MKTG CHPT 16

addressing ethics helps

build strong customer relationships based on honesty and trust.

Acquisitions of competitors

concern that vigorous young competitors will be absorbed, thereby reducing competition

do no harm

consciously avoiding harmful actions or omissions by embodying high ethical standards and adhering to all applicable laws and regulations in the choices we make.

strategic planning concept

considers future company needs.

societal marketing concept

considers the future welfare of consumers.

Deceptive promotion

practices such as misrepresenting the product's features.

Which of the following considers the future needs of a​ company?

strategic planning concept

Marketing Decision Areas That May Be Called into Question under the Law- selling decisions

Bribing Stealing trade secrets Disparaging customers Misrepresenting Disclosure of customer rights Unfair discrimination

Marketing's Impact on Society as a Whole

False Wants and Too Much Materialism Too Few Social Goods Cultural Pollution

advertising decisions- legal issues

False advertising Deceptive advertising Bait-and-switch advertising Promotional allowances and services

marketing ethics role

Principles are needed to guide companies and marketing managers on issues of ethics and social responsibility. -free market and the legal system should decide such issues. -Responsibility is in the hands of individual companies and managers.

Price decisions: legal issues

Price fixing Predatory pricing Price discrimination Minimum pricing Price increases Deceptive pricing

Consumer advocates call for the following additional consumer rights:

To be well informed To be protected against questionable products and marketing practices To influence products and marketing practices to improve "quality of life" To consume in a way to preserve the world for future generations of consumers

traditional buyers rights

To buy a product that is offered for sale To expect the product to be safe To expect the product to perform as claimed

Marketing's Impact on Other Businesses

Acquisitions of competitors Marketing practices that create barriers to entry Unfair competitive marketing practices

Competitive relations decisions: legal issues

Anticompetitive acquisition Barriers to entry Predatory competition

too few social goods

As private goods increase, they require more public services that are usually not forthcoming. A way must be found to restore a balance between private and public goods. One option is to make producers bear the full social costs of their operations. A second option is to make consumers pay the social costs. ex. cities now charging congestion tolls in an effort to reduce traffic congestion.

Marketing Ethics

Corporate marketing ethics policies should be developed by firms as guidelines for handling various issues and dilemmas.

environmentalism concerns

Damage to the ecosystem Loss of recreational areas Increase in health problems

issues with ethics in marketing

Distributor relations Advertising standards Customer service Pricing Product development General ethical standards

Ethical Norms Suggested by the American Marketing Association

Do no harm Foster trust in the marketing system Embrace ethical values

Channel decisions- legal issues

Exclusive dealing Exclusive territorial distributorship Tying agreements Dealer's rights

Packaging decisions: legal issues

Fair packaging and labeling Excessive cost Scarce resources Pollution

Marketing's Impact on Individual Consumers

High prices Deceptive practices High-pressure selling Shoddy, harmful, or unsafe products Planned and perceived obsolescence Poor service to disadvantaged consumers

Social Criticisms of Marketing

Impact on Individual Consumers Impact on Society as a Whole Impact on Other Businesses

Marketing practices that create barriers to entry

Large marketing companies use patents and heavy promotion spending or tie up suppliers or dealers to keep out competitors. Those concerned with antitrust regulation recognize that some barriers are the natural result of the economic advantages of doing business on a large scale. Existing and new laws can challenge other barriers.

product decision: legal issues

Product additions and deletions Patent protection Product quality and safety Product warranty

traditional Seller's rights

To introduce any product in any size and style with proper warnings and controls, if necessary To charge any price for the product without any discrimination To spend any amount to promote the product if competing fairly To use any product message that is not misleading or dishonest To use buying incentive programs that are not unfair or misleading

Deceptive practices led to the

Wheeler-Lea Act, which gave the Federal Trade Commission (FTC) power to regulate unfair or deceptive acts or practices.

embrace ethical values

building relationships and enhancing consumer confidence in the integrity of marketing by affirming core values such as, honesty, responsibility, fairness, respect, transparency, and citizenship.

sustainable marketing concept

calls for socially and environmentally responsible actions that meet both the immediate and future needs of customers and the company.

planned obsolescence

causing their products to become obsolete before they need replacement

Sense-of-mission marketing

company should define its mission in broad social terms rather than narrow product terms. Brands linked with broader missions can serve the best long-run interests of both the brand and consumers.

The five guiding principles of sustainable marketing are​ ________.

consumer-oriented marketing, customer value​ marketing, innovative​ marketing, sense-of-mission​ marketing, and societal marketing

perceived obsolescence

continually changing consumer concepts to encourage more and earlier buying.

sustainable companies

create value for customers through socially, environmentally, and ethically responsible actions.

WSJ: Adidas Moves to Address Environmental Worries

develop soccer cleats that can be repeatedly recycled, use no chemical adhesives and create no waste, amid growing concerns that the world's rise in garment consumption is hurting the environment. "leading example" in tackling climate change, by agreeing to measure its climate footprint and reduce emissions where possible "Green washer"—a company that cynically uses green marketing to appear more environmental than it is. Greenpeace said "the ambition level and the transparency Nike demonstrated to consumers is questionable."

​________ refers to consciously avoiding harmful actions or omissions by embodying high ethical standards and adhering to all applicable laws and regulations in the choices we make.

do no harm

____ means building relationships and enhancing consumer confidence in the integrity of marketing by affirming these core​ values: honesty,​ responsibility, fairness,​ respect, transparency, and citizenship.

embrace ethical values

________ is an organized movement of concerned​ citizens, businesses, and government agencies designed to protect and improve​ people's current and future living environment.

environmentalism

Because of the lack of supermarkets in​ low-income areas, many disadvantaged consumers find themselves in​ ________, with little or no access to​ healthy, affordable fresh foods.

food deserts

Desirable products

give both high immediate satisfaction and high long-run benefits, such as a tasty and nutritious breakfast food.

Pleasing products

give high immediate satisfaction but may hurt consumers in the long run. Examples include cigarettes and junk food.

Salutary products

have low immediate appeal but may benefit consumers in the long run. Bicycle helmets or some insurance products are examples.

WSJ: Walmart Sued for Adding 'Wood Pulp Product' to its Parmesan

he was induced to purchase Great Value's "100% Grated Parmesan Cheese" at a premium price because he believed it was, indeed, 100 percent cheese. But it contains 7 to 10 percent cellulose -- a filler and anti-clumping agent derived from wood chips -- according to a complaint filed last week, which accuses the retail brand of deceptive business practices.

high prices because of

high costs of distribution, high advertising and promotion costs, and excessive markups.

Deceptive pricing

includes practices such as falsely advertising prices from a phony high retail list price.

Deceptive packaging

involves exaggerating package contents in misleading terms.

redlining

major chain retailers of redlining, drawing a red line around disadvantaged neighborhoods and avoiding placing stores there.

environmental sustainability

management approach that involves developing strategies that both sustain the environment and produce profits for the company.

Proposed Consumer Rights

many believe that the balance of power lies on the seller's side. Critics feel the buyer has *too little information, education, and protection* to make wise decisions when facing sophisticated sellers.

cultural pollution

marketers hope their ads primarily reach the target audience. Second, because of ads, many television, radio, online, and social media sites are free to users. Thus, to hold consumer attention, advertisers are making their ads more entertaining and informative.

societal marketing

marketing decisions by considering consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests.

marketing concept

organizations thrive from day to day by determining the current needs and wants of target customers and fulfilling those needs and wants more effectively and efficiently than competitors do. *focuses on meeting the company's short-term sales, growth, and profit needs by engaging customers and giving customers what they want now*

Consumer-oriented marketing

organize marketing activities from consumer's point of view. It should work hard to sense, serve, and satisfy the needs of a defined group of customers, both now and in the future.

Consumerism

organized movement of citizens and government agencies designed to improve the rights and power of buyers in relation to sellers.

Environmentalism

organized movement of concerned citizens, businesses, and government agencies designed to protect and improve people's current and future living environment.

innovative marketing

requires that the company continuously seek real product and marketing improvements.

Unfair competitive marketing practices

set their prices below costs, threaten to cut off business with suppliers, discourage the buying of a competitor's products, or use their size and market dominance to unfairly damage rivals

foster trust in the marketing system

striving for good faith and fair dealing so as to contribute toward the efficacy of the exchange process, and avoiding deception in product design, pricing, communication, and delivery or distribution

Deficient products

such as bad-tasting and ineffective medicine, have neither immediate appeal nor long-run benefits.

customer value marketing

the company should put most of its resources into customer value-building marketing investments. By creating value for consumers, the company can capture value from consumers in return.

sustainable marketing provides

the context in which companies can build profitable customer relationships.

Unlike the marketing​ concept, the sustainable marketing concept focuses on​ ____

the future best interests of customers and the business

WSJ: Social-Media Companies Forced to Confront Misinformation and Harassment

twitter-said it would let users block notifications of tweets that include specific words, among other moves, in an effort to combat harassment facebook:it would bar websites that post fabricated or misleading news articles from using its ad-selling tools. "What he needs to do is hire more humans instead of pushing (the responsibility) onto the end user, find a balance between being havens for misinformation and censors of free speech.