Social Responsibility - Basic Marketing - Lecture Slides, Slides of Marketing

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SOCIAL RESPONSIBILITY

ANDTHE MARKETING

ENVIRONMENT

Some Ethical Issues

• Misleading advertisements

and marketing in general

• Taking advantage of consumer

ignorance

• Marketing of harmful

products

• Physically dangerous
• Over-consumption; marketing

to people living above their

means

• Marketing of products banned

or not marketed in the U.S. to

other countries

Sponsored Fundraising

• Non-profit groups currently spend a large proportion of their revenue on fundraising
• “Sponsored Fundraising:” Fund raising efforts could be done by firms on behalf of the charitable group - Firm sends and pays for letter on behalf of organization - Firm gets promotional benefit - Charity saves money and improves credibility
• Obstacles: Privacy concerns; matching of firms and relevant charities

Promotional Events

• A large retail chain might

sponsor a concert series by

paying all expenses in return

for considerable publicity

• Triple “win-win-win” deal:

• The charity receives the proceeds without having to pay costs
• The sponsor receives publicity. Tickets are bought in the store or on its web site.
• An aging artist—whose fans are now in their prime earning years—gets an opportunity to revive a career or promote a new venture (e.g., movie role)

IN-CLASS ASSIGNMENT

In teams of your choice (any size from 1 to the whole section is fine), please identify a way in which a firm of your choice may be able to profit on some socially responsible action.

Please prepare a brief (1-3 minute) presentation to the rest of the class on what you concluded, including:

• The social benefit that you expect to result.
• The way in which the firm will make money on this, either in the short or long run.
• Any specifics that you have discussed.

The team can present either as a whole or have one or several people do the talking.

THE MARKETING ENVIRONMENT

• Culture
• Demographics
• Social
• Technology
• Economic
• Political and Legal

Factors

DEMOGRAPHICS

• Distribution of people across statistical

categories

– Occupation

– Income

– Ethnicity  Language usage

– Age  Birth rates

– Residence (e.g., urban/rural)

SOCIAL FACTORS

• Values—tensions

• Value of privacy vs.

security

• “Green” products vs.
  • Cost
  • Convenience
  • Performance

• “Component

lifestyles”

• Demographic changes

TECHNOLOGICAL FORCES

• Internet/Communications
  • Direct consumer-consumer

communication

• Information search opportunities
• Growth of “portables”
• Manufacturing
• Increased global scope of competition

due to easier entry

• Greater competition for quality, selection
• Emerging industries and obsolescence (shortening technology life cycles)

POLITICAL AND LEGAL FACTORS

• Political
  • Special interests and lobbying
  • Response to crises  legislation, regulation
• Legal
  • Consumer Protection Laws
    • Truth in Lending
    • Deceptive Advertising
    • Product Safety
  • Antitrust (fair competition) will be covered under pricing
  • Laws relating to international trade will be covered under international marketing

INFLUENCES ON THE FIRM AND ITS CHOICES

ENVIRONMENT

FIRM

PROFIT PRESSURE

SOCIAL RESPONSIBILITY

OPPORTUNITIES

RESOURCES

SOCIAL

ECONOMIC

TECHNOLOGY

LEGAL/POLITICAL

DEMOGRAPHICS

CULTURE