Marketing chapter 16

In the progress toward environmental sustainability, a company must first develop a sustainability vision, which serves as a guide to the future.

false

Marketers are most effective when they attempt to create new wants rather than when they appeal to existing ones.

false

________ products give both high immediate satisfaction and high long-run benefits.

Desirable

Business Actions towards Sustainable Marketing

Consumer-oriented marketing- A principle of sustainable marketing that holds a company should view and organize its marketing activities from the consumer's point of view Customer-value marketing- A principle of sustainable marketing that holds a company should put most of its resources into customer-value-building marketing investments Innovative marketing- A principle of sustainable marketing that requires a company to seek real product and marketing improvements The company that overlooks new and better ways to do things will eventually lose customers to another company that has found a better way. Firms need to develop corporate marketing ethics policies to serve as broad guidelines that everyone in the organization must follow Ethics policies should cover: Distributor relations, Advertising standards, Customer service, Pricing, Product development, General ethical standards

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

Consumerism

Marketing's Impact on Other Businesses

Criticism charge that a firm's marketing practices can harm other companies and reduce competition through 1. acquisitions of competitors 2. marketing practices that create carriers to entry 3. unfair competitive marketing practices

Environmental sustainability

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

Marketing's impact on Society as a Whole

Marketing's impact on society as a whole as been criticized in terms of 1. creating false wants and encouraging materialism 2. overselling private goods at the expense of public (social) goods 3. creating cultural pollution, stemming from constant exposure to marketing messages. However, this criticism overstates the power of business and ignores consumers ability to defend themselves against advertising

Consumers' Rights to Information

Product labels contain information about ingredients, nutrition facts, recycling, country of origin

Sustainable Marketing

Socially and environmentally responsible marketing that 1. meets the present needs of the consumers and businesses 2. Preserves or enhances the ability of future generations to meet their needs

Consumerism

an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers. consumerism is one of two major actions to promote sustainable marketing

Proposed Consumer Rights

To be protected against questionable products and marketing practices To influence products and marketing practices in ways that will improve quality of life To consume now in a way that will preserve the world for future generations of consumers To be informed about important aspects of the product Consumers have not only the right but also the responsibility to protect themselves instead of leaving this function to the government or someone else. Consumers should also make good consumption choices, rewarding companies that act responsibly while punishing those that don't. Ultimately, the move from irresponsible consumption to sustainable consumption is in the hands of consumers

As international trade barriers come down and global markets expand, environmental issues are having ________ impact on international trade.

a greater

Which of the following advertising situations would least likely be considered "puffery"?

a retired couple drinking a vitamin and protein shake and then going bicycling

Companies can develop ________ to serve as a guide to the future, laying out how the company's products and services, processes, and policies must evolve and what new technologies must be developed to get there.

a sustainability vision

Sustainability means

1.Driving out hidden costs 2. Conserving natural resources 3. Providing sustainable and affordable products so customers can save money and live better

Societal marketing

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

Environmentalism

An organized movement of concerned citizens and government agencies to protect and improve people's living environment. Those who subscribe to environmentalism believe that marketing system's goal should be to maximize quality of life- Life quality includes the quantity and quality of consumer goods and services and quality of the environment. Is concerned with damage to the ecosystem caused by global warming, resource depletion, toxic and solid wastes, litter, etc. Over the past several decades, such concerns have resulted in federal and state laws and regulations In recent years, however, firms have accepted more responsibility and many have adopted a policy of environmental sustainability

Societal Classification of Products

Deficient products- products that have neither immediate appeal nor long-run benefits Pleasing products- Products that give high immediate satisfaction but may hurt consumers in the long run Salutary products- Products that have low immediate appeal but may benefit consumers in the long run Desirable products- Products that give both high immediate satisfaction and high long-run benefits Companies should try to turn all of their products into desirable products. The challenge posed by pleasing products is that they sell very well but may end up hurting the consumer. The product opportunity, therefore, is to add long-run benefits without reducing the product's pleasing qualities. The challenge posed by salutary products is to add some pleasing qualities so that they will become more desirable in consumers' minds.

Social Criticisms of Marketing

High prices- high costs of distribution, high advertising and promotion costs Deceptive practices- Falsely advertising factory or wholesale prices or large reductions from a phony high retail list price. Deceptive promotion - Misrepresenting a product's features or performance, or luring consumers to store for out-of-stock item. Deceptive packaging - Exaggerating package contents, using misleading labeling, etc. Deceptive practices have led to legislation and other protective consumer actions FTC governs deceptive practices Use of puffery is legal, but may harm consumers in subtle ways Deceptive practices are not sustainable as they harm a firm's business in the long-run High-pressure selling- Salespeople are often accused of using high-pressure selling tactics: 1. In persuading people to buy goods they had no intention of buying 2. Because prizes are often given to top sellers Marketers have little to gain from high-pressure tactics 1.Such actions damage relationships with the firm's customers Shoddy harmful or unsafe products- - Products are not made well or services are not performed well. Products are unsafe due to manufacturer indifference, increased product complexity, and poor quality control. Products deliver little benefit or are even harmful. Most manufacturers want to produce quality goods. It's the way the company deals with product quality and safety standards that determines its reputation. Marketers should be aware that good quality creates customer value and satisfaction and in turn sustainable relationships. Planned obsolescence- Causing products to become obsolete before they actually need to be replaced 1.Using materials and components that will break, wear, rust, or rot sooner than they should 2. Holding back functional features, and introducing them later to make older models obsolete. Most companies do not design their products to break down earlier because they do not want to lose customers to other brands. Instead, they seek constant improvement to ensure that products will consistently meet or exceed customer expectations. Much of the so-called planned obsolescence is the working of the competitive and technological forces in a free society—forces that lead to ever-improving goods and services. Clothing, consumer electronics, computer industries are frequently charged with perceived obsolescence. Marketers respond that consumers like style changes; they get tired of the old goods and want a new look in fashion or they want the latest high-tech innovations, even if older models still work Perceived obsolescence - continually changing consumer concepts of acceptable styles to encourage more and earlier buying Poor service to disadvantaged consumers- They are forced to shop in small stores where they pay more for inferior goods. National chain retailers practice redlining and refuse to open businesses in poor neighborhoods

Traditional Seller's Rights

Introduce any product in any size and style, provided it is not hazardous to safety; or, if it is, to include proper warnings and controls. Charge any price for the product, provided no discrimination exists among similar kinds of buyers. Spend any amount to promote the product, provided it is not defined as unfair competition. Use any product message, provided it is not misleading or dishonest in content or execution. Use any buying incentive schemes, provided they are not unfair or misleading

Traditional Buyers' Rights

To not buy a product that is offered for sale. To expect the product to be safe. To expect the product to perform as claimed

The two major citizen action movements to keep businesses in line are ________.

environmentalism and consumerism

A company that makes marketing decisions by considering consumers' wants and long-run interests, the company's requirements, and society's long-run interests must be practicing consumer-oriented marketing.

false

Pleasing products have low immediate appeal but benefits consumers in the long run.

false

Though marketers may make long-term gains with high-pressure selling tactics, this approach can do serious damage to short-term customer relationships.

false

Reverend John McTally wants people to resist the temptation to shop. He annually leads a group of volunteers in his post-Thanksgiving Buy Nothing Parade in front of Macy's in Manhattan. The Reverend is criticizing the American marketing system for creating ________.

false wants and too much materialism

________ persuades people to buy goods they had no thought of buying.

high-pressure selling

The Environmental Sustainability Portfolio

includes both internal and external greening activities that will pay off for the firm and environment in the short run, and beyond greening activities that will pay off in the longer term. At the most basic level, a company can practice pollution prevention. At the next level, companies can practice product stewardship—minimizing not only pollution from production and product design but also all environmental impacts throughout the full product life cycle. The beyond greening activities identified in Figure 16.2 look to the future. First, internally, companies can plan for new clean technology. To create fully sustainable strategies, they will need to develop innovative new technologies. Finally, companies can develop a sustainability vision, which shows how the company's products and services, processes, and policies must evolve and what new technologies must be developed to get there.

Environmentalists assert that the marketing system's goal should be to maximize ________.

life quality

Trendy Teens manufactures fashionable clothing and accessories for the tween and teen female markets. New merchandise with a very different look is rolled out each season and heavily promoted as the "must-have" style in a variety of media. Trendy Teens could most easily be criticized for which of the following?

perceived obsolescence

Qtopia Inc. is currently designing a new product line with the goal of making each product easy to recover, reuse, or recycle. Qtopia Inc. hopes to recover many of these products when they reach the end of their life cycle and reuse components in new products. Qtopia Inc. is in the ________ stage of environmental sustainability.

product stewardship

The societal marketing challenge for makers of which type of product is to add some agreeable qualities so that it will become more desirable in the consumers' minds?

salutary

Large marketing companies can use patents and heavy promotion spending to ________.

set up barriers for others wanting to enter the industry

________ marketing calls for meeting the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs.

sustainable

Innovative marketing is ________.

the attempt to continuously seek real product and marketing improvements

Sense-of-Mission Marketing

the company should define its mission in broad social terms rather than narrow product terms. When a company defines a social mission, employees feel better about their work and have a clearer sense of direction. Brands linked with broader missions can serve the best long-run interests of both the brand and consumers.

Satisfying consumers' immediate needs and desires does not always serve the future best interests of either customers or the business.

true

The overselling of private goods results in social costs.

true