Transcript Slide 1

SOCIAL
RESPONSIBILITY
ANDTHE
MARKETING
ENVIRONMENT
BUAD 307
SOCIAL RESPONSIBILITY AND THE MARKETING ENVIRONMENT
Lars Perner
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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
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“Win-Win” Deals and Social
Responsibility
• By pooling resources, different
organizations may each get more
than what they put in
– Firms may be able to contribute
not only cash but also relevant
expertise
– Favorable publicity may be worth
more than the same amount
spent on advertising
– Charitable groups may provide
access to potential customers
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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
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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)
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Commercial Comedy
• Advertising mascots (e.g., the
Energizer Bunny, Ronald
McDonald, and the AFLAC
Duck) are sent (with other talent)
to perform comedy at non-profit
fundraising events
• The non-profit gains: High
quality, low cost entertainment
• The sponsor gains
– Significant visibility
– Attention to advertising
message/awareness
– Secondary media coverage
– Good will among those exposed
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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.
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THE MARKETING ENVIRONMENT
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Culture
Demographics
Social
Technology
Economic
Political and Legal
Factors
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CULTURE
• Culture: Behavior and “shared meanings”
• Variations
– Country
– Regional
• Impact of culture on expectations and what is
“right” to do
– Individuality vs. collectivism
– Relationships between people
– Work habits
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DEMOGRAPHICS
• Distribution of people across statistical categories
– Occupation
– Income
– Ethnicity  Language usage
– Age  Birth rates
– Residence (e.g., urban/rural)
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SOCIAL FACTORS
• Values—tensions
– Value of privacy vs.
security
– “Green” products vs.
• Cost
• Convenience
• Performance
• “Component lifestyles”
• Demographic changes
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ECONOMIC FACTORS
• Consumer debt
– Credit card/specific
– Real estate
• Purchasing power
– Over time (inflation)
– Across domestic regions
– Across countries
• Economic cycles
• “New” family expenses:
Internet, cable/satellite
TV, cell phone
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“Teach a parrot to say
‘supply” and ‘demand” and
you have a learned
economist!” Paul
Samuelson.
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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)
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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
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REGULATORY INFLUENCES
• Regulation
– Joint Federal and state
regulation
– Delegation by Congress and
state legislatures to regulatory
agencies to handle specifics of
complex issues
• Consumer protection
– Consumer Product Safety
Commission (CPSG), Federal
Trade Commission (FTC),
Food & Drug Administration
(FDA)
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CULTURE
DEMOGRAPHICS
INFLUENCES ON
THE FIRM AND ITS
CHOICES
SOCIAL
ENVIRONMENT
ECONOMIC
RESOURCES
TECHNOLOGY
LEGAL/POLITICAL
PROFIT
PRESSURE
FIRM
SOCIAL
RESPONSIBILITY
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SOCIAL RESPONSIBILITY AND THE MARKETING ENVIRONMENT
OPPORTUNITIES
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