Multimedia Marketing/Marketing.iso/market/chapter1.6p

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SECTION 1.6  Societal Influences on Marketing Management

INSTRUCTIONS Think about some of the major ways in which the ideas and values of
society in general affect marketing management.

EXAMPLE

Many members of society today are concerned about the physical
environment. They desire to purchase goods and services that do not
use excessive nonreplacable resources, that do not cause litter,
and that do not bring about pollution. These "green" consumers make
a special effort to buy products that are environmentally friendly.
Companies are finding that more and more consumers have this value.
Accordingly, they are producing increasing numbers of products and
packages which are ecologically sound.

Not all of these products have delivered as promised, however. Some
"biodegradable" trash bags, for instance, have been found to be
capable of surviving in garbage dumps for decades. This has led
state (led by California) and federal authorities to impose specific
restrictions on the environmental claims made by companies. More
of these restrictions are on the horizon, too, as lawmakers attempt
to decide what standards should be imposed.

DETAILS

Marketing managers do not make their decisions in a vaccum. Rather,
they consider what is happening in society. Societal considerations
are those imposed by groups, among the  most important of which
are cultures and subcultures.

An important environmental input upon marketing strategy originates
from the culture within which the company operates. Marketers who
are aware of and understand trends and developments in culture are
in a position to develop new strategies through better satisfaction
of existing markets and penetration of new markets.

Basically, culture is that combination of values and norms that
govern behavior in a large group and is passed on from generation
to generation. It is the design for living and adaption to the
environment that is specific for a particular society.It includes
morals, customs, taboos, laws, beliefs, and knowledge.

Members of a culture receive rewards, in the form of economic benefits
and the approval of others, when they adhere to values of that culture.
Deviation from these values is often followed by various forms of
punishment, including subtle consequences, such as the loss of esteem
in important groups, such as social classes. Hence, there is
considerable incentive to conform.

It is important that marketing executives formulate strategies that
are in accordance with the cultural values of the society in which
they operate. The culture is an important determinant of consumer
behavior, law, ethics, and the conduct of intermediaries , suppliers
,employees, and other groups. Marketing strategies that are not
in agreement with important cultural values often fail. It is in the
self interest of marketers to become students of the cultures in
which they operate.

PROBLEM 1

Culture is that aspect of human behavior:

A. That is instinctive in nature.
B. That deals mainly with the fine arts,  such as classical music
   and classical literature.
C. That is important primarily to individuals with high prestige
   and esteem.
D. That is passed on from generation to generation

WORKED

Culture is that part of human behavior that is passed on from one
generation to another. It is universal--affecting all members of
the society, not just particular social classes. In the United States,
the traditional culture holds values such as individualism, hard
work, thrift, and freedom. These are traditional values, of course,
and they do change over time. Younger generations learn and pass on
older cultural values and norms, but they also change them. Teen-
agers today, for instance, have different concepts of normal life
goals, daily pursuits,  and occupational goals than did their
predecessors.

The impact of culture is evident in the purchase of consumer goods.
In the U.S. individualism is an important goal--people want to be
different from others, at least to a degree. The producers of many
products, including clothing, toys, and automobiles appeal to the
fact that their products are distinctive. In some other cultures, as
in Japan, comformity rather than individualism is stressed, and one
of the better ways to sell a product is to advertise how popular it
is.

ANSWER  D

INSTRUCTIONS Think about some of the major ways in which the ideas and values of
society in general affect marketing management.

EXAMPLE

Many members of society today are concerned about the physical
environment. They desire to purchase goods and services that do not
use excessive nonreplacable resources, that do not cause litter,
and that do not bring about pollution. These "green" consumers make
a special effort to buy products that are environmentally friendly.
Companies are finding that more and more consumers have this value.
Accordingly, they are producing increasing numbers of products and
packages which are ecologically sound.

Not all of these products have delivered as promised, however. Some
"biodegradable" trash bags, for instance, have been found to be
capable of surviving in garbage dumps for decades. This has led
state (led by California) and federal authorities to impose specific
restrictions on the environmental claims made by companies. More
of these restrictions are on the horizon, too, as lawmakers attempt
to decide what standards should be imposed.

DETAILS

There are a number of values that have emerged as being very important
in modern U.S. culture. Many consumers are concerned with the quality
of the physical environment--the ecology. Another important value is
physical health--including weight control and fitness. Also, many
consumers value convenience. Their leisure time is in short supply
and they seek means of accomplishing daily tasks without consuming
large blocks of this time. They are willing to pay higher prices
for convenience store goods, prepared foods, drive-in establishments,
fast food restaurants, and other organizations that provide more
convenience.

Consumers today are also very home-oriented, spending large amounts
of money and time directed toward improving their homes and the
quality of life within them. This is related to another important
value. Consumers fear crime, the loss of jobs and
earning power, and other threatening events and desire protection
from these forces. Security is emerging as an important issue in
many different walks of life. Numerous consumers, for instance, are
spending less time shopping in malls, because they have heard about
or directly experienced, criminal acts.

All of these values have a direct bearing on the products and
services that consumers buy and use. Increasingly, marketers are
becoming students of consumer culture.

An emerging value is spiritualism. A large number of consumers today
find that material goods do not provide the answers to life's great
questions. Paradoxically, they are buying goods, such as religious
tapes and books, personal accessories such as necklaces with
crosses, and clothing that reflects religious beliefs. This trend
has affected industries such as the religious music industry in
Nashville.

Other values will become more important in the future. It is a mistake
for marketers to assume that these are static. They are well-advised
to stay attuned to major trends in these variables.

PROBLEM 2

A marketing innovation that is very much in tune with modern U.S.
culture is:

A. The convenience store
B. Packaging of products in plastic containers.
C. Cutbacks in the number of store clerks employed by retailers.
D. Efforts by retailers to curtail shoplifting


WORKED

Modern U.S. consumers place a very high value on conveniece. And the
convenience store appeals directly to this value. These stores are
located near homes, places of work, schools, and other assemblages of
potential buyers. They have easy access and ample parking. It is
relatively easy for consumers to find their way around the store,
where they find an assortment of items which they want to be available
without much search effort. Waiting time at the cash register is
minimal. Many of these conveniences are not available at supermarkets
and conveniences stores have prospered as a result.

ANSWER A

INSTRUCTIONS Think about some of the major ways in which the ideas and values of
society in general affect marketing management.

EXAMPLE

Many members of society today are concerned about the physical
environment. They desire to purchase goods and services that do not
use excessive nonreplacable resources, that do not cause litter,
and that do not bring about pollution. These "green" consumers make
a special effort to buy products that are environmentally friendly.
Companies are finding that more and more consumers have this value.
Accordingly, they are producing increasing numbers of products and
packages which are ecologically sound.

Not all of these products have delivered as promised, however. Some
"biodegradable" trash bags, for instance, have been found to be
capable of surviving in garbage dumps for decades. This has led
state (led by California) and federal authorities to impose specific
restrictions on the environmental claims made by companies. More
of these restrictions are on the horizon, too, as lawmakers attempt
to decide what standards should be imposed.

DETAILS

Adaptation to culure requires that effort be exerted toward
determining the dominant values, customs, beliefs, attitudes, and
forms of behavior of each society within which the company operates.
Following this, management adjusts the marketing mix in a manner which
reflects these elements. This process can be difficult for companies
that operate in numerous and diverse cultures. They may have to
modify the basic strategy in each one. Thus a toothpaste producer
may find it necessary to develop and promote a tooth-whitener for
one culture and a cavity-preventer in another.

Marketers who sell abroad will find it necessary to adjust their
marketing mixes so that they are compatible with foreign cultures.
The color green is taboo in some countries, since it symbolizes the
jungle and attendant danger. Food products made of beef are not
popular in India. Many Europeans, particularly older ones, prefer
shopping in small neighborhood stores and shun supermarkets and
department stores.

Language can be a problem. Some English words, when translated
directly, constitute profanity in a foreign tongue. Also, some
English words have religious significance in foreign countries that
are not well-recognized by United States marketing managers.

Marketers have found that tradition is an important force with which
to contend. In many European countries, for example, consumers treat
shopping as a social event, where one visits with shopkeepers and
other customers. This has made it difficult for some U.S. retail
chains to penetrate these markets, because their impersonal way of
doing business is resisted by some consumers, especially older
persons, who tend to respect and retain the old ways of life.

PROBLEM 3

A societal problem that most marketers who operate abroad must
recognize is:

A. That culture does not change much over time.
B. That culture is much more important to some consumers than it
   is to others.
C. Cultural diversity from one society to another.
D. That culture is becoming less important to most consumers.

WORKED
A societal problem that most marketers who operate abroad must
recognize is cultural diversity from one society to another.
Societies differ significantly in their cultures. This is due to
differences in history, religions, ethnic makeup, customs, and outlooks.
Marketers who assume that they can apply the same marketing mix on
a worldwide basis are not facing reality. The product or service
that succeeded in one country may be a complete failure in another.

Many citizens of Moslem countries, for instance, are fatalistic. They
believe that their personal histories cannot be changed--that they
are preordained. Thus, efforts by American companies to sell self-help
books and other self-improvement projects in countries that are
mainly Moslem have not been very successful.

ANSWER  C

INSTRUCTIONS Think about some of the major ways in which the ideas and values of
society in general affect marketing management.

EXAMPLE

Many members of society today are concerned about the physical
environment. They desire to purchase goods and services that do not
use excessive nonreplacable resources, that do not cause litter,
and that do not bring about pollution. These "green" consumers make
a special effort to buy products that are environmentally friendly.
Companies are finding that more and more consumers have this value.
Accordingly, they are producing increasing numbers of products and
packages which are ecologically sound.

Not all of these products have delivered as promised, however. Some
"biodegradable" trash bags, for instance, have been found to be
capable of surviving in garbage dumps for decades. This has led
state (led by California) and federal authorities to impose specific
restrictions on the environmental claims made by companies. More
of these restrictions are on the horizon, too, as lawmakers attempt
to decide what standards should be imposed.

DETAILS
Every culture is made up of subcultures. There are African American,
Hispanic, college student, middle class, catholic, old south, teen-age,
and many others of these. Marketers should make an effort to determine
the specific values and customs of the subcultures that they plan to
include in their target consumer groups. Often these subcultures are
unique and demand products and services that differ from those
demanded by others. Even though they share the values of other
subcultures in the overall culture, they have some unique demands.

Learning the values of subcultures is not always easy. If marketers
are not members of these groups, they may be unfamiliar with what
they value and the marketers may assume that all consumers are
very much alike. This ignores reality. Constant study of the
attitudes of subgroups is necessary, since these are subject to
change.

College students are an interesting subculture to many marketers.
They tend to conform to subculture norms in areas like dress and
music. Generally, most are not brand loyal and what was once the
"in" restaurant or bar becomes a "has-been" overnight. These
individuals are good credit card customers and make many purchases
of luxury goods on impulse.

It is important to determine what subcultures are most powerful,
in their impact on consumers. Most belong to more than one. Thus,
a given individual may be male, hispanic, college educated, a
member of a church, and a member of a specific social class. Each
of these groups impacts upon his behavior, but some have more
influence than others. Marketers should probe into the issue of which
are most influential.

PROBLEM 4

Which of the following strategies would most likely place marketing
managers in touch with the values of the subcultures to which they
are appealing:

A. Assume that most subcultures have the same values as do other
   subcultures.
B. Assume that the values of most subcultures are relatively
   unchanging.
C. Attempt to change the central values of the subcultures to
   which the company is appealing.
D. Place members of the subgroup in the company's cadre of marketing
   managers.

WORKED

Many companies have found that placing members of the subcultures
to which they are appealing in marketing management positions is a
good way to develop strategies for penetrating these markets. If the
firm is making an effort to appeal to African Americans, it may be
a good idea to have some members of this group in  marketing
management. These individuals often have insights that are difficult
to acquire in other ways. This practice is becoming increasingly
common in the ranks of successful companies. One toy company even
has a child in its executive ranks. The child is responsible for
creating and evaluating new product ideas.

ANSWER  D