MKTG 2ce PPT STU Ch02

PowerPoint
Slides
to accompany

Second Canadian Edition
Prepared by
Janice Shearer,
Mohaw Colle!e
LO
MKTG
The Marketing Environment,
Social Responsibility, and Ethics
"
LO
Learning Outcomes
LO 1 Discuss the external environment of marketing, and explain

how it affects a firm
LO 2 Describe the social factors that affect marketing
LO 3 Explain the importance to marketing managers of current

demographic trends
LO Explain the importance to marketing managers of

multiculturalism and growing ethnic markets
LO ! "dentif# consumer and marketer reactions to the state of the

econom#
3Copyright 2013 by Nelson Education Ltd.
LO
Learning Outcomes
LO $ "dentif# the impact of technolog# on a firm
LO % Discuss the political and legal environment of marketing
LO & Explain the basics of foreign and domestic competition
LO ' Discuss corporate social responsibilit#
LO 1( Describe the role of ethics and ethical decisions in business

LO
The External Marketing Environment
Discuss the
external environment
of marketing,
and
explain how it affects a firm
1
LO
Environmental Scanning
)oal
"dentif# future marketing opportunities

and threats
Environmental *anagement
"mplement strategies that attempt to

shape the external environment
+igarette companies through lobb#ing efforts

6
1
Copyright 2013 by Nelson Education Ltd.
LO
External
variables
Social
Demographic
Geographic
Economic
Political/legal
Technological
Competitive
External Environment
1
LO
Social actors
Describe the social factors
that affect marketing
!
!Copyright 2013 by Nelson Education Ltd.
LO
Social actors
,ttitudes
-alues
Lifest#les
.hat do the# influence/
"
!
LO
Marketing"Oriented #alues
-alue0a strongl# held and enduring

belief
-alues that influence +anadians1

attitudes and lifest#le2
3elf4sufficienc#
5pward mobilit#
.ork ethic
+onformit#
10
!
LO
$omponent Li%estyles
Lifest#les toda# are

complex2
3he is a Dentist, a
*other, a gourmet
cook, an amateur
pilot and a
marathon runner6
7ow do #ou reach

her/
11
!
LO
amily
8ole of the famil#

is the same but the
makeup of the
famil# has changed
9amil#
responsibilities
influence bu#ing
behaviour:
12
!
LO
&emographic actors
Explain the importance to
marketing managers of
current demographic
trends
'
13 Copyright 2013 by Nelson Education Ltd.
LO
T(eens and Teens
+anada1s tweens, or )en4

;ers, are pre4adolescents
and earl# adolescents <aged
' to1=:
,ttitudes
,ccess to information
>rand consciousness
?echnical sophistication
@urchasing power
Copyright 2013 by Nelson Education Ltd. 14
'
LO
)eneration *
?hose designated
b# demographics
as )eneration *
were born between
1'%' and 1'':
$: millionA
15
'
LO
Gen
Yers
are...
Impatient
Family
oriented
Inquisitive
Opinionated
Diverse
Good
managers
Savvy
Connected
)eneration *
16
'
LO
)eneration +
@eople born between 1'$$ and 1'%&
% millionA
,re savv# and c#nical
Outsource the tasks of dail# life
3pend more on personal services than

an# other age group
1
'
LO
,aby ,oomers
?here are ' million

baby boomers
<persons born
between 1'% and
1'$!= in +anada
?he oldest have

alread# turned $(
#ears old
1!
'
LO
,aby ,oomers
1"
Baby Boomers: A Mass Market
Spending power of over $1 trillion
In 2010
Accounted for 38.5% of all dollars spent on

consumer-product goods
Account for 40% of all customers paying for

wireless services and 41% of customers paying
for Apple computers
Marketers must change their focus from youth to the
boomers
'
LO
-opulation Shi%ts in $anada
1: )olden 7orseshoe in
Ontario
2: *ontreal and
surrounding area
3: >ritish +olumbia1s Lower
*ainland
: +algar#BEdmonton
corridor
!(C of
+anadian
@opulation
20
'
LO
)ro(ing Ethnic Markets
21
Explain the importance of
multiculturalism and
growing ethnic markets
.
LO
#isible Minority -opulation in Selected
$ities
22
.
!//1 !//0 !/11
-ancouver
3$:'C 2:2C !1:(C
?oronto
3$:& 1:' !(:!
+algar#
1%:! 1':! 23:$
Ottawa
1%:( 2(:& 2%:
Edmonton
1:$ 1!:3 1%:!
*ontreal
13:$ 1!: 1':
LO
#isible Minority -opulation in Selected
$ities
23
.
!//1 !//0 !/11
.indsor
12:'C 1!:&C 21:C
.innipeg
12:! 13:3 1!:%
Ditchener
1(:% 12:( 1!:1
7amilton
':& 11:1 1:!
,dapted from the 3tatistics +anada publication E@opulation @roFections of -isible *inorit# )roups, +anada, @rovinces and
8egions,G 2((1 to 2(1%, +atalogue '14!1, released *arch 22, 2((!, 58L2 http2HHwww:statcan:caHenglishHfreepubH'14!14I"EH'14
!14I"E2((!((1:pdf:
LO
Economic actors
24
2
"dentif# consumer and
marketer reactions
to the state o%
the economy
LO
$onsumers3 4ncomes
25
The marketer
who knows
where the
money is knows
where the
markets are.
2
LO
-urchasing -o(er
Purchasing power 5 income minus the

cost of living <i:e:, expenses=
.hen income is high relative to the cost

of living, people have more discretionar#
income:
26
2
LO
4n% lation
Inf lation is a measure of the decrease

in the value of mone#
pressures consumers to make more

economical purchases
bu#ers will not pa# more than the

subFective value for a product
2
2
LO
Recession
Recession is a period of economic

activit# characteriJed b# negative
growth
,ffects consumer confidence
5ltimatel# affects consumer spending

2!
2
LO
Recession
?o cope, consumers2
3witch to store brands
5se coupons more than ever before
+onsider price6value relationship

deliberatel# before purchasing
2"
2
LO
Technological actors
30
"dentif# the impact
of technology on a firm
0
LO
Technological actors
External technology
is important to
managers for two
reasons
1: ?he firm ma# be
able to operate
more efficientl# or
create a better
product
2: Kew technolog#
ma# render
existing products
obsolete
31
0
LO
-olitical and Legal %actors
32
1
Discuss the political
and legal environment
of marketing
LO
$ompetition ,ureau
33
1
LO
Speciali7ed ederal Legislation
34
1
Legislation Ma8or -rovisions
+ompetition ,ct encourages free competition and
efficienc# in the marketplace
prohibits mergers and governs
specific marketing activities
+onsumer @ackaging
and
Labelling ,ct
encourages ethical behaviour
discourages unethical behaviour
?rade4marks ,ct regulates and protects brand names
and trade marks
?extile Labelling ,ct regulates the labelling of consumer
textile goods
9ood and Drug ,ct monitors the sale of food, drugs, and
cosmetics
LO
Speciali7ed ederal Legislation
35
1
Legislation Ma8or -rovisions
*otor -ehicle 3afet# ,ct regulates the safel# standards for the
manufacture of motor vehicles:
@ersonal "nformation
@rotection and Electronic
Documents ,ct
regulates the collection and use of
personal information for commercial
purposes
protects the right of privac# of
individuals
allows for personal information to be
used for appropriate purposes:
@rivac# ,ct includes the ten privac# principles
from the Kational 3tandard of +anada
outlines other laws and reLuirements
regarding privac# issues:
3O58+E2 9rom ;"D*5KDHD1,*"+OH>8O.KEHDOK-"LLE: Effective Marketing ,1E. 2008
Nelson Education Ltd. Reproduced b per!ission. """.cengage.co!#permissions
LO
Sel%"Regulation
*an# business
groups in +anada
have formed
associations that
police themselves
,dvertising
3tandards +anada
<,3+= is one such
association
36
1
LO
$onsumer -rivacy
?he @rivac# ,ct <@,= and the @ersonal

"nformation @rotection and Electronic
Documents ,ct <@"@ED,=
@rotect the privac# of personal

information
Ensure that its collection, use, and

disclosure are legal and ethical
3
1
LO
$ompetitive actors
3!
Explain the basics
of foreign and
domestic competition
9
LO
#he
co$petiti%e
en%iron$ent
Number of competitors
Relative size of
competitors
Degree of
interdependence within
industry
Management has little
control over competitive
environment
$ompetitive actors
3"
9
LO
$orporate Social Responsibility
40
:
Discuss corporate
social responsibility
LO
$orporate Social Responsibility
$orporate social
responsibility is a
business1s concern for
societ#1s welfare
Sustainability; 9ocus on
the world1s social
problems and view them
as opportunities to build
profits and help the world
at the same time
41
:
LO
-yramid o% $orporate Social
Responsibility
42
Economic performance
Legal responsibilities
Ethical responsibilities
Philanthropic
responsibilities
:
LO
)ro(th o% Social Responsibility
+orporate social responsibilit# works

when
, firm engages in a long4term strateg#

and effort
?he strateg# is coordinated throughout

the organiJation
43
:
LO
)reen Marketing
)reen marketing; the

development and
marketing of
products designed
to minimiJe
negative effects on
the ph#sical
environment
44
:
LO
Ethical ,ehaviour in ,usiness
45
1/
Describe the role
of ethics and ethical
decisions in business
LO
46
Social responsibility and
ethics go hand in hand.
1/
LO
Morals0the rules
people develop as a
result of cultural
values and norms:
$ulture0a socialiJing
force that dictates
what is right and
wrong
4
1/
LO
Morality and ,usiness Ethics
4!
1/
LO
Pre-
conventional
morality
Calculating, self-centred, selfish
Based on what will be immediately

punished or rewarded
Conventional
morality
Loyalty and obedience to the

organization are paramount
Concerned only with whether the

proposed action is legal and how it
will be viewed by others
Post-
conventional
morality
Morality of the mature adult
Concerned about how they see and

judge themselves in the long run
Morality and ,usiness Ethics
4"
1/
LO
actors 4n% luencing
Ethical &ecision Making
Ethical Decision Making
Extent of ethical
problems within the
organization
The healthier the ethical environment, the more
likely marketers will take a strong stand
against questionable practices
Top-management
actions on ethics
Encouraging ethical behaviour and discouraging
unethical behaviour
Potential magnitude of
the consequences
The greater the harm done to victims, the more
likely marketing professionals will recognize the
behaviour as unethical
Social consensus
The greater the degree of agreement
among peers that an action is harmful, the more
likely marketers will recognize the action as
unethical
50
1/
LO
actor 4n% luencing
Ethical &ecision Making
51
Ethical Decision Making contd
Probability of a harmful
outcome
The greater the likelihood that an action will
result in a harmful outcome, the more likely
marketers will recognize the action as
unethical
Length of time between
the decision and the
onset of consequences
The shorter the length of time between the
action and the onset of negative consequences,
the more likely marketers will perceive the
action as unethical
Number of people to be
affected
The greater the number of persons affected by
a negative outcome, the more likely marketers
will recognize the behaviour as unethical
1/
LO
Help employees identify
the business practices
their firm recognizes as
being acceptable
Help employees avoid
confusion when
determining whether
their decisions are
ethical
Effective internal control
on behaviourmore
desirable than external
controls
Facilitate discussion
among employees about
what is right and wrong
ultimately lead to better
decisions
Creating
Ethical
Guidelines
Ethical )uidelines
52
1/
LO
*our Turn
-isit the -anier "nstitute website

www:vifamil#:ca and go to the
.hatMs Kew section: +hoose a report
to read and then comment on how
this information is of value to
marketing managers toda#:
LO
"t is sometimes said that ethics hold

a person <an organiJation= to higher
standards than laws: Discuss:
*our Turn

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PowerPoint

LO 1 Discuss the external environment of marketing, and explain

LO 2 Describe the social factors that affect marketing

LO 3 Explain the importance to marketing managers of current

LO Explain the importance to marketing managers of

LO ! "dentif# consumer and marketer reactions to the state of the

LO $ "dentif# the impact of technolog# on a firm

LO % Discuss the political and legal environment of marketing

LO & Explain the basics of foreign and domestic competition

LO ' Discuss corporate social responsibilit#

LO 1( Describe the role of ethics and ethical decisions in business

"dentif# future marketing opportunities

"mplement strategies that attempt to

+igarette companies through lobb#ing efforts

-alue0a strongl# held and enduring

-alues that influence +anadians1

Lifest#les toda# are

7ow do #ou reach

8ole of the famil#

+anada1s tweens, or )en4

@eople born between 1'$$ and 1'%&

,re savv# and c#nical

Outsource the tasks of dail# life

3pend more on personal services than

?here are ' million

?he oldest have

Accounted for 38.5% of all dollars spent on

Account for 40% of all customers paying for

Purchasing power 5 income minus the

.hen income is high relative to the cost

Inf lation is a measure of the decrease

pressures consumers to make more

bu#ers will not pa# more than the

Recession is a period of economic

,ffects consumer confidence

5ltimatel# affects consumer spending

3witch to store brands

5se coupons more than ever before

+onsider price6value relationship

?he @rivac# ,ct <@,= and the @ersonal

@rotect the privac# of personal

Ensure that its collection, use, and

+orporate social responsibilit# works

, firm engages in a long4term strateg#

?he strateg# is coordinated throughout

)reen marketing; the

Calculating, self-centred, selfish

Based on what will be immediately

Loyalty and obedience to the

Concerned only with whether the

Morality of the mature adult

Concerned about how they see and

-isit the -anier "nstitute website

"t is sometimes said that ethics hold

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