C1

Market information gathering

Checkout bar code scanner

Buying

Merchandise mart

Selling

Advertising agency

Financing

Bank

Transporting

Container ship

Standardization & Grading

Corn Processing mill

Ethical Marketing & Organization Mission

Ethics serve an increasingly important role in guiding the marketing activities of today's organizations. From social responsibility to the internal ethics of employees, how an organization acts and completes operating activities have become important considerations for stakeholders at all levels. This can be seen from an employee perspective as Justin weighs two very different job opportunities at Hope Springs and Big Box Co. On one hand, Hope Springs truly cares about its employees, its customers, and the world in general, as it is highly focused on both employee ethics and corporate social responsibility. On the other hand, Big Box Co. is one of the largest employers in retail and is very active when it comes to corporate social responsibility. However, the company takes an external approach and has a limited focus on employee ethics. In addition, customer-driven websites offer reviews that are less than flattering. While both organizations focus on profits, how they get there and what they do with revenue is vastly different. Business ethics are the moral principles and values that govern the actions and decisions of an organization. Marketing ethics are the moral standards that guide marketing decisions and actions. Ethical values and corresponding behaviors are constructed of societal norms. Social responsibility reflects a firm's obligation to improve its positive effects on society and reduce its negative effects. As you watch this video, keep these concepts in mind.

Risk taking

Insurance company

If Mom places the highest value on convenience when looking for a cup of coffee, which of the marketing mix components is she most concerned with?

Place Chains such as coffee shops strategically select locations so they can make their products or services easily accessible to their customers.

Joe to Go offers donuts with its simple cup of black coffee that customers serve themselves. In doing so, the company is attempting to create value for Dad and other customers through which element of the four Ps?

Product An organization creates value by offering products and services that meet customer needs. In this case, they are creating value by adding donuts to their core product offering, a simple cup of coffee.

Production and Marketing Orientation

The marketing concept means that an organization aims all its efforts at satisfying its customers—at a profit. The marketing concept is a simple but very important idea. The marketing concept is not a new idea—it's been around for a long time. But some managers show little interest in customers' needs. These managers still have a production orientation—making whatever products are easy to produce and then trying to sell them. They think of customers existing to buy the firm's output rather than of firms existing to serve customers and—more broadly—the needs of society. Well-managed firms have replaced this production orientation with a marketing orientation. A marketing orientation means trying to carry out the marketing concept. Instead of just trying to get customers to buy that the firm has produced, a marketing-oriented firm tries to offer customers what they need.

Universal Functions of Marketing

The universal functions of marketing can be observed in everyday marketing practices and consumer behavior.

Assume that Hope Springs was guided by the American Marketing Association Statement of Ethics as described in your textbook. If Hope Springs website were to post a sustainability report that indicate how its marketing practices help and harm the environment. What ethical value does this report represent:

Transparency The American Marketing Association Statement of Ethics suggests six ethical values that marketers should follow. One of these is transparency, defined as creating a spirit of openness in marketing operations. Hope Springs is being open about how it is good and not so good.

Hope Springs bottled water company is concerned about how the company's business activities impact its employees and the world in which it operates, cares about the environment, but also wants to earn a profit. From the description in the video, it would appear that Hope Springs considers the __________ when it develops a marketing strategy

Triple bottom line A triple bottom line measures an organization's economic, social, and environmental outcomes—as a measure of long-term success.

Storing

Warehouse

Suppose that Justin interviewed for a job with a company that had an excellent reputation for honesty and fairness with customers and employees, but that didn't believe in the need to get involved in the community or with social causes of any type. This company would be considered:

high ethical values but not socially responsible Based on this description, the company takes ethical values seriously in its treatment of customers and employees, but it does not believe that a formal social responsibility program is necessary.

The Coffee Collective's goal is to provide customers with a unique coffee drinking experience and a loyalty rewards program. In doing so, the Coffee Collective is differentiating their experience in hopes of providing _____________ for their customers.

perceived superior value When customers see the benefits of a marketing offering as greater than the cost of obtaining those benefits they perceive superior value from that offering and are satisfied with their purchase.