Marketing and Enterprise Social Responsibilities PDF

MARKETING AND ENTERPRISE SOCIAL RESPONSIBILITIES MARKETING Introduction For any business to grow there must be an exchange process. This exchange process is realised when business owners are able to sell their goods/services to the customers. This sub-module unit will deal with definition of the te...

MARKETING AND ENTERPRISE SOCIAL RESPONSIBILITIES MARKETING Introduction For any business to grow there must be an exchange process. This exchange process is realised when business owners are able to sell their goods/services to the customers. This sub-module unit will deal with definition of the terms market and marketing, components of marketing and methods of gathering market information Specific Objectives By the end of this sub-module unit, the trainee should be able to: a) Define the terms market and marketing. b) Outline the components of marketing c) Describe the process of Marketing Content Definition of terms i) Market. A market is any place where sellers exhibit or show their goods for the buyers to see and purchase/ buy. A market can also be defined as the existing and potential customers who are willing and able to buy a product/service. ii) Marketing. Marketing is the process of making known what products/ services an entrepreneur is selling or wants to sell. Components of marketing There are components of marketing generally referred to as the marketing mix or the 4Ps of marketing as outlined below: i) Product This is the good/item or service the entrepreneur intends to sell in order to satisfy customer’s needs. ii) Place This is the location where the product is to be sold. The product must be in the right location or site, at the right time for the customers. Place also refers to the channels used for the product to reach the consumer. iii) Price:  This is the monetary value of a product. The price should be able to cover the cost incurred and earn some profits. iv) Promotion: This is the process of communicating with customers to influence them towards buying the product. Figure 2: showing the marketing mix elements MARKETING MIX PRICE PRODUCTS PEOPLE PLACE PROMOTION >List price >Product variety >Income >Channels >Advertising >Discounts >Quality >Employment >Coverage >Personal selling >Allowances >Design >Age >Assortments >Sales promotion >Payment >Features >Tastes and >Locations >Publicity period >Brand name Preferences >Inventory >Credit >Packaging >Population >Transport terms >Sizes density >Services >Warranties TARGET MARKET The marketing process The marketing concept involves the following stages: a) Determining the needs of the organisations customers (market research) b) Analysing their competitive advantage(market strategy) c) Selecting specific markets to serve( target market) d) Determining how to satisfy those needs (marketing mix) Market research involves obtaining information about the market. This is necessary in order to manage the marketing functions successfully. A market research programme based on a questionnaire can disclose problems and areas of dissatisfaction that can be remedied or new products and services that could be offered successfully. Marketing Strategy includes identifying customers groups (target markets) which a small business can serve better than its competitors. The strategy should try and address customer needs which are currently not being met in the market place. TARGET MARKET/MARKET SEGMENTATION Market target is the style of marketing where the seller distinguishes between different segments to focus on and develop on market offers tailored to meet the needs and demand of each target e.g. an organisation could develop an airline system designed to meet the needs of affluent (rich) persons, for a clean and comfortable flight, at a higher price. Market segment involves dividing the heterogeneous market into several submarket or segments. The major ways to segment a market are: a) Geographical segmentation – involves specialising in serving customers in a particular geographical area. b) Customer segmentation e.g. identifying groups of people who are likely to buy the product or services i.e. securing heavy users before trying to secure new users. c) Demographical segmentation e.g. age , occupation, religion , lifestyle or income d) Psychographic e.g. social class, lifestyle or personality Suggested learning activities i) Choose a product and explain how to market it based on the 5Ps. ii) Discuss the marketing styles used by local entrepreneurs. ENTERPRISE SOCIAL RESPONSIBILITIES Introduction Specific Objectives By the end of this topic, the trainee should be able to: a) Define the terms social responsibilities and business ethics b) Explain the meaning of enterprise social responsibility c) Identify types of enterprise social responsibility d) Explain the importance of enterprise social responsibility e) Explain ethical behaviour in a business enterprise CONTENT Definition of terms Business ethics refers to the study of behaviour and morals in a business situation. It involves investigation of business practices in light of human values. Business ethics (also known as Corporate ethics) examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and business organizations as a whole. Meaning of enterprise social responsibility Social responsibility consists of those obligations a business has to society. The small business has certain social obligations, responsibilities and responsiveness to society. This regards the intensity or to what extent the small business should be involved to society issues. Social responsibility in enterprise development may be viewed as a contribution that the community gets from the established enterprise. This includes areas relative to society’s goodwill towards the enterprise, waste management within the environment and government’s effort in supporting development. However, an enterprise also has social concerns that should be recognised. These include: protection of the environment to avoid creating health hazards to the people, provision of goods and services coupled with equitable distribution of resources, gender sensitivity issues, and coverage of ethical business practices to promote economic development of a country. Some businesses simply react to social issues through obedience of the laws, others make a more active response, taking, and accepting responsibility for various programmes. Others are more proactive and are even willing to be evaluated by the public for various activities. Types of enterprise social responsibility Generally, small businesses have a social duty and obligation to develop and enhance the quality of the society in which they operate The nature of social responsibility for small businesses include:  The environment such as pollution control, protection, and conservation of natural resources.  Community involvement such as donations, sponsorship of public health projects, support of education and arts, and community recreation programmes.  Human resources such as promotion of employment, health and safety, employee training and development, counselling programmes, career guidance, and employee physical fitness.  Fair business practices such as employment and advancement of women and minorities, employment and advancement of disadvantaged e.g. the disabled, good and fair prices, quality products and true information about products.. Importance of enterprise social responsibility Enterprise social responsibility forces people to be responsible for their actions and makes it difficult for them to “exploit” other people for either selfish or unselfish reasons. Consequently it allows a business to use its resources and engage in activities designed to increase its profits with the laid rules and regulations thus engage in open and free competition without deception or fraud. It also helps in improving the living conditions of citizens. It provides for increased competitive advantage of an enterprise and nation in general through good performance of “Corporate Social Responsibility” (commitment by the enterprise to make contributions to sustainable economic development, co-operation with the community and society to improve their lives for the mutual benefit of the employees.) enterprise social responsibility offers several benefits to the organisation; - To protect their trademark and is not criticized by the society; - To promote sustainably their reputation; expand the market and price advantages; - To be engaged in investment programs and plans for the purpose of social responsibility;