1. Key Concepts

2.  Corporate Social Responsibility

3. Corporate Social Responsibility Ethical Do what is right. Legal Obey the Law. Economic Be profitable. Philanthropic Be a good citizen.

4. 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.

5. A guideline to help marketing managers and other employees make better decisions. Code of Ethics

6.  Dot.com bubble of 1990s  Enron  Madoff  Subprime crisis  Financial institutions - AIG, Wachovia, Lehman Brothers, Merrill Lynch and Citigroup  GREED ** IRRESPONSIBILITY  GLOBAL CRISIS

7.  Helps identify acceptable business practices  Helps control behavior internally  Avoids confusion in decision making  Facilitates discussion about right and wrong

8. Demographics Social Change Social Change Economic Conditions Economic Conditions Political & Legal Factors Political & Legal Factors Technology Competition Environmental Scanning Target Market External Environment (uncontrollable) Ever-Changing Marketplace Product Distribution Promotion Price Product Distribution Promotion Price Internal (within the organization) Marketing mix

9. A defined group most likely to buy a firm’s product. Target Market

10.  Social factors that affect marketing

11. Values Attitudes Lifestyle

12. Social Factors Influence: Products purchased Prices paid for products Effectiveness of promotions How, where, and when people purchase

13. Self-Sufficiency Upward Mobility Work Ethic Conformity Core American Values

14. Ranked Characteristics of Product Quality Reliability Durability Easy maintenance Ease of use Trusted brand name Low price

15.  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

17. Demography The study of people’s vital statistics, such as their age, race and ethnicity, and location.

18. 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”

19.  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 http://www.mountaindew.com http://www.northface.com

20.  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

21.  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

22. 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

23. The importance of multiculturalism and growing ethnic markets to marketing managers

24.  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.

25.  The population’s diversity creates challenges for targeting this group.  Hispanics tend to be brand loyal, but are not aware of many U.S. brands.  Nearly half of adult U.S. Hispanics have home Internet access.

26.  Many firms are creating products for the African American market.  Promotional dollars and media choices directed toward African Americans continue to increase.

27.  Younger, better educated, and have highest average income of all groups  Many products have been developed for Asian American market.  Cultural diversity within the Asian American market complicates promotional efforts.

29.  Consumer and marketer reactions to the state of the economy

30. Economic Factors Distribution of Consumer Income Inflation Recession

31. Consumers’ Incomes LO 7  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.

32. 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

33. Recession A period of economic activity characterized by negative growth, which reduces demand for goods and services. Recession

34. Recession Marketing Strategies  Improve existing products and introduce new ones  Maintain and expand customer services  Emphasize top-of- the-line products and promote product value

35.  The impact of technology on a firm

36. Technological Factors  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

37. Technological Factors  Innovation is becoming a global process.  New technologies create new opportunities  RSS (Really Simple Syndication)  Blogging

38. Basic Research Basic Research Marketing Mix Applied Research Applied Research Technology Advances

39. Political and Legal Factors  New technology  Society  Businesses  Consumers Laws and Regulations Protect:

40. Federal Legislation Sherman Act Clayton Act Federal Trade Commission Act Celler-Kefauver Antimerger Act Hart-Scott-Rodino Act 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

41. Regulatory Agencies Consumer Product Safety Commission Federal Trade Commission Food & Drug Administration Protects consumer safety in and around their homes Prevents unfair methods of competition in commerce Enforces safety regulations for food and drug products http://www.ftc.gov

42. Powers of the FTC Cease-and-Desist Order Consent Decree Affirmative Disclosure Corrective Advertising Restitution Counteradvertising

43. Consumer Privacy  Gramm-Leach-Bliley Act  Health Insurance Portability and Accountability Act (HIPPA)  California’s Notice of Security Breach Law Government Actions Government Actions