Positive And Negative Aspects Of Cause-Related Marketing

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False statements are often used in advertising to help draw a person's attention. Misleading or deceiving methods of advertising are used by millions of companies such as Volkswagen, Dannon, and Red Bull. According to Business Insider, "In , it was exposed that VW had been cheating emissions test on its diesel cars in the US for the past seven years" [1]. Advertising can also portray individuals provocatively by displaying nude photos or indecent language. As a result, this leads to people not feeling confident about themselves or their body which causes psychological disorders such as depression or anxiety. Your Article Library talks about some of the main criticisms against advertising by stating, "Some advertisements are un-ethical and objectionable This adversely affects the social values" 2.

Business is interested in children and adolescents because of their buying power and because of their influence on the shopping habits of their parents. As they are easier to influence they are especially targeted by the advertising business. Kids will carry forward brand expectations, whether positive, negative, or indifferent. Kids are already accustomed to being catered to as consumers. The long term prize: Loyalty of the kid translates into a brand loyal adult customer" [54]. College students tend to fall into student debt due to a simple purchase of a credit card. How are these students being influenced to buy a credit card though? Well it all starts with credit card companies targeting college students from the very beginning as soon as they walk into campus.

These companies advertise credit cards by convincing students that this card will be given away for "free" or by giving away items in turn for a credit card sign up. The children's market, where resistance to advertising is weakest, is the "pioneer for ad creep". Far from it. The animated film, Foodfight, had 'thousands of products and character icons from the familiar items in a grocery store. The average Canadian child sees , TV commercials before graduating from high school, spends nearly as much time watching TV as attending classes. In the Canadian province of Quebec banned advertising for children under age Such advertising aims to promote products by convincing those who will always believe. In Greece there is no advertising for kids products from 7 to 22 h.

An attempt to restrict advertising directed at children in the US failed with reference to the First Amendment. In Spain bans are also considered undemocratic. Web sites targeted to children may also display advertisements, though there are fewer ads on non-profit web sites than on for-profit sites and those ads were less likely to contain enticements. However, even ads on non-profit sites may link to sites that collect personal information. Ryan's ToyReviews channel has 21 million subscribers and over 30 billion views.

Toy manufacturing companies have donated a large sum of toys for Ryan to review on his channel. Walmart, Hasbro, Netflix, Chuck E. Due to the popularity of the show, they were advertised to change the name to Ryan's World. Not only did large companies advise the name change, they encouraged him to provide more content such as, science experiments, challenges and education as well. He now produces a clothing line and his own toys sold specifically at Walmart. Sweets , ice cream , and breakfast food makers often aim their promotion at children and adolescents. For example, an ad for a breakfast cereal on a channel aimed at adults will have music that is a soft ballad, whereas on a channel aimed at children, the same ad will use a catchy rock jingle of the same song to aim at kids.

Restaurants offer incentives such as playgrounds, contests, clubs, games, and free toys and other merchandise related to movies, TV shows and even sports leagues. In , 44 of the largest U. Such massive advertising has a detrimental effect on children and it heavily influences their diets. Facing a lot of pressure from health industries and laws, such as the Children's Food and Beverage Advertising initiative, food marketers were forced to tweak and limit their advertising strategies. Despite regulations, a report shows that three quarters of all food advertising during children's television programs were outside of the law's boundaries.

Government attempts to put a heavy burden on food marketers in order to prevent the issue, but food marketers enjoy the benefits of the First Amendment which limits government's power to prevent advertising against children. The Federal Trade Commission states that children between the ages of 2—11 on average see 15 food based commercials on television daily. Most of these commercial involve high-sugar and high-fat foods, which adds to the problem of childhood obesity.

An experiment that took place in a summer camp, where researches showed food advertisements to children between ages 5—8 for two weeks. The outcome-what kids chose to eat at a cafeteria were the ads they saw on TV over the two weeks. An article from the US National Library of Medicine National Institutes of Health even states that, "Several cross-sectional studies have reported a positive association between exposure to beauty and fashion magazines and an increased level of weight concerns or eating disorder symptoms in girls. The rate of anorexia nervosa among adolescent girls is 0.

In advertisements, cigarettes "are used as a fashion accessory and appeal to young women. Other influences on young people include the linking of sporting heroes and smoking through sports sponsorship, the use of cigarettes by popular characters in television programmes and cigarette promotions. Research suggests that young people are aware of the most heavily advertised cigarette brands. The advertisements include alcoholic beverages with colorful packaging and sweet tasting flavors, catering to the interests and likes of children and teens.

The alcohol industry has a big financial stake in underage drinking, hoping to gain lifelong customers. Therefore, the media are overrun with alcohol ads which appeal to children, involving animal characters, popular music, and comedy. They can sing the jingles and identify the logos, and they often have strong feelings about products. What they generally don't understand, however, are the issues that underlie how advertising works. Mass media are used not only to sell goods but also ideas: how we should behave, what rules are important, who we should respect and what we should value. According to critics, the total commercialization of all fields of society, the privatization of public space, the acceleration of consumption and waste of resources including the negative influence on lifestyles and on the environment has not been noticed to the necessary extent.

The "hyper-commercialization of the culture is recognized and roundly detested by the citizenry, although the topic scarcely receives a whiff of attention in the media or political culture. But in resisting this type of hyper-commercialism we should not be under any illusions. Advertising may seem at times to be an almost trivial if omnipresent aspect of our economic system.

Yet, as economist A. Pigou pointed out, it could only be 'removed altogether' if 'conditions of monopolistic competition' inherent to corporate capitalism were removed. To resist it is to resist the inner logic of capitalism itself, of which it is the pure expression. But what is pollution to some is a vibrant part of a city's fabric to others. New York City without Times Square 's huge digital billboards or Tokyo without the Ginza 's commercial panorama is unthinkable.

Piccadilly Circus would be just a London roundabout without its signage. Still, other cities, like Moscow, have reached their limit and have begun to crack down on over-the-top outdoor advertising. The following is by no means a complete list of such communities. Scenic America estimates the nationwide total of cities and communities prohibiting the construction of new billboards to be at least Technical appliances, such as Spam filters , TV-Zappers, ad blockers for TVs and stickers on mail boxes—"No Advertising"—and an increasing number of court cases indicate a growing interest of people to restrict or rid themselves of unwelcome advertising.

Consumer protection associations, environment protection groups, globalization opponents, consumption critics, sociologists, media critics, scientists and many others deal with the negative aspects of advertising. On the international level globalization critics such as Naomi Klein and Noam Chomsky are also renowned media and advertising critics. These groups criticize the complete occupation of public spaces, surfaces, the airwaves, the media, schools etc. Adbusters, for example contests and challenges the intended meanings of advertising by subverting them and creating unintended meanings instead.

Other groups, like Illegal Signs Canada, try to stem the flood of billboards by detecting and reporting ones that have been put up without permit. Media literacy organisations aim at training people, especially children, in the workings of the media and advertising in their programmes. In the US, for example, the Media Education Foundation produces and distributes documentary films and other educational resources. Its member organizations represent the public, non-profit but also private sectors. To counter the increasing criticism of advertising aiming at children media literacy organizations are also initiated and funded by corporations and the advertising business themselves.

In the US the Advertising Educational Foundation was created in supported by ad agencies, advertisers and media companies. Canadian businesses established Concerned Children's Advertisers in "to instill confidence in all relevant publics by actively demonstrating our commitment, concern, responsibility and respect for children. New Zealand has a similar business-funded programme called Willie Munchright.

By contributing media literacy education resources, the marketing industry is positioning itself as being part of the solution to these problems, thereby seeking to avoid wide restrictions or outright bans on marketing communication, particularly for food products deemed to have little nutritional value directed at children The need to be seen to be taking positive action primarily to avert potential restrictions on advertising is openly acknowledged by some sectors of the industry itself Furthermore, Hobbs suggests that such programs are also in the interest of media organizations that support the interventions to reduce criticism of the potential negative effects of the media themselves.

Their goal is "symbolically restoring everyone's right to non-exposure". They achieve their goal by using stickers of the "Close Window" buttons used to close pop-up ads. Public interest groups suggest that "access to the mental space targeted by advertisers should be taxed, in that at the present moment that space is being freely taken advantage of by advertisers with no compensation paid to the members of the public who are thus being intruded upon. This kind of tax would be a Pigovian tax in that it would act to reduce what is now increasingly seen as a public nuisance.

Efforts to that end are gathering more momentum, with Arkansas and Maine considering bills to implement such a taxation. Florida enacted such a tax in but was forced to repeal it after six months, as a result of a concerted effort by national commercial interests, which withdrew planned conventions, causing major losses to the tourism industry, and cancelled advertising, causing a loss of 12 million dollars to the broadcast industry alone". In the US, for example, advertising is tax deductible and suggestions for possible limits to the advertising tax deduction are met with fierce opposition from the business sector, not to mention suggestions for a special taxation.

In other countries, advertising at least is taxed in the same manner services are taxed and in some advertising is subject to special taxation although on a very low level. In many cases the taxation refers especially to media with advertising e. Tax on advertising in European countries: [92]. Media related to Criticism of advertising at Wikimedia Commons. From Wikipedia, the free encyclopedia. This article's lead section may be too short to adequately summarize the key points. Please consider expanding the lead to provide an accessible overview of all important aspects of the article. September Theories and ideas. Notable works. Organizations and groups. Adbusters Crass CrimethInc. Deep Green Resistance Democracy Now! Related social movements.

See also. Further information: Corporate censorship. Further information: public space. Further information: stereotyping , sexism , and discrimination. See also: Fast food advertising and Adolescents and food marketing. Main articles: Alcohol advertising and Cigarette advertising. The main actors are the company, suppliers, distributors, dealers, and the target customers. A economic environment B management environment C strategic environment D task environment E tactical environment Page: A increase trade barriers B protect industries C deregulate industries D encourage intermediation E reduce privatization Page: A new and improved technology B disintermediation C industry convergence D privatization E heightened competition Page: Industry boundaries are blurring rapidly as companies identify new opportunities at the intersection of two or more industries.

In response to threats from such companies as AOL, Amazon. A reintermediation B disintermediation C retail transformation D e-collaboration E new-market synchronization Page: When eBay and Amazon. A deregulation B reverse auctioning C reintermediation D disintermediation E diversification Page: A higher prices B stronger brand loyalty C greater emphasis on personal selling D well-established brand names E greater consumer buying power Page: Identify the exception.

A It has facilitated high-speed communication among employees. B It has empowered consumers with easy access to information. C It can be used as a powerful sales channel. D It has facilitated mass marketing but not the sale of customized products. E It enables marketers to use social media to advertise their products. Page: A marketing planning B strategic planning C market research D opportunity analysis E operational management Page: Kotler and Casoline suggested eight factors that marketers must keep in mind in order to deal with risk and uncertainty.

Which of the following statements are they most likely to agree with when the environment is uncertain? A Companies should be prepared to implement ad hoc strategies whenever required. B Companies should push aggressively for the market share of their competitors. C Companies should focus less on their core segments, and more on new target markets. D Companies should not increase marketing budgets in times of uncertainty. E Companies should focus and improve their marginal brands. What are customer touch points?

A all aspects of the offering that directly affect consumer preferences B all needs and wants of customers C all direct or indirect interactions between the customer and the company D all interactions between customers and competitors E all factors that affect buying behavior Page: Which of the following holds that consumers prefer products that are widely available and inexpensive? A the product concept B the production concept C the selling concept D the performance concept E the marketing concept Page: A selling-oriented B product-oriented C production-oriented D marketing-oriented E consumer-oriented Page: Which of the following categories of goods and services is most likely to require an aggressive use of the selling concept?

As a major steel manufacturer, SteelMakers Inc. The company believes that its competitive edge lies in its ability to offer the best prices. They also maintain an excellent distribution network that ensures wide availability of their products. A selling orientation B production orientation C product orientation D marketing orientation E social orientation Page: Webmax Inc. After considerable research and development, they developed a new digital camera that had an array of new features. Webmax was so sure about the new offering that they even reduced their marketing budget. What sort of orientation does Webmax have toward the marketplace?

A production orientation B product orientation C selling orientation D marketing orientation E holistic marketing orientation Page: Rick Johnson trains his company's sales force to go after the consumer. He repeatedly asks his team to bear in mind the essential fact that it is the sales team's responsibility to rouse the consumer's interest and make him feel that he needs the product. A true salesman is one who can convert an indifferent consumer walking into the store into a new customer.

Marketers at Johnny Inc. Their products are carefully designed to meet customer requirements and the entire focus is on achieving customer satisfaction. Johnny Inc. Identify the concept that emerged in the mids as a customer-centered, sense-and-respond philosophy. A the product concept B the production concept C the selling concept D the marketing concept E the holistic marketing concept Page: A a firm should find the right products for its customers, and not the right customers for its products B customers who are coaxed into buying a product will most likely buy it again C a new product will not be successful unless it is priced, distributed, and sold properly D consumers and businesses, if left alone, won't buy enough of the organization's products E a better product will by itself lead people to buy it without much effort from the sellers Page: Which of the following is considered as a "sin" in the marketing discipline?

A focusing too much on new opportunities B targeting a competitor's market share C prioritizing customer relationships over everything else D using technology in an inefficient manner E increasing the marketing budget in times of uncertainty and risk Page: What are the four broad components of holistic marketing? A relationship, internal, position, and performance marketing B integrated, internal, position, and performance marketing C relationship, integrated, internal, and performance marketing D integrated, relationship, social responsibility, and position marketing E relationship, social responsibility, internal, and performance marketing Page: Tracy's is a chain of hair dressing salons for women.

They use the television, magazines, radio, and newspapers to advertise their services. The owners ensure that all communication channels deliver a common message to prospective customers. This is an expansible market. If there is no effect of mktng spending, it is a non-expansible market. Only one level of industry mktng expenditure will occur. The mktng demand corres. To this level is Mkt Forecast.

For a given mktng environment. Company sales forecasts — is the level of company sales based on a chosen mktng plan in an assumed mktng environ. Sales quota — is the sales goal set for a product line, company division or sales rep. It is used to define and push for sales efforts. Its kept higher than forecasts to give stretch targets. Sales budget — is a conservative estimate of the expected vol of sales. Its used for current purchasing,prodn and cashflow decisions. Company sales potential — Is the sales limit approached by company demand as company mktng efforts increase relative to competitors. Max is market potential. Estimation of Demand Total market potential - Broadly 2 ways 1.

Multiply potential no of buyers with the avg qty purchased and the price 2. Chain ratio method — Multiplying a base no by several adjusting percentages. Both essentially the same. They start with the population and keep reducing with assumed percentages w. Total market potential It is the maximum amount of sales that might be available to all the firms in the industry during a given period under a given level of industry marketing effort and given environmental conditions.

A common way to estimate total market potential as follows: Estimate the potential no. A variation on this method is the chain ratio method. It involves multiplying a base number by several adjusting percentages. Area market potential Companies need to measure the market potentials of different cities, states and nations. Two major methods of assessing market potentials are: the market build up method, which is used primarily by business marketers, and the multiple factor index method which is used primarily by consumer marketers. Market build up method: It calls for identifying all the potential buyers in each market and estimating their potential purchases.

This method gives us accurate results if we have a list of all potential buyers and a good estimate of what they buy. Multiple factor index method: Like business marketers even consumer marketers also have to estimate the area market potentials. But the consumers of consumer companies are too numerous to be listed. Thus the most common method is the straightforward index method. Industry sales and Market shares. Identifying competitors and estimating their sales do this. The industry trade association will often collect and publish total industry sales, using this information each company can evaluate its performance against the whole industry. Another way to estimate is to buy reports from a marketing research that audits total sales and brand sales.

These audits can give a company valuable information about its total product its total product category sales and its brand sales. Business marketers have typically harder time in estimating sales than consumer goods manufacturers do. In most markets total demand and company demand are not stable. The unstable the demand the more critical is forecast accuracy and the more elaborate is forecasting procedure.

A three-stage procedure is used to prepare a sales forecast. They prepare a macro economic forecast, followed by a industry forecast then by a company sales forecast. Firms develop their forecasts internally and externally as: Market research firms, specialized forecasting firms and futurist research firms. All forecasts r built on three information bases : what people say, what people do and what people have done. Survey of buyers intentions Forecasting is the art of anticipating what buyers r likely to do under a given sat of conditions.

The survey looks inquires into the purchase intentions of consumer, their present and future personal finances and their expectations about the economy. This can be analysed and major shifts in consumer preferences can be anticipated and production schedules and marketing plans changed accordingly. Composite of sales force opinions. Where buyer interviewing is impractical there companies ask their salespersons to estimate their future sales. To encourage better estimating the company could supply certain aids or incentives to sales force. But some sales reps may use their for ther advantage llike setting smaller forecasts forlow targets and sometimes they r not aware of the recent major economic developments.

Expert opinion Companies also obtain forecasts from experts including dealers,distributors,suppliers marketing consultantsa and trade associations. Dealer estimates r subject to the same merits and demerits of sales reps estimates. Past sales analysis Sales forecasting is also done on the basis of past sales. Time series analysis breaking down the the past data into trend,cycle,seasonal and erratic ,exponential smoothing combining the past sales and recent ones by giving more weight to the latter ,statistical demand analysis impact level of each set of casual factors eg…income, price, marketing expenditure etc… and economic analysis.

They recognize that environment is constantly spinning new opportunities and threats and understand the importance continuously monitoring the and adapting to the environment. They must be trend trackers and opportunity seekers. Marketers have 2 advantages. Analyzing Needs and trends in the macro environment Successful companies recognize trend and respond profitably to unmet needs and demands. Trends, and megatrends. A fad is unpredictable, short and without social, economic and political significance Trends are more predictable and durable.

It reveals the shape of the future — has longevity, is observable across several market areas and consumer activities, and is consistent with significant indicators occurring or emerging at the same time. Megatrends have large social economic political and economical changes that are slow to form, and once in place they influence us for some time A new product is more likely to be success if it is in line with the strong trends than otherwise.

Identifying and responding to the major macroeconomic forces. Companies and their suppliers, marketing intermediaries, customers, competitors and public all operate in a macroeconomic environment of forces and trends that shape opportunities and pose threats. In the economic arena, companies and consumers are increasingly affected by global forces. Demographic environment: The first macroeconomic forces that the marketer monitors is the population because people make up the markets. Marketers are keenly interested in the size and growth rate of population in different cities, regions, and nations, age distribution and ethnic mix, educational levels, house hold patterns and regional characteristics and movements.

World population growth. Also population is a concern because population growth is maximum in countries whch can least afford it. A explosive population growth has major impact on business. It does not mean growing markets unless these markets have sufficient purchasing power. Nonetheless companies that carefully analyze their markets can find major opportunities. Population Age Mix Population vary in their age mix. Each group has certain specific wants and buying habits. Marketers must be careful not to overgeneralize about ethnic groups. Educational Groups The population in any society falls into 5 educational groups : illieterates, high school, dropouts, high school degrees, college degrees, and professional degrees.

Geographical shifts in population This is a period of great migratory movement between and within countries. Population movement also occurs as people migrate from rural to urban areas and then to suburban areas. Location makes a difference in goods and service preferences. Shift from Mass market to Micromarkets The effect of all this is fragmentation of the mass market into numerous micromarkets differentiated by age, sex, ethnic background, education, geography, lifestyle and other characteristics.

Each group has strong preferences and is reached through increasingly targeted communication and distribution channels. Demographic trends are highly reliable for the short and intermediate run. The Singer Company should have known for years that its sewing machine would be hurt by smaller families and more working wives, and yet it was slow in responding. In contrast, think of the rewards marketers reap when they focus on a demographic environment. Some marketers are actively courting the home office segment of the lucrative SOHO market.

Nearly 40 million Americans are working out of their with the help of electronic conveniences like cell phones, fax machines, and handheld organizers. Economic Environment: Markets require purchasing power as well as people. The available purchasing power in an economy depends on current income, prices, debt, savings, and credit availability. Marketers must pay close attention to major trends in income and consumer-spending patterns. Income Distribution: Nations vary in level and distribution of income and industrial structure.

There are four types of industrial structures: 1. Subsistence economies: Majority of people engage in simple agriculture, consume most of their output and barter the rest for simple goods and services. These economies offer few opportunities for marketers. Raw-material-exporting economies: Economies rich in one or more natural resources but poor in other aspects. Much of their revenue comes from exporting these resources. Depending on the number of foreign residents and wealthy native rulers and landlords, they are also a market for Western-style commodities and luxury goods.

Industrializing economies: Manufacturing accounts for 10 to 20 percent of GDP. Examples include Egypt, India and Philippines. As manufacturing increases, the country relies more on imports of raw materials, steel, and heavy machinery and less on imports of finished textiles, paper products, and processed foods. Industrialization creates a new rich class and a small but growing middle class, both demanding new types of goods.

Industrial economies: Major exporters of manufactured goods and investment funds. They buy manufactured goods from another and also export them to other types of economies in exchange for raw materials and semifinished goods. The large and varied manufacturing activities of these nations and their sizable middle class make them rich markets for all sorts of goods. Marketers often distinguish countries with five different income-distribution patterns: very low incomes; mostly low incomes; very low, very high incomes; low, medium, high incomes; mostly medium incomes.

Since , the wealthiest fifth of the U. According to the Census Bureau Statisticians, the s have seen a greater polarization of the income in the United States than at any point since the end of World War 2. This is leading to a 2-tier U. Conventional retailers who offer medium-price goods are most vulnerable to these changes. Companies that respond to the trend by tailoring their products and pitches to these two very different Americas stand to gain a lot. Examples: 1. Both chains are thriving. The downscaled Pooh sells at Wal-Mart and other discount stores. Savings, Debt and Credit Availability Consumer expenditures are affected by consumer savings, debt, and credit availability. Japanese save about The result is that Japanese banks were able to loan money to Japanese companies at a much lower interest rate than the U.

Hence, Japanese companies expanded faster. Credit is available in the U. Marketers must pay attention to major changes in incomes, cost o living, interest rates, savings, and borrowing patterns because they can have a high impact on business, especially for companies whose products have high income and price sensitivity. Natural Environment: The deterioration of the natural environment is a major global concern.

In many cities, air, chemical and water pollution have reached dangerous levels. In the U. Steel companies and public utilities have had to invest billions of dollars in pollution- control equipment and more environmentally friendly fuels. The auto industry has had to introduce expensive emission control in cars. Marketers need to be aware of the threats and opportunities associated with four trends in the natural environment: the shortage of raw materials, the increased cost of energy, increased pollution levels, and changing roles of governments. Infinite resources such as water and air pose no immediate problem.

Environmental groups have lobbied for a ban on certain propellants used in aerosol cans because of the potential damage they can cause to the ozone layer. Water shortages and pollution are already major problems in some parts of the world. Finite renewable resources like forests and food must be used wisely. Forestry companies are required to reforest timberlands in order to protect the soil and to ensure sufficient wood to meet future demand.

Because the amount of arable land is fixed and the urban areas are constantly encroaching on farmland, food supply can also be a problem. Finite non-renewable resources-oil, coal, platinum, zinc, silver- will pose a serious problem as the point of depletion approaches. Firms making products that require these increasingly scarce minerals face substantial cost increases. They may not find it easy to pass these cost increases on to customers. Increased Energy Costs One finite nonrenewable resource, oil , has created serious problems for the world economy.

Coal became popular again and companies searched for practical means to harness solar, nuclear, wind, and other forms of energy. In the solar energy field alone, hundreds of firms introduced first generation products to harness solar energy for heating homes and other uses. Other firms searched for ways to make a practical electric automobile, with a practical electric automobile, with a potential prize of billions for the winner. The development of alternative sources of energy and more efficient ways to use energy and the weakening of the oil cartel led to a subsequent decline in oil prices. Lower prices had an adverse effect on the oil exploration industry but considerably improved the income of oil using industries and consumers.

In the mean time, the search continues for alternative sources of energy. Increased Pollution Levels Some industrial activity will inevitably damage the natural environment. Consider the dangerous mercury levels in the ocean, the quantity of DDT and other chemical pollutants in the soil and food supply, and the littering of the environment with bottles, plastics, and other packaging materials. Research has shown that about 42 percent of U. This willingness creates a large market for pollution control solutions such as scrubbers recycling centers and landfill systems. It leads to a search for alternative ways to produce and package goods. Smart companies are initiating environment friendly moves to show their concern.

New concern over the toxic nature of dry cleaning solvents has opened up opportunities for a new breed of green cleaners although theses new businesses for an uphill battle. For example, the german government is vigorous in its pursuit of environmental quality, partly because of the strong green movement in germany and partly because of the ecological devastation in the former east germany. Many poor nations are doing little about pollution largely because they lack the funds or the political will. A New Guard of Green Cleaners Vies for Concerned Customers You need to get your business suit cleaned for a sales conference in Miami, and your flight leaves in 24 hours.

Are you going to go to the dry cleaner on the corner, which uses environmentally damaging, possibly carcinogenic chemicals? Or are you going to go across town and use a wet cleaner, who will get your clothes clean without damaging you or the environment and make them smell a lot less toxic? If you are like most consumers, you will choose convenience and the quick fix over concerns about health and environment. Percloroethylene, or perc the solvent used by the majority of dry cleaners, has been labeled a probable human carcinogen by the EPA. More conclusive reports on its damaging effects are expected soon. In a survey of 30 dry cleaners in suburban Pittsburgh, Dan Kovacks asked customers to their will being, Unable to think up alternatives most said they would just get clothes dry cleaned less frequently.

Yet a new guard of environmentally friendly dry cleaners is willing to bet that consumers will choose green over toxic if green alternatives are readily available. There are already dry cleaning stores using alternative cleaning materials. A much smaller group of stores are wet cleaners going back to soap and water basics. All the alternatives with names such as cleaner by nature, eco mat and greener cleaner are price competitive with their toxic counterparts. Cleaner by nature which opened up smack between two traditional dry cleaners in Denver broke even only six months after opening.

Its owner Chris comfort plans a second store in boulder. Although dry cleaners are the quintessential small business, the green cleaning trend could open up opportunities for giant multinational corporations. Exxon corporation has come up with a new petroleum solvent called DF which is widely used in Europe. Hughes environmental systems, a unit of Rayteon corporation and global technologies, Inc, of el Segundo California have teamed up to market a new method for cleaning clothes using liquid carbon dioxide.

Procter and gamble has introduced a perc free alternative for home use, Dryel, which allows people to do their dry cleaning at home. Technology has released such wonders as penicillin, open heart surgery and the birth control pill. It has released such horrors as the hydrogen bomb, nerve gas and the submachine gun. It has also released such mixed blessings as the automobile and video games. Every new technology is a force for creative destruction.

Transistors hurt the vacuum tube industry xerography hurt the carbon paper business autos hurt the railroads and television hurt newspapers. Instead of moving into the new technologies many old industries fought or ignored them and their businesses declined. Unfortunately, technological discoveries do not arise evenly through time the rail road industry created a lot of investment and then investment petered out until the auto industry emerged. Later, radio created a lot of investment, which then petered out until television appeared.

In the time between major innovations the economy can stagnate. In the mean time, minor innovations fill the gap: freeze dried coffee, combination shampoo and conditioner antiperspirant deodorants and the like. Minor innovations involve less risk but critics argue that today too much research effort is going into producing minor improvements rather than major breakthroughs. New technology creates major long run consequences that are not always foreseeable. The contraceptive pill led to smaller families more working wives and larger discretionary incomes — resulting in higher expenditures on vacation travel, durable goods and luxury items.

John Kennedy did not know personal computers digital wristwatches video recorders or fax machines. More ideas are being worked on the time lag between new ideas and their successful implementation is decreasing rapidly; and the time between introduction and peak production is shortening considerably. Ninety percent of all the scientist who ever lived are alive today and technology feeds upon itself. The advent of personal computers and fax has made it possible for people to telecommute that is work at home instead of traveling to offices that may be 30 or more minutes away. Some hope that this trend will reduce auto pollution bring the family closer together and create more home centered entertainment and activity.

It will also have substantial impact on shopping behavior and marketing performance. Unlimited Opportunities for innovation Scientists today are working on a startling range of new technologies that will revolutionize products and production processes. Some of the most exciting work is being done in biotechnology, solid-state electronics robotics and materials sciences.

Researchers are working on AIDS cures, happiness pills, painkillers totally safe contraceptives and non-fattening foods. They are designing robots for firefighting, underwater exploration and home nursing. In addition scientists also work on fantasy products such as small flying cars three dimensional television, and space colonies. The challenge in each case is not only technical but also commercial to develop affordable versions of these products.

Companies are already harnessing the power of virtual reality the combination of technologies that allows users to experience three dimensional computer generated environments through sound, sight and touch. Virtual reality has already been applied to gathering consumer reactions to new automobile designs, kitchen layouts, exterior home designs, and other potential offerings.

There is a need to transfer more of this money into research on material science, biotechnology, and micro mechanics. Many companies are content to put their money into copying competitors products and making minor feature and style improvements. Even basic research companies such as Dupont bell laboratories and Pfizer are proceeding cautiously. Much of the research is defensive than offensive. And increasingly research directed toward major breakthroughs is being conducted by consortiums of companies rather than by single companies.

Increased Regulation of Technological change As products become more complex the public needs to be assured of their safety. Consequently government agencies powers to investigate and ban potentially unsafe products have been expanded. In the US the federal food and drug administration must approve all drugs before they can be sold. Safety and health regulations have also increased in the areas of food, automobiles, clothing, electrical appliances and construction. Marketers must be aware of these regulations when proposing developing and launching new products.

This environment is composed of laws, government agencies, and pressure groups that influence and limit various organizations and individuals. Sometimes these laws also create new opportunities for business. Mandatory recycling laws have given the recycling industry a major boost and spurred the creation of dozens of new companies making new products from recycled materials: Wellman — in , Wellman introduced Ecospun post consumer recycled fiber PCR , made from recycled soda bottles and sold pounds in that first year alone. At the outdoor retailer winter market in , wellman introduced its new EcoSpun squared fiber, which has moisture- management properties and was designed specifically for a performance apparel market anxious to jump aboard the recycling bandwagon.

Laws have been on an increase over the years. Example being: Norway bans several types of sales promotion-trading stamps, contests, premiums-as unfair instruments In India food companies special permission to launch brands that duplicate what already exists in the market Central concern: At what point of time do the costs of regulation exceed the benefits?

Each law may have legitimate rationale but may sap initiative and retard economic growth. Marketers must have good knowledge of the major laws protecting competition, consumers and society. Companies generally establish legal review procedures and promulgate ethical standards to guide their marketing standards. As more and more business takes place in cyberspace marketers must establish new parameters for doing business ethically. America Online has been highly successful but has lost millions due to consumer complaints regarding unethical marketing tactics.

In America Online agrees to pay 2. Companies have established departments to deal with such groups. Important force affecting business — Consumerist movement Organized movement to strengthen rights and powers of buyers in relation to sellers. Companies in turn have set up consumer affairs departments to help formulate policies and respond to consumer complaints. Whirlpool Corporation is one of the companies to have established toll free numbers for its consumers.

These groups have put more restraints on marketers. Marketers have to clear their plans with the legal, public relations, consumer affairs and public affairs departments. They bought dream cars, dream vacations etc. Today, people are more conservative in behaviors and ambitions. More cautious and value driven. Views of others: People are concerned more about homeless, crime and other social problems. These trends portend a growing market for social support products and services that promote direct relations between human beings such as health clubs, cruises and religious activity. Television, chat rooms on the Internet, video games. Views of organizations: People vary in their attitudes towards organizations They are willing to work for them in spite of being critical about them There has been overall decline in organizational loyalty People see work as a chore required for money and not as a source of satisfaction This outlook has several marketing implications: Companies need to find new ways of generating employee and customer confidence.

Need to make sure that they are good corporate citizens and that their consumer messages are honest. Hence companies are turning to social audits and public relations to improve their image. They recognize that it can be destroyed by human activities. Love of nature leading to camping, boating, fishing etc. Church attendance has fallen steadily. Some impulse has been re directed to an interest in eastern religions, mysticism, occult and the human potential movement. Every trend also has a counter trend. An example being the rise of religious fundamentalism across the globe.

Cultural characteristics of interest to marketers: High persistence of core values Existence of sub cultures Shifts of values through time High persistence of core values: People living in a particular society hold many core beliefs and values that tend to persist. Most Americans still believe in work, getting married, in giving to charity and being honest. Core beliefs are passed on by parents and are reinforced by major social institutions.

Secondary beliefs are more open to change. Marketers must aim at changing and molding secondary beliefs rather than core beliefs. Existence of Sub Cultures: These are groups with shared values emerging from their special life experiences or circumstances. Star trek fans, Black Muslims etc. To the extent that different sub groups exhibit different wants and consumption behavior marketers can choose particular subcultures as target markets. Marketers have always loved teenagers because they are trendsetters in fashion, music etc. Frito lay says that it has seen a rise in chip snacking amongst grown ups. The reason being that they bought them while they were teenagers.

Shifts of Cultural Values over time Although core values are fairly persistent cultural swings do take place. Marketers have a keen interest in spotting cultural shifts that might being new marketing opportunities or threats. Several firms offer social cultural forecasts. For example, the percentage of people who value physical fitness and well-being has risen steadily over the years. Marketers of health foods and exercise equipment cater to this trend with appropriate products and communications.

The center for Science in the public interest, a consumer advocacy group in Washington D. Indicated by occupation, income, education, etc. These groups 1. A role consists of the activities that a person is expected to perform. Each role carries a status. People choose products that communicate their role and status in society. Thus CEOs drive Mercedes, etc. Marketers are aware of the status symbol potential of products and brands. Age and stage in the life cycle People buy different goods and services over a lifetime. Consumption is shaped by the family life cycle. Marketers often choose life cycle groups as their target market. Yet target households are not always family based: there are also single households, gay households and co-habitor households.

Some recent work has identified psychological life cycle stages. Adults experience certain passages or transformations as they go through life. Marketers pay close attention to changing life circumstances — divorce, widowhood, remarriage — and their effect on consumption behavior. A company can even specialize its products for certain occupational groups.

Marketers of income- sensitive goods pay constant attention to trends in personal income, savings and interest rates. If economic indicators point to a recession, marketers can take steps to redesign, reposition, and re price their products so they continue to offer value to target customers. Stages in the Family Life Cycle 1. Bachelor stage: young, single not living at home Few financial burdens Fashion opinion leaders Recreation oriented.

Buy:basic home equipment, furniture, cars, vacations 2. Full nest I: youngest child under 6 Home purchasing at peak. Liquid assets low Interested in new products, advertised products Buy: washers, dryers, TV, baby food, vitamins, dolls, 4. Full Nest II: youngest child 6 or over Financial position better Less influenced by advertisements Buy larger sized packages, multiple unit deals Buy: cleaning material, bicycles, piano 5. Full Nest III: older married couple with dependent children Financial position still better Less influenced by advertising High average purchase of durables Auto, boats, dental services, magazines 6.

Empty Nest II: older married couple, no children living with them, head of house retired Drastic cut in income Keep home Buy: medical appliances, medical care products 8. Solitary survivor: in labor force Income still good but likely to sell home 9. Motivation: A person has many needs at a given time — i. Biogenic Needs — Arising from psychological states of tension such as hunger, thirst, discomfort.

Psychogenic needs — Arising from psychological states of tension such as need for recognition, esteem or belonging. Motive: A need becomes a motive when it is aroused to a sufficient level of intensity causing a person to act. Motivational positioning: The whisky example — Whisky can attract someone who seeks social relaxation, status or fun.

Hence whisky brands have specialized in these three kinds of appeals. Self Actualization Needs Self Development and realization 4. Esteem Needs self-esteem, recognition, status 3. Social Needs Sense of belonging, love 2. Safety Needs security, protection 1. Physiological Needs food, water, shelter iii. People are more likely to notice stimuli that relate to current need ii. People are more likely to notice stimuli that they anticipate iii. Marketers cannot do much about this. Marketers use drama and repetitions in sending messages to their target market 3. Learning: When people act they learn. Drives — A strong internal stimulus impelling action ii.

Stimuli iii. Cues — Minor stimuli that determine when, where and how a person responds iv. Responses v. Reinforcement 4. They may or may not carry emotional charge. Dissonance reducing buying behavior — consumer is highly involved in a purchase but sees little difference in brands. Habitual buying behavior — bought under conditions of low involvement and absence of significant brand differences. Variety seeking buying behavior — characterized by low involvement but significant brand differences. At the first level it is called heightened attention. He simply becomes more receptive for information At the next level is the active information search lookin for more information from friend, reading material, etc.

The consumer wud give weightages to the various attributes to the product and find out the total points to the product. Postpurchase actions: the customer may take different actions depending upon his satisfaction level. The dissatisfied customer may stop buying exit opition or the customer may be tell his friends not to buy the product voice option Postpurchase use and disposal: Marketers need to monitor what the consumer does with the product after purchase and how it is disposed off to maintain environmental friendliness of the product. What is organizational buying? Organizational Buying is the decision making process by which formal organizations establish the need for purchased products and services and identify, evaluate and choose between alternative brands and suppliers.

Business market versus consumer market Business Market consists of all the organizations that acquire goods and services used in the production of other products and services that are sold, rented or supplied to others. Main industries comprising this are agriculture, forestry, fisheries, manufacturing, mining, banking, insurance, etc. Acceleration effect: a certain rise in consumer demand can cause a much larger increase in the demand for plant and equipment necessary to produce that additional output. Buying committees often consist of technical experts and even senior management. The buyer chooses from suppliers on an approved list. This involves additional decision participants on both sides.

Mass media have the greatest effect at the awareness stage, sales-people at the interest stage and technical sources at the evaluation stage. Some companies use a Missionary sales force consisting of their best people for this. The numbers of decisions for the business buyer are the fewest in the straight rebuy and the maximum in the new task. Systems buying and selling Systems buying is said to happen when business buyers buy a total solution to their problems from one seller, for example, government soliciting bids from prime contractors who can then sub-contract ; turnkey solutions, etc. Systems selling has been adopted by several sellers as a marketing tool, for example, auto part manufacturers selling whole systems such as the seating system, the door system, the breaking system, etc.

Systems contracting is said to occur when a single supply source provides the buyer with his entire requirement of MRO maintenance, repair and operating supplies.