fine print is so small you can’t read it.).

Marketing’s Impact on Other Businesses

Critics Charge that a Company’s Marketing Practices Can Harm Other Companies and Reduce Competition Through..

Acquisitions of Competitors Acquisitions of Competitors Marketing Practices that Create Barriers to Entry Marketing Practices that Create Barriers to Entry Unfair Competitive Marketing Practices Unfair Competitive Marketing Practices

Marketing Ethics

Customer Service Customer Service Pricing Distributor Relations Distributor Relations General Code General Code Product Development Product Development Advertising Standards Advertising Standards Corporate Marketing Ethics Policies Corporate Marketing Ethics Policies

Consumerism

The Right to Be Safe The Right to Be Informed The Right to Be Heard The Right to Choose Basic Consumer Rights

Social Responsibility

The collection of marketing philosophies, policies, procedures, and actions intended primarily to enhance society’s welfare. Social responsibility allows for easier measurement than marketing ethics. Government legislation can mandate socially responsible actions.

Contemporary marketing decisions must consider the entire societal framework, not only in your own country but also throughout the world. Marketing decisions must also account for their eventual, long- term effects and for their results for future generations.

Marketing and ecology

Ecology - the relationship between organisms and their natural environments Examples: garbage disposal, acid rain, depletion of the ozone layer, global warming, and contamination of the air and water.

Enlightened Marketing

Consumer-Oriented Marketing Innovative Marketing Value Marketing Sense-of-Mission Marketing Societal Marketing

Society (Human Welfare) Society (Human Welfare) Consumers (Satisfaction) Consumers (Satisfaction) Company (Profits) Company (Profits) Societal Marketing Concept Societal Marketing Concept

Principles For Public Policy Toward Marketing

Key Principles for a Public Policy Toward Marketing Key Principles for a Public Policy Toward Marketing Economic Efficiency Economic Efficiency Meeting Basic Needs Meeting Basic Needs Innovation Curbing Potential Harm Curbing Potential Harm Consumer Education Consumer Education Consumer Protection Consumer Protection Consumer and Producer Freedom Consumer and Producer Freedom

Society (Human Welfare) Society (Human Welfare) Consumers (Satisfaction) Consumers (Satisfaction) Company (Profits) Company (Profits) Societal Marketing Concept Societal Marketing Concept

Enough for today...

Summary

Marketing and Society

The current issues and marketing can be divided into two major subjects: – Ethics – Social responsibility The two concepts are very closely related

Social Criticisms of Marketing

High Prices High Prices Shoddy or Unsafe Products Shoddy or Unsafe Products Poor Service Poor Service Deceptive Practices Deceptive Practices Planned Obsolescence Planned Obsolescence High Pressure Selling High Pressure Selling Marketing’s Impact on Individual Consumers

Marketing’s Impact on Society

Too Few Social Goods Too Few Social Goods False Wants and Too Much Materialism False Wants and Too Much Materialism Too Much Political Power Too Much Political Power Cultural Pollution Cultural Pollution The Marketing Function is Accused by Society of Creating:

Ethical Questions in Marketing

Customer Service Customer Service Pricing Distributor Relations Distributor Relations General Code General Code Product Development Product Development Advertising Standards Advertising Standards Corporate Marketing Ethics Policies Corporate Marketing Ethics Policies

Social Responsibility

Society (Human Welfare) Society (Human Welfare) Consumers (Satisfaction) Consumers (Satisfaction) Company (Profits) Company (Profits) Societal Marketing Concept Societal Marketing Concept

Next….

Review

Principles of Marketing Lecture-43