Download Legislation Purpose - Livingston Public Schools

Learning Objectives
• Describe the environmental forces that affect
•
•
the company’s ability to serve its customers.
Explain how changes in the demographic and
economic environments affect marketing
decisions.
Identify the major trends in the firm’s natural
and technological environments.
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Learning Objectives
• Explain the key changes in the political and
•
cultural environments.
Discuss how companies can react to the
marketing environment.
Copyright © 2015 Pearson Education, Inc.
3-3
First Stop: Microsoft: Adapting to the FastChanging Digital Marketing Environment
• The success of Windows increased
Microsoft’s revenues, profits, and stock price.
• A lag occurred after the millennium from
decreased PC sales growth.
• People moved on with new digital devices and
technologies.
• Transformation—released new, improved, or
acquired digital products and services
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Marketing Environment
• Outside forces that affect marketing
management’s ability to build and maintain
successful relationships with target customers
• Microenvironment: Actors close to the
company that affect its ability to serve its
customers
• Macroenvironment: Larger societal forces
that affect the microenvironment
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Figure 3.1 - Actors in
the Microenvironment
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Figure 3.2 - Major Forces in
the Company’s Macroenvironment
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Demographic Environment
• Demography: Study of human populations in
terms of size, density, location, age, gender,
race, occupation, and other statistics
• Marketers analyze:
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•
•
•
Changing age and family structures
Geographic population shifts
Educational characteristics
Population diversity
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Economic Environment
• Economic factors that affect consumer
purchasing power and spending patterns:
• Industrial economies
• Subsistence economies
• Developing economies
• Changes in consumer spending
• Differences in income distribution
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Natural Environment
• Physical environment and natural resources
needed as inputs by marketers or affected by
marketing activities
• Environmental sustainability concerns have
grown steadily over past three decades.
• Trends:
• Shortages of raw materials
• Increased pollution
• Increased government intervention
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Technological Environment
• New technologies create new markets and
opportunities.
• Radio-frequency identification (RFID) is
technology to track products through various
points in the distribution channel.
• Government agencies investigate and ban
potentially unsafe products.
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Political Environment
• Forces that influence and limit various
organizations and individuals in a society
• Laws, government agencies, and pressure groups
• Goals of enacting business legislation:
• Protect companies from each other
• Protect consumers from unfair business practices
• Protect the interests of society against
unrestrained business behavior
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Major U.S. Legislation
Affecting Marketing
Legislation
Purpose
Sherman Antitrust Act (1890)
• Prohibits monopolies and activities that
restrain trade or competition in interstate
commerce
Federal Food and Drug Act (1906)
Food and Drug Administration (FDA)
• Forbids the manufacture or sale of
adulterated or fraudulently labeled foods
and drugs
Clayton Act (1914)
• Prohibits types of price discrimination,
exclusive dealing, and tying clauses
Federal Trade Commission Act (1914) • Monitors and remedies unfair trade
Federal Trade Commission (FTC)
methods
Robinson-Patman Act (1936)
• Establishes limits on quantity discounts
• Forbids some brokerage allowances
• Prohibits promotional allowances except
when made on proportionately equal terms
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Major U.S. Legislation
Affecting Marketing
Legislation
Purpose
Wheeler-Lea Act (1938)
• Makes deceptive, misleading, and unfair practices
illegal
• Places advertising of food and drugs under FTC
jurisdiction
Lanham Trademark Act (1946)
• Protects and regulates distinctive brand names and
trademarks
National Traffic and Safety Act
(1958)
• Provides for the creation of compulsory safety
standards for automobiles and tires
Fair Packaging and Labeling Act • Provides for the regulation of the packaging and
(1966)
labeling of consumer goods
• Requires that manufacturers state what the package
contains, who made it, and how much it contains
Child Protection Act (1966)
• Bans the sale of hazardous toys and articles
• Sets standards for child-resistant packaging
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Major U.S. Legislation
Affecting Marketing
Legislation
Purpose
Federal Cigarette Labeling and
Advertising Act (1967)
• Requires that cigarette packages contain a
warning statement
National Environmental Policy Act
(1969)
• Establishes a national policy on the
environment
Consumer Product Safety Act (1972) • Sets safety standards for consumer products
Consumer Product Safety
and exacts penalties for failing to uphold
Commission (CPSC)
those standards
Magnuson-Moss Warranty Act
(1975)
• Determines rules for consumer warranties
• Provides consumer access to redress
Children’s Television Act (1990)
• Limits the number of commercials aired
during children’s programs
Nutrition Labeling and Education
Act (1990)
• Requires that food product labels provide
detailed nutritional information
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Major U.S. Legislation
Affecting Marketing
Legislation
Purpose
Telephone Consumer Protection Act
(1991)
• Establishes procedures to avoid unwanted
telephone solicitations
Americans with Disabilities Act (1991)
• Makes discrimination against people with
disabilities illegal
Children’s Online Privacy Protection
Act (2000)
• Prohibits online collection of information
from children without parental consent
• Allows parents to review information
collected from their children
Do-Not-Call Implementation Act (2003)
• Collects fees from telemarketers for the
enforcement of a Do-Not-Call Registry
CAN-SPAM Act (2003)
• Regulates the distribution and content of
unsolicited commercial e-mail
Financial Reform Law (2010)
Bureau of Consumer Financial Protection
• Creates and enforces rules for the
marketing of financial products to
consumers
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Socially Responsible Behavior
• Socially responsible companies actively seek
out ways to protect the long-run interests of
consumers and the environment.
• Companies develop policies, guidelines, and
other responses to complex social
responsibility issues.
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Cause-Related Marketing
• Used by companies to:
• Exercise their social responsibility
• Build more positive images
• Primary form of corporate giving
• Controversy—strategy for selling more than a
strategy for giving
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Cultural Environment
• Institutions and other forces that affect
society’s basic values, perceptions,
preferences, and behaviors
• Society shapes people’s values and beliefs.
• Cultural characteristics that affect marketing
decision making:
• Persistence of cultural values
• Shifts in secondary cultural values
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Responding to the
Marketing Environment
• Reactive firms passively accept the marketing
environment and do not try to change it.
• Proactive firms develop strategies to change
the environment.
• They take aggressive actions to affect the publics
and forces in their marketing environment.
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Learning Objectives
• Describe the environmental forces that affect
•
•
the company’s ability to serve its customers.
Explain how changes in the demographic and
economic environments affect marketing
decisions.
Identify the major trends in the firm’s natural
and technological environments.
Copyright © 2015 Pearson Education, Inc.
3-21
Learning Objectives
• Explain the key changes in the political and
•
cultural environments.
Discuss how companies can react to the
marketing environment.
Copyright © 2015 Pearson Education, Inc.
3-22
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mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
Copyright © 2015 Pearson Education, Inc.