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Marketing Impacts Society. 2.1 The Impact of Marketing 2.2 Criticisms of Marketing 2.3 Increasing Social Responsibility. The Impact of Marketing. Goals for Lesson 2.1 Explain how marketing affects businesses Describe marketing’s impact on individuals

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Marketing impacts society

Marketing Impacts Society

2.1 The Impact of Marketing

2.2 Criticisms of Marketing

2.3 Increasing Social Responsibility

The impact of marketing
The Impact of Marketing

Goals for Lesson 2.1

  • Explain how marketing affects businesses

  • Describe marketing’s impact on individuals

  • Discuss ways marketing benefits society

Marketing positive vs negative
Marketing – Positive vs Negative

  • Important to determine if marketing plays a positive or negative role

  • Does marketing contribute to businesses, individuals, society

  • Positive – A community hospital that describes the various services

  • Negative – Fashion designers who have extremely thin models present their clothing lines to the public

Marketing affects businesses
Marketing Affects Businesses

  • Critical Business Function

    • Understanding the seven marketing functions (product management, distribution, selling, marketing-information management, financing, pricing, promotions

    • Using the marketing concept (using the needs of customers as the primary focus during planning, production, distribution and promotion

Marketing affects business
Marketing Affects Business

  • Customer Satisfaction

    • Understanding the needs and wants of customers

    • Understanding the likes and dislikes of customers

    • Helps businesses make better decisions about what to sell and how to sell it

    • Allows companies to operate more efficiently

Marketing helps people
Marketing Helps People

  • Locations of stores

  • Favorite brands

  • Prices clearly labeled

  • Types of payments

    • Helps satisfy customer needs

Marketing impacts society



Product Costs

and Prices

Marketing helps people1
Marketing Helps People

  • Better Products at Lower Costs

    • Wants/Needs and Likes/Dislikes lead to improvements of products and new products are developed

    • Product meets customer needs

    • Results in higher sales volume

    • Increase sales allow business to produce products more efficiently

    • Causes costs to decrease

Marketing helps people2
Marketing Helps People

  • Expanded Opportunities

    • One-fourth of all jobs in the US are marketing jobs

    • Financially rewarding

    • Helps you become a better consumer

    • Marketing Skills can with other activities (elections, college planning, fundraising)

Think critically
Think Critically

  • Buying the naming rights for publicly owed sports stadiums and arenas is obviously good for taxpayers’ wallets, and it is apparently good for business too. At astronomical prices such rights have been selling lately, they had better be very good businesses shelling out, in one case, more than $100 million over 15 years.

    Businesses that slap their names on stadiums figure to get billions of impressions per year from fans, passers-by, and television viewers. Typically the corporate name goes on signs seen from adjacent roadways, on stadium entrances, and inside near the scoreboards. In addition, naming rights deals usually include other amenities such as luxury boxes, complimentary tickets, and game sponsorships.

    In a recent survey, 9 of 10 people knew the corporate sponsors of their local sports arenas. And 6 of 10 respondents said that naming a sports venue after a corporate sponsor was good for the community. The practice has become so common that the public now expects it, and the taxpayers increasingly demand it as a way to recoup costs.

    1. In what ways does buying naming rights differ from buying TV spots for a popular sporting event such as the Super Bowl or World Series?

    2. What are some of the possible drawbacks of putting a business’s name on a public sports arena?

Marketing benefits society
Marketing Benefits Society

  • New and better products

  • Better standards of living

  • Promotes international trade

New and better products
New and Better Products

  • Products and services that help society in general

    • Example: more efficient automobiles that use less gasoline and cause less pollution

    • Giving consumers what they want, allowing natural and raw resources to be used less

Better standards of living
Better Standards of Living

  • Based on the products and services available to consumers

  • Countries with a well developed marketing system are able to make better products

  • More jobs for citizens and higher paying jobs

Promotes international trade
Promotes International Trade

  • Marketing has been particularly effective in improving international trade

  • US is the large consumer of foreign products

  • Marketers help determine where products can be sold and how to sell them in those countries

Benefits of marketing
Benefits of Marketing

  • Businesses meet consumer needs

  • Consumers make better decisions

  • Natural resources are used more effectively

  • Standard of living is improved

  • International trade increases


  • List at least three benefits that both consumers and businesses gain by positive marketing practices. You should provide specific examples of businesses and list benefits gained by both businesses and consumers.

Group activity
Group Activity

  • Complete the following task using magazine advertisements:

    1. Identify 2 ads that portray marketing in a positive manner. Explain why?

    2. Identify 2 ads that portray marketing in a negative manner. Explain why? How could the company promote the product or service in a positive manner?

Criticisms of marketing
Criticisms of Marketing

Goals for Lesson 2.2

  • Discuss three common criticisms of marketing

  • Explain how marketing can be used to solve social problems

Common complaints
Common Complaints

  • Marketing causes unneeded purchases

  • Marketing wastes money

  • Some products do not need marketing

Causes unneeded purchases

Marketing can increase sales of products

Attractively packaged

Advertising to encourage purchase

Special financing

Does the consumer really need it?

Long term results


Returning of products

Will the consumer buy your products again?

Causes Unneeded Purchases

Businesses must be sensitive to the needs and experiences of customers. Products and services should be carefully matched. Must value long-term relationships.

Wastes money
Wastes Money

  • 50% of the price of products comes from marketing activities.

  • Selling and advertising make up about 5% - 10%

  • Effective marketing actually lowers prices in the long run

    • More competition helps keep prices low

    • Increased sales volume and competition result in lower prices for consumers

Some products don t need marketing
Some Products Don’t Need Marketing

  • Consumer would be responsible for locating the product

  • Consumer would have to gather information about it

  • No financing options

  • No distribution of the product

Marketing solves problems
Marketing Solves Problems

  • Marketing increases public awareness

  • Marketing helps match supply with demand

Increases public awareness
Increases Public Awareness

  • Serious problems facing society (health care, crime levels, poverty, diseases, racism, education, unemployment, drug use, the environment.

  • How can Marketing help?

    • Communication

    • Advertisements

    • Public Service Announcements

Helps match supply demand
Helps Match Supply & Demand

  • Products and services are not always available where they are most needed

  • Effective distribution is can help match supply with demand

  • Helps prevent or reduce the impact of problems that could affect society

Journal review questions
Journal – Review Questions

1. On average, marketing costs represent what percentage of the price that a consumer pays for a product?

2. On average, costs of sales and promotions represent what percentage of the price that a consumer pays for a product?

3. If sellers do not perform certain marketing functions, why doesn’t that reduce the final cost of a product to the consumer?

4. Name several public awareness campaigns that are intended to benefit society?

5. If cranberry growers were suffering from an oversupply of cranberries that slashed prices and threatened to put them out of business, how could marketing help them?

Increasing social responsibility
Increasing Social Responsibility

Goals for Lesson 2.3

  • Define consumerism

  • Explain ways which businesses improve their own practices

  • Discuss how ethical issues affect marketers’ professional responsibilities

Consumer protection
Consumer Protection

  • Increasing Social Responsibility

  • Growth of Consumerism

  • Government regulations

Social responsibility
Social Responsibility

  • Marketers must be willing to pay attention to society’s needs

  • The trend today is a greater expectation for business to be socially responsible

  • It is not all about customers wants/needs and making a profit

  • Businesses need to think about the long run

Growth of consumerism
Growth of Consumerism

  • Definition – the organized actions of groups of consumers seeking to increase their influence on business practices.

  • Consumer Bill of Rights (JFK, 1960s) – four basic rights to all consumers

    • Adequate and accurate information

    • Safe products

    • Product choices

    • Communicate ideas to business and government


  • Consumer education, consumer information lobbying, product boycotts

  • Organizations that test products to determine safety and value

  • Boycotts – an organized effort to influence a company by refusing to buy their product

  • Government Regulations – Consumer Laws’ Handout

Improving practices
Improving Practices

  • Code of ethics – a statement of responsibilities for honest and proper conduct.

    • Enforced by penalties established by the industry

  • Self-Regulation – taking responsibility for actions

    • BBB – gathers info for consumers about problems

    • Buyer’s Bill of Rights

    • Responsibilities of Marketers (Figure 2-8)


  • At your table name three or four additional items that would add to the code of ethics in Figure 2-8 if they were consumer rights advocates or if they owned a business. Students should explain why each additional item would be an important ethics issue to include.

Improving practices1
Improving Practices

  • Social Action – business people helping to solve some of society’s major problems

    • Ex: Members Only – drug abuse and voter registration

    • Ex: Nike – Literacy Program

    • Ex: McDonalds – Ronald McDonald Houses

Ethics in marketing
Ethics in Marketing

  • Ethics – decisions and behavior based on honest and fair standards

  • Responsibility to Customers

    • Marketers have a direct relationship with customers

    • Marketing Code of Ethics (product planning, promotion, pricing, distribution, and marketing research

    • Decisions and actions should be evaluated

Ethics in marketing1
Ethics in Marketing

  • Harm and Accountability

    • Marketers must remember that their emphasis must be on what is best for everyone in an exchange

    • No concern for society or customers

    • Illegal behavior

    • Educational programs for employees


  • Write one sentence to summarize each of the following phrases:

  • “Consumer Protection”

  • “Improving Practices”

  • “Ethics in Marketing”