Economic and social aspects of marketing

economic impact of marketing

Grayson Jonathan D. It could mean the difference between success and failure.

Social aspect of marketing

The higher the inflation rate, the more your purchasing power decreases. They are as follows. References 2. Economic Utility The economic utility theory states that consumers will buy things that increase their personal satisfaction. The product has to be different with better quality, and more variety than others. In other words, the amount you are garnering from your marketing investment is shrinking. If you find yourself in the flip phone position -- that is, selling products that consumers no longer are interested in buying -- you have a couple of options. Consumer demand for marketing in new venues, such as cellphones, creates new branches of the marketing industry and furthers growth. It is not related to studies, but it educates. These factors have a direct impact on the market as well as your customers. Additionally, high-interest rates usually translate into tighter credit, which makes it harder for customers to obtain the money they need. It represents the rate at which the price level of products and services are rising. This will definitely effect the production which may in turn affect the GDP of the country. To keep competitive, you have to increase your marketing exposure and even rethink your target market.

Marketing has had many other positive benefits for individuals and society. This allows consumers to make informed decisions without as many risks as they would face if they had to buy without the benefit of marketing. If you find yourself in the flip phone position -- that is, selling products that consumers no longer are interested in buying -- you have a couple of options.

marketing and society pdf

Effect on Prices: Some advertised products do cost more than unadvertised products but the vice versa is also true. And it is not an entertaining device but entertains everyone.

Social ethical and legal aspects of marketing

It is not a journalist but gives all information. In , unemployment rates reached 10 percent and more than six million people lost their jobs. The product has to be different with better quality, and more variety than others. Focus your marketing efforts on the small group of consumers still purchasing the product, or seek to enter a new marketplace by moving your products to the latest and fatest-growing sector. By creating a symbol of prestige and luxury, Tiffany offers a symbolic benefit that, according to some consumers, justifies the price. Modeling Consumer Behavior Marketers work to understand consumer behavior and produce advertising that is most likely to influence it. Higher sales for a business that employs successful marketing strategies translate into expansion, job creation, higher tax revenue for governments and, eventually, overall economic growth. Economic role of Advertising Value of Products: The advertised products are not always the best products in the market. Economic Utility The economic utility theory states that consumers will buy things that increase their personal satisfaction. If your business caters to discount or redundant items, you may be missing out on the buying power of more affluent or trendy customers. Offensiveness: Some ads are so offensive that they are not acceptable by the buyers. This can happen when a competitor enters the field, when consumer tastes change or when your price point is too low or too high.

The products are formulated without animal testing, and a percentage of profits each year is donated to animal rights groups, homeless shelters, Amnesty Internationalrain-forest preservation groups, and other social causes. When customers stop buying your product at a fast enough rate, you enter into diminishing returns.

Social aspects of marketing pdf

If you find yourself in the flip phone position -- that is, selling products that consumers no longer are interested in buying -- you have a couple of options. The tax rate on your real capital gains goes up as well. For e. Marketing and individual welfare Criticisms have been leveled against marketers, claiming that some of their practices may damage individual welfare. Sometimes, consumer may find the foreign product better than going for the national brand. Organizations need to be aware of these issues and adjust their business strategy accordingly. Businesses use marketing to make consumers aware of major changes, such as mergers and transfers in ownership that affect product offerings or seek to improve quality. Understanding the link between the economy and marketing can help business owners allocate their marketing resources and respond to changes in the economic climate. Marketers counter these concerns by pointing out that products provide not only functional benefits but symbolic ones as well. A few marketers have been accused of using deceptive practices, such as misleading promotional activities or high-pressure selling. Others have raised concerns about marketing by saying that it increases prices by encouraging excessive markups. Economic utility is particularly relevant from the marketing standpoint, as it serves as a warning to not sell yourself short.

But advertising helps increase value for the products by showing the positive image of the product which in turn helps convincing customers to buy it.

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Economic Factors That Affect Marketing