1. Social Responsibility and Ethics Unit Two

3. Marketing Affects Businesses Positive BeliefsNegative Beliefs Helps businesses find customers Helps businesses sell products profitably Adds too much to the cost of products Encourages people to buy things they really do not want/need

4. Customer Satisfaction Companies that use the marketing concept benefit more o Marketing is used to identify and understand customers Through marketing research, businesses determine customer needs, attitudes, likes, and dislikes o Determine the best way to promote their product

5. Marketing Helps People Individuals benefit from marketing b/c it improves the exchanges that occur between businesses & consumers Better products at a lower cost o Improvements are made, sales increase, prices are lowered Enhanced Social Interaction o Provides raw materials to help develop a sense of who they are Expanded Opportunities o 1/4 - 1/3 of all jobs in the U.S. involved marketing

6. Marketing Benefits Society New and better products o Natural resources & raw materials can be used more efficiently Improved standards of living o Better access to resources More awareness of important issues o Safety issues, public service announcements Improved international trade o Determines where products can be sold and how to sell them

7. Common Complaints of Marketing If not used appropriately, marketing can have negative effects Unneeded purchases o How many times have you bought something and later realized you really didn’t need/want it? Social problems o Obesity, anorexia, low self-esteem, depression… Wastes money o Marketing activities costs about 50% of the price of products It is not always needed

9. Consumer Protection Businesses are expected to be socially responsible and to aid in solving the problems facing society o Social Responsibility : concern about the consequences of actions on others Most businesspeople realize their business cannot be successful in the long run if society is facing major problems

10. Consumerism Consumerism : the organized actions of groups of consumers seeking to increase their influence on business practices o Protecting consumer rights Consumer Bill of Rights (1960s) o The right to adequate and accurate information o The right to safe products o The right to produce choices o The right to communicate their ideas & opinions to businesses & gov’t

11. Consumerism Cont. Some ways used to protect consumer rights: o Consumer education o Consumer information o Lobbying Lobbyist work with national & state legislators to develop laws o Product boycotts An organized effort to influence a company by refusing to purchase its products

12. Government Regulation The welfare of consumers is affected by many of the laws & regulations set forth by gov’t Designed to improve the social impact of business practices Businesses must comply with consumer protection laws or risk fines and a loss of business

13. Improving Practices Codes of ethics o Ethics : moral principles or values based on honesty and fairness o Code of Ethics : a set of standards or rules that guide ethical business behavior The inappropriate or illegal behavior of one company can have a negative effect on the industry Self-regulation o Taking personal responsibility for actions o Better Business Bureau, consumer service dept. Social Action o Invest time and money to help their communities

14. American Marketing Association Code of Ethics

15. Ethics in Marketing Responsibility to customers o What is best for the business, its employees, customers, competitors, & society in general? o Recalls and refunds? Harm and accountability o Emphasis must be on what is best for everyone in an exchange o Customers want to believe they are being treated fairly