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Marketing 3
Ethics and the Marketing
Environment
Ethics and the Marketing
Environment - 3
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Corporate Social Responsibility
Ethical Behavior in Business
External Environment
Social Forces
Technological Factors
Political and Legal Factors
3.1
Corporate Social
Responsibility (CSR)
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Sustainability
– Must have a healthy society to sustain business.
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Pyramid of CSR
– Economic
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Be profitable. Must survive.
– Legal
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Obey the law.
– Ethical
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Do what is right, just and fair.
Avoid harm.
– Philanthropic
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Good corporate citizen.
Contribute resources to community.
3.18
Marketing Ethics I
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Definition
???
3.15
Marketing Ethics II
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Definition
– Moral principles or values that generally
govern the conduct of an individual or
group.
– The standard of behavior by which
conduct is judged.
3.15
Marketing Ethics III
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Morals
– Rules that people develop as a result of
cultural values and norms.
– A foundation of ethical behavior.
3.15
Marketing Ethics IV
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Developing a personal set of ethics
– Consequence based
Who is helped/hurt?
 How long will consequences last?
 Greatest good for greatest number of people.
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3.15
Marketing Ethics V
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Developing a personal set of ethics
– Rules based
Customs
 Laws
 Professional standards
 Common sense
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– Do unto others…
3.15
Marketing Ethics VI
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Developing a personal set of ethics
– Moral character development
Pre-conventional Morality: Will I be punished
or rewarded? (Most primitive.)
 Conventional Morality: What does society view
my behavior?
 Post-conventional Morality: Regardless of what
others think, what is right and wrong?
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3.15
Marketing Ethics VII
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Why worry about ethics?
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Difficulties with ethics
3.15
Ethical Guidelines
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Code of Ethics
– More than “Stay out of jail.”
– Can set standard, control behavior and
decisions, minimize confusion.
– Must train employees.
– Must live up to code.
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Enron had a 65 page code of ethics.
Ethical Checklist
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See Exhibit 3.2, pg. 74
3.16
Fuel vs. Food
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Biofuel raises global dilemmas.doc
The Marketing Environment I
Uncontrollable
 Must be monitored
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Environmental Scanning
Must be anticipated
 Always changing, dynamic, constant state
of flux.
 Affects customer demand and how to
satisfy that demand.
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3.2
The Marketing Environment II
Social Change
 Economic Conditions
 Political/Legal
 Competition
 Demographics
 Technology
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3.2
Major Factors Affecting
Marketing
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Change is constant
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Competition is
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it’s standard
and rapid
global
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Technology is
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Collaboration is
Focus is on the
individual
dramatically changing 
marketing exchanges
as important as
competition
Quality isn’t optional,
3.3
Ethical and social
responsibility
Managing the Marketing
Environment
Reactive: taking steps
to adapt to environmental
factors that can not be
controlled or influenced
Proactive: seek ways to
influence your environment
when you think you can
influence certain factors
3.4
Analyzing the Environment
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Environmental scanning
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Identify opportunities and threats
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Make decisions based on the gathered
information
3.5
Social Forces
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American Values
– Self sufficiency; upward mobility, work ethic, equality
– Time dependent
– Values influence purchasing
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Component Lifestyles
– Banker/Gourmet/athlete
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Changing Role of Family/Women
– Working Women
– Later, Smaller/No Families
– Dinks
3.6
Demographic Factors
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Demography
Age, race, ethnicity, education, location
Generation Y 1979 – 1994
Generation X 1965 – 1978
Baby Boomers 1946 – 1964
– (YEAH Baby!!!)
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Older consumers
Population Shifts
3.7
Demographic Factors
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Growing ethnic markets
– Hispanic (12.5%) $900 B
– African American (12.3%) $850 B
– Asian American (3.6%) $455 B
U.S. Population by
Race and Ethnic
Group
2003
Asian
4%
African American 12%
Hispanic
12%
American Indian
1%
White
71%
2025
6%
13%
18%
1%
62%
3.8
2050
8%
14%
24%
1%
53%
Marketing Implications of
Multiculturalism
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Multiculturalism
– US is becoming more diverse
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Research is important
More specialized marketing
More diversity in mainstream marketing
3.10
Economic Factors
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Rising incomes
– National, Global
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Purchasing power
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Inflation
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Recession
3.11
Technological Factors
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Information technology
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Internet
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Research
3.12
Political and Legal
Environment
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Federal Laws
State Laws
Regulatory Agencies
– FTC
– FDA
3.13
Competitive Factors
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Market Share and Profits
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Domestic
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Global
– Impact of Terrorism on business
3.14