chapter 16 - marketing management

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

Honest Tea organizes its marketing activities from the point of view of the consumer, indicating they market by which principle?

Consumer-oriented marketing

The Purchasing Manager at the Indiana facility has been over budget for several months, and the Vice President is not very pleased. The Purchasing Manager has made contact with an international supplier who can get one of the engine controls at a minimal cost, but the quality rating is much lower than what is required by Bridgeway. The Purchasing Manager does not want to be over budget again at the next quarterly meeting and has decided to consider purchasing this lower quality component for the engine controls. There is also a personal monetary reward for ordering parts from this specific international supplier. As the Chief Liaison Officer, which is the best ethical choice?

Continue with a search for less expensive components that meet the company's quality standards. Disregard the international supplier's monetary reward.

It is rumored that the Illinois Operations Manager, Sam, has requested the quarterly budget to include an available position for a new team leader for one of the assembly areas. The rumor also indicates that a major competitor's primary team leader, who is a close friend of Sam's, may need a job due to the competitor's strategic plans to downsize. Sam wants to hire this specific team leader because he thinks the team leader may be able to share some of the competitor's cost-cutting assembly methods. As the Chief Liaison Officer, which choice is the best ethical decision?

Convene a meeting & ask Sam to substantiate the need for a new team leader. Review the ethics policy and company hiring guidelines. Express your concerns about the budget.

Honest Tea does not advertise its products on television, in magazines, or on billboards. As such, the company does not interrupt important television programs or litter pages of magazines, indicating that the company is not involved in which of the following criticisms of marketing?

Cultural pollution

​________ includes practices such as falsely advertising​ "factory" or​ "wholesale" prices or a large price reduction from a phony high retail list price.

Deceptive pricing

A Project Engineer at the Michigan office is excited about an engineering software change to improve the reliability of the central processing unit. Unfortunately, the change involves some conflicting proprietary rights due to the Chief Designer's past work ties to Bridgeway's major competitor. Even though the Project Engineer was warned of this issue, she really wants to be the first to market with this change. There may be future financial rewards for her and the company that may be too good to pass up. As the Chief Liaison Officer, should you suggest the Project Engineer go forward with this engineering change?

Discuss the legal options with the company's attorney and the Design Engineer, because you want to protect the rights of the designer and the company.

Which of the following promotes the idea of a code of ethics that calls on marketers to adopt an ethical​ norm?

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

Nike makes shoes out of​ "environmentally preferred​ materials." It recycles old sneakers and educates young people about​ conservation, reuse, and recycling. What policy has this company​ adopted?

Environmental sustainability

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

Environmentalism

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

Foster trust in the marketing system

At Honest Tea, there are no salespeople who attempt to coerce consumers into buying their product. Instead they rely on word-of-mouth, which indicates the company is not involved in which of the following criticisms of marketing?

High-pressure selling

Honest Tea puts its money back into the communities where it purchases its ingredients. This might indicate that Honest Tea is helping to combat which social issue of marketing?

Poor service to disadvantaged customers

The toll-free hotline number has been busy. There are two more dilemmas that need to be taken care of before you leave the administration office. The first issue involves a star marketing representative embellishing the benefits of purchasing a "green" car, stating the car seats are covered with recycled cloth and are warmer in the winter months. This was found to be only partially true. The car seats are covered with recycled cloth, but they are not any warmer than other seats. As the CLO, what should you do?

Promotes the car seats with the recycled cloth, but include a disclaimer that the seats may not be warmer than any other cloth material.

As you are preparing to leave the home office building, one of the marketing team members for the G71 pulls you aside and asks you to watch a newly released advertisement. You review the commercial and realize that the promotion is quite deceptive to consumers, because the number of miles per charge on the hybrid is only about 40 miles, but the advertisement is touting 50 miles. You immediately contact the Design Engineer to find out more information, as well as the marketing team who released the commercial to the public. Your first conversation is with the lead contact on the marketing team. The lead was notified of a change to improve the number of miles per charge and decided to get a jump start on advertising it, but he didn't wait until the results were released. The results show that the miles only increased to an average of 45. As the CLO, what is the best ethical decision to make in this situation?

Pull the commercial, and then create a new commercial stating that testing is in process to increase the miles per charge from 40 to 50 miles.

​________ is when major retailers draw a red line around disadvantaged neighborhoods and avoiding placing stores there.

Redlining

One of the purchasing agents authorized the purchase of components, knowing that they would be obsolete within 30 days. It was discovered that the purchasing agent received a personal monetary incentive to authorize ordering the near-obsolete parts. You need to decide what steps you should take to deal with behaviors like this, before your next meeting with the executive board. As the Chief Liaison Officer, what should you do?

Review the employee handbook on procedural steps regarding suspected employees' involvement in unethical behavior, and then contact HR and begin the investigation process into this ethical issue.

Honest Tea's mission statement is "Honest Tea seeks to create and promote great-tasting, organic beverages. We strive to grow our business with the same honesty and integrity we use to craft our products, with sustainability and great taste for all." Additionally, the company uses only natural ingredients and promotes and practices fair trade with its suppliers. All of these combined suggests that Honest Tea is involved in which of the following sustainable marketing principles?

Sense-of-mission marketing

The Marketing Manager holds a meeting and reminds involved personnel that there is a chance to win a lucrative contract in another country if the engineering change occurs and is successful. She also informs the attendees that there may be a personal monetary gift she can receive if the company receives the contract with this international company. She suggests that monetary gifts are allowed in dealings with this country. She shares that the money will help with the medical care of her ailing mother. Should you reconsider your choice to request an attorney to help with providing legal advice about proprietary rights, or should you sign off on the deal to get things moving so the Marketing Manager can have an opportunity to bid on the international contract?

You should continue with pursuing legal advice from the company's attorney and ignore the Marketing Manager's plea.

Practices such as misrepresenting the​ product's features or performance or luring customers to the store for a bargain that is out of stock are considered​ ____________________.

deceptive promotion

The​ ________ concept considers the future welfare of consumers.

societal marketing