ch03 Soc Cultural Envir 6Sept06 n33 1.1m

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Information about ch03 Soc Cultural Envir 6Sept06 n33 1.1m

Published on December 30, 2008

Author: aSGuest8475


Social - Cultural Environment ... : Social - Cultural Environment ... Is composed of institutions and social forces such as basic values, beliefs & attitudes that affect a society’s preferred life styles (distinctive patterns of living), perceptions and … Personal values influence what, where, when & how one buys & uses products (norms of beh) Population Immigration & Ethnic groups Values & prioritization of Social & economic mobility Physical environment Communications Macro Social Cultural Forces Shape Consumer Behavior & the Marketing Mix : Macro Social Cultural Forces Shape Consumer Behavior & the Marketing Mix Needs Consumer Wants Product Price Promotion Distr.. Personnel Production Finance Political & Legal Forces Science & Technology Social & Culture Monopoly Pure Competition Economics Values & Beliefs #1 Acctg. :  Social - Cultural Forces influence the Marketing Mix Religious Decay Reborn Christian Marriage Trends Divorce Trends Conspicuous consumption Inconspicuous Consumption Reactive: Passive Acceptance and Adaptation Proactive: actions to influence environmental forces. Values Are Acquired Through a Complex Socialization Process : Values Are Acquired Through a Complex Socialization Process Culture Social class Reference Groups (norms) Family (values, attitudes) Individual lifestyles Core values & beliefs are persistent. Passed from parents to children; reinforced by society to shape attitudes and behavior. Slide 5: Consumer Freedom Achievement Fairness Material Comfort Progress Equality Efficiency Practicality Competition Individualism Respect Honesty Family WorkEthic Desirable Cultural Values in America Asian Americans Prove Hard Work Still Pays off! : Asian Americans Prove Hard Work Still Pays off! Values matter ... more than poverty … more than race In the 1900’s, the American dream was “to work hard & succeed” In 2000, Asian Americans now value - hard work, strong families, respect for authority & raw dedication Times Leader,7/27/95,12a Barometers of Culture: Middle Class & Blue Collar : Barometers of Culture: Middle Class & Blue Collar Stereotype - a narrow-horizon couch a ranch house...proud of his disinterest in “boring” high culture Low Culture (rednecks): * Nude Dancing Clubs ... 2200 clubs (1998) * TV Viewing ... 1610 hrs. per capita (1997) * Auto racing ... 17 mil. tickets (1997) Changes in Wealth Can Cause Changes in Culture : Changes in Wealth Can Cause Changes in Culture Middle class and blue collar wealth 1996: 51 mil households earned Over $35,000 1980: 39.7 mil households earned Over $35,000 (Based on inflation adjusted equivalent) 30% growth in households compared to a 19% growth in population (1980-1996) Barometers of Culture : Source: WSJ 17 Sept 98 : A2 Barometers of Culture Is America Becoming a Nation of Culture? Education : Students studying Abroad: 1986 1996 - 48,483 89,242 Food And Wine Red table wine: 1991 1997 23.2 mil cases 58.2 mil % of Fine Dining Restaurants in Rural Areas: 1993 1998 19% 27% Cultural Values Underlie Product Consumption : Cultural Values Underlie Product Consumption Beer Consumption Denmark Japan Germany France U.S.A. 44% 85% 74% 72% 49% Households where beer was drunk in the past year (USA Today, 1995) Beer Suds Slide In Germany : Beer Suds Slide In Germany Fuhrmans, Vanessa. “In One German Town, Residents Measure Civic Pride by the Beer.” WSJ, A1, June 20, 2003. Wine Consumption : Wine Consumption (USA Today, 1995) Value Systems Change Over Time : Value Systems Change Over Time Aesthetics… standards of beauty 1930’s - Mae West 1950’s - Marilyn Monroe 1960’s - Liz Taylor 1970’s - Twiggy 1980’s - Cheryl Tiggs 1990’s - Cindy Crawford 2000’s - ---- ? ------ Value Systems Change at Varying Speeds Overtime : Value Systems Change at Varying Speeds Overtime Military.... Patriotism 1940 Pro NRA 1950’s Child Warrior 1990’s Colombia, Afghanistan, Liberia, etcetera ..Career Training 1980’s Anti NRA 2000 No Child Warrior in U.S. Value Indicators : U.S. Per Capita Consumption in lbs. 1990-2000 and estimates 2002-2010 Value Indicators Value IndicatorsAvg. Daily T.V. Viewing (Hrs./Day) & Sat(s) Ads reflect the values of the target audience : Value IndicatorsAvg. Daily T.V. Viewing (Hrs./Day) & Sat(s) Ads reflect the values of the target audience Value Indicators:“Out of Wedlock” Births & Single Mothers : Value Indicators:“Out of Wedlock” Births & Single Mothers % Value Indicators, Kids at Work : Source: Internationl Labor Organization Value Indicators, Kids at Work Estimated percentages of children who work full or part-time in selected countries, 1995 data Value IndicatorsReligion Based Value Systems : Value IndicatorsReligion Based Value Systems Never ignore religion as an influence even in a morally decadent society Example: Latin America vs. U.S. Bathing products and bodily adornments can be interpreted as over indulgence in self love Middle East Environmental Sensitivity.. : Environmental Sensitivity.. Negative (-) Positive (+) is adapting to the culture-specific needs & wants of different markets Beliefs Values Slide 21: A Model of Values & Product Images Cultural meaning in macro social and physical environment Cultural meaning in products and services Cultural values & norms in consumers Marketing strategies Fashion systems Other institutions Rituals Social interactions Intentional actions “Is Fat the Next Tobacco?”Fortune Magazine, January 21, 2003. By Roger Parloff : “Is Fat the Next Tobacco?”Fortune Magazine, January 21, 2003. By Roger Parloff A Case Example Lawsuit filed on behalf of Obese Children : Lawsuit filed on behalf of Obese Children McDonalds negligently and intentionally markets to children food products that are high in fat and cholesterol On behalf of obese children and overweight children filed by Sam Hirsch, a lawyer in NY. Failing to warn of ingredients’ links to obesity, diabetes, coronary heart disease, etc. Is this lawsuit similar to tobacco lawsuits? : Is this lawsuit similar to tobacco lawsuits? Junk food is not addictive like tobacco, but once weight is gained, it is hard to lose The food industry may not be hit with penalties like the tobacco industry, companies will face consumer-protection suits that might cost them millions to force them to change marketing practices. Surgeon General warned that obese conditions might soon cause as much preventable disease and death as smoking. The Obesity Epidemic : The Obesity Epidemic Childhood weight patterns strongly predict adult ones. Rate of small overweight children have doubled since 1980, and tripled among adolescents. Physicians report a rise in children of obesity-linked type 2 diabetes. Smoking is a lot more reversible than a obese child who develops diabetes. 300,000 deaths associated with being overweight Solutions : Solutions Nutrition principles based on balance, variety, and moderation Issue food warnings Post fat and calorie content on menu boards Add more nutritious food to menu Last year, McDonalds reduced trans fatty acids in its fried foods and introduced low-fat yogurt and fruit roll-up in desserts. They have always made nutrition information available upon request. Past Lawsuit : Past Lawsuit In 1983, The California Supreme Court allowed a suit to be brought by an advocacy group against General Foods over breakfast cereals like Cocoa Pebbles and Sugar Crisp. The Plaintiffs argued that although the products are promoted and labeled as cereals, the products are in fact more accurately described as sugar products or candies. The court suggested that ads, even implicitly claiming that such products were nutritious or healthful, were plausible lawsuit targets. After the ruling, the case settled. Marketing Practices : Marketing Practices Fast food, snack food, and soft drink companies focus their marketing on children and adolescents through: Saturday morning TV commercials Cuddly characters like Ronald McDonald (the 2nd most recognized figure among children after Santa Claus) Contracts to advertise and serve soft drinks and fast food in schools Ever-changing toys included in Happy Meals Prospective Class-Action Member : Prospective Class-Action Member 15 year-old Gregory Rhymes Has gone to McDonalds nearly every day since he was 6 Weighs 400lbs. and has Type 2 Diabetes “The consumption of McDonald’s products has significantly contributed to the development of Rhymes’ obesity and diabetes.” Who’s Responsible? : Who’s Responsible? Parents Schools Toy makers Food companies Children? Update : Update Fortune Magazine, February 4, 2003. By Roger Parloff Manhattan federal district judge threw out the class-action lawsuit against McDonalds brought by overweight youngsters. Sam Hirsch said he will file a revised complaint by February 21. Judge urged the plaintiffs to redraft their complaint and told them how to do it. The most promising attacks on fast food will focus on advertising and labeling that imply products are more nutritious than they are Thank you!Any Questions? : Thank you!Any Questions? Slide 33: Cultural values, beliefs, norms & characteristics Social & cultural Forces Influence Marketing

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