MARK 3336 HW CH 20

Which of the following situations best applies a societal marketing concept?

A company creates a list of local parks where customers can find jogging trails. A societal marketing concept focuses on future benefit for the customer. It does not deal much with business needs or profits, but with the welfare of consumers in general. Physical fitness and diet are common parts of societal marketing. Creating a marketing campaign that focuses on defeating competition profits the company but does little to improve the welfare of consumers, which is the focus of societal marketing. Lowering prices helps a business make more sales but does not directly improve the lives of consumers, so this would not be considered societal marketing. Switching suppliers for a cheaper product could actually harm consumers and is not a societal marketing concept. Increasing production capacity is not a marketing concept.

Which example shows the do no harm principle created by the American Marketing Association?

A firm provides allergy warnings no matter where its food is marketed. "Do no harm" principle refers to avoiding harmful actions or omissions, even when laws are not specific. This occurs when marketing product features or creating truthful product labels. Not taking bribes is a part of embracing ethical values, but does not specifically show that a company is avoiding harming consumers through poor marketing or business strategy. Marketing based on sustainable features or creating new transparency rules falls in the general ethical values category, where sustainability may be encouraged, but it does not prove the company is working to avoid directly harming consumers. Creating a desirable product with immediate and long-term value is a good business strategy, but does not exemplify the regulations and ethical standards required in the do no harm principle.

A company viewing and organizing its activities primarily from the purchaser's point of view represents which type of marketing?

Consumer-oriented marketing . Consumer-oriented marketing means that the company should view and organize its marketing activities from the 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. Customer-value marketing is a principle of sustainable marketing holding that a company should put most of its resources into customer-value building marketing investments but does not require activities be conducted from the customer's point of view. Innovative marketing is a principle of sustainable marketing that requires a company to seek real product and marketing improvements but does not necessarily approach this from the customer's viewpoint. Sense-of-mission marketing is a principle of sustainable marketing holding that a company should define its mission in broad social terms rather than narrow product terms, but does not involve the customer's point of view. Societal marketing is a principle of sustainable marketing holding that a company should make marketing decisions by considering not just the customer's point of view but a combination of consumer needs, company's requirements, and long-term interests of consumers and society.

Pretending a product once cost more than it actually did falls under which category of harmful marketing practices?

Deceptive pricing. Deceptive pricing includes practices such as falsely advertising "factory" or "wholesale" prices or a large price reduction from a bogus high retail list price.

Greedy marketing channel members marking up prices beyond the actual value of their services describes which of the following criticisms of marketing?

High Costs of Distribution. A long-standing charge is that greedy marketing channel members mark up prices beyond the value of their services. Critics charge that there are too many intermediaries, that intermediaries are inefficient, or that they provide unnecessary or duplicate services. As a result, distribution costs too much, and consumers pay for these excessive costs in the form of higher prices.

The ______concept calls for socially and environmentally responsible actions that meet the present needs of customers and businesses while preserving or enhancing the ability of future generations to meet their needs.

Sustainable marketing. Sustainable marketing means meeting current needs of consumers and businesses in a way that maintains the rights of future generations of consumers and businesses. The marketing concept means meeting the current needs of both customers and the company, but it can sometimes mean compromising the future of both. The societal marketing concept and the strategic planning concept both consider the future welfare of consumers but not current needs. While "Plan to Win" applies to socially and environmentally responsible actions, this program developed by McDonald's is a strategy, not a concept.

Which of the following differentiates the sustainable marketing concept from the societal marketing concept?

The societal marketing concept considers only the future welfare of consumers. Whereas the societal marketing concept considers the future welfare of consumers, the sustainable marketing concept considers both the current and future welfare of consumers and a company's needs.

SnackFarm has released a new brand of potato chips. Customers enjoy the taste of these potato chips, and since they are baked instead of fried, the chips also have fewer calories than other options. This is an example of ______.

a desirable product. Desirable products have both short and long-term benefits. In this case, a good taste and low calories are short- and long-term benefits of the chips. A salutary product has little upfront value but lots of long-term value, such as a poor-tasting chip with many health benefits. A deficient product would have no benefits at all, long or short term. A pleasing product would have only an immediate, good-tasting benefit. A new clean technology product would help save energy or fill a sustainability goal and may not affect customers at all.

Ten-Speed Cycling produces sport and recreation bicycles. It recently had a bout of bad press over a product defect that caused several of its bike lines to malfunction at high speeds. The company wants to create an ethical, responsible response. What option would help the company complete this goal?

asking target consumers to become brand advisors . Mattel asked target mothers to become brand advisors in its highly successful recovery from its 2007 toy recall. These customers-turned-consultants were able to show the company exactly what customers wanted when it came to apologies, new products, and a salvaged reputation.

Which of the following best describes a company's corporate marketing ethics guidelines?

broad guidelines that everyone in an organization must follow. Corporate marketing ethics policies are comprehensive rules that all members of an organization must follow; these policies should cover distributor relations, advertising standards, customer service, pricing, product development, and general ethical standards.

Sustainable marketing goals of long-term consumer and business welfare can be achieved only through ______.

ethical marketing conduct. Good ethics are a cornerstone of sustainable marketing. In the long term, unethical marketing harms customers and society as a whole, and it eventually damages a company's reputation and effectiveness, jeopardizing its very survival. Under sustainable marketing goals, in matters of ethics and social responsibility, managers must look beyond what is legal and allowable and develop standards based on personal integrity, corporate conscience, and long-term consumer welfare.

A company that defines its goals in broad social terms describes which type of marketing?

sense-of-mission marketing Sense-of-mission marketing is a principle of sustainable marketing holding that a company should define its mission in wider social terms rather than narrow product terms.

DirectData has created a new marketing policy that does not focus as much on the firm's software, but instead seeks to encourage clients to make energy-saving, environmentally sound choices in how they manage their data to help improve the flow of information and the sustainability of society. What type of marketing is this an example of?

sense-of-mission marketing. Sense-of-mission marketing focuses on marketing for a specific social purpose instead of a business goal. Environmental and societal purposes, such as saving energy or encouraging sustainable practices, are common.

Teresa is a marketing manager for an accounting firm. She has created a new marketing plan that works primarily to improve the firm's long-term image with a focus on the training and benefits that the firm offers its employees. Teresa's plan demonstrates what type of promotional idea?

strategic planning concept . The strategic planning concept focuses on the long-term, future needs of the company itself and how those needs can be met through marketing. It does not focus as much on customers and their needs. A societal marketing concept focuses on marketing for customers and their long-term needs, not on marketing primarily for the company and its needs. A marketing concept focuses only on meeting customer demand in the short term, not improving company image in the long term. A sustainable marketing concept focuses on the future needs of both the firm and its customers, not only the firm. A "Plan to Win" strategy is a McDonald's strategy that focused on healthier menu options for customers, and is not a general marketing concept that focuses primarily on the company.

Mackintosh Organic Foods wants to support consumers' and buyers' rights whenever it can. When it comes to the freshness of its products, which of the following demonstrates what Mackintosh Organic Foods can do to meet this goal?

use open dating on all fresh products. Open dating shows the origins, true lifespan, and age of products like vegetables, bottled foods, or fish, allowing customers to see exactly how fresh products are instead of trying to say that all products in the store are equally fresh or make other potentially misleading statements.

A local funeral home offers a package for grieving spouses that actually costs 100 percent more than what the goods and services in the package cost the firm. This situation illustrates which social criticism of marketing?

excessive markup. A common complaint is that some companies use excessive prices to prey on customers susceptible to certain types of marketing, such as grieving relatives or those taking medical treatments. High advertising and promotion costs are associated with intermediaries that spread marketing campaigns, not prices that take advantage of certain customers. High costs of distribution lead to markups for goods, but the reason is linked to the real costs of marketing, not to potential profit from disadvantaged customers. Deceptive pricing occurs when false or misleading claims are made about a price, but not when any markup is excessive and unnecessary. Deceptive packaging focuses on misleading labels or claims, not high prices.

An insurance company trains its sales representative to convince customers that they need life insurance by whatever means it takes. Several stories are provided of families that have fallen into bankruptcy because they did not buy life insurance. Which social criticism of marketing does this situation demonstrate?

high-pressure selling High-pressure selling focuses on selling a product to customers even if they do not have a need for it. Insurance, real estate, and used car dealers are often accused of this approach as are television infomercial spokespersons.

Which of the following environmental sustainability methods involves planning and creating products that are easier to recover, reuse, recycle, or safely return to nature after use?

Design for environment (DFE). Design for environment (DFE) is an example of product stewardship that involves planning and designing products that are easier to recover, reuse, recycle, or safely return to nature after use. This can help to sustain the environment and can be highly profitable to a company. Pollution prevention means eliminating or minimizing waste before it is created, and while it can refer to developing products that will have less waste, it is a broader term that also covers developing ecologically safer products, better pollution controls, and more energy-efficient operations. New clean technology is a beyond greening activity whereby companies develop innovative technologies by developing new sets of environmental skills and capabilities to make additional headway in sustainability. Sustainability vision development refers to creating a company policy for all environmental activities to serve as a guide to the future, showing how the company's products and services, processes, and policies must evolve and what new technologies must be developed to get there. Obsolescence is not an environmental sustainability method but a marketing strategy whereby companies make consumers believe a product is outdated and needs replacing.

Which of the following is the term for an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers?

consumerism. The definition of consumerism is an organized movement of citizens and government agencies designed to improve the rights and power of buyers in relation to sellers. Sustainability is meeting current needs in a way that preserves the rights and options of future generations of consumers and businesses. Environmentalism is an organized movement of concerned citizens, businesses, and government agencies designed to protect and improve people's current and future living environment. Stewardship is an environmental strategy whereby companies minimize pollution from production and product design as well as environmental impacts throughout the full product life cycle, while at the same time reducing costs. Societal marketing is not an organized movement but a marketing concept whereby a firm considers the future welfare of consumers.

Sanders Tractor Company manufactures tractor parts for farmers across North America. The company recently invested in new equipment that uses less energy and allows the manufacturer to use a greater amount of recycled steel. This is an example of ______.

pollution prevention. Pollution prevention involves saving energy and using production processes that do not create waste, rather than simply cleaning up waste that has already been produced. Product stewardship focuses on ensuring sustainability from the origins of a product through its sale and use by the consumer to the end of its life, when it is recycled or disposed; new production equipment cannot affect so many different areas on its own. Design for environment (DFE) is an example of product stewardship that involves planning and designing products that are easier to recover, reuse, recycle, or safely return to nature after use. Beyond greening refers to planning sustainability for the feature, not making current changes to programs. Sustainability vision development refers to creating a company policy for all environmental activities, not a particular equipment installation.