Chp 20 Marketing 321

Responsible Marketers
Discover what consumers want and respond with market offerings that create value for buyer and capture value in return. Consider whether their actions are sustainable in the long run.
Marketing Concept
Philosophy of customer value and mutual gain. Recognizes that orgs thrive from day to day by determining the current needs and wants of target customers and fulfilling those needs and wants more effectively and efficiently than competitors do.
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.
High Costs of Distribution
Argue that there are too many intermediaries, that they are inefficient, or that they provide unnecessary or duplicate services.
High Advertising and Promotion Costs
Critics argue that a heavily promoted national brand sells for much more than nonbranded products. Charge much of this packaging and promotion adds only psychological, not functional value to the product.
Excessive Markups
Don’t usually do this because they want to build relationships with the consumers. Don’t understand that they have to cover the cost of purchasing and distributing.
Deceptive Pricing
Falsely advertising factory or wholesale prices or a large price reduction from a phony high retail list price.
Deceptive Promotion
Misrepresenting the product’s features or performance or luring customers to the store for a bargain that is out of stock.
Deceptive Packaging
Exaggerating package contents through subtle design, using misleading labeling, or describing size in misleading terms.
Wheeler Lea Act
Gave Federal Trade Commission power to regulate “unfair or deceptive acts or practices”.
Puffery
Innocent exaggeration for effect.
High Pressure Selling
Selling that persuades people to buy the goods they had no thought of buying. “Sold not Bought” “Yell and Sell” infomercial methods.
Shoddy, Harmful or Unsafe Products
Products are not made well or perform well. Company indifference, increased product complexity, and poor quality control. Many products deliver little benefit or may even be harmful.`
Planned Obsolecence
Causing their products to become obsolete before they should actually need replacement.
Perceived Obsolecence
Continually changing consumer concepts of acceptable styles to encourage more and earlier buying.
Redlining
Accuse major chain retailers of Drawing a red line around disadvantaged neighborhoods and avoiding placing stores there.
False Wants
Marketing system urges too much interest in material possessions.
Too Few Social Goods
The overselling of private goods at the expense of public goods.
Make producers pay the social costs (make more fuel efficient cars)
Make the public pay the social costs (congestion tolls)
Cultural Pollution
Our senses are constantly being assaulted by marketing and advertising.
-Marketers hope they are reaching their target audience but its hard due to mass communication channels.
-Ads help keep down the costs of stuff
-Have alternatives like recording tv
Acquisition of Competitors
Claim firms are harmed and competition is reduced when companies expand by acquiring competitors than by developing their own new products. Concerned vigorous young competitors will be absorbed – reducing competition.
-can lower costs and increase efficiencies
Marketing Practices that create Barriers to Entry
Large companies use patents, heavy promotion spending and tie up suppliers to drive competitors out.
-progressive tax on advertising spending
Unfair Competitive Marketing Practices
Intention to hurt or destroy other firms. Set prices below costs, threaten to cut of business with suppliers, or discourage the buying of a competitors products.
Consumerism
An organized movement of citizens and government agencies designed to improve the rights and power of buyers in relation to sellers.
Seller’s Rights 1
Right to introduce any product in any size and style, if it is not hazardous or provides proper warning.
Seller’s Rights 2
Right to charge any price for the product, provided no discrimination exists among similar kinds of buyers.
Seller’s Rights 3
The right to spend an amount to promote the product, provided it is not defined as unfair competition.
Sellers Rights 4
The right to use any product message, provided it is not misleading or dishonest in content or execution.
Buyers Rights
The right not to buy a product that is offered for sale.
The right to expect the product to be safe.
The right to expect the product to perform as claimed.
True
Critics feel the buyer has too little info, education, and protection to make wise decisions. The balance of power lies on the sellers side.
Additional Consumer Rights
The right to be well informed about important aspects of the product.
The right to be protected against questionable products/marketing practices.
The right to influence products and marketing practices that will improve the quality of life.
The right to consume now in a way that will preserve the world for future generations of consumers.
Environmentalism
An organized movement of concerned citizens, businesses, and govt agencies designed to protect and improve people’s current and future living environment.
Environmental Sustainability
A management approach that involves developing strategies that both sustain the environment and produce profits for the company.
Pollution Prevention
Eliminating or reducing waste before it is created.
-designing ecologically safer products
Product Stewartship
Minimizing environmental impact throughout the entire product life cycle.
New Clean Technology
Developing new sets of environmental skills and capabilities.
Sustainability Vision
Creating a strategic framework for future sustainability. Shows how the companies products must evolve and what new technologies are needed to get there.
Greening Activities
Pay off for the firm and the environment in the short run. Focus on improving what companies already do to protect the environment.
Beyond Greening Activities
Pay off in the longer term. Look to the future
Design for Environment (DFE) and Cradle-to-Cradle
Thinking ahead to design the products that are easier to recover, reuse, recycle after usage thus becoming part of the ecological cycle.
Consumer-oriented Marketing
A company should view and organize its marketing activities from the consumer’s point of view.
Customer-value Marketing
A company should put most of its resources into customer-value-building marketing investments.
Innovative Marketing
Requires a company to seek real product and marketing improvements.
Sense of Mission Marketing
A company should define its mission in broad social terms rather than narrow product terms.
-makes the employees feel better about their work
Societal Marketing
A company should make marketing decisions by considering consumers’ wants, the companys requirements, consumers long run interests, and societys long run interests.
Deficient Products
Products that have neither immediate appeal nor long-run benefits
-bad tasting medicine
Pleasing Products
Products that give high immediate satisfaction but may hurt consumers in the long run.
-ciggs and junk food
Salutary Products
Have low immediate appeal but may benefit consumers in the long run
-helmets
Desirable Products
Give both high immediate satisfaction and high long run benefits
-tasty and nutritious food
-challenge all consumers to turn their products into this
Corporate Marketing Ethics Policies
Broad guidelines that everyone in the org must follow.
-distributor regulations, advertising standards, customer service, pricing, product development, and general ethic standards
Do No Harm
Consciously avoiding harmful actions or omissions by embodying high ethical standards and adhering to all applicable laws and regulations in the choices we make.
Foster Trust in the Marketing System
Striving for good faith and fair dealing to give efficency and avoid deception.