FUNDEMENTALS OF MARKETING

& ETHICS

Prof. Dr. Ayşen Akyüz

PPT 1
MARKETING DEFINITION
 AMA DEFINITION
“ Marketing is an organizational function and a
set of processes for creating, communicating,
and delivering value to customers and for
managing customer relationships in ways that
benefit the organization and its stakeholders.”

Marketing deals with identifying and meeting

human and social needs
Core concept of marketing:
Exchange*
 Exchange is the process of obtaining a
desired product from someone by offering
something in return
 Conditions for exchange:
1. Two parties
2. Each party has something that might be of value to the other party.
3. Each party is capable of communication and delivery.
4. Each party is free to reject or accept the exchange offer.
5. Each party believes its appropriate to deal with the other party.
 What is Marketed?

• Goods
• Services
• Events
• Experiences
• Persons
 What is Marketed?

• Places
• Properties
• Organizations
• Information
• Ideas

EVERY ORGANIZATON MARKETS!!!

A marketer is someone who seeks a response such
as purchase or a vote, etc. from another party
KEY CUSTOMER MARKETS
 A market:
 Is the set of actual and potential buyers of a product.

 These people share a need or want that can be

satisfied through exchange relationships.
 KEY CUSTOMER MARKETS:
 1. Consumer markets
 2. Business markets
 3. Global markets
 4. Nonprofit/governmental markets
MARKETING-CONSUMER
NEEDS
 The marketer must try to understand the target market’s needs
wants and demands.
 Needoccurs when a person feels deprived of basic
necessities such as food, clothing.
 Wantsthese need become wants when they are directed to
spesific objects that might satisfy the need.
 Demandare wants for spesific products backed by an ability
to pay.
 In US 95 % of the nearly 34.000 new launched consumer goods
such as food, beverage, etc. don’t succed in the long term.
Solution: to find out what consumer need and want; to produce
what consumer need and want.
Customer needs II
 C2-Launched to market in 2003. 50 million $
dollars of investment. Failure for the Coca-
Cola company.
• 17 million dollars-2013
• 1500 USD price per unit
• Reasons for failure
• 1. Does not cater the
needs
• 2. Its appereance
TARGET MARKET AND 4P*
 Target market: one or more spesific groups of
potential consumers toward which a company
directs its marketing program.
 The Four Ps:controllable factors (marketing mix)
1.Product- a good,service to satisfy the consumer’s
needs
2.Price-what is exchange for the product
3.Promotion-communication between buyer and seller
4.Place-a means of getting the product to customer
SERVICE MARKETING-ADDITIONAL 3 P

 The service marketing mix comprises off the 7’p’s. These

include:
 • People
• Process
• Physical evidence.
Customer Value
 Customer value is the unique combination of
benefits received by targeted buyers that includes
quality, price, cenvenience, on-time delivery and
before/after sale service.
 FIRMS CANNOT SUCCEED BY BEING ALL
THINGS TO ALL PEOPLE. Instead many sucessful
firms have chosen to deliver outstanding customer
value with one of three strategies:
best product / best service / best price
 Target Marketing and Market
Segmentation
 Target Markets
 Groups of people with similar wants and needs who can be
expected to show interest in the same products
 Market Segmentation***
 Dividing a market into categories of customer types or
“segments”
 Geographic-areas of a country or region where buyers are located
 Demographic-statistical information about age, income, sex, race,
education, etc.
 Psychographic- values, attitudes and lifestyles of a consumer or
group of consumers
 Bejavioral-dividing customers into segments depending on their
behavior patterns
Building Customer Relationships
 Customer
relationship
management (CRM):
 Deals with all aspects of acquiring,
keeping, and growing customers.
 Customer value and satisfaction
are key.

1-15
Customer Relationships
 Firms may choose to build relationships at
different levels.
 High levels of customer satisfaction often
leads to consumer loyalty.
 Some firms seek to DELIGHT customers
by exceeding expectations
 Loyalty and retention programs build
relationships and may include:
 Frequency marketing programs.
 Club marketing programs.
Ethics in the Workplace
 Ethics
 Beliefs about what’s right and wrong or good and bad
 Ethical Behavior
 Behavior conforming to individual beliefs and social norms about what’s right and good
 Unethical Behavior
 Behavior conforming to individual beliefs and social norms about what is defined as
wrong and bad
 Business Ethics
 The ethical or unethical behaviors by employees in the context of their jobs

© 2009 Pearson Education, Inc.

Business and Managerial
Ethics
 Managerial Ethics
 The standards of behavior that guide individual managers in their work
 Ethics affect a manager’s behavior toward:
 Employees
 The organization
 Other economic agents—customers, competitors,
stockholders, suppliers, dealers, and unions
 Ethical Concerns
 Ambiguity (e.g., financial disclosure)
 Global variation in business practices (e.g., bribes)
 Areas of Social Responsibility

• Responsibility Toward the

Environment
– Properly disposing of toxic waste
– Engaging in recycling
– Controlling air, water, and land pollution
– Green Marketing
 The marketing of environmentally friendly
goods
 Includes a number of strategies and
practices:

© 2009 Pearson Education, Inc.

Areas of Social Responsibility
(cont’d)
 Responsibility Toward Customers
 Involves providing quality products and pricing products fairly
 Consumerism
 Social activism dedicated to protecting the rights of consumers in their dealings with
businesses
 Basic Consumer Bill of Rights
 To possess safe products
 To be informed about all relevant aspects of a product
 To choose what to buy
 To be educated about purchases
 To receive courteous service
Action
 To reduce its packaging
waste, Coca-Cola is now
testing new contour bottles
made from corn, bioplastics, or
more easily recycled
aluminum.
Areas of Social Responsibility
(cont’d)
 Unfair Pricing
 Collusion: When two or more firms agree to
collaborate on such wrongful acts as price fixing
 Price gouging: Responding to increased
demand with overly steep (and often
unwarranted) price increases
 Ethics in Advertising
 Truth in advertising
 Morally objectionable advertising
Deceptive Advertising
 “Literally false or potentially misleading”
 False statements
 Misleading Safety Claims
 Misleading Affirmative Safety Claims
 Deceptive Denials of Product Risk
 Deceptive Information
Advertising to Children
 What’s wrong with it?
Areas of Social Responsibility
(cont’d)

 Responsibility Toward Employees

 Legal and social commitments to:
 Not practice illegal discrimination
 Provide a physically and socially safe workplace
 Provide opportunities to balance work and life
Approaches to Social
Responsibility*
 Obstructionist Stance
 A company does as little as possible and may attempt to deny or cover up
violations
 Defensive Stance
 A company does everything required of it legally but no more
 Accommodative Stance
 A company meets its legal and ethical requirements and also goes further in
certain cases
 Proactive Stance
 A company actively seeks to contribute to the well-being of groups and individuals
in its social environment
 Ethical issues*
Sales people face many ethical issues including bribery, deception,
the hard sell and reciprocal buying.
Bribery – this is the act of giving payments, gifts or other inducements
to secure a sale. Such actions are thought to be unethical because they
violate the principles of fairness in commercial negotiations.
Deception – a problem faced by many salespeople is the temptation to
mislead the customer in order to secure an order.
The hard sell – a criticism is that sometimes made of personal selling
behaviour is the use of high pressure (hard sell) tactics to secure a sale.
Reciprocal buying – reciprocal buying is when a customer agrees to
buy from a supplier only if that supplier agrees to purchase something
from the customer.
Business Ethics

Most Popular Office Supplies Steal

“More Employees Taking Supplies,” The News

Journal 2-31
Different Views of Ethics*
• The utilitarian view of ethics says that ethical
decisions are made solely on the basis of their
outcomes .The goal is to provide the greatest
good for the greatest number of people.

• In the rights view of ethics, individuals are

concerned with respecting and protecting
individual liberties and privileges such as the
the right to privacy, and the right of free
speech. Under this view, making ethical
decisions is simple because the goal is to
avoid interfering with the rights of others who
might be affected by the decision.
Intellectual Property
 Intellectual property must be registered in each
country where business is conducted
Intellectual property rights include
 patents (documents giving the inventor of a new
product or process exclusive rights to the
manufacture, use, or sale of that invention)
 copyrights (exclusive legal rights of authors,
composers, playwrights, artists, and publishers to
publish and dispose of their work as they see fit)
 trademarks (designs and names, often officially
registered, by which merchants or manufacturers
designate and differentiate their products)
Infringement of
Intellectual
Property
 Counterfeiting–unauthorized
copying and production of a
product
 Associative Counterfeit/Imitation–
product name differs slightly from
a well-known brand
 Piracy–unauthorized publication or
reproduction of copyrighted work
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