Welcome to the World of Marketing Dr. Chun-Tuan Chang (07)5252000 ext. 4627 Email: [email protected].

Welcome to the World of Marketing

Dr. Chun-Tuan Chang

(07)5252000 ext. 4627

Email: [email protected]

LECTURE ETIQUETTE

MOBILE MANNERSSWITCH OFF MOBILE PHONES IN LECTURESINC. NO TEXTING!

LECTURES ARE NOT A TAKE-AWAY OUTLET

LECTURES ARE NOT FRIENDS REUNITED

COURSE OBJECTIVES• Knowledge and

Understanding

• Cognitive Skills

• Subject-Specific Skills

• Key Skills– in exercises and discussions

– in a group project

– examination answers

• 16 Lectures, Exercise, Assignments, Discussions, Videos

What is Marketing?

“is a societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and servi

ces of value with others”

Source: Kotler (2003) p.9

Marketing as an ExchangeRelationship

Buyer Seller

Something of Value I.e. money, labour, goods

Something of Value I.e. goods, services, ideas

Marketing involves Individuals and Groups (Organizations)

• Final buyers/consumers– Individuals/Households

• Organisational buyers– Industrial companies– Institutions (hospitals, universities)– Profit-making Organisations– Non-Profit Organisations

• This Norwegian ad addresses young people’s smoking attitudes by arousing strong negative feelings. The ad reads (left panel) “Smokers are more sociable than others.” (Right panel): “While it lasts.”

Marketing Management from Transactions...

“the management process responsible for identifying, anticipating and

satisfying consumers’ requirements profitability”

Source: Chartered Institute of Marketing 1991

…to Relationship Marketing

“...is to establish, maintain and enhance relationships with customers and other partners, at a profit so that the objectives of both parties are met. This is achieved by mutual exchange and the keeping of promises. Such relationships are usually but not

necessarily always long-term.”

Source: Grönroos (1994) JMM p.355

New Contexts, New Theories...

• Marketing is highly context-dependent• Marketing’s context is changing rapidly

and radically:• electronic commerce• market diversity• new economics• co-operation

• Marketers need to question relevance of established thinking to new contexts

Source: Sheth and Sisodia (1999) “Revisiting Marketing’s Lawlike Generalizations,” Journal of the Academy of Marketing Science

The Societal Marketing Concept

“…to determine the needs and wants and interests of target markets and to deliver the desired satisfactions more effectively and more efficiently than competitors in a way that preserves or enhances the consu

mer’s and the society’s well-being”

Source: Kotler (2000) p.25

Social Responsibility

• What accepted relationships, obligations and duties exist between the marketing organisation and society?– Consumer Issues– Community Relations– Environmental Issues

Societal Marketing Orientation

We do not, have not and will not purchase beef from rain forest or recently deforested rain forest land. Any McDonald supplier that is found to deviate from this policy or that cannot prove compliance with it will be immediately discontinued.

McDonald’s Rain Forest Policy:

Marketing EthicsEthics:

individual moral evaluations of right and wrong in particular situations

Ethical issues in marketing:

•target markets•marketing mixes•consumer/marketing research•international marketing strategy

False Wants & Too Much Materialism

Too Much Political Power

Producing Too FewSocial Goods

Cultural Pollution

Marketing’s PerceivedNegative Impact on

Society as aWhole

Marketing’s Impact on Society as a Whole

Marketing’s Impact on Society as a Whole

False Wants & Too Much Materialism (i.e.,

what you own vs. who you are).

Too Much Political Power

Producing Too FewSocial Goods

Cultural Pollution

Cultural Pollution

Our senses are sometimes assaulted by commercial messages.

American Association of Advertising Agencies

• This ad demonstrates that advertising can’t make consumers buy things that they don’t need despite high-pressure selling.

Influences on Ethical Decisions

Influences On Ethical Decisions

• Individual values, beliefs, philosophies

• Perceptions of situation, alternatives, consequences

• Organisational environment

• Industry/professional environment

• Cultural environment

Buyers’

Rights

Sellers’

Rights

Consumerism is an Organized Movement of Citizens and Government Agencies to Improve the Rights and Power of Buyers in Relation to

Sellers.

Consumerism

The Right Not to Buy a Product Offered for SaleThe Right Not to Buy a Product Offered for Sale

The Right to Expect the Product to be SafeThe Right to Expect the Product to be Safe

The Right to Expect the Product to Perform as ClaimedThe Right to Expect the Product to Perform as Claimed

The Right to Be Protected Against Questionable ProductsThe Right to Be Protected Against Questionable Products

The Right to Be Heard About “Quality of Life” IssuesThe Right to Be Heard About “Quality of Life” Issues

The Right to Be Well Informed About the ProductThe Right to Be Well Informed About the Product

Consumerism – Buyers’ Rights

Environmentalism

• An organized movement of concerned citizens and government agencies to protect and improve people’s living environment.

Plan for New EnvironmentalTechnologies

Adopt Designfor the

Environment Practices

Have a Sustainability

Vision

PracticeProduct

Stewardship

PracticePollution

Prevention

Environmentalism

（ source： Body Shop）

Body Shop: Against Animal Testing

• This is from the newsletter called ‘scoop’ that came with T-Mobile’s March 2008 billing statement.

When you switch to paperless billing, T-Mobile, in conjunction with the Arbor Day Foundation, will plant a tree in your name in a blighted area of the United States. The Arbor Day Foundation, a tree-planting charity headquartered in Lincoln, Nebraska, calls it the Restoration Project.

The tree planting is concentrated in the region around New Orleans devastated by Hurricane Katrina in 2005 and areas of Southern California which were denuded of trees by the fires of 2007.

Environmental Sustainability

• A management approach that involves developing strategies that both sustain the environment and produce profits for the company.

Legal Issues Facing Marketing Management.

Enlightened Marketing

• A marketing philosophy holding that a company’s marketing should support the best long-run performance of the marketing system.

Enlightened Marketing

• Consumer-Oriented Marketing:– The philosophy of enlightened marketing that

holds that the company should view and organize its marketing activities from the consumer’s point of view.

• Innovative Marketing:– A principle of enlightened marketing that requires

that a company seek real product and marketing improvements.

Innovative Marketing

Colgate’s Total toothpaste is perhaps the best example of Colgate's passion for innovation. The breakout brand provides a combination of benefits, including cavity prevention, tartar control, fresh breath, and long-lasting effects.

Enlightened Marketing

• Value Marketing:– A principle of enlightened marketing that holds

that a company should put most of its resources into value-building marketing investments.

• Sense-of-Mission Marketing:– A principle of enlightened marketing that holds

that a company should define its mission in broad social terms rather than narrow product terms.

Societal Classification of Products

• Based on the societal classification scheme, how would you classify the following products?– McDonald’s Big Mac

– A handgun

– Airbags in an automobile

– Daily vitamins

Marketing Ethics

Distributor Relations Advertising Standards Customer Service

Pricing Product Development General Ethical

Standards

Companies Need to Develop Corporate Marketing Ethics Policies – Broad Guidelines

That Everyone in the Organization Must Follow and Should Address:

Decided by the Free Market and

Legal System

Decided by the Free Market and

Legal System

Responsibility of Individual Companies

And Managers

Responsibility of Individual Companies

And Managers

Marketing EthicsPrinciples That Should Guide Companies and Marketing Managers On Issues of Ethics and

Social Responsibility:

Ethics Programs

PricewaterhouseCoopers established a comprehensive ethics program, which begins with a code of conduct called “The Way We Do Business.” Says PwC’s CEO, “Ethics is in everything we say and do.”

–Should companies follow the axiom “When In Rome…” when making ethical decisions in foreign countries?