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What is societal marketing?

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Societal marketing is a marketing concept that holds that a company should make marketing decisions not only by considering consumers' wants and the company's needs but also society's long-term interests. The societal marketing concept calls for marketers to balance three considerations in setting their marketing policies: company profits, consumer wants, and society's interests.
Societal marketing is a marketing concept that holds that a company should make marketing decisions not only by considering consumers' wants and the company's needs but also society's long-term interests. The societal marketing concept calls for marketers to balance three considerations in setting their marketing policies: company profits, consumer wants, and society's interests.

Here's a step-by-step explanation of how societal marketing works:

1. Understanding Societal Needs and Concerns: The first step is to understand the broader societal issues that are relevant to the company and its customers. This could include environmental concerns, health issues, or social problems. Companies must research and stay informed about these societal issues to incorporate them into their marketing strategies.

2. Aligning Products and Services: The company then looks at its products and services to see how they can be aligned with societal needs. This could involve modifying existing products, creating new ones, or even discontinuing products that are harmful to society.

3. Balancing Interests: The company must balance the interests of various stakeholders, including customers, shareholders, and society at large. This means making decisions that will not only drive profits and satisfy customer wants but also benefit or at least not harm society.

4. Marketing Communication: The company communicates its societal marketing efforts through its marketing campaigns. This involves highlighting the benefits of its products or services not just to the consumer but also to society. The messaging must be transparent and honest to build trust with consumers.

5. Implementing Corporate Social Responsibility (CSR): Societal marketing often involves implementing CSR initiatives. These initiatives can range from environmentally friendly business practices to philanthropy and community service. The company must ensure that these initiatives are not just for show but are genuinely impactful.

6. Evaluation and Feedback: Finally, the company must evaluate the effectiveness of its societal marketing strategies and seek feedback from consumers and other stakeholders. This feedback is used to make continuous improvements to both products and marketing strategies.

Societal marketing is not just about short-term marketing tactics but about a long-term strategy that integrates the company's role as a responsible member of society into its business model. It requires a commitment to sustainable and ethical practices that go beyond the traditional focus on sales and profits.

Exercise 2 - A Stock market problem: Transition matrix and steady state of the system

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Now, moving on to another example.
This time, we'll take 3 states.
This involves, I'll let you read it.
It's about a stock market and the 3 kinds of market:
a bull market, a bear market, and a stagnant market.
This time, instead of a unit of a day,
we're taking the unit of a week.
Let's say each week has to be 1 of 3,
1 of these 3,
and here are all the probabilities.
That's the transition diagram.
Now an exercise.
Let's label the states.
That bull will be state 1,
state 2 is bear,
state 3 is stagnant.
What is the transition matrix?
Then we want to find the steady state of this system.
Solution. The first part is routine.
I guess we've lost.
It's just a matter of copying all the probabilities here.
For example, we can see the stagnant market,
which is the 3rd state,
from stagnant market to the bull market is 0.25.
Here it is on this last row, 0.25,
and it's also 0.25 for the bear market,
and 0.5 that it returns to itself that a stagnant day followed by another stagnant day.
That's the answer to part A.
It's just converting diagram to a matrix.
Now in part B, we want the steady state,
so we don't need that diagram anymore.
This time, we'll use the shortcut method.
We'll take the transpose.
The diagonal's the same,
but 0.15 and 0.75 have switched.
You just flip it around the diagonal.
I just got some more space.
We know that 1 is an eigenvalue.
What we need is an eigenvector for eigenvalue 1.
Remember what we do? We take the matrix xI minus,
well, in this case, it's a transpose,
and we substitute the eigenvalue.
In this case, we get this.
Then we solve a system of linear equations.
Skip the details.
Basically, we get this into row-echelon form,
and that corresponds to this system which is a solution to the original SLE.
Z is a free variable,
so we let z equals 1,
and then y is 5z,
so y is 5 and x is 10z,
so x is 10.
If we put this as a column vector,
this is what we get.
We normalize it.
We divide by 10 plus 5 plus 1 is 16,
and you get this.
It has to add up to 1, its probability vector,
but now we have to transpose it,
and we get this, the row vector.
If you want to interpret that in percentages,
it means that bull market 62.5 percent,
bear market 31.25 percent,
stagnant market 6.25 percent,
and that's the steady state.
That's that exercise,
and that concludes this clip.
This video explains the concept of a transition matrix and steady state in the context of a stock market. It provides an example of a transition matrix with three states (bull, bear, and stagnant markets) and explains how to calculate the steady state of the system. The summary is organized as follows: • Introduction: This video explains the concept of a transition matrix and steady state in the context of a stock market. • Transition Matrix: An example of a transition matrix with three states (bull, bear, and stagnant markets) is provided. • Calculating Steady State: The video explains how to calculate the steady state of the system by taking the transpose of the matrix, substituting the eigenvalue, and solving a system of linear equations. • Conclusion: The video concludes with an example of the steady state, which is a probability vector of 62.5% bull market, 31.25% bear market, and 6.25% stagnant market.

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