Marketing 310 Exam #1- Chapter 20

sustainable marketing
Meeting the needs of consumers while preserving the ability of future generations to meet their needs.
High Prices
Complaint: Prices are too high due to distribution, advertisement, excessive markups
Response: Intermediaries are important, advertising informs buyers, and consumers don’t understand the cost of doing business.
Deceptive Practices
Complaint: Deceptive pricing, deceptive promotion, deceptive packaging
Response: Support legislation to protect consumers from deceptive practices
High-Pressure Selling
Complaint: Salespeople use this to persuade others to buy goods they had no intention of buying
Response: Most selling involves building long term relationships with valued customers, high pressured selling can damage this.
Shoddy, Harmful, or unsafe products
Complaint: Products have poor quality, and can be harmful
Response: Good marketers realize there is no value in marketing shoddy, harmful, or unsafe products.
Planned Obsolescence
Complaint: Producers cause their products to become obsolete
Response: Planned obsolescence is the result of a competitive market
Poor service to Disadvantaged Consumers
Complaint: Marketers serve disadvantaged customers poorly
Response: Some marketers profitably target these customers and the FTC has taken action against marketers that do.
What are the three elements of deceptive advertising according to the FCC?
• Misleading
• Reasonable Consumer
• Material
consumerism
The organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers.
environmentalism
An organized movement of concerned citizens, businesses, and government agencies to protect and improve people’s living environment.
ethics
A set of moral principles of values
What are some of the best practices for creating an ethical culture for a company?
• Demands for performance must be reasonable
• Clearly communicate organizations standards
• Create full-time ethics officer
• Reward ethical behavior
What are the benefits of ethical behavior by businesspeople?
• Rewarding in and of itself
• Increase profits (creates trust and improves relationships among organization and its stakeholders)
• Protects the image of the organization
• Reverse the decline in public confidence of marketing
• Avoid increased government regulation
• Retain power granted by society
What are the main elements of the American Marketing Association’s Statement of Ethics?
• Ethical Norms
• Ethical Values
• Responsibility
• Fairness
• Respect
• Transparency
• Citizenship