BA 310 Mod 12 Ch 10 Marketing and Advertising Objectives 1 2 3 4 5 6 7 8 Describe the green marketing movement Explain the ethical issues that arise from relationship marketing Explain the effect of boycotts on business and the origin of boycotts Describe the activities of Johnson Johnson around the Tylenol scare List the reasons why product recalls occur Describe the costs of conducting a product recall Explain the ethical considerations of purchasing and sales transactions Describe the marking campaigns of tobacco companies 1 Marketing Marketing is comprised of the four P s Product Price Promotion Place Ethical Considerations In all marketing firms should ask the following Who is the target audience Adults or children Are we telling the truth Are we misleading the public Alternative Views of the Foundation of Marketing and Advertising Marketing enhances product messages by attempting to strike a chord with the inner emotions of the consumer Therefore an effective alternative method to describe a firm s marketing strategy would be to apply the seven deadly sins Lust sex sells Gluttony advertising that focuses on food Greed the accumulation of material goods Sloth marketing that is used to inspire consumers to be something that they are currently not Wrath advertising that is negative Envy advertising focused on making the consumer envious of those in the advertisement Pride advertising focused on making the consumer proud of the purchase Green Marketing Is was assumed that since consumers are focusing on green issues firms that promote their proactive commitment ideals would be able to enhance their competitive advantage in the marketplace to environmental This resulted in the initial green selling approach A promotion of environmental features of existing products This was a short term focus and consumers became suspicious of the motives of the firms One reason green marketing campaigns have failed in the past is based on the firm s ineffective targeting to the correct customers Consumers can be classified into five different categories True Blue Green strong environmental commitment and believe that their actions can have a positive environmental impact 9 Greenback Green not as politically active in environmental causes but are more Grousers are not well willing than the general public to purchase green products 6 Sprouts understand the issues related to the natural environment but are not willing to pay more for proactive environmental products are also open minded to the extent that if they can be convinced of the benefits of a green product they may purchase it 31 informed about environmental issues and are cynical about their ability to have a positive environmental impact on society convinced that green products are not a good choice because of their high price and lower performance when compared with competing products 19 Basic Browns do not think about environmental issues at all in their purchasing patterns 33 is to focus on the concept of green purchases and not green Alternative viewpoint consumers in green products Compromise and confidence are two critical factors in determining the level of effectiveness 1 BA 310 Mod 12 Ch 10 Marketing and Advertising Four categories of purchases Win win purchases identified as having a clear and transparent environmental benefit with little compromise needed by the consumer Feel good purchases those in which there is a significant level of compromise by the consumer in the purchasing of the product Why bother purchases those products in which the consumer must accept a high level of compromise but has little confidence that their purchase will have a material environmental impact Why not purchases have a low level of compromise and confidence Different levels of commitment described as enviropreneurial marketing strategies Tactical level this level focuses on the marketing and production manager for their strategic focus related to environmental issues Quasi strategic level this level focuses on how addressing environmental issues can enhance the competitive advantage of the firm Strategic level this level refers to the commitment by the top level executives of the firm to develop and implement a proactive environmental marketing strategy 2 The Role of Relationship Marketing perspective Relationship marketing focuses on the relationship between the customer and the firm from a commitment Relationship marketing needs to be about a two way relationship in order to ensure the consumer that their privacy rights have been protected The two way relationship can facilitate the development and execution of management model the customer relationship Customer Relationship Management Model Step 1 the development of a database which is the foundation of the model Step 2 analysis of the consumer data Step 3 selection of the customers Step 4 targeting the customers Step 5 development of relationship marketing Step 6 addressing the privacy issues related to the customer relationship management model Step 7 metrics The Role of Consumer Boycotts boycott an attempt by one or more parties to achieve certain objectives by urging individual customers to refrain from making selected purchases in the marketplace The action to boycott a firm s business is an example where the stakeholders have a direct impact on the financial performance of the firm Boycotts usually occur based on one event which triggers the motivation of the consumers Key Components Desire to make a difference belief that boycott will lead to a firm behaving differently perceived efficacy individual consumer joined with others has the power to achieve the collective goal of changing the behavior of the firm Scope of self enhancement belief that boycott will create a benefit for the consumer Counterarguments that inhibit boycotting negative consequences of joining the boycott Cost to the boycotter on constrained consumption costs borne by consumer by not having access to the service or product of the boycotted firm 3 4 5 The Ethical Challenges of Product Recalls Reasons for product recalls The Steps of a Recall A design flaw in the product A production defect When new scientific information is released to the public which links dangers in the product not previously known Accidental contamination of the product during the manufacturing process Product tampering Unforeseen misuse of the product by consumers Product s failure to meet the safety standards established by a governmental