Chapter 5 Overview Studies have shown that many people feel cheated in their purchases due to deception the lack of proper information high pressure sales pitches etc Social Responsibility Social Responsibility a concern for the consequences of a person s or firm s acts as they might affect the interests of others o Weighing the impact of company actions in a way that balances short term profit needs with long term societal needs o Balancing 3 considerations profits consumer satisfaction public interest Socioecological View of marketing firms their customers and others should consider all the stages in a product s life span in developing selling purchasing using and disposing of that product o Use design for disassembly products are designed to be disassembled in a more environmentally friendly manner once they outlive their usefulness Fewer parts less materials Natural Resources o Not unlimited o Natural resource depletion can be reduced if the consumption of scarce materials is lessened and more efficient alternatives are chosen o Reduce Reuse Recycle 31 of US trash is recycled The Landscape o 56 of materials are disposed of in dumps landfills o Dumps and littering have become major factors in marrying the landscape Various communities have enacted rules to lessen them Deposit fees container laws Environmental Pollution o Caused from spray cans ocean dumping lead form gas pesticides sulfur oxide o EPA Planned Obsolescence marketing practice that capitalizes on short run material wear out style changes and functional product changes o Material planned obsolescence firms choose material and components that are subject to comparatively early breakage ear rot or corrosion o Style planned obsolescence firms make minor changes to differentiate the new year s offering from the previous o Functional planned obsolescence firms introduce new product features or improvements to generate customer dissatisfaction with currently owned products The benefits and costs of social responsibility o Benefits worker and public health efficient use of resources economic growth improved business image public education better standard of living o Costs unequal distribution of benefits dollars costs removal of products from markets conservative product planning Ethics Ethical behavior involves honest and proper conduct 1 Individual is affected by background experiences job society etc Individuals act based on their expectations of the rewards or punishments following Ethically questionable issue 2 Possible alternative actions 3 Decision their actions 4 Behavior 5 Consequences of action Ethical Theories o Egoism individuals act in their own self interest o Utilitarianism individuals act if it yields the greatest good for the most amount of people o Duty based individuals act because they feel an obligation to o Virtue individuals acts are guided by seeking goodness and virtue Process related ethical issues the un ethical use of marketing Product related ethical issues the ethical appropriateness of marketing certain products A Business Perspective o Cause related Marketing a somewhat controversial practice wherein profit oriented firms contribute specific amounts to given nonprofit organizations for each consumer purchase of certain goods and services during a special promotions A Consumer Perspective o Consumers should act as ethically to business as they expect to be treated o 7 stages to form a consensus Public becomes aware of issue Sense of urgency Look at alternatives for dealing with issues calls for action form free floating concern Resistant to costs and trade offs Ad disadvantages to alternatives Public accepts idea but not ready for action Public fully accepts the idea A Global Perspective o Hard to apply globally Different views on acceptable behavior Misunderstanding due to language Less concern in underdeveloped nations Governments More aware of domestic issues than global Global disputes would be hard to mediate o Firms marketing globally 1 core business values for worldwide 2 Peripheral business values are less important 3 ethnocentrism must be avoided o Suggestions to firms Include international personnel View globally ethical practices as a competitive advantage Do not rely on legal statutes Print ethics in multiple languages o The Teach ability of Ethics Clear ethics codes Role models of ethical people Example of ethical unethical behavior Consumerism the wide range of activities of government business and independent orgs that are designed to protect people from practices that infringe upon their rights as consumers Eras o 1 1900 s banking system product purity postal rates o 2 1930 s 1950 s product safety bank failures labeling stock manipulation o 3 60 80 areas of marketing Consumer bill of rights To inform to safety to choice to be heard o 4 80 s business deregulation and self regulation o 5 90 present government involved more with consumer issues Consumer rights o Consumer Information and Education Warranty assures consumers that a product will meet certain standards Express explicitly stated Implied doesn t have to be states Full covers all parts for a certain allotted amt of time Limited may have conditions o Consumer Safety CPSC Develop voluntary standards with industry Issue and enforce standards Obtain the recall of products o Orders if need be the firm to recall and modify unsafe products Conduct research on potential hazards Class action suit can affect many consumers Consumer choice o Limit patents time length o Non competitive business practices o Government reviews mergers o Competition between domestic and imports To be heard o Consumer groups The Responses of Business to Consumer issues Firms have become much more responsive to consumers yet questions remain about the effects of consumerism on firms o Item priced removal Wal Mart Trade Associations pass out educational packets Current Role in Consumerism o Government is more active overall everyone is more active Chapter 6 Overview Domestic Marketing a firm s efforts in its home country International Marketing marketing goods and services outside a firm s home country o Global Marketing an advanced form of international marketing in which a firm addresses global customers markets and competition Types of Firms o Domestic home market believes the base market is both large and responsive enough to meet goals o Exporting home market is no longer adequate enough to reach goals A relatively low of business is outside the
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