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Marketing 3

Ethics and the Marketing Environment

Ethics and the Marketing Environment - 3

Corporate Social Responsibility Ethical Behavior in Business External Environment Social Forces Technological Factors Political and Legal Factors
3.1

Corporate Social Responsibility (CSR)

Sustainability
Must have a healthy society to sustain business.

Pyramid of CSR
Economic

Be profitable. Must survive.


Obey the law. Do what is right, just and fair. Avoid harm. Good corporate citizen. Contribute resources to community.
3.18

Legal

Ethical

Philanthropic

Marketing Ethics I

Definition

???

3.15

Marketing Ethics II

Definition
Moral principles or values that generally govern the conduct of an individual or group. The standard of behavior by which conduct is judged.

3.15

Marketing Ethics III

Morals
Rules that people develop as a result of cultural values and norms. A foundation of ethical behavior.

3.15

Marketing Ethics IV

Developing a personal set of ethics


Consequence based
Who is helped/hurt? How long will consequences last? Greatest good for greatest number of people.

3.15

Marketing Ethics V

Developing a personal set of ethics


Rules based
Customs Laws Professional standards Common sense

Do unto others

3.15

Marketing Ethics VI

Developing a personal set of ethics


Moral character development
Pre-conventional Morality: Will I be punished or rewarded? (Most primitive.) Conventional Morality: What does society view my behavior? Post-conventional Morality: Regardless of what others think, what is right and wrong?

3.15

Marketing Ethics VII

Why worry about ethics?

Difficulties with ethics

3.15

Ethical Guidelines

Code of Ethics
More than Stay out of jail. Can set standard, control behavior and decisions, minimize confusion. Must train employees. Must live up to code.

Enron had a 65 page code of ethics. See Exhibit 3.2, pg. 74


3.16

Ethical Checklist

Fuel vs. Food

Biofuel raises global dilemmas.doc

The Marketing Environment I


Uncontrollable Must be monitored

Environmental Scanning

Must be anticipated Always changing, dynamic, constant state of flux. Affects customer demand and how to satisfy that demand.

3.2

The Marketing Environment II

Social Change Economic Conditions Political/Legal Competition Demographics Technology

3.2

Major Factors Affecting Marketing


Change is constant
and rapid global

Quality isnt optional,


its standard individual

Competition is Technology is

Focus is on the
Ethical and social responsibility

dramatically changing marketing exchanges

Collaboration is
as important as competition
3.3

Managing the Marketing Environment


Reactive: taking steps to adapt to environmental factors that can not be controlled or influenced

Proactive: seek ways to influence your environment when you think you can influence certain factors
3.4

Analyzing the Environment

Environmental scanning

Identify opportunities and threats

Make decisions based on the gathered information


3.5

Social Forces

American Values
Self sufficiency; upward mobility, work ethic, equality Time dependent Values influence purchasing

Component Lifestyles
Banker/Gourmet/athlete

Changing Role of Family/Women


Working Women Later, Smaller/No Families Dinks
3.6

Demographic Factors

Demography Age, race, ethnicity, education, location Generation Y 1979 1994 Generation X 1965 1978 Baby Boomers 1946 1964
(YEAH Baby!!!)

Older consumers Population Shifts

3.7

Demographic Factors

Growing ethnic markets


Hispanic (12.5%) $900 B African American (12.3%) $850 B Asian American (3.6%) $455 B

U.S. Population by Race and Ethnic Group


2003 Asian 4% African American 12% Hispanic 12% American Indian 1% White 71% 2025 6% 13% 18% 1% 62% 2050 8% 14% 24% 1% 53%

3.8

Marketing Implications of Multiculturalism

Multiculturalism
US is becoming more diverse

Research is important More specialized marketing More diversity in mainstream marketing

3.10

Economic Factors
Rising incomes
National, Global

Purchasing power
Inflation Recession
3.11

Technological Factors

Information technology

Internet

Research
3.12

Political and Legal Environment


Federal Laws State Laws Regulatory Agencies


FTC FDA

3.13

Competitive Factors

Market Share and Profits

Domestic
Global
Impact of Terrorism on business
3.14