MARKETING MARKETING © South-Western Thomson CHAPTER 2 Marketing Impacts Society The Impact of Marketing Criticisms of Marketing Increasing Social Responsibility

MARKETING MARKETING © South-Western Thomson 2 Marketing Affects Businesses Critical business function Customer satisfaction

MARKETING MARKETING © South-Western Thomson 3 Marketing Helps People Better products at lower cost Expanded opportunities

MARKETING MARKETING © South-Western Thomson 4 Marketing Concept Customer Satisfaction Production and Marketing Costs

MARKETING MARKETING © South-Western Thomson 5 Marketing Benefits Society New and better products Better standards of living Promotes international trade

MARKETING MARKETING © South-Western Thomson 6 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

MARKETING MARKETING © South-Western Thomson 7 Common Complaints Causes unneeded purchases Wastes money Some products don’t need marketing

MARKETING MARKETING © South-Western Thomson 8 Total product price (100%) Product Price Average cost of all marketing activities (50%) Average cost of sales and advertising (2 – 10%) The Typical Costs of Marketing

MARKETING MARKETING © South-Western Thomson 9 Marketing Solves Problems Marketing increases public awareness Marketing helps match supply with demand

MARKETING MARKETING © South-Western Thomson 10 Consumer Protection The growth of consumerism Consumerism Government regulation

MARKETING MARKETING © South-Western Thomson 11 Social Responsibility Must Be Shared BUSINESS GOVERNMENT CONSUMER GROUPS

MARKETING MARKETING © South-Western Thomson Federal Acts (page 45) Sherman Antitrust Act, 1890 Food and Drug Act, 1906 Federal Trade Commission Act, 1914 Robinson-Patman Act, 1936 Fair Packaging and Labeling Act, 1966 Consumer Credit Protection Act, 1968 Consumer Product Safety Act, 1972 American with Disabilities Act, 1990 Telemarketing and Consumer Fraud and Abuse Prevention Act, 1994 Millennium Digital Commerce Act,

MARKETING MARKETING © South-Western Thomson 13 Improving Practices Codes of ethics Self-regulation Social action

MARKETING MARKETING © South-Western Thomson 14 Responsibilities of the Marketer In product development and management In promotions In distribution In pricing In marketing research

MARKETING MARKETING © South-Western Thomson 15 Responsibilities of the Marketer Product development and management Disclosing all substantial risks associated with a product or service Identifying substitutions that change the product or impact buying decisions Identifying extra cost-added features

MARKETING MARKETING © South-Western Thomson 16 Responsibilities of the Marketer Promotions Avoiding false and misleading advertising Rejecting high-pressure or misleading sales tactics and promotions

MARKETING MARKETING © South-Western Thomson 17 Responsibilities of the Marketer Distribution Not exploiting customers by manipulating the availability of a product Not using coercion Not exerting undue influence over the reseller’s choice to handle a product

MARKETING MARKETING © South-Western Thomson 18 Responsibilities of the Marketer Pricing Not engaging in price fixing Not practicing predatory pricing Disclosing the full price associated with any purchase

MARKETING MARKETING © South-Western Thomson 19 Responsibilities of the Marketer Marketing research Prohibiting selling or fundraising disguised as conducting research Avoiding misrepresentation and omission of pertinent research data Treating clients and suppliers fairly

MARKETING MARKETING © South-Western Thomson 20 Ethics in Marketing? Responsibility to customers Harm and accountability