MKTG 407 1st EditionFinal Exam Study GuideEthics and Social Responsibility -What is marketingoAmerican marketing association definitionMarketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the org. and its stakeholdersIn sum-Marketing is about delivering value to all people affected by a transaction-Is about meeting needs-Consumer/Market orientationoIdea is captured by the marketing conceptPurpose of the organization is to…-Achieve long term success of or by creating customer value (meeting customers needs and delivering satisfactionbetter than ones competition) and establishing and maintaining a mutually beneficial long term relationship with the customer-Social Marketing orientationoBuilt on social marketing conceptTry to benefit consumers, society, and firmConsumer well bring; marketing to enhance consumers long term quality of lifeoSustainabilityDesigning and recycling products so that we meet present needs without compromising ability of future generations to meet there’soTransformative consumer research-Concerns over precision targeting and privacy- Page 241-Ways marketers can manipulate consumers Page -241-Some problems associated with suboptimal consumer choices- Page 241-Marketing to ChildrenoChildren often imitate behavior of othersoChildren not able to carefully process advertising claims (persuasion knowledge not fully developed)oChildren unaware of privacy rights and risk of providing private informationoChildren advertising review unit chart on- Page 242-243-Marketing of Violence- Charts on Page 244oMeta Analysis on effects of Violent Video GamesMeta analysis-Statistical technique of combining effects across large number of studies-Looks for "average effect" and factors that might change that effect sizeAnalyzed 136 studies-Included cross sectional (correlational), experimental and longitudinal studies across a variety of countries-Experimental and longitudinal able to demonstrate causationKey findings-Increase aggressive thoughts, feelings and behavioroEffects somewhat strong in western cultures, but don’t depend on gender-Decreases empathy and prosocial behavior-Overall effects tend to be larger in studies judged to have strong methodology-Marketing of BeautyPromoting Health Behavior-"Food for Thought" commercialoIs about a soda advertising how much sugar is in soda, and that the average person could gain 10lbs per year, if they drank 1 soda daily. oQuestions askedWhat is this add trying to achieve (aside from reducing soda consumption?Will this ad be effective? Why or why not?On whom do you think the ad will have the greatest impact? Why?-Self-Defeating BehavingoIs so ubiquitous that rationality in judgment and decision-making seems to be comparatively rate, and nowhere is this more apparent that in the domain of health behavior- Hall and Fong 2007-Temporal dilemmasoTemporal trapWhen a behavior results in short term positive consequences (Boythat soda tastes great), but long term negative consequences (10lbs of fat in a year)oTemporal fenceWhen a behavior results in short term negative consequences (saving money cant hurt because you cant use for current pleasures) but long term positive consequences (it can grow into anice nest egg)What we strive forEx. -Saving money-Exercise -Consideration of future consequencesoDefinition Personality variable tapping the extent to which individuals are aware of the immediate vs. delayed consequences of their actions (awareness model) and are influences by those consequences (concern model)? How aware are you of the consequence?... If so… then how concerned are you with it?... This will then affect how to be in the futureo12 item scaleFuture Item-I consider how things might be in the future and try to influence those things with my day to day behaviorImmediate Item-I only act to satisfy immediate concerns, figuring the futurewill take care of itselfoPublic policy related behaviorSmoking, alcohol, health concernHIV testingDiabetes ScreeningSleep HabitsGPAExerciseImpulse buying, credit card debtPro environmental behavioroModels Page 248-251-MotivationoWhat's the "big Idea"? This research examines whether risky health behaviors can be mitigated by being linked to identities consumers do not want to signal to othersoStudy 1- Junk Food Study Page 252oStudy 2- Alcohol Study Page 253oStudy 3- Restaurant Study Page 254oConclusions?Linking unhealthy behaviors with "Dissociative/avoidance" groups reduces targets groups likelihood of engaging in those behaviors Effect stronger among those who really don’t want to be associated with the dissociative group (study 2) and among high self-monitors (study 3)Effects generalize across junk food and alcohol are demonstrated in naturalistic settings (dorms, restaurants with observed behavior)Cause Related Marketing-Cause Related MarketingoProcess of formulating and implementing marketing activities that are characterized by an offer from the firm to contribute a specified amount to a designated cause when customer engage in a revenue-providing exchanges that satisfy organizational and individual objectivesCaradarahan and Menon 1988oEx.Starbucks- "help protect the forest landPampers- "1 pack= 1 vaccineKFC- " buckets for the cure"-History of Cause related MarketingoAmerican express 1983 joined the statue of Liberty restoration Fund1 cent for each use of its charge card1 dollar for each new car issued28% increase in card usage over the same time period in 19821.7 million contribution by American express to the statue of liberty restoration fund-Corporate and Marketing ObjectivesoGain Global visibilityoEnhance corp. imageoThwarting negative publicityoPacifying customer groupsoGenerating incremental salesoPromoting repeat purchasesoPromoting multiple unit purchasesoPromoting more carried usageoIncreasing brand awarenessoIncreasing brand recognitionoEnhancing brand imageoReinforcing brand imageoBroadening customer baseoReaching new market segmentsoIncreasing level of merchandising activity-Uniqueness oCRM Contributes to charity from salesOffering economic incentives are NOT key characteristics of CRM (coupons, refund offer) but can be includedoCorporate PhilanthropyDonations made on behalf of the company not necessarily based on