MODULE 7

MARKETING &
SOCIETY
 SOCIAL RESPONSIBILITY
 General  Definition:  A  set  of  actions  a  company  takes  to improve,
 maintain  or  mitigate  a  company’s  impact  on  society   and  the
 environment  while  increasing  value.
 Companies are accountable to society or their actions

 Three types:
 ProfitResponsibility
 Stakeholder Responsibility
 Societal Responsibility
 Environment
 Green Marketing

 General Public

 Cause-Related Marketing
 LESSONS FOR SOCIALLY
RESPONSIBLE COMPANIES

 What you sell is important

 Be proud to be in business

 Make a solid commitment to change

 Focus on two bottom lines

 Forget the hype

 PYRAMID OF
CORPORATE SOCIAL RESPONSIBILITY

Source: From Archie B. Carroll, “The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders,” adaptation
of Figure 3, p. 42. Reprinted from Business Horizons, July/Aug. 1991.
SOCIAL RESPONSIBILITY ISSUES
MARKETING ETHICS

What are ethics?

 Ethics are the “moral principles and values that govern the actions
and decisions of an individual or group.”
 Principles and standards that define acceptable marketing conduct
as determined by various stakeholders.
 Ethical Issue – An identifiable problem, situation, or opportunity
requiring a choice among several actions that must be evaluated as
right or wrong, ethical or unethical.
 SAMPLE ETHICAL ISSUES
RELATED TO THE MARKETING MIX
FACTORS IN ETHICAL DECISION-
MAKING
THE NATURE OF ETHICS
 The Ethical Decision-Making Process
 Influence factors
 Individual—personal values and principles of right and wrong,
socialization through family, social groups, religion, and education
 Organizational—work groups, committees, coworkers

 Opportunity—business and organizational conditions which limit, punish,

encourage, or reward ethical/unethical decisions

THE NATURE OF ETHICS (CONT’D)
 Improving Ethical Conduct in Marketing
 Codes of conduct (ethics)
 Formalized rules and standards that describe what the company expects
of its employees
 Ethics officers
 High-ranking persons (known to respect legal and ethical standards) in
the organization who have responsibilities for
 creating and distributing codes of conduct.

 providing advice about ethical issues.

 overseeing and enforcing of the code of conduct.

THE NATURE OF ETHICS (CONT’D)
 Implementing Ethics and Legal Compliance Programs
 Provide open communication and coaching on ethical issues
(create a value-based corporate culture).
 Enforce standards and impose penalties or punishment for
codes of conduct violations.
 Revise compliance programs as necessary.
 Make compliance programs an essential part of the overall
marketing strategy implementation.
GLOBAL MARKETING
 Marketing
 Process
 Global Marketing
of planning and executing the conception
 Focusespricing,
resources on
promotion and distribution of ideas, goods and services to
global market
create exchanges that satisfy individual and organization
opportunities and threats;
goals
the main difference is the
scope of activities because
global marketing occurs in
markets outside the
organization’s home
country

1-12
GLOBALIZATION DRIVERS

 Market Factors
 new consumer groups, developed infrastructures,
globalization of distribution channels, cross-border retail
alliances
 Cost Factors
 avoiding cost inefficiencies and duplicated efforts
 Environmental Factors
 reduced governmental barriers, rapid technological evolution
 Competitive Factors
 rapid product innovation, introduction, distribution
 DECIDING ON THE GLOBAL
MARKETING PROGRAM

Standardize marketing mix involves selling the same

products and using the same marketing approaches
worldwide

Adapted marketing mix involves adjusting the

marketing mix elements in each target market, bearing
more costs but hoping for a larger market share and
ROI
 DECIDING ON THE GLOBAL
MARKETING PROGRAM
Product Strategies

Straight product extension means marketing a product in a foreign

market without any change
Product adaptation involves changing the product to meet local
conditions or wants
Product invention consists of creating something new for a specific
country market
 Maintain or reintroduce earlier products
 Create new products
DECIDING ON THE GLOBAL
MARKETING PROGRAM

Promotion Strategies

Companies can either adopt the same

communication strategy they use at home
or change it for each market

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 DECIDING ON THE GLOBAL
MARKETING
PROGRAM
Five International Product and Promotion Strategies
Product
Don’t Change Adapt
Product Product
Extension Adaptation
Don’t
Promotion

Straight Product
Change
Promotion

Adaptation Adaptation
Adapt Communication Dual
Promotion

Develop New Product

Product Invention
 DECIDING ON THE GLOBAL
MARKETING PROGRAM
Price Strategies

Uniform pricing is the same price in all markets but does not
consider income or wealth where the price may be too high in
some markets or not high enough in other markets

Market-based pricing is the price that markets can pay but does not
consider actual costs

Standard markup pricing is a price based on a percentage of cost

but can cause problems in countries with high costs
 DECIDING ON THE GLOBAL
MARKETING PROGRAM
Distribution Strategies
Whole-Channel View

Seller’s headquarters organization supervises the channel and is

also a part of the channel

Channels between nations move the products to the borders of the

foreign nations

Channel within nations move the products from their foreign point
of entry to the final customers
DECIDING ON THE GLOBAL
MARKETING PROGRAM

Distribution Strategies
Differences Within Countries

 Numbers and types of intermediaries

 Size and character of retail units
RETAIL MARKETING
  Retail is the sale of goods and services from businesses to an end
user (called a customer). Retail marketing is the process by
which retailers promote awareness and interest of their goods and
services in an effort to generate sales from their consumers.
 Marketing is central to integrating the retailing effort

 Understand the value equation for different segments of shoppers

 Understand what benefits customers seek from their shopping trip

 Build lasting relationships with customers on different

transactional levels
SCOPE AND PURPOSE OF RETAIL
MARKETING
 Understand customer values
 Create a retail offer that satisfies these values

 Communicate these values to the target audience

 Create a retail format and experience that delivers these values

 Manage the process to ensure maximisation of customer value

 INDUSTRIAL MARKETING
 Industrial marketing is also referred to as business to business (B2B)
marketing or business marketing or organizational marketing.
 Industrial marketing is the marketing of products and services to
business organizations.
 Business organizations include manufacturing companies, educational
institutions, hospital, distributors and dealers.
DRIVERS OF THE NEW ECONOMY

 Digitalization and connectivity

The Internet, intranets & extranets are key
 Disintermediationand reintermediation
 Customization and customerization
 Industry convergence
CHANGES IN BUSINESS
PRACTICES

Old Economy New Economy

Product unit Customer segment
organization organization
Profitable transactions Lifetime value of
Financial scorecard customer
Stockholders Marketing scorecard
Marketing does the Stakeholders
marketing Everyone does the
marketing
CHANGES IN BUSINESS
PRACTICES

Old Economy New Economy

Build brands via Build brands via
advertising performance
Customer acquisition Customer retention
No customer satisfaction Measure customer
measurement satisfaction and retention
Overpromise, rates
underdeliver Underdeliver,
overpromise
LEGAL ISSUES IN MARKETING
 The legal aspect is very important in marketing. Every
business operates within the jurisdiction of legal system.
 The legal system is an inevitable component of the
environment within which a business operates.
 The commercial law existing within any country influences
not only each and every variable of marketing mix but also
the environment within which a business operates. This has a
direct bearing on the management of marketing
 MAJOR LAWS AFFECTING
MARKETING IN INDIA.
 1. Consumer protection act 1986.
 2. The companies act 1956.

 3. The contract act 1872.

 4. The negotiable instruments act 1881.

 5. The monopolies and restrictive trade practices act

1969.
 6. The competition act 2002.

 7. The essential commodities act 1955.

 8. The environment ( protection ) act 1986.

There are many laws, but the major laws are as shown
above.
MARKETING SKILLS

Effective Marketing Campaigns require a range of skills and knowledge.

 Communicate, Negotiate and Network

 Collaborate with sales team
 Know your strength and weaknesses
 Conducting a Market Research
 Capability in Customer Services
 MARKETING SKILLS
 Communicate, Negotiate and Network
Excellent marketers are strong communicators and
shrewd business operators. They have vibrant
communication skills that help them deal with
suppliers and service providers, while dealing
with customers and building valuable networks
Including exploiting social media, blogging, email
Campaigns and promotions. Popularly is developing
A web site which becomes the calling card of the
Business.
 Collaborate with sales team
To expand or run a growing business there might be need
to separate sales and marketing teams. The sales team
still remains an essential part of a marketer’s marketing
success and must be involved in marketing strategies.
This helps motivate a marketer’s salespeople to achieve
Marketing objectives.
 MARKETING SKILLS

 Know your strength and weaknesses

The capability of evaluating and understanding
a business’ strengths, weaknesses, opportunities
and threats (SWOT Analysis) will help a business
to make informed decisions and deliver the
business’s marketing effectively. If the Marketer
can know the pros and cons of the business’s
operating systems, financial commitments, legal
obligations and workforce skills, it makes it easier
to identify appropriate marketing campaigns.
MARKETING SKILLS

 Conducting a Market Research

A marketer must be adept with the skills and
know how of conducting marketing research
Coupled with sound SWOT Analysis findings,
critical information collected prior marketing
campaigns can help identify training needs and
good, marketing decisions including;
Developing a targeted, direct mail campaign within
a compiled database, sound marketing budgeting
and identification of the best marketing mix that appeal
the target market.
 MARKETING SKILLS

 Capability in Customer Services

A marketer must have a strong propensity to
serve customers well – putting customers
first and benefits to business second. The
key rests in well founded capabilities in
providing excellent customer services.
Aspects such good listening skills,
skills to identify accurate information
before handling customers enquiries
and queries are valuable. Timely
responses to customers needs and
wants helps to build customer
confidence.
 BRAND BASICS

 The American Marketing Association defines brands as a “name,

term, design, symbol, or any other feature that identifies one seller's
good or service as distinct from those of other sellers”
 Usually managers characterize a brand by describing all of the brand
elements used to identify it, including its name (e.g., Apple), symbol
(e.g., silhouette of an apple with a bite removed), package design
(e.g., sleek white box), and any other features that serve to
differentiate that brand’s offering from competitors’
 A firm’s brand equity often represents a substantial portion of its
overall value

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BRANDING TOOLS
 All of these
 Trade Marks
 Industrial Designs
 Geographical Indications

are business branding tools

 Aimed at
 Promoting product recognition
 Promoting customer loyalty
 Promoting repeat business
 Enhancing the reputation of the product and its producer
 Tools used to capture economic benefits to a business

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 Customer Relationship Management

 This is the modern approach of marketing. The mantra of a

successful marketer is ‘Long-term relationships with customers and
other partners lead to successes 

 Customer relationship management,the key- The aim of CRM is to

produce high customer equity

 CRM is the process of managing detailed information about

individual customers and care fully managing all customer touch
points
CUSTOMER RELATIONSHIP MANAGEMENT

 Customer relationship management- is perhaps the most important

concept of modern marketing

 It involves managing detailed iformation of individual customers and

carefully managing customer touch points to maximise loyalty

 More recently CRM is the overall process of building and maintaining

profitable customer relationships by superior value and satisfaction
CUSTOMER RELATIONSHIP MANAGEMENT

 According to Philip Kotler and Gary Armstrong, CRM is concerned

with managing detailed information about individual customers and all
customer “touch points” to maximize customer loyalty.
 can also be defined as, ‘an alignment of strategy, processes and
technology to manage customers, and all customer-facing departments
and partners’.
 In short, CRM is about effectively and profitably managing customer
relationships through the entire life cycle.
21ST CENTURY WAY OF
MARKETING
  Social Marketing
  Relationship Marketing

  Green Marketing
 SOCIAL MARKETING
 Social marketing is a umbrella term that define the various activates that integrate
technology , social interaction and the construction of word and picture. For social
marketing we need to have creative idea which attract other people to the product.
Size of social market
 The size of social market is as big as you can think of there are zillion of social
networking website.
 Now a days average people spend more than 1hr a on social networking website.

Present Survey in Social Market

 Talking about today world there is 96% of Millennial have joined the social
network.
 The fastest growing segment on facebook is 50-55 years old.

 76% of people trust consumer recommendation of purchase decision.

 There is also a small segment of people in the world which trust celebrities.

 It is seen in research that companies who haven't worked on social marketing is

facing down sales.
 RELATIONSHIP MARKETING

What is Relationship Marketing?

 A long term strategy to built relationship with individual customers.

 Relationship Marketing is a philosophy of doing business, a strategic

orientation that focuses on keeping and improving current customers
rather than on acquiring new customer.
It is developed by
 Satisfying costumers

 Trust

 Adding Values

 Privileges

 Costumer orientation

 Quality product
 GREEN MARKETING
 It is the marketing of products that are presumed to be environmentally safe.
Thus green marketing incorporates a broad range of activities, including
product modification, changes to the production process, packaging
changes, as well as modifying advertising. Other similar terms used are
Environmental Marketing and Ecological Marketing. And some Example
 How it is working Green” is perhaps one of the biggest trends to hit the
modern marketplace. Wal-Mart is going Green.
 Green certificate  The Indian Green Building Council (IGBC), part of the
Confederation of Indian Industry (CII) was formed in the year 2001. The
vision of the council is, "To enable a sustainable built environment for all
and facilitate India to be one of the global leaders in the sustainable built
environment by 2025".
 Indian Companies going towards Green... The infamous Indian companies
that made it to the list are:  Essar Oil  Larsen & Toubro  Tech
Mahindra  Tata Consultancy Services  Wipro.
BEST OTHER TECHNIQUES
 Most large organisations and government focus on
public relations activities, as they have large stakeholder
base. Below are some of the activities which are done by
inviting journalists.
 Press conference

 Press release

 Media event
SOME INBOUND STRATEGIES
  Domino's: By making a conscious effort to gain a
better understanding of the preferences of the markets it's
trying to break into, Domino's is able to deliver pies
diverse enough to gain international attention.

 McDonald's : It practices 'glocal' marketing efforts. No,

that's not a typo. McDonald's brings a local flavor,
literally, to different countries with region-specific menu
items. In 2003, McDonald's introduced the McArabia, a
flatbread sandwich, to its restaurants in the Middle East.
 Coca-Cola: Coca-Cola focuses on small community programs and invests
a lot of time and money in small-scale charity efforts.
Ex: in Egypt, Coca-Cola has built 650 clean water installations in the rural villages.
In India, the brand sponsors the Support My School initiative to improve
facilities at local schools.
 Dell: Takes a Multi-Layered Approach The company is also making the
most of the video medium by featuring a growing collection of videos on
its Facebook page, tweeting about them on Twitter and promoting them
on other social media.
Conclusion
 As the increasing creativity among the young minds are coming up the
new trends which is now taking up in the market. All the big company in
the world are going green to capture the market. “Market is run by the
big players--- “Marketers”
FACTORS AFFECTING
MARKETING IN 21 ST CENTURY
 CHANGING TECHNOLOGY
 GLOBALISATION

 DEREGULATION

 PRIVATIZATION

 CUSTOMER EMPOWERMENT

 CUSTOMIZATION

 INDUSTRY CONVERGENCE

 RETAIL-TRANSFORMATION

 DIS & RE-INTERMEDIATION

Dr Jogi Mathew
Department of Management studies