Summary Overview Too many firms are still too production-oriented and inefficient. Their marketing efforts lead to dissatisfied customers. For these customers, micro-marketing costs too much. Micro-Marketing Costs Teaching Tip: The text encourages students to consider the information presented as a point of view. Try and get specific student experiences of satisfaction and dissatisfaction linked to either micro-marketing or macro-marketing costs. Marketing inefficiencies, and customer dissatisfaction that results from them, can be linked to one or more of the following reasons: Lack of Interest . Some firms are not interested in their customers! Perhaps they are diligently concentrating their energy on their production process. That may be well-intentioned but still cannot be excused in a modern, globally competitive economy. But in too many cases, companies aren’t concerned about customers. For such companies, micro-marketing (paid for by the customer, after all) costs too much. Improper Blending of the 4Ps . Some firms blend the 4Ps poorly because they are overemphasizing internal concerns over a customer orientation. This occurs when a product is developed to meet a manager’s need, not a customer’s. Inattention to demand in pricing and the setting of the other Ps is also common. Lack of Understanding . The marketing environment is a complex one. Some firms or managers may not understand the environment or how it is changing. They fail to adapt to change in time or don’t realize that competitors are adapting. This slide relates to the material on pp. 627-629. See also Overhead 239. Instructor’s Note: Remind students that many firms are extremely effective and their micro-marketing costs can be a real “bargain.”
Summary Overview Some critics argue that macro-marketing costs too much. Two areas are common targets: (1) Advertising and promotion are socially undesirable. (2) The macro-marketing system causes poor use of resources, limits income and employment, and leads to an unfair distribution of income. The text debates these criticisms. Macro-Marketing Criticisms Contribute to Undesirable Micro-Marketing Practices . As firms succeed, some critics suggest that they are competitive and too profitable. But success attracts competition and encourages innovation. This increases consumer choice and helps grow the economy. Discussion Note: Many people don’t realize that even our ability to debate these issues and influence how companies behave is a key benefit of a market-driven macro-marketing system. Advertising Wastes Resources . Many critics are offended by much of advertising. But bad taste isn’t the same as a bad idea. In relation to the volume of products sold, advertising is an efficient way to communicate product-benefit information. Consumers are Manipulated . Critics charge that marketing creates needs for products of little overall or social value. But people are not as controllable as this criticism suggests. This is especially true when competition offers consumers different alternatives. Superficial Change . Consumers want change. Those that don’t can usually find plenty of need-satisfaction from other products. But most people want better need-satisfaction than they already have. Marketers work to improve the overall quality of life by making products that lead to ever higher levels of need fulfillment. Not Enough Social Value . Critics suggest that some other force should impose more good products. But customers vote with their own money. This kind of product selection is one of the core values of individualism in American culture. This slide relates to the material on pp. 629-632. See also Overhead 240. Teaching Tip: Remind students that clearly illegal and harmful activities are not marketing-related. These are criminal choices some people make and are subject to laws and penalties.
Challenges Facing Marketers Better Market-Oriented Planning . Too many firms are still production-oriented. Market planning means creating products to meet identified needs. Continuous Improvement . Change for change’s sake confuses altering a mix for the very good reason that needs are changing. But a commitment to continuous improvement always links needed change to specific customer satisfactions. Welcome International Competition . The fact is that more competition represents more opportunities for better ways of doing business. More Social Responsibility . Marketing managers need to learn how to interpret marketing activities from the consumer’s point of view. “Do unto others as you would have others do unto you” is a useful rule. Increased Concern for the Natural Environment . Meeting consumer needs cannot be done at the expense of the natural environment. Companies that harm the environment aren’t looking for long-term success. Consumers and marketers both have to live and work in the future. More Attention to Consumer Privacy . As information technology helps marketers identify and serve target markets better there is always the concern that very sensitive information (like credit) can be inaccurate and/or misused. The Role of Law . Laws must protect consumers and enforcement should consider this priority. For example, prosecution of the top managers who set harmful policies would be more effective against corporate abuses than going after lower level operatives. Consumer Responsibility . In a market-driven economy and in a political environment like the US, ultimate social responsibility lies with individuals. Consumers must work harder to be informed and to demand more of producers and marketers. But no amount of regulation or good intention can save a marketing system from consumers who choose to turn over their responsibility to others. This slide relates to the material on pp. 633-639. See also Overheads 241-253. Summary Overview Business students should learn that the marketing concept implies that business people have an ethical responsibility to improve marketing performance. More ethical conduct creates better value and can even lower costs (like those associated with product liability litigation from unethical conduct).
Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges
<ul><li>1. Understand why marketing must be evaluated differently at the micro and macro levels. </li></ul><ul><li>2. Understand why the text argues that micro-marketing costs too much. </li></ul><ul><li>3. Understand why the text argues that macro-marketing does not cost too much. </li></ul><ul><li>4. Know some of the challenges marketers face as they work to develop ethical marketing strategies that serve consumers' needs. </li></ul>When you finish this chapter, you should 22-2
Micro-Marketing Costs 22-3 Lack of Understanding of the Marketing Environment Poor Blending of the Four Ps Lack of Interest ????? ????? ????? ????? ????? ?????
Macro-Marketing Criticisms 22-4 Undesirable Practices Advertising Wastes Resources Consumers are Manipulated Superficial Change Not Enough Social Value ????? ????? ????? ????? ?????
Challenges Facing Marketers Consumer Privacy International Competition Continuous Improvement Role of Law Some Key Challenges Facing Marketers Market-Oriented Planning Consumer Responsibility 22-5 Rapid change due to Internet, I.T. More Social Responsibility Natural Environment