Module 3: Value Creation - Society, businesses and consumers

Markets and Legal Frameworks

Faculty of Business and Law

Marketing and Society

  • Marketing plays a significant economic role in society:

    • It can improve customer satisfaction.

    • The interests of society are complex.

    • Governments and institutions focus on consumer safety and ethical practices.

    • Society is interconnected through:

      • Diverse product choices for consumers.

      • Businesses marketing to consumers and other businesses.

      • Government taxes and welfare promotion.

      • NGOs monitoring market behavior.

Three Aspects of Marketing's Impact on Society

  1. Culture

    • Influences individual views and behaviors based on societal norms.

    • Advertising serves as a communication tool, reflecting and shaping culture.

  2. Consumerism

    • A movement to enhance the rights and power of buyers relative to sellers.

    • Focus areas include:

      • Product safety and quality assurance.

      • Environmental concerns and sustainability.

      • Consumer well-being and privacy.

  3. Environmentalism

    • Movement aimed at protecting and improving the living environment.

    • Introduces green marketing strategies:

      • Products must be free of harmful chemicals.

      • Sustainable practices and recycling efforts.

The Elements of Value

  • Extends from Maslow's Hierarchy of Needs, categorized into:

    • Functional Value:

      • Organizes, connects, saves time, reduces risk, etc.

    • Emotional Value:

      • Reduces anxiety, provides nostalgia, engages through wellness and entertainment.

    • Life Changing Value:

      • Provides hope, motivation, and belonging.

    • Social Impact Value:

      • Contributes to self-transcendence and community improvement.

Conscious Consumption

  • Awareness of marketing’s dark side:

    • Overconsumption leading to waste.

    • Ethical concerns over child-targeted advertising.

    • Rise of conscious consumption among consumers, businesses, and society.

Case Studies and Innovations

  • Examples of innovative products:

    • KFC's edible wrappers to reduce waste.

    • Mylo vegan leather made from fungi for sustainable fashion.

    • Donut beer as a unique product derived from waste streams.

Conclusion

  • Understanding knowledge and communication's power is crucial in modern markets:

    • Influences consumer behavior, business operations, and governmental policies.