Basic Marketing: A Global Managerial Approach

(Nandana) #1

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



  1. Ethical Marketing in a
    Consumer−Oriented World:
    Appraisal and Challenges


Text © The McGraw−Hill
Companies, 2002

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges 639

that satisfaction depends on and is relative toyour level of aspiration or expectation.
Less prosperous consumers begin to expect more out of an economy as they see the
higher living standards of others. Also, aspiration levels tend to rise with repeated suc-
cesses and fall with failures. Products considered satisfactory one day may not be
satisfactory the next day, or vice versa. A few years ago, most of us were more than
satisfied with a 19-inch color TV that pulled in three or four channels. But once
you’ve watched one of the newer large-screen models and enjoyed all the options pos-
sible with a digital satellite receiver or a DVD, that old TV is never the same again.
And when high-definition digital TVs and interactive broadcast systems become more
widespread, today’s most satisfying units won’t seem quite so acceptable.
In addition, consumer satisfaction is a highly personal concept—and looking at
the “average” satisfaction of a whole society does not provide a complete picture for
evaluating macro-marketing effectiveness. At a minimum, some consumers are more
satisfied than others. So although efforts to measure satisfaction are useful, any
evaluation of macro-marketing effectiveness has to be largely subjective.
Probably the supreme test is whether the macro-marketing system satisfies enough
individual consumer-citizens so that they vote—at the ballot box—to keep it
running. So far, we’ve done so in the United States.^4

Measuring micro-marketing effectiveness is also
difficult, but it can be done. Expectations may change
just as other aspects of the market environment
change—so firms have to do a good job of coping
with the change. Individual business firms can and
should try to measure how well their marketing mixes
satisfy their customers (or why they fail). In fact, most
large firms now have some type of ongoing effort to
determine whether they’re satisfying their target mar-
kets. For example, the J. D. Power marketing research
firm is well known for its studies of consumer satis-
faction with different makes of automobiles and
computers. And the American Customer Satisfaction
Index is also used to rate individual companies. For
example, in the 2001 results, McDonald’s ranked
among the poorest performing retailers. While managers at McDonald’s take issue with
that result, the firm’s own internal satisfaction studies say that on the average day 11
percent of McDonald’s customers complain to the restaurant about some dissatisfaction
(for example, because of slow service, wrong orders, dirty stores, or employees who have
forgotten the company’s “we love to see you smile” slogan). It’s reported that 70 per-
cent of those dissatisfied customers are further dissatisfied with the way McDonald’s
handled the complaint.^5
Many large and small firms measure customer satisfaction with attitude research
studies. Other widely used methods include comment cards, e-mail response features
on websites, unsolicited consumer responses (usually complaints), opinions of mid-
dlemen and salespeople, market test results, and profits. Of course, customers may
be very satisfied about some aspects of what a firm is doing but dissatisfied about
other dimensions of performance.^6
In our market-directed system, it’s up to each customer to decide how effectively
individual firms satisfy his or her needs. Usually, customers will buy more of the prod-
ucts that satisfy them—and they’ll do it repeatedly. That’s why firms that develop
really satisfying marketing mixes are able to develop profitable long-term relationships
with the customers that they serve. Because efficient marketing plans can increase
profits, profits can be used as a rough measure of a firm’s efficiency in satisfying cus-
tomers. Nonprofit organizations have a different bottom line, but they too will fail if
they don’t satisfy supporters and get the resources they need to continue to operate.

There are many
measures of micro-
marketing
effectiveness
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