Basic Marketing: A Global Managerial Approach

Perreault−McCarthy: Basic
Marketing: A
Global−Managerial
Approach, 14/e

1. Marketing’s Role in the
   Global Economy

Text © The McGraw−Hill

Companies, 2002

Marketing’s Role in the Global Economy 1313

others argue that handguns are a threat to

society. They want handgun sales banned and

sales of all weapons limited—as is the case in

many countries. Should gun producers be

allowed to sell guns to consumers who want

them?

Decisions don’t have to involve life and

death issues to be important. Many Americans

want the convenience of disposable products

and products in easy-to-use, small-serving

packages. But these same “convenient” prod-

ucts and packages often lead to pollution of

the environment and inefficient use of natural

resources. Should future generations be left to

pay the consequences of pollution that is the result of “free choice” by today’s

consumers?

Questions like these are not easy to answer. The basic reason is that many dif-

ferent people may have a stake in the outcomes—and social consequences—of the

choices made by individual managers andconsumers in a market-directed system.

As you read this book and learn more about marketing, you will also learn more

about social responsibility in marketing and why it must be taken seriously.

The role of government

The American economy and most other Western economies are mainly market-

directed—but not completely. Society assigns supervision of the system to the

government. For example, besides setting and enforcing the “rules of the game,”

government agencies control interest rates and the supply of money. They also set

import and export rules that affect international competition, regulate radio and TV

broadcasting, sometimes control wages and prices, and so on. Government also tries

to be sure that property is protected, contracts are enforced, individuals are not

exploited, no group unfairly monopolizes markets, and producers deliver the kinds

and quality of goods and services they claim to be offering.

Socially responsible marketing

managers are concerned about

the environmental impact of their

decisions, and some firms are

finding innovative ways to both

help the environment and

improve customer satisfaction.