1. Socially Responsive Marketing
Chapter 2

2. Marketing affects businesses
Marketing helps businesses find customers and sell their products and services profitability
Marketing is responsible for the activities leading to the exchange of a business’s products and services for the customers money
The marketing functions are needed to make the exchange possible.
Marketing is used to identify and understand the customer
Through research businesses are able to determine customer needs, attitudes, likes, and dislikes
Then the business can develop P&S that meet the needs of the customer and earn a profit

3. Marketing Helps People
Marketing helps satisfy needs and wants
Manufacturers developing a new brand of laundry detergent will make better decisions if they are aware of what consumers like and dislike about the current brand
It also helps make better decisions about what to sell and how to sell it
EX - The manager of a clothing store will want to know what consumers are expecting in terms of styles and prices before purchasing new items to sell
When customers needs and wants are met, they are more likely to be loyal and continue to purchase from the business

4. Marketing helps people
Individuals benefit from marketing because it improves the exchange between business and customers
Here is an example of its value
Consider going to a supermarket to buy party supplies
You want the store to be conveniently located, adequately supply decorations, drinks, snacks, have easily located products, prices clearly marked, etc…
Each of those activities is an example of marketing, and make it easier for you to shop
The business benefits because you purchase the product, and you benefit because your needs were satisfied

5. 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

6. Criticisms of marketing
Common Complaints
If not used appropriately marketing can have negative effects
This can/has lead to a negative image for some marketing activities
If a consumer has a negative opinion about a business, it can affect whether or not they will be customers
Know the two examples we went over in class (Gerber and Toyota) and be able to describe the incidents – ON TEST

7. Marketing wastes money
All marketing activities are about 50% of the price of products
Some products % are higher – while other products % are smaller
Promotion and selling are only 2-10% of the products price...
Marketing actually lowers product prices in the long run (Question on Test!!!!!!!!!!!!!!)
Because of marketing, products can be sold to more customers
This in turn creates more competition
When consumers have more choices, they usually buy reasonably priced items
This encourages businesses to keep prices as low as possible to be competitive

8. Marketing solves problems
If misused marketing can have negative results, but if used effectively it can be positive
Concerns about health care, crime levels, poverty etc…all require the attention of many people if solutions are to be found
Marketing can help in several ways
Through communication people are more aware and informed
Consider the # of times you have received information about seat belts, recycling, drugs & alcohol
Marketing is responsible for these public serve announcement

9. Marketing helps match supply with demand
Products & Services are not always available when consumers need them
Ex- if there is a drought in one part of the country, farmers may not have enough hay and grain to feed their livestock. At the same time, there might be excess supply in other areas
An effective distribution system can move the hay and grain quickly from one part to the other…matching supply and demand

10. Consumer protection
The trend today is greater expectation for businesses to be socially responsible and to aid in solving problems facing society
Social responsibility comes into affect
When making decisions, business people realize that they must consider factors beyond what their customers want
Increasing social responsibility of a business is occurring three major ways…

11. 1) Growth of consumerism
Consumerism - Organized actions of groups of consumers seeking to increase their influence on business practices
Consumers have little influence alone, but when organized as a group consumers have a much greater impact
Septa Strike
Teacher Strike
Students Strike??
Consumer bill of rights
Right to adequate information, safe products, product choices & to communicate ideas and opinions

12. 2) Government regulation
Government regulation- Make laws designed to improve social impact of business practices
Businesses must comply with consumer protection laws or risk fines and a loss of business

13. 3) Improving business practices
Improving business practices- Business recognize their responsibility to consumers and to society because …
If a social problem exists the government may increase tax to pay for programs
Business do not want increase regulation of taxes

14. Code of ethics
What is the definition of ethics, and why do businesses adopt a code of ethics? (This is on your Ch. 2 TEST)
Ethics: What you believe to be right or wrong
Encourages honest and proper conduct
AMA (American Marketing Association) agree on standards of conduct to encourage this responsible behavior
Codes can be influence by penalties by the industry
AMA describes specific responsibilities for marketers in the 4 P’s area

15. Self regulation
Self-Regulation – Business developed procedures to respond to consumer problems and to encourage customers to work directly with businesses to solve them
Is taking personal responsibility for ones actions
The Better Business Bureau is a consumer protection organization

16. miscellaneous
Businesses that use the marketing concept use marketing to identify and understand its customers
The Better Business Bureau is a consumer protection organization sponsored by businesses
The following marketing techniques often results in consumers making unneeded purchases
offering consumers a wide number of choices
attractive display and packaging
credit and special financing arrangements

17. Miscellaneous Marketing should start with good products
Successful businesses value long-term relationships with customers.
Increased sales volume and competition result in lower prices for consumers.