Welcome to the World of Marketing Dr. Chun-Tuan Chang (07) ext

LECTURE ETIQUETTE MOBILE MANNERS SWITCH OFF MOBILE PHONES IN LECTURES INC. 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 services of value with others” Source: Kotler (2003) p.9

Marketing as an Exchange Relationship 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 consumer’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 Ethics Ethics: 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 Few Social Goods Cultural Pollution Marketing’s Perceived Negative 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 Few Social Goods 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 Sale The Right to Expect the Product to be Safe The Right to Expect the Product to Perform as Claimed The Right to Be Protected Against Questionable Products The Right to Be Heard About “Quality of Life” Issues The 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 Environmental Technologies Adopt Design for the Environment Practices Have a Sustainability Vision Practice Product Stewardship Practice Pollution 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.Arbor Day Foundation

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 Ethics Principles 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?