CHAPTER Day 5 BUS 222 Agenda • Class roll call • Questions? • Assignment 1 Corrected – 2 A’s, 11B’s, 2 D and 4 F’s – Scores are effort driven • Assignment 2 will be posted by next class – Due Feb 16 • Quick review of Marketing Ethics • Quiz 1 on Feb 13 – 1 extra credit question on Super Bowl Ads • Discussion on Corporate Social Responsibility • Discussion on Analyzing the Market Environment Copyright 2005 Prentice Hall Ch 1 -2 Check Yourself 1. According to the American marketing Association Code of Ethics, what are the six ethical values 2. Identify the four stages in the ethical decision making framework 3-3 According to the American Marketing Association Code of Ethics, what are the six ethical values? Answer: The six ethical values are honesty, responsibility, fairness, respect, openness, and citizenship. Identify the four stages in the ethical decision making framework. Answer: The four stages in the ethical decision-making framework are: identify issues; gather information and identify stakeholders; brainstorm and evaluate alternatives; and choose a course of action. Check Yourself 1. What ethical questions should a marketing manager consider at each stage of the marketing plan? 3-5 Corporate Social Responsibility Corporate social responsibility describes the voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders. Corporate Social Responsibility 3-7 What are customer’s concerns? Photography and advertisement courtesy of Siemens 3-8 Check Yourself 1. How has corporate social responsibility evolved since the turn of the 20thCentury? 2. Identify the inputs and outputs of the corporate social responsibility framework? 3-9 CHAPTER ANALYZING THE MARKETING ENVIRONMENT McGraw-Hill/Irwin 04 Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Analyzing the Marketing Environment LEARNING OBJECTIVES LO1 Outline how customers, the company, competitors, and corporate partners affect marketing strategy. LO2 Explain why marketers must consider their macroenvironment when they make decisions. LO3 Describe the differences among the various generational cohorts. LO4 Identify the various social trends. Analyzing the Marketing Environment • Kimberly-Clark uses wood fiber from recycled sources or well-managed forestlands. Courtesy of iStockphoto with design by Curran & Connors, Inc A Marketing Environment Analysis Framework The Immediate Environment Successfully Leveraging Company Capabilities Core competency Existing knowledge, facilities, patents, etc. ©M Hruby applied to New markets, new products, etc. Competitors • Know strengths & weaknesses • Proactive rather than reactive strategy Chad Baker/Getty Images Daniel Acker/Bloomberg via Getty Images Kimberly-Clark: Pull-Ups (Huggies) versus Procter & Gamble: Easy-Ups (Pampers) Corporate Partners From factory ©Lars A Niki Siede Preis/Getty Images D Normark/PhotoLink/Getty Images • Firms are part of alliances • Align with competitors, suppliers, etc. • Just in Time Delivery Systems (JIT) to Retailer Check Yourself 1. What are the components of the immediate environment? Macroenvironmental Factors Culture Country Culture vs. Regional Culture ©Brand X Pictures/PunchStock PhotoLink/Getty Images Controversy Surrounds All Catholic Town http://www.avemaria.com/ Demographics Provides an easily understood snapshot of the typical consumer in a specific target market BananaStock/JupiterImages Comstock Images/Alamy U.S. Census Website Generational Cohorts Income • Purchasing power is tied to income • Many middle class families feel the decline in purchasing power in recent years Courtesy of Hammacher Schlemmer, http://www.hammacher.com/ Education = ©Fancy Photographer/Veer Brand X Pictures Education is related to income, which determines spending power Gender Male/female roles have been shifting Marketing has changed to reflect these shifts Jochen Sand/Digital Vision/Getty Images Ethnicity By 2050, minorities will represent 50% of the population. Bud Light Commercial ©2006 Oldemarak, LLC Reprinted with permission The Wendy’s name, design and logo are registered trademarks of Oldemark, Llc and are licensed to Wendy’s International, Inc. Social Trends Price Sensitivity Health and Wellness Concerns Privacy Concerns Greener Consumers Time-Poor Society Price Sensitivity Consumers Attempting to save more Spend less on luxuries Do not dip into their savings Health and Wellness Concerns • Worldwide Pandemics or Epidemics • Child-Teenage Obesity Courtesy Subway Franchise Advertising Fund Trust Greener Consumers Customers who appreciate firms efforts to supply them with environmentally friendly merchandise. Courtesy Ford Motor Company Privacy Concerns Loss of privacy Identity theft Do not call Do not e-mail Chad Baker/Ryan McVay/Getty Images Time Poor Society In the majority of families, most parents work Consumers have many more choices regarding leisure time Many consumers multitask McDonald’s Moms Technological Advances • Technology has impacted every aspect of marketing – New products – New forms of communication – New retail channels AP Photo/Ric Feld Stop and Shop Website Economic Situation Foreign currency fluctuations Brand X Pictures Combined with inflation and interest rates affect firms’ ability to market goods and services PhotoLink/Getty Images Conference Board Website Source: http://www.tradersnarrative.com/ndr-consumer-confidence-vs-analyst-confidence-4529.html Political/Regulatory Environment: Competitive Practice and Trade Legislation 1890: Sherman Antitrust Act 1914: Clayton Act 1914: Federal Trade Commission 1936: Robinson-Putman Act 1938: Wheeler-Lea Act David Hiller/Getty Images 1993: North American Free Trade Agreement (NAFTA) Check Yourself 1. What are the six key macroeconomic factors? 2. Differentiate between country culture and regional culture. 3. Identify the different generational cohorts. 4. What are some important social trends shaping consumer values these days?