Chapter 21 Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges For use only with Perreault/Cannon/ McCarthy texts, © 2009 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin www.mhhe.com/fourps At the end of this presentation, you should be able to: 1. 2. 3. 4. Understand why marketing must be evaluated differently at the micro and macro levels. Understand why the text argues that micromarketing costs too much. Understand why the text argues that macromarketing does not cost too much. Understand all of the elements of the marketing strategy planning process and strategy decisions for the four Ps. At the end of this presentation, you should be able to: 5. 6. Know how to prepare a marketing plan and how it relates to the marketing strategy planning process. Know some of the challenges marketers face as they work to develop ethical marketing strategies that serve consumers’ needs. Ethical Marketing in a Consumer-Oriented World (Exhibit 21-1) Marketing’s Impact on Society: Micro and Macro Views Evaluating Marketing Putting Together Innovative Marketing Plans Challenges Facing Marketers How Should Marketers Be Evaluated? Can Consumer Satisfaction Be Measured? Depends On Individual Aspirations ACSI Key Issues Many Measures for MicroMarketing Highly Personal Micro-Marketing Often Does Cost Too Much Lack of Interest in Customers Sources of Marketing Inefficiency Improper Blending of the 4Ps Lack of Understanding of the Environment MacroMarketing Does Not Cost Too Much Interactive Exercise: Does Marketing Cost Too Much? Other Criticisms of Macro-Marketing Advertising Wastes Resources Consumers are Too Easily Controlled Consumers Are Not Puppets Needs and Wants Change Does Marketing Make People Materialistic? Does Marketing: Create Values? OR Appeal to Existing Values? Does Advertising Influence Social Values? © 2009 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Marketing Reflects Our Own Values Products Improve Quality of Life Not All Needs Are Met Macro-Marketing Can Be More Difficult Macro-Marketing Can’t Eliminate Social Problems Elevating the Wrong Values? © 2009 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Checking Your Knowledge The Department of Motor Vehicles (DMV) in a large U.S. state decided to conduct a survey to determine the level of satisfaction with its services among a random sample of consumers. The survey cost $25,000, and the results were pretty positive—people in general seemed reasonably satisfied with DMV’s services. As the agency’s managers were busy congratulating themselves, one manager remarked, “So much for how people feel about us now. We’ll have to work even harder just to maintain the current level of customer satisfaction when we do the survey next year.” What would best explain this manager’s observation? A. Different people might be surveyed next year. B. Consumer satisfaction can’t be accurately measured. C. People don’t think of themselves as “consumers” when they deal D. E. with government agencies. Consumer expectations change over time and often increase. The survey was probably biased this year because of poor sampling. Marketing Planning is More Than Assembling the Four Ps …We’ve become a model for how to do business on the Internet. Everything from being integrated with suppliers to ecommerce to customer support …creating efficiencies that result in business to business at its best. Online. Developing Different Marketing Mixes © 2009 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin S.W.O.T. Analysis S.W.O.T. Analysis Checking Your Knowledge Which of the following would a S.W.O.T. analysis classify as an “opportunity” for Microsoft: A. Microsoft has a great deal of cash available for marketing strategies. B. Microsoft develops new patented technology that makes its software run faster. C. European trade regulators consider rulings that would require Microsoft to develop a new version of Windows for its market. D. Emerging markets in Asia and Africa show increased demand for computers and software. E. The company hires an expert in online advertising. Marketing Mix Flows from Target Market Dimensions (Exhibit 21-3) The Marketing Plan Brings All the Details Together Marketing Environment Name of ProductMarket Product Customer Analysis Place Competitor Analysis Types of Key Parts Demand-Oriented of a PricingPlan Marketing Company Analysis Marketing Information Needs Forecasts and Timing Promotion Price Special Implementation Control Challenges Facing Marketers (Exhibit 21-5) Communication Technologies Channels and Logistics Role of Computerization Sales Promotion Marketing Research Demographic Patterns Changes/Trends Affecting Marketing Strategy Planning Personal Selling Mass Selling Business & Organizational Customers Pricing Product Area International Marketing Technology, Globalism, and Social Responsibility We Need To Welcome International Competition We Need To Use Technology Wisely We Need More Social Responsibility The Environment Is Everyone’s Need We shouldn’t have to choose. We voluntarily introduced cleaner burning lowsulfur fuels six years before E.P.A. mandates. These fuels help reduce ozone pollution – and are now available in over 40 U.S. cities. Legal and Ethical Concerns Consumer Privacy Enactment and Enforcement Key Issues Legal vs. Ethical Impact on Top Managers Responsibilities of Consumers and Marketers Socially Responsible Consumers How Far Does the Marketing Concept Go? Consumer-Citizens Should Vote on Changes Checking Your Knowledge Which of the following statements indicates that a marketing manager is about to make a serious mistake? A. “Competitors? I don’t worry about them. If we do our job, we’ll be OK regardless of what anyone else does.” B. “I never thought I’d be leading our company into the international market, but there are simply too many opportunities there to ignore.” C. “I don’t write the paychecks for my customer service staff – the customers do.” D. “We’ve learned that good selling is really all about helping consumers solve their problems.” E. “I welcome consumer complaints, because they let us know what we need to do to improve our service.” Checking Your Knowledge Which of the following marketing trends would you LEAST expect to see in the future? A. Increased use of Web logs (blogs) by marketers. B. More emphasis on product placement in movies and TV shows as a means of promotion. C. More Spanish-language advertising in the U.S. D. Increased share of market for online retailing compared to traditional retailing. E. Less attention to distribution customer service. You should now be able to: 1. 2. 3. 4. Understand why marketing must be evaluated differently at the micro and macro levels. Understand why the text argues that micromarketing costs too much. Understand why the text argues that macromarketing does not cost too much. Understand all of the elements of the marketing strategy planning process and strategy decisions for the four Ps. You should now be able to: 5. 6. Know how to prepare a marketing plan and how it relates to the marketing strategy planning process. Know some of the challenges marketers face as they work to develop ethical marketing strategies that serve consumers’ needs.