Ch 3 & 4: The Marketing Environment and Ethics

** TYPE Homework Assignment for Thursday **

A week 1/2 from today we have a first exam (Sept 20)

50 multiple choice exam, use small scantron

Tweet about good GameStop experience

(not all is covered, so only read book sections that are covered on notes)

External Marketing Environment

These six factors play a role in trying to get to our target market.

The first one is

Social Factors

1 - Attitudes

2 - Values

3 - Lifestyles

"we all have different perceptions of values"

1. Attitudes Influence:

- Product purchased

- prices paid for products (because I like mini-vans, I'd pay more for one than you would)

- effectiveness of promotion (Coke fans see Pepsi commercials.. what do I do? I pull it apart)

- How, where, and when people purchase

Target marketing may be more effective if we target attitudes rather than 'Males under 25' demographics

2. Component Lifestyles

The practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single, traditional lifestyle.

We can market to these clusters of lifestyles if several clusters like our product, bam.

Economic Factors

- Distribution of Consumer Income

- Inflation

- Recession

Technological Factors

uMany firms use the market concept to guide research.  

uNew technology internally creates a long-term competitive advantage.

uExternal technology

uCreates more efficient operation or better products

uMay render existing products obsolete

UPC Codes..does Walmart count all those KoolAid flavors? nope. Technology such as UPC codes have changed the way we do (inventory,checkout) business.

Political and Legal Entities

- Federal Legislation

- Regulatory Agencies (ex. FCC, FTC, FDA)

- State Laws

- Local Legislations

Laws and Regulations Protect:

- New technology

- Society

- Businesses

- Consumers

(i'm not gonna ask you specific laws on the test)

the last of the six factors are

Competitive Factors

- How many competitors?

- How big are competitors?

- How interdependent is the industry?

Always changing, and no control (over competitive factors).

Think broadly about your competitors - don't limit/narrow yourself.

== ETHICAL BEHAVIOR IN BUSINESS ==

Ethics

The moral principles or values that generally govern the conduct of an individual.

Morals

The rules people develop as a result of cultural values and norms.

Most people of one culture have similar morals, but can have very different ethics.

Morals involve "good" and "bad" as well as "deviant"  behaviors.

Ethical Development Levels

Creating Ethical Guidelines

A Code of Ethics:

§Helps identify acceptable business practices

§Helps control behavior internally

§Avoids confusion in decision making

§Facilitates discussion about right and wrong

"You have to understand what's important to you"

Think about the impacts.

Pyramid of Corporate Social Responsibility

 

Arguments Against Social Responsibility

§Businesses should focus on making a profit and leave social and environmental concerns to nonprofits.

Milton Friedman argued that the free market, and not companies, should decide what is best for the world—socially responsible companies are using shareholders' money to further their own agendas.

Green Marketing

§The development and marketing of products designed to minimize negative effects on the environment or improve the environment.

–Environmentally aware customers pay more for products

–Companies must try to educate customers of environmental benefits

Did In-class Assignment