Principles of marketing: Lecture 43

MGT301
Principles of Marketing
Lecture­43


Summary
of  
Lecture­42


e­Marketing
The Birth of the Internet
The Role of the Internet in Marketing


Definitions
•

E­ Commerce

•

E­Marketing

•

E­Business


Rules of  E­Marketing

Basic Forms of Virtual Business
Business-to-Consumer
Business-to-Consumer
(B2C)
(B2C)
Basic
Basic Forms
Forms
of
of
Electronic
Electronic
Commerce
Commerce
Business-to-Business
Business-to-Business
(B2B)
(B2B)


Decision Variables of the Marketing Mix
 


Catch for Pakistani Business 


Today’s Topics

Marketing and Society


Current Issues in Marketing


•

The current issues and marketing can be divided 
into two major subjects:
– Ethics
– Social responsibility

•

The two concepts are very closely related


Marketing Ethics
•

Marketers’ standards of conduct and moral 
values.

•

People develop standards of ethical behavior 
based on their own systems of values and that 
may differ from employers organizational 
ethics, which, produces conflicts

Social Criticisms of Marketing


Social Criticisms of Marketing
High
High
Prices
Prices
Poor
Poor
Service
Service

Marketing’s
Impact on
Individual
Consumers

Planned
Planned
Obsolescence
Obsolescence
Shoddy
Shoddyor
or
Unsafe
Unsafe
Products

Products

Deceptive
Deceptive
Practices
Practices

High
High
Pressure
Pressure
Selling
Selling


Marketing’s Impact on Society


The Marketing Function is Accused by 
Society of Creating:
False
FalseWants
Wantsand
and
Too
Too
Much
MuchMaterialism
Materialism

Too
Too Few
Few Social
Social
Goods
Goods

Too
TooMuch
Much
Political
PoliticalPower
Power

Cultural
Cultural
Pollution
Pollution


Ethical Questions in Marketing


Product
•
•
•
•
•

Planned obsolescence
Product quality and safety
Product warranties
Fair packaging and labeling
Pollution


•

Packages larger than necessary to gain shelf 
space

•

Odd­sized packages to complicate price 
comparisons

•

Product testing on animals


Price
•
•
•
•

Price fixing
Price discrimination

Price increases
Deceptive pricing


Distribution
•
•
•
•

Exclusive territories
Dumping
Dealer rights
Predatory competition


•

What degree of control should the firm exert 
over its channel?

•

Should a company distribute its products in 
marginally profitable outlets that lack 
alternative sources of supply?


Promotion
•

Bait­and­switch advertising

•

Promotional allowances

•

Bribery


•

Promotion gives rise to more ethical 
questions than other components of the 
marketing mix.

•

Advertising does everything from simple 
exaggeration to outright deceit (car 
advertisements where the fine print is so 
small you can’t read it.).


Marketing’s Impact on Other 
Businesses