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MARK 3001: Exam 1
corporate social responsibility |
a business's concern for society's welfare.
both long-range interests of the company and the company's relationship with the society are considered. |
sustainability |
socially responsible companies will outperform their peers by focusing on the world's problems and using them as opportunities to build profits and help the world at the same time |
pyramid of corporate social responsibility |
philanthropic < ethical < legal < economic.
at the same time that a firm pursues profits (economic), it is expected to obey laws (legal) to do what is right, just fair (ethical), and to be a cood corporate citizen (philanthropic) |
ethics |
the moral principles or values that generall govern the conduct of an individual or group. also, a standard of behavior by which conduct is judged. standards that are legal may not always be ethical
ethics consist of personal moral principles and values rather than societal perceptions |
morals |
the rules people develop as a result of cultural values and norms. |
preconventional morality |
most basic level of morality, childlike
based on what will be immediately punished or rewarded |
conventional morality |
based on viewpoint of the society.
loyalty and obedience to the organization are paramount. a marketing decision maker would be concerned only with whether the proposed action is legal and how it will be viewed by others. |
post conventional morality |
morality of the mature adult.
is it right in the long-run? |
ethical decision-making factors |
extent of ethical problems within organization.
top management actions on ethics. potential magnitude of consequences. social consensus. probability of a harmful outcome. length of time between the decision and the onset of consequences. number of people to be affected. |
code of ethics |
guideline to help marketing managers and other employees make better decisions |
what is expected of marketers |
1. do no harm
2. foster trust in the marketing system 3. embrace, communicate, practice fundamental values to improve consumer confidence in the integrity of the marketing exchange system |
ethical values |
honesty
responsibility fairness respect openness citizenship |
marketing mix |
4 P's
product place promotion price |
target market |
defined group that managers feel is most likely to buy a firm's product |
external environmental factors (marketing environment) |
demographic
social factors (attitudes, values, lifestyles) economic (income, economic health of country) technological political and legal 9laws and rulings) competitive (#, size, and type of competitors) |
marketing environment |
uncontrollable elements outside of any organization that may affect its performance |
characteristics of product quality |
1. reliability
2. durability 3. easy maintenance 4. ease of use 5. trusted brand name 6. low price |
demography |
study of poeples vital statistics, like age, race, ethnicity and location |
tweens |
per-mid teens, 29 million.
tune out commercials, have attitudes, and access to information. |
gen y |
late teens/20s, 60 million.
impations, family oriented, divers, good time managers. |
gen X |
30s/early 40s. 40 million.
latchkey, of divorced parents, time pressures so they resort to outsourcing |
baby boomers |
mid-40s-early 60s, 77 million.
active, affluent, long life expectancy, vigorous consumers |
business cycles |
prosperity: high income/employment/production.
recession: falling income/employment/production. recovery: rising income/employment/production. depression: low income/employment/production. |
sherman act, clayton act, FTC act |
regulate competitive environment |
robinson-patman act |
regulate pricing practices (charging different prices to different buyers or merch of same grade or quantity |
wheeler-lea act |
controls false advertising |
federal trade commission |
prevents unfair methods of competition in commerce |
consumer product safety commission |
protects consumer safety in and around their homes.
sets mandatory safety standards for products consumers use |
food and drug administration |
enforces regulations against selling and distributing adulterated, misbranded, or hazardous food and drug products |
direct competition |
similar/same product.
brand. |
indirect competition |
product.
substitutable items - perform the same function. |
comptition for discretionary spending |
other possible uses for the money |
how many people live in the world? |
6.8 billion |
# of people in US? |
3.1 million |
percent of people over 25 in US who have graduated high school |
85%, 27% college |
% of US homes in which primary language other than English is spoken |
17% |
Median age of first marriage |
men: 27
women: 25 |
% personal savings rate in US |
about 6% |
% of undergrads who graduate with federal student loans? Avg. amount owed? |
about 66%, $27,500 |
% people over 65 in US |
12.5% |
% US citizens under 18 |
24.8% |
consumer behavior |
describes how consumers make purchase decisions and how they use and dispose of the purchased goods or services |
consumer decision-making process |
1. need recognition
2. information search 3. evaluation of alternatives 4. purchase 5. post-purchase behavior |
need recognition |
result of an imbalance between actual and desired states. consumer decision-making |
stimulus |
any unit of input affecting one or more of the five senses: sight, smell, hearing, touch, taste.
internal stimuli: occurrences you experience like hunger or thirst. external stimuli: influences from an outside source, like recommendation or advertisement. |
internal information search |
the person recalls info stored in memory |
external information search |
seeks info in the outside environment |
nonmarketing-controlled information source |
not associated with marketers promoting a product. personal experiences, personal sources (family, friends), and public sources (consumer reports). |
marketing-controlled information source |
biased toward a specific product because it originates with marketers promoting that product. including mass-media advertising, internet, sales promotion, salespeople, product labels and packaging. |
evoked set |
aka consideration set.
the consumers most preferred alternatives |
post-purchase behavior |
how well ones expectations are met determines whether the consumer is satisfied or dissatisfied with the purchase.
cognitive dissonance is included |
cognitive dissonance |
when people recognize inconsistency between their values and their behavior. consumers try to reduce cognitive dissonance by justifying their decision |
involvement |
the amount of time and effort the buyer invests in the search, evaluation and decision process of consumer beavior |
routine response behavior |
frequently purchased, low-cost goods and services. low involvement products |
limited decision making |
typically occurs whn a consumer has previous product experience by is unfamiliar with the current brands available |