Impact of Cultural & Political Changes on Marketing: Companies' Reactions, Slides of Marketing

Download Impact of Cultural & Political Changes on Marketing: Companies' Reactions and more Slides Marketing in PDF only on Docsity! The Marketing Environment and Sustainability Trier 2 Previewing concepts (1) • Describe the environmental forces that affect a company’s ability to serve its customers • Explain how changes in the demographic and economic environments affect marketing decisions For decades people have known the impact of an unhealthy diet and what constitutes healthy eating, yet people continue to eat their way to ill health. Since this is not a new problem, what accounts for the sudden upsurge in public and political concern for obesity? What is the marketing environment? The marketing environment is made the actors and forces outside marketing that affect marketing management’s ability to develop and maintain successful relationships with its target customers. Microenvironment v’s Macroenvironment Figure 4.1 The microenvironment Se Marketing intermediaries • Resellers • Physical distribution firms • Marketing services agencies • Financial intermediaries What are resellers? Resellers are distribution channel firms that help the company find customers or make sales to them. Resellers are individuals and organisations that buy goods and resell at a profit. What are physical distribution firms? Physical distribution firms are warehouse, transportation, and other firms that help a company to stock and move goods from their points of origin to their destinations. Publics • Financial publics • Media publics • Government publics • Citizen action publics • Local publics • General public • Internal publics Publics: – Financial publics influence the company’s ability to obtain funds. – Media publics carry news, features, and editorial opinion. – Government publics regulate public safety, truth in advertising, and other matters. – Citizen-action publics include consumer organisations, environmental groups, minority groups, and others. – Local publics include neighborhood residents and community organisations. – The general public may be concerned about the company’s products and activities. – Internal publics include workers, managers, volunteers, and the board of directors Animal Welfare WUULT FREE CLOTHING GUIDE TOWNSEND WwOoUAN WINS PETA'S 7M TOO SEXY FOR LEATHER cones? NORTs BAY WOUAN STWALST NFETAS 1 TOO SEXY FOR LEATHE® CONTEST Demographic environment • Demography is the study of human populations in terms of size, density, location, age, gender, and race occupation • Demographic trends include population growth, changing age and household structure, pressures for migration and population diversity Generational Groups American generational groups  Baby boomers  GenXers  Generation Y  Echo boomers What are the equivalent German generational groups? Demographics • Today’s population of approx 6.3 billion is expected to increase to 8.9 billion by 2050. • Ageing population and increased life expectancy in first world countries. • Low birth rate in first world countries. • Changing family patterns, increased amount of working women and single women. • Rising number of educated people • Increasing diversity • Changing consumer spending patterns World Population Growth 0 1 2 3 4 5 6 7 1650 1700 1750 1800 1850 1900 1950 2000 B il li o n s o f p e o p le 1820 1 billion 1930 2 billion 1987 5 billion lion lat S ageing popu BIE] sniejeg aulesy() AUB WIE eluenyy] a0aalg 21U0]Sq Ae ureds, euehing BIURLUOY jebnisog eusny uonesjepe4 ueissny olbauajUop| 9 e1qsas eneolg wopBury payup UdpaMs Sunoqwexn] Aebuny uunibjag yseuusg BIUSAD]S PUEAZIMS aouel4 YA ‘eluopssey, elueq\y Aemion pueyes| pueyel] snadAg spueyieuien dqnday yoez9 anandey 421015 pueyul4 eulAobazsay 9 elusog puejod Aayin EVeEW © 2010-2015 1 2015-2020 Figure 4.6 Europe’ ouaqon oN OW OW STO ON N TT — | abueys abeyuasiad Older people living alone: a growing trend Mrs Hope knows that help.is coming... Our personal alarm system would enable you to call for help at any hour of the day or night - simply by pressing a button. Call FREE now: 0800 77 22 66 fame or visit our website: www.aidcall.co.uk E-mail; careline@aidcall.co.uk Ae Conse may rad spon asf ern nay omond ALO The cultural environment • Made up of institutions and other forces that affect a society’s basic values, perceptions, preferences, and behaviours. • Persistence of cultural values » Core beliefs and values are passed on from parents to children and are reinforced by schools, churches, business, and government. » Secondary beliefs and values are more open to change. Cultural characteristics affecting marketing decision making • The major cultural values of a society are expressed – People’s views of themselves – People’s views of others – People’s views of organisations – People’s views of society – People’s views of nature – People’s views of the universe Common EU migration patterns • Older people from former industrialised regions in the Benelux countries, Germany, and Britain to the ‘sun belts’ • Younger people from the less economically advanced eastern European states of the EU to the richer western EU states Income distribution Upper income © Middle jncome © Lowerincome © Undress WIDER measures world wealth distributions What are Engel’s Laws? Ernst Engel found that as family income rises, the percentage spent on food declines, the percentage spent on housing remains constant, and the percentage spent on other categories and savings increases. Political/Regulatory • National and local government • EU • Regulatory bodies • Trade associations Legislation has increased steadily • Legislation » implications of legislation can be complicated. » There are many laws created at different levels. » The regulations change often. • legislation has been enacted for a number of reasons. – The first is to protect companies from each other. – The second is to protect consumers from unfair business practices. – The third is to protect the interests of society against unrestrained business behaviour. Public policy implications • Laws are created at different levels • Member states vary in the extent to which they comply with EU legislation • Regulations are constantly changing CSR and its impact on the marketing process • Internalisation of costs (making the polluters pay). • Green taxes. • Legislation. • Support for cleaner technology. • Redesigned products for recycling. • Reverse distribution channels to receive products for recycling. • Consumer education on sustainability. Marks & Spencer participates in cause-related marketing UK report ‘Who are the Ethical consumers?’ The potential for ethical products and services in the UK could be as high as 30% of consumer markets. 52% of consumers had recommended companies because of the companies’ responsible reputation. 44% of consumers had avoided a product or service because of a company’s behaviour. But just what is “deceptive”? • The problem is defining what is “deceptive.” The advertiser might claim that it is just “puffery”—innocent exaggeration for effect. Products lack the needed quality. – One complaint is that many products are not made well and services not performed well. – A second complaint is that many products deliver little benefit, or that they might even be harmful. – A third complaint concerns product safety. Product safety has been a problem for several reasons, including company indifference, increased product complexity, and poor quality control. Citizen and public actions to regulate marketing • Because some people view business as the cause of many economic and social ills, grassroots movements have arisen from time to time to keep business in line: 1) consumerism, and 2) environmentalism. Figure 2.2. How might societal attitudes influence marketing? Environmental issues Animal welfare Business ethics Personal ethics Marketing strategy Health and safety Natural environment trends • Growing shortage of raw materials • Increased cost of energy • Increased pollution and climate change • Government intervention in natural resource management What is the environmentalism? Environmentalism is an organised movement of concerned citizens and government agencies to protect and improve people’s living environment. Figure 2.1 The environmental sustainability grid Tomorrow Today Sustainability vision Does our corporate vision direct us towards the solution of social and environmental problems? Does our vision guide the development of new technologies, markets, products and processes? Pollution prevention Where are the most significant waste and emission streams fram our current operations? Can we lower costs and risks by eliminating waste at the source or by using it as useful input? Internal External Figure 2.1 Grid that companies can use to gauge their progress • At the most basic level, a company can practice pollution prevention. • At the next level, companies can practice product stewardship—minimizing all environmental impacts through the full product life cycle. Many companies are adopting design for environment (DFE) to design products that are easier to recover, reuse, or recycle. Pollution prevention: Ricoh RICOH = Contact Site Mag | Search| (Go) Sustsina - Environmental Environment Management Se Products : Business 5 i ’ . Se ets OER ET CELE Social Contribution & ; a commiuranaton z ao me Sere Data c >A ? Japan Famers China Twan hestieraa Europe > Asia/ Oceania Sustainability Report Environment Contact | Sustainable Environmental Management af ate atainebility Presentation on how the Ricoh Group is promoting: Environment quetainshie erwronmertsl msnagemert > ‘ Sitemap a fCevtenment Products * Business Sites Reducing the envronmertal Reducing the environmental burden of products bburden inside our business stes . ‘ard fectcties a a Social Contribution & Data praeseteyrmed et Our achievements of reducing ll ] ee {chegyDo ay environmental burckn te ] Consumers New environmental technologies: Wal-Mart WAL*MART Co Ae Sustainability Think About This Environment Sustainability vision: Tesco JESARY Erewy little bokps TESCO CORPORATE RESPONSIBILITY REVIEW 2006 Home Chief Bx intreduetion (Ca in our businass Stakeholder engagement Ecenemy society Ca in our international busine: Performance & reporting Dawnlaad centre Contact Feedback Corporate Cen! Et We want the praduets we sell and the ingredients that ge inte tham te be produced sustainably. We de this by: + Applying cur "Kature’s Choice! environmental standards to all farms growing produce for Tesco + Encouraging more customers to choose organic and sourcing mare fe invested over organic products from the UK million in radueng + Applying robust policies to cover specific iseues euch as animal welfare, timber and seafoad * Working with suppliers to improve efficiency in distributian so products travel fawer miles + Reducing peckegin: Nature's Choice rollout plan Rollout targeted by volume of supply, o and country riske Health Concerns (Heinz’s health agenda) oop TY Dr ETT good food policies SF a https * We only use proper cuts of meat you'd use in your own kitchen GE focuses on environmentally sustainable marketing strategies Environmental Issues (Precious Woods) Trends in the technological environment • Fast pace of technological change • Increased regulation