CHAPTER 2_Marketing Environment & Marketing Ethics_present

7/31/2019 CHAPTER 2_Marketing Environment & Marketing Ethics_present

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MARKETING ENVIRONMENT

& MARKETING ETHICS

PREPARED BY:

MISS NOR AMNI SARAH BINTI MUHAMMAD ZINFaculty of Business Management (Marketing)

Universiti Teknologi MARA, KELANTAN.

011 29 20 33 02


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(2) Corporatesocial

responsibilities

Social Factors

Economic

Technology

Legal & Political

Demographic

Competitive

(1) External

marketing

environment


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External Marketing Environment

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Demographics

SocialChange

EconomicConditions

Political &Legal Factors

Technology

Competition

EnvironmentalScanning

Target Market

ProductDistributionPromotion

Price

External Environment(uncontrollable)

Ever-ChangingMarketplace

Internal(within the

organization)

Marketing mix


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Social Factors

Social change is the most difficult external variable formarketing managers to forecast, influence, or integrate into

marketing plans.

Social factors influence the products people buy, the price paid,

the effectiveness of specific promotions, and how, where, andwhen people expect to purchase products.

Consist ofvalues, attitudes, and lifestyles.

Aim : To succeed & make profits.

Understanding of social factors : To produce the right productsto suits peoples needs and wants.

Eg;Cuti-Cuti Malaysia government encourage local tourism by

giving two Saturday off in a month.

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American Values

Self-Sufficiency

BasicAmerican

Values

Upward Mobility

Work Ethic

Conformity


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Component Lifestyles

Component Lifestyles

The practice of choosing goods and services that

meet ones diverse needs and interests rather than

conforming to a single, traditional lifestyle.


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Role of Families and Working Women

The phenomena of working women has had thegreatest effect on marketing than any other socialchange.

63% of all females (ages 16-65) are in the workforce

Purchasing power from dual-career families

is rising.

Cost is more important to women. Quality is moreimportant to men.


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Rising consumer

income

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Economic Factors

Inflation

Recession

Economic Areasof Concern to

Marketers


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1. Rising consumer income

income, power to spend. Therefore, dd for quality of

product.

When people income , marketer take this advantages byproducing better quality of products to generate more sales &

get more profit.

2. Inflation

in price without corresponding in salaries. Therefore, purchasing power.

Marketing strategy : give discount & low price - attract more

customers to buy the products.

3. Recession

dd for product as consumer income, therefore

unemployment rate.

Marketing strategy : try to new product that more economical &

effective, improve existing product & offer better value for

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New technology internally is a key to long-term

competitive advantage.o Create more efficient operation or better products

o May render existing products obsolete

Marketer must aware of new developments intechnology.

Business can easily decline when they ignore the

emergence of new technologies.

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Technology Factors


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Major technological break-through:-

o Start an entirely new industry computer, laptop,

komuter, LRT, airplane, etc.o Radically alter / destroy existing industries computers

replacing typewriter, fax replacing telegram, etc.

o Stimulate other markets & industries not related to the

new technologies due to new technologies involve highcost.

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Technology Factors


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Laws, government agencies pressure groups made up

the political & legal environment.

Can be group into 4 categories:

i. General monetary & fiscal policies.

ii. Broad social legislation & policies set by regulatory

agencies.

iii. Government relationship with individual industries.iv. Laws affecting marketing itself.

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Legal & Political


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Demographic Factor

Age Location Race andEthnicity

Demography


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Generation Y

Born between 1979 and 1994.

Size creates huge marketing impact

Attached to technology

Eg; People who are prefer products such as coca

cola, ferrari, raph lauren, etc.


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Generation X

Born between 1965 and 1978

Time is at a premium

Majority have children and households

Savvy and cynical consumers


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Competitive Factor

How many competitors?

How big are competitors?

How interdependent is

the industry?

Control


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Competitive Factors

Competition forMarket Share

andProfits

GlobalCompetition


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The Impact of Terrorism on Business

Terrorism is an uncontrollable variable in the

external environment.

Businesses have lost revenue and experiencedincreased costs.

Technology is used to reduce travel:-

Videoconferencing

Digital photography

E-mail

Computer-assisted design


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CorporateSocialResponsibility


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Definition of CorporateSocial Responsibil ity

Businesss obligation, commitment,

and concern for societys welfare practised

by business managers taking into consideration

the best interest of society and the

well-beings of the company.

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Philanthropic responsibilitiesBe a good corporate citizen.Contribute resources to the

community; improve thequality of life.

Ethical responsibilitiesBe ethical.Do what is right, just, &

fair. Avoid harm.

Legal responsibilitiesObey the Law.Law is societys codificationof right & wrong. Play by the

rules of the game.

Economic responsibilitiesBe profitable.Profit is the foundation onwhich all other

responsibilities rest.

Pyramid of Corporate social responsibility

CHAPTER 2_Marketing Environment & Marketing Ethics_present

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