Principles of Marketing Ch.16 Book/Vocab Notes

What is redlining?

Drawing a red line around disadvantaged neighborhoods and avoiding placing stores there.

What is the Code of Ethics that American Marketing Association created?

-Do no harm- This means consciously avoiding harmful actions or omissions by embodying high ethical standards and adhering to all applicable laws and regulations in the choice we make -Fost trust in the marketing system- This 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 distribution. -Embrace ethical values- This means building relationships and enhancing consumer confidence in the integrity of marketing by affirming these core values honesty, responsibility, fairness, respect, transparency, and citizenship.

Principles are needed to guide companies and marketing managers on issues of ethics and social responsibility...

-The free market and the legal system should decide such issues -Responsibility is in the hands of individual companies and managers Addressing ethics helps build strong customer relationships based on honesty and trust

(Consumerism) What are some Proposed 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 consumer in a way to preserve the world for future generations of consumers

What are the social criticisms of marketing?

- Impact on individual consumers -Impact on society as a whole -Impact on other businesses

What are the three problems on how Marketing Impacts other businesses?

-Acquisition of competitors -Marketing practices that create barriers to entry -Unfair competitve marketing practices

Societal marketing considers marketing decisions by...

-Consumer's wants -Company's requirements -Companys' long-run interests -Society's long-run interests

What are the five sustainable marketing principles?

-Consumer-oriented marketing -Customer value marketing -Innovative marketing -Sense-of-mission marketing -Societal marketing

What are the two movements that are demanding Sustainable Marketing?

-Consumerism -Environmentalism

What are the concerns that Environmentalists (Environmentalism) are concerned with?

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

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

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

What are the major Social criticism of Marketing?

-Impact on individual consumer welfare -Impact on society -Impact on other businesses

Define Consumerism

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

Define Environmentalism

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

LO 16-3 (Summary and Review) Define consumerism and environmentalism and explain how they affect marketing strategies

Concerns about the marketing system have led to citizen action movements. Consumerism is an organized social movement intended to strengthen the rights and power of consumers relative to sellers. Alert marketers view it as an opportunity to serve consumers better by providing more consumer information, education, and protection. Environmentalism is an organized social movement seeking to minimize the harm done to the environment and quality of life by marketing practices. Most companies are now accepting responsibility for doing no environmental harm. They are adopting policies of environmental sustainability-developing strategies that both sustain the environment and product profits for the company. Both consumerism and environmentalism are important components of sustainable marketing

What is perceived obsolescence?

Continually changing consumer concepts of acceptable styles to encourage more and earlier buying.

Define Environmental sustainability

Generating profits while helping to protect the environment

LO 16-5 (Summary and Review) Explain the role of ethics in marketing

Increasingly, companies are responding to the need to provide company policies and guidelines to help their managers deal with questions of marketing ethics. Of course, even the best guidelines cannot resolve all the difficult ethical decisions that individuals and firms must make. But there are some principles from which marketers can choose. One principle states that the free market and the legal systems should decide such issues. A second more enlightened principle puts responsibility not on the system by in the hands of individual companies and managers. Each firm and marketing manager must work out a philosophy of socially responsible and ethical behavior. Under the sustainable marketing concept, managers must look beyond what is legal allowable and develop standards based on personal integrity, corporate conscience, and long-term consumer welfare.

LO 16-4 (Summary and Review) Describe the principle of sustainable marketing

Many companies originally resisted these social movements and laws, but most now recognize a need for positive consumer information, education, and protection. Under the sustainable marketing concept, a company's marketing should support the best long-run performance of the marketing system. aIt should be guided by five sustainable marketing principles: consumer-oriented marketing, customer-value marketing, innovative marketing, sense-of-mission marketing, and societal marketing.

LO 16-2 (Summary and Review) Identify the major social criticisms of marketing

Marketing's impact on individual consumer welfare has been criticized for its high prices, deceptive practices, high-pressure selling, shoddy or unsafe products, planned obsolescence, and poor service to disadvantaged consumers. Marketing's impact on society has been criticized for creating false wants and too much materialism, too few social goods, and cultural pollution. Critics have also denounced marketing's impact on other businesses for harming competitors and reducing competition through acquisitions, practices that create barriers to entry, and unfair competitive marketing practices. Some of these concerns are justified; some are not.

Define sustainable marketing

Meeting present needs while preserving the ability of future generations to meet their needs.

What is product stewardship?

Minimizing not only pollution from product and product design but also all environmental impacts throughout the full product life cycle.

Define Desirable products

Products that give both high immediate satisfaction and high long-run benefits

Define Pleasing products

Products that give high immediate satisfaction but may hurt consumers in the long run

Define Salutary products

Products that have low immediate appeal but may benefit consumer sin the long run

Define Deficient products

Products that have neither immediate appeal nor long-run benefits.

What is Environmentalism?

Protects and improves people's current and future living environment

What is a sustainability vision?

Serves as a guide to the future. It shows how the company's products and services, processes, and policies must evolve and what new technologies must be developed to get there. This vision of sustainability provides a framework for pollution control, product stewardship, and new environmental technology for the company and others to follow.

Define Sustainable Marketing

Socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs.

Sustainable Companies...

Sustainable companies create value for customers through socially, environmentally, and ethically responsible actions. -Sustainable marketing provides the context in which companies can build profitable customer relationships.

LO 16-1 (Summary and Review) Define sustainable marketing and discuss its important

Sustainable marketing calls for meeting the present needs of consumers and businesses while preserving or enhancing the ability of future generations to meet their needs. Whereas the marketing concept recognizes that companies thrive by fulfilling the day-to-day needs of customers, sustainable marketing calls for socially and environmentally responsible actions that meet both the immediate and future needs of customers and the company. Truly sustainable marketing requires a smooth-functioning marketing system in which consumers, companies, public policymakers, and other work together to ensure responsible marketing actions.

What is Design for environment (DFE) and Cradle-to-cradle practices?

This involves thinking ahead to design products that are easier to recover, reuse, recycle, or safely return to nature after usage, thus becoming part of the ecological cycle.

True or False: Deceptive packaging includes exaggerating package contents through subtle design, using misleading labeling, or describing size in misleading terms.

True

True or False: Deceptive pricing includes practices such as falsely advertising "Factory" or "wholesale" prices or a large price reduction from a phony high retail list price.

True

True or False: Deceptive promotion includes practices such as misrepresenting the product's features or performance or luring customers to the store for a bargain that is out of stock.

True

True or False: Design for environment and cread-to-cradle practices not only help to sustain the environment, but they can also be highly profitable for the company.

True

True or False: In 1930, Congress enacted the Wheeler-Lea Act, which gave the FTC power to regulate "unfair or deceptive acts or practices."

True

True or False: Sustainable marketing applies not only to businesses and governments but also to consumers

True

True or False: Sustainable marketing calls for socially and environmentally responsible actions

True

True or False: Sustainable marketing requires consumers, companies, public policy markers, and others to work together.

True

True or False: The marketing concept recognizes that organizations thrive from day to day by determining the current needs and wants of targeted customers and fulfilling those needs and wants more effectively and efficiently than competitors do. It focuses on meeting the company's short-term sales, growth, and profit needs by giving customers what they want now.

True

True or False; TOday's greening activities focus on improving what companies already do to protect the environment

True

Define Environmental sustainability

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

Define Sense-of-mission marketing

A principle of sustainable marketing that holds a company should define its mission in broad social terms rather than narrow products terms.

Define Societal marketing

A principle of sustainable marketing that holds a company should make marketing decisions by considering consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests.

Define 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.

Define Innovative marketing

A principle of sustainable marketing that requires a company to seek real product and marketing improvements

True or False: The strategic planning concept considers future company needs, the sustainable marketing concept considers both. Sustainable marketing calls for socially and environmentally responsible actions that meet both the immediate and future needs of customers and the company.

True