Principles of Marketing

Lecture-43

Summary of Lecture-42

e-Marketing

The Birth of the Internet

The Role of the Internet in Marketing

Definitions

E- Commerce E-Marketing
E-Business

Rules of E-Marketing

Basic Forms of Virtual Business

Business-to-Consumer (B2C) Basic Forms of Electronic Commerce Business-to-Business (B2B)

Decision Variables of the Marketing Mix

Catch for Pakistani Business

Todays Topics

Marketing and Society

Current Issues in Marketing

 The current issues and marketing can be divided into two major subjects:
Ethics

Social responsibility

The two concepts are very closely related

Marketing Ethics

 Marketers standards of
conduct and moral values.

People develop standards of

ethical behavior based on their own systems of values and that may differ from employers organizational ethics, which, produces conflicts

Social Criticisms of Marketing

High Prices
Poor Service
Marketings Impact on Individual Consumers

Deceptive Practices
High Pressure Selling

Planned Obsolescence

Shoddy or Unsafe Products

Marketings Impact on Society

The Marketing Function is Accused by Society of Creating:

False Wants and Too Much Materialism Too Much Political Power Too Few Social Goods

Cultural Pollution

Ethical Questions in Marketing

Product
Planned obsolescence Product quality and safety Product warranties Fair packaging and labeling Pollution

 Packages larger than

necessary to gain shelf space

Odd-sized packages to
complicate price comparisons

Product testing on animals

Price fixing Price discrimination Price increases Deceptive pricing

Price

Distribution
Exclusive territories Dumping Dealer rights Predatory competition

 What degree of control should

the firm exert over its channel?

Should a company distribute its

products in marginally profitable outlets that lack alternative sources of supply?

Promotion
Bait-and-switch advertising

Promotional allowances Bribery

 Promotion gives rise to more

ethical questions than other components of the marketing mix.

Advertising does everything

from simple exaggeration to outright deceit (car advertisements where the fine print is so small you cant read it.).

Marketings Impact on Other Businesses

Critics Charge that a Companys Marketing Practices Can Harm Other Companies and Reduce Competition Through..

Acquisitions of Competitors

Marketing Practices that Create Barriers to Entry

Unfair Competitive Marketing Practices

Marketing Ethics

Distributor Relations Advertising Product Development Corporate Standards Marketing Ethics Customer Policies Pricing Service

General Code

Consumerism

The Right to Be Safe

The Right to Be Informed

Basic Consumer Rights

The Right to Be Heard

The Right to Choose

Social Responsibility

 The collection of marketing

philosophies, policies, procedures, and actions intended primarily to enhance societys welfare.

Social responsibility allows for

easier measurement than marketing ethics.

Government legislation can

mandate socially responsible actions.

 Contemporary marketing
decisions must consider the entire societal framework, not only in your own country but also throughout the world.

Marketing decisions must also

account for their eventual, longterm effects and for their results for future generations.

Marketing and ecology

 Ecology -

the relationship between organisms and their natural environments

garbage disposal, acid rain, depletion of the ozone layer, global warming, and contamination of the air and water.

Examples:

Enlightened Marketing

Consumer-Oriented Marketing

Innovative Marketing

Value Marketing

Sense-of-Mission Marketing

Societal Marketing

Society (Human Welfare)

Societal Marketing Concept

Consumers (Satisfaction) Company (Profits)

Principles For Public Policy Toward Marketing

Consumer and Producer Freedom Curbing Potential Harm Meeting Basic Needs

Key Principles for a Public Policy Toward Marketing

Economic Efficiency Innovation Consumer Education Consumer Protection

Society (Human Welfare)

Societal Marketing Concept

Consumers (Satisfaction) Company (Profits)

Enough for today. . .

Summary

Marketing and Society

 The current issues and marketing can be divided into two major subjects:
Ethics

Social responsibility

The two concepts are very closely related

Social Criticisms of Marketing

High Prices
Poor Service
Marketings Impact on Individual Consumers

Deceptive Practices
High Pressure Selling

Planned Obsolescence

Shoddy or Unsafe Products

Marketings Impact on Society

The Marketing Function is Accused by Society of Creating:

False Wants and Too Much Materialism Too Much Political Power Too Few Social Goods

Cultural Pollution

Ethical Questions in Marketing

Distributor Relations Advertising Product Development Corporate Standards Marketing Ethics Customer Policies Pricing Service

General Code

Social Responsibility

Society (Human Welfare)

Societal Marketing Concept

Consumers (Satisfaction) Company (Profits)

Next.

Review

Principles of Marketing
Lecture-43