The Impact of Consumer Ethics on Marketing Planning

The assignment content focuses on the core values and ideas by which sales departments of businesses operate. It highlights the importance of considering consumer ethics in marketing planning, as customers' thoughts, ideas, and requirements significantly impact marketing practices. The report analyzes ethical issues in marketing planning and their influence on marketing planning, emphasizing the need for organizations to adapt to changing customer needs and preferences while maintaining a commitment to ethical principles.

Marketing Planning

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Changing perspectives in marketing planning.................................................................1
1.2 Samsung capability for planning and its future marketing strategy.................................2
1.3 Techniques for organizational auditing and external factors that affect the marketing
planning..................................................................................................................................2
1.4 Organizational auditing and analysis of external factors.................................................3
TASK 2............................................................................................................................................4
2.1 Main barriers in marketing planning................................................................................4
2.2 Ways to overcome the barriers to marketing planning.....................................................5
TASK 3............................................................................................................................................5
3.1 Sales Plan..........................................................................................................................5
3.2 Marketing planning is essential in the strategic planning process...................................5
3.3 Techniques for new product development.......................................................................6
3.4 Recommendations for Pricing Strategies, distribution and communication mix.............7
3.5 Factors affecting the effective implementation of marketing plan...................................8
TASK 4............................................................................................................................................9
4.1 Ethical issues influencing marketing planning.................................................................9
4.2 Organization's response to ethical issues........................................................................10
4.3 Examples of consumer ethics and its effect on marketing planning..............................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Market planning is a document which is written to describe the current market position of
business with its strategy of Promotions and marketing efforts. Marketing plan normally covers a
period of one to five years (Prue and Daniel, 2006). This report is based on a case scenario of
Samsung Electronics. Samsung group is huge organization with many divisions like, Mobile
communication, telecommunications, computer division, Mp3 business and many more. This
report will help to review the changing perspective in marketing planning along with
organization's capability for planning future marketing strategy.
TASK 1
1.1 Changing perspectives in marketing planning
Changing perspective for the current market situations which are based on the
requirements of customers along with their future requirements are essential to analyze
(Slotegraaf and Dickson, 2004). Samsung can analyze these changing perspectives on the basis
of internal and external assessment, that are as follows: The Production Concept: Samsung is a multinational organization and it operates in
multiple divisions of electronics such as, televisions, mobiles, computers and laptops etc.
The organization is in profitable condition which satisfies all the customers’ demands.
Consumers are only comfortable with the product which is widely available and is less
expensive. Accordingly Samsung is focusing on this concept to concentrate on achieving
high production efficiency. This orientation has helped Samsung to develop in countries
where customers are more interested in samsung products and then its features. The Product concept: The product concept of Samsung retains those customers which
favor the products that offer the quality, performance and innovative features (Greenley,
Hooley and Saunders, 2004). The organization is making superior quality products and is
improvising them with time. Thereby, Samsung Electronics has proved itself as the best
brand. The Selling concept: This is the most important orientation in common business
practices which retains customers and business together. Thereby, Samsung undertakes
an aggressive selling and brand promotion efforts to attract more consumers (Ardley,
2005).
1

 The Marketing concept: Moreover, marketing concept of Samsung holds the key to
achieve its organizational goal. The marketing concept assists the Samsung Electronics to
be more effective than its competitors in delivering, creating and communicating value to
customers (Sadjadi, Ghazanfari and Yousefli, 2010).
 The societal marketing concept: This concept determines the needs and interest of target
market and to deliver the desired products more effectively and efficient than its
competitors.
1.2 Samsung capability for planning and its future marketing strategy
Samsung has strong capability to plan the marketing process because it has billion
numbers of consumers in multiple countries. The Capabilities of organization has been
categorized that is as follows, Financial capabilities: Samsung's possesses strong financial capabilities to hold market
and brand promotion activities. It is the top rising brand and primarily it is achieved by
organization's ability to promote the brand in various events and social contribution.
Increased brand promotions increases product sales which help the organization to
become finally capable in planning current and future marketing strategies (Taghian,
2010). Skilled Employees: Samsung has most skilled employees who plan and develop
effective marketing strategies with their innovation and creativity. Good brand image: Moreover, Samsung is a well known name in countries. A good
brand image makes organization capable for planning and developing future marketing
strategy.
 Loyalty: Samsung is very old name between people because of its better and improved
product and high quality customer services (Bunnell, 2005). This loyalty of customer
helps the organization to attract more customers. Further, it assist the Samsung to
become capable for Planning future marketing strategies
1.3 Techniques for organizational auditing and external factors that affect the marketing planning
Marketing planning is essential for running the business or organization. Samsung has
analyzed various factors in order to have the best marketing plan. Samsung is carrying out
PESTEL analysis for organizational auditing (Wilson, 2004). PESTEL is a framework used by
2

marketing team to analyze and supervise the external marketing environment which eventually
makes an impact on the organization. Moreover, it provides an understanding of market structure
that represents one of the back bones of strategic management which defines what an
organization should do in order to achieve the organization's goals and its strategies. However,
the firm can also use SWOT analysis for identifying internal and external factors that affects the
marketing planning. SWOT analysis of business will help in identifying the strengths,
weaknesses, opportunities and threats of a business while developing a marketing plan. By swot
analysis firm can improve the weak points and implement the marketing plan as per
opportunities available for business. Similarly, BCG Matrix is one of the effective way to
analyze product lines as growth opportunities. BCG matrix targets in identifying high growth
prospects by dividing product range according to market share and growth rate of the company.
However, Samsung can use these techniques to analyze business environment and growth
opportunities.
1.4 Organizational auditing and analysis of external factors
These external environmental factors are as follows: Political factors: This factor depicts about the way in which government intervenes in
the economy. These political influences include government policy, political stability or
instability in market, foreign trade policy, tax policies, environmental law, labor law and
trade restrictions etc. These political factors highly make influence on business
environment of Samsung. For instance, a government has proposed a new tax due to
which entire revenue generating structure of organization has been changed (Prue and
Daniel, 2006). Economic Factors: These factors have significant effect on the way in which an
organization is performing a business and their profitability. For instance, the firm, A,
that is rising prices in economy would definitely affect the way in which Samsung set
their price for the products and services. Moreover, it would also affect the buying
decision of customers that will change the demand and supply of product for that
economy. Economic factors are based on rising prices, interest rates, economic growth
patterns and foreign exchange rate. (Wood, 2008).
3

 Social: Social factors determine the social environment of market, cultural trends,
population and demographics. For example, if a person is buying a Samsung smart phone
then he will influence his friends and family also to buy the same. Technological: Further, technological factors are concerned with developing creativity in
technology that will affect the operations of industry or market in a positive or negative
way. These factors highly influence Samsung for effective marketing planning.
Technological factors refer to automation, development and research with the huge
technological awareness in the market environment (Cravens and Piercy, 2008). Environment: After technological factors, environmental factors for samsung are
influenced by the surroundings of market. The purpose of PESTEL is important for
certain commercial enterprises. For instance, Tourism and farming are the factors of
business environment analysis but these factors are not based on weather and global
changes in the climate.
 Legal: This is the most important factor that affects both internal and external side of the
firm. There are some laws which really affect the business practices in various countries
(Greenley, Hooley and Saunders, 2004). Since Samsung runs business in various
countries, it has to follow those policies that organization has to maintain. For example,
Samsung has to consider consumer laws, safety standards and labor laws of certain
country.
TASK 2
2.1 Main barriers in marketing planning
There are various barriers that come in the way to implement an effective marketing
planning. Some of them are described as follows: Lack of Coordination: Main barrier in implementing the marketing planning is lack of
coordination between departments. For instance, sales team of Samsung wants to
implement some marketing strategies and finance department refuses to raise the funds
for such strategy. Thereby, without financial support, it is impossible to implement the
marketing planning. Similarly, coordination differences between other departments also
acts as a barrier in marketing planning (Cravens and Piercy, 2008).
4

 Absence of information: Further, to implement the marketing planning, it is important
for employees to be knowledgeable and to possess the information about various market
factors such as all strategies or plans that their competitors are applying and whether the
plans developed by them will fulfill the organizational needs or not (Slotegraaf and
Dickson, 2004). However, this absence of knowledge is one of the barriers in marketing
planning.
2.2 Ways to overcome the barriers to marketing planning
To overcome these barriers, Samsung can implement the following strategies: Developing communication between departments: Samsung can establish an effective
communication between departments to overcome the situation of lack of coordination.
Effective communication between all employees can resolve many problems. Samsung
can organize team meetings and group discussions between employees to share their
thoughts and ideas with each other (Ardley, 2005). Communication will help the
organization to maintain a healthy and friendly work environment which will establish
better team coordination.
 Training and development: In order to overcome the barrier of absence of information in
employees, organization can arrange training and development programs for their
employees (Greenley, Hooley and Saunders, 2004). By the help of these programs,
employees can develop their skills, knowledge and ability to work effectively in the firm.
Thus, training and development programs are important in the organization for
overcoming the barriers in marketing plan.
TASK 3
3.1 Sales Plan
Covered in PPT
3.2 Marketing planning is essential in the strategic planning process
Marketing planning is an essential document for business for planning and
implementation of strategy. It provides an idea to organization for market environment, describes
market problems as well as threats and opportunities in the business with marketing strategy.
Marketing planning in Samsung provides data which can be helpful in the new product launch
(Greenley, Hooley and Saunders, 2004). However, Strategic planning is a wide process that can
5

address the whole business of organization in which marketing planning is also included. To
understand the relationship between marketing planning and strategic planning, it is very
important to understand the purpose of organization’s strategic planning.
It is just not enough to make a marketing plan; the marketing plan has to include some
form of measurement and a process for monitoring and reviewing the results also. For example,
Samsung has prepared a marketing plan for the launch of new smart phone but to implement this
marketing plan, strategic planning process is essential (Baker and Holt, 2004). An overall
strategic plan can focus on the objectives of marketing, thereby; marketing plan should be more
detailed and specific for the marketing department for monitoring.
3.3 Techniques for new product development
In order to grow a business following are the techniques for new product development,
Such as, Idea Generation: Innovation is bringing change by using of new ideas. Samsung's
strengths are its innovative workforce. Samsung motivate its employees for their
performance, so that they come out with new inspiration and ideas (Slotegraaf and
Dickson, 2004). Furthermore, the employees of Samsung has the ability to take risk
which sometimes helps in innovating something different which competitors are not
doing. This innovation ability in employees helps Samsung to develop new product.
 Idea Screening: Idea screening is a process of comparing new product related ideas and
viewpoints and selecting the most appropriate idea of new product development for
business.
 Idea Development and testing: Furthermore, in this process development of new product
and its advantages and disadvantages to the customers should be identified. This includes
the product development cost, customers reaction for this product target market and
decision maker in buying process factors for developing the idea of new product.
 Business Analysis: In today's competitive environment, firm cannot compete alone on
price and delivery. Samsung can gain ideas from its competitors for developing new
product. In high tech generation, companies can survive only if they are introducing new
products time to time in the market (Baker and Holt, 2004). Thereby, with the help of
6

information of competitors, Samsung can gain new technology ideas, price, and other
market trends information which will be required in developing new product. Market Testing: For developing new products, Samsung can use customers and
employees feedback, such as, which product they are using currently and what are their
future needs and demands. Samsung collects information and data from customers, So
that they may get to know the new requirements of the customers (Wood, 2008).
Customer provides ideas including product suggestion and improvement in products
which they are already using. As per market demand, organization can develop new
product.
 Technical Implementation: Further, technical development includes estimation of total
resources the firm requires for new product, data sheet of the product with new technical
features of the product and logistic plan to distribute new product in targeted market
segment.
 Commercialization: After technical implementation commercialization is important part
of new product development which includes strategies related to the launch of the
product in target market. For commercialization firm decides various marketing ideas
advertisement and other promotional activities.
 New Product pricing: At last, cost of the final product is decided by analyzing value ,
competition, product cost. Revenue and profit to the organization.
3.4 Recommendations for Pricing Strategies, distribution and communication mix
Marketing Plan is prepared for Samsung Galaxy S6 Edge+ product of the company
which covers the following points.3.1 Product and services
Marketing plan for Samsung galaxy S6 Edge+ is as follows,
Features: As per high tech need of consumers Samsung has launched a smart phone, Samsung
GalaxyS6 Edge +. This smart phone has 5.7 inch touch screen display with 1440 pixel by 2560
pixel resolution at a PPI of 518 pixel per inch. It has Android 5.1.1 version operating system and
3000MAH non removable battery. This is 153 grams light weight phone with Single sim (GSM)
that accepts a Micro sim. Connectivity option of this pone includes Wi-Fi, GPS, Bluetooth, NFC
7

and 4G. Other than these features this phone contains Proximity sensor, Ambient light sensor,
Accelerometer and gyroscope.
Marketing strategies used by Samsung are as follows: Penetration pricing: A marketing strategy used by Samsung to attract customers to a
new Galaxy S6 Edge+ is penetration pricing. According to this, Samsung will offer low
price of the product at the initial level of product launch to attract customers. By the use
of this strategy, more customers will buy this phone and become familiar with the
features and recommend this phone to their friends and relatives (Andreasen and Kotler,
2008). This is most successful marketing strategy which is used by Samsung. Lower
prices in beginning along with high quality features create positive brand image in
customer's mind. Distribution: The Samsung have strong sales team to provide its product direct to its end
users. Samsung will distribute its product through its stores, websites and dealers. For
direct distribution of product, Samsung can use brand promotion activities, such as, road
shows, marketing campaigns etc.
 Communication mix: Samsung can use marketing communication which will help them
to develop brand awareness between consumers. As per this strategy, Samsung can use
marketing ideas to communicate about their new product (Prue and Daniel, 2006). For
Instance, Advertisement in TV, newspapers and online Social media is most popular
these days which can be utilized as a marketing strategy. Similarly, Road shows,
brochures and word of mouth can also create awareness about Samsung Galaxy S6
Edge+ smart phone.
3.5 Factors affecting the effective implementation of marketing plan
Following are the factors which affect the effective implementation of marketing plan.
These are as follows: Unstable financial conditions: Finance is the most important aspect which affects the
effective implementation of marketing plan. If Samsung is not having proper budgetary
help, it will directly hamper the promotion activities. To formulate an effective marketing
plan, it is very important for the organization to maintain finance (Labbi and Berrospi,
2007).
8

 Ineffective Administration: Furthermore, effective administration to implement the
marketing strategies is essential. Administration department can make the arrangements
for multiple activities for product promotion and to bring awareness in consumers about
the product. If Administration is not effective or strict then it is impossible to implement
the marketing strategies into account.
 Poor marketing research: Moreover, appropriate research of the market is also
important. If marketing department collects wrong data than it will affect the whole
marketing plan.
TASK 4
4.1 Ethical issues influencing marketing planning
Ethical issues in marketing planning begins from conflicts and disagreements. Every
segment in marketing transactions comes with a set of prospects regarding the way in which
business relationships will be maintained and manner of managing the transactions (Labbi and
Berrospi, 2007). Ethical issues influencing marketing planning are as follows: Price: Samsung is facing pricing as an ethical issue which influences the marketing
planning. The price of a product makes an effect on product sales. Marketing ethics
mainly involves pricing practices with legal actions that is price fixing, price
discrimination or price skimming. Samsung has to maintain fair price between
customers. Different prices in different customer segments affect the product sales and
brand image as well. Thereby, price is a measure ethical issue that influences the
marketing planning (Andreasen and Kotler, 2008). Production: Ethical issues commonly deal with the liability of companies to make sure
that products and production do not cause harm to people. Moreover, production of
product is also an ethical issue which influences marketing planning. Samsung is
launching a new mobile in the market if they are not mentioning all the details related to
product such as warranty, guarantee, service support etc. to the consumers. Moreover,
Production handles corporate social responsibility that product is produced is good and
does not harm people by its use. Thus, it is an ethical issue which organization will face
in the marketing planning (Prue and Daniel, 2006).
 Promotion: Furthermore, if Samsung is hiding something negative about the product in
promotional activities and advertisement then it is an ethical issue for consumers.
9

Organization cannot hide anything from customers if their product has some positive
points which is Samsung is showing in their promotion activities and advertisements
then they must have to show the negative points of products if it has something (Sadjadi,
Ghazanfari and Yousefli, 2010).
4.2 Organization's response to ethical issues
Mostly, the entire finance department in business faces ethical issues in their marketing
planning. Ethical issues occur in many forms. Sometimes, organization needs support to resolve
the challenging conflicts. A common feature to respond these ethical issues is to bring awareness
in organization about the fundamental principles in their professional code of ethics (Bunnell,
2005). A characteristic of business possesses the responsibility to act in public interest along
with the professional ethics. For instance, Tesco was found in a horse meat scandal in 2013.
According to this horse meat was found in their packaged beef burger. This scandal revealed a
major break down for food supply chain. After customers complaints and recommendation from
European union labeling of the origin of processed meat was published. However, It was an
ethical issue because some consumers do not prefer horse meat.
Organization always needs to carry out its brand image but while doing this; it cannot
make negative publicity of other brands. This strategy can be harmful for both the organizations
because a firm’s ethical behavior describes its organizational culture (Ardley, 2005).
Furthermore, Bangladesh government was also victimized to these ethical issues, In Bangladesh
1.3 million children were unexpectedly working in a Primark factory to earn money for their
family. Basically this is ethical issue of child labor in Bangladesh. Finally, as per legal actions
the factory was collapsed and the proper education program for these children was implemented
by government. Moreover, ethics in marketing deals with the core value and ideas by which sales
department of business acts. Product which they are providing to use will be consumed by many
customers, so, this is the responsibility of organization to come with the products which does not
hurt ethical dilemmas of customers.
4.3 Examples of consumer ethics and its effect on marketing planning
Customers are the backbone of marketing planning in new product’s sales. Customers
make a huge impact on marketing planning directly and indirectly. Marketing practices depends
on the consumer ethics as their thoughts and ideas may be different as it depends on their culture
(Sadjadi, Ghazanfari and Yousefli, 2010). Further, it is also based on customers’ requirements.
10

For instance, if Samsung is distributing its products between customers with plastic packaging, it
will affect the environment. Because there will be large number of customers who will consume
those products, thereby, the organization has to change the product’s packaging and they have to
find out some new ideas for packaging that will not damage the environment. This change in
packaging affects the marketing planning (Taghian, 2010). One more example for customer
ethics that affects the marketing plan is if a customer purchase a dress from a shop and wears it
in a party and next day return it again to shop is not actually an attempt of cheating by customer
that affects the whole marketing plan. However, the firm can change the exchange policies and
return policies for controlling this kind of issues. Thus, changes in these policies can change the
whole marketing plan. Marketing practices are unreal if their consumers think that they will be
getting more value from a product than they actually receive.
CONCLUSION
In this report, the purpose of marketing plan clearly depicts the steps and actions that an
organization can take to achieve the planned goals. Marketing is the process of developing and
implementing the plan to satisfy the consumer’s demand in a way that organization can make
higher profits. For instance, marketing plan might have the strategy to increase the market share
of a business. But to implement this marketing plan, it is essential to have an effective sales team
which can satisfy their consumers’ needs by their products. This report helps in establishing the
understanding of marketing planning and the factors which affect the internal and external
marketing planning. This report has analyzed the ethical issues in marketing planning and their
influence on marketing planning.
11

REFERENCES
Books and Journals
Andreasen, A. R. and Kotler, P., 2008. Strategic marketing for nonprofit organizations. Upper
Saddle River, NJ: Pearson/Prentice Hall.
Ardley, B., 2005. Marketing managers and their life world: Explorations in strategic planning
using the phenomenological interview. The Marketing Review. 5(2). pp. 111-127.
Baker, S. and Holt, S., 2004. Making marketers accountable: a failure of marketing education?.
Marketing Intelligence & Planning. 22(5). pp. 557-567.
Bunnell, T., 2005. Strategic marketing planning in international schools. International Journal of
Educational Management. 19(1). pp. 59-66.
Cravens, D. and Piercy, N. F., 2008. Strategic marketing. McGraw-Hill Irwin.
Greenley, G., Hooley, G. and Saunders, J., 2004. Management processes in marketing planning.
European Journal of Marketing. 38(8). pp. 933-955.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
Labbi, A. and Berrospi, C., 2007. Optimizing marketing planning and budgeting using Markov
decision processes: An airline case study. IBM Journal of Research and Development.
51(3.4). pp. 421-431.
Prue, C. E. and Daniel, K. L., 2006. Social marketing: planning before conceiving preconception
care. Maternal and child health journal. 10(1). pp. 79-84.
Sadjadi, S. J., Ghazanfari, M. and Yousefli, A., 2010. Fuzzy pricing and marketing planning
model: A possibilistic geometric programming approach. Expert Systems with
Applications. 37(4). pp. 3392-3397.
Slotegraaf, R. J. and Dickson, P. R., 2004. The paradox of a marketing planning capability.
Journal of the Academy of Marketing Science. 32(4). pp. 371-385.
Smith, B., 2004. Making marketing happen: How great medical companies make strategic
marketing planning work for them. Journal of Medical Marketing: Device, Diagnostic
and Pharmaceutical Marketing. 4(2). pp. 129-142.
Taghian, M., 2010. Marketing planning: Operationalising the market orientation strategy.
Journal of marketing management. 26(9-10). pp. 825-841.
Wilson, H. N., 2004. Towards rigour in action research: a case study in marketing planning.
European Journal of Marketing. 38(3/4). pp. 378-400.
Wood, M. B., 2008. The marketing plan handbook. Pearson Prentice Hall.
12

Online
Marketing theory. 2015. [Online]. Available through:
<http://businesscasestudies.co.uk/business-theory/marketing/market-
planning.html#axzz3qmRHp0zS./> [Accessed on 6th November 2015].
Mckinney, P., 2015. What is a Marketing Plan? - Definition & Sample. [Online]. Available
through: <http://study.com/academy/lesson/what-is-a-marketing-plan-definition-sample-
quiz.html./> [Accessed on 6th November 2015].
13