Discussion Questions for Exam 1
Discussion Questions for Exam 1 MKGT 4050
Popular in Misplaced Marketing
Popular in Business, Marketing
verified elite notetaker
verified elite notetaker
verified elite notetaker
verified elite notetaker
verified elite notetaker
verified elite notetaker
This 5 page Study Guide was uploaded by Kelsey Bixler on Tuesday September 6, 2016. The Study Guide belongs to MKGT 4050 at Auburn University taught by Herbert J. Rotfeld in Fall 2016. Since its upload, it has received 6 views. For similar materials see Misplaced Marketing in Business, Marketing at Auburn University.
Reviews for Discussion Questions for Exam 1
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 09/06/16
Misplaced Marketing Test 1 discussion questions Topic 1- history of consumers in the Market Plath th 1- First Wave of consumer activism- Late 19 /early 20 century- this wave was all about “protecting competition.” Caveat Emptor (the buyer can figure things out for himself) was prevalent. This is the time where anti-trust laws started to emerge in order to break up corporations from getting together and agreeing on what price to set. This was not about protecting the consumer but about protecting competition. At this time perfect competition was prevalent in the market place- no one buyer and no one seller controlled the market. But you need a level of consumer education for this to work. Food and drug administration was created after Upton Sinclair’s the jungle- this was not really to protect consumers but to protect the competitive market and drive up sales in the meat packing industry. 2nd Wave- 1930’s – some fatalities resulted because of a preservative in canned peas. Changes to the FDA and FTA were made because the Grd. realized that they needed to “protect consumers from harm” 3 Wave- Ralph Nadar- Unsafe at any speed. Trade regulations to put consumers on equal footing. But deregulations also occurred at this time because businesses were becoming the constituents of regulations. They were now in the favor of business and not protecting competition. Senator Ted Kennedy is credited with starting these efforts 40 years ago- worked to prevent “captured agencies” 2- The idea behind protecting competition is to ensuring that no one buyer or seller has control over the market place. There are no barriers to entry and people will be able to understand what the product is and have equal access to information. When competition is being protected the main focus is not the consumer but rather ensuring that the market place is working properly. This protection of competition in turn protects consumer because if the market place is working people will be able to take care of themselves and will have equal access to info about products. 3- Egregious false advertising from one company can harm the credibility of all companies. Marketing people want their advertisements to be believable in order to drive up sales. To do this they need to increase the credibility of the entire marketplace. Also deceptive advertisements can lead to unfair market place shares (aka monopolies) 4- The FDA and FTC came about in order to protect competition in the marketplace. The FTC was created to stop deceptive practices that could lead to monopolies. The FDA was put in place after the meat packing industry’s miss hap. The meat packing industry needed a way to increase sales and a regulation was the only way to increase demand again. This once again is about protecting competition in the marketplace rather than protecting the consumer. 5- Kallet and Schlink wrote 100,000,000 Guinea Pigs –showed discontent of highly involved consumers who had no way to acquire info about new products other than the advertisements they were subjected to. - Chase and Schlink wrote Your Money’s worth- it called for scientific testing and product standards to provide consumers with the technical info they needed to make purchase decisions. Upton Sinclair wrote The Jungle about the working conditions in the meatpacking industry. 6- These industries are not really “competitive” in the 1900 sense because there is one or two sellers controlling the market place. The market place in 1900 leaned more toward perfect competition in that there were no barriers to entry, no one seller controlled the market place, and there are substitutes for products. Now names like Coke and Kellogg have gotten so big that it is almost impossible for other companies to enter the market and compete in these industries. Topic 2- 1- The basic focus of the modern marketing perspective is a concept that combines all facets of product design, price decisions, where product is available for sale, personal selling, and mass communication with an orientation to “satisfy consumer needs and wants.” Misplaced marketing is when people who should or could be making marketing-based decisions are misplacing their focus, ignoring, misusing, or abusing some basic perspective that should be followed. 2- The environment is one of the three nested systems that are crucial to sustainability. Consumers need to understand that in order to be sustainable we must develop in a way that meets the needs of present generations without compromising the ability of future generations to meet their own needs. Consumers also need to understand that the use of nonrenewable resources must decline at a rate that is faster than depletion before the resources are exhausted. Also according to Heinberg’s 5 axiom- sustainability requires that substances introduced into the environment from human activities must be minimized and rendered harmless to the biosphere functions. 3- Rachel Carson is the author of Silent Spring who sparked a great amount of controversy over the use of pesticides. Some accused Carson of causing the death of millions because funding for the malaria fighting insecticide DDT went down dramatically after the book was released. She received a great amount of criticism for the book but has stated numerous times that some insecticides are necessary, but others are used without any regard for their affects on the environment or potential harm to humans and other living organisms. Ralph Nadar- is the author of Unsafe at Any Speed- a book that showed how car manufacturers were sacrificing important safety features for the sake of style. General motors hired detectives to follow Nadar in order to find out personal information and discredit his work. This showed the unequal power between businesses and consumers- “”You can’t have equal protection of the law when it is you versus Exxon.” 4-SLAPP Suits (Strategic Litigation against public participation)- SLAPP Suits are the use of litigation in order to protect companies from the publication of defamatory or unflattering statements. This shows unequal marketplace power between companies and people because the companies’ ability to control what academic researchers publish makes it nearly impossible for consumers to obtain unflattering information about a product, even if it is true and well documented. It also makes companies the predominant source of market information, which puts consumers at a disadvantaged when attempting to make wellinformed decisions in the marketplace. This is a way for companies to control behavior and puts consumers at a significant disadvantage. 5 6 Because companies have significantly more power in the marketplace they are able to control the flow of information to consumers and at times make themselves the sole provider of information concerning their products. SLAPP suits are an example that shows unequal marketplace power between companies and people because the companies’ ability to control what academic researchers publish makes it nearly impossible for consumers to obtain unflattering information about a product, even if it is true and well documented 7 Marketers have to understand the way consumers behave and why they behave that way in order for marketing efforts to work trying to move consumers in a way they don’t want to will only result in failure. At times, instead or considering audiences view of the world, managers practice ethnocentrism by putting systems in place for the convenience of the employees or by doing a good job of using marketing tools for key customers but ignoring potential critics. A company may not be serving the customers interests by not following a marketing orientation and still being profitable, by legally satisfying customers but not serving society Marketing activities may be misplaced because marketing perspectives or basic tools of the business are misused, misapplied, abused or simply the source of social criticism of business activities. Marketing tools are used without any understanding of how or why they should do the job 8 Dave Carrol’s protest song against United Airlines highlights a problem of unequal power for consumers because the country music singer does not represent the typical consumer. Carrol was able to gain media attention because he made a music video that went viral. Most consumers do not have this ability and will therefore be left unheard. This shows that unless a consumer has power that is comparable to the company, the consumer will not be on equal footing. Topic 3 1 At times, instead or considering audiences view of the world, managers practice ethnocentrism by putting systems in place for the convenience of the employees or by doing a good job of using marketing tools for key customers but ignoring potential critics. Sometimes marketing is misplaced because planners and managers don’t ask how the product could meet customer needs. They might add product features just because the company can add it not because they should because of this marketing remains just selling 2 For a dealership this is true because customers tend to shun businesses whose integrity is questioned. PT Barnum said that “Men who drive sharp bargains with their customers, acting as if they never expect to see them again will not be mistaken.” And No man can be dishonest without soon being found out and when his lack of principle is discovered, nearly every avenue to success is closed against him forever.” 3 As the most visible business practice, marketing is criticized by almost everyone. The criticism might be voiced by people with a limited understanding of marketing practices. The marketing theory helps explain that critics don’t understand marketing because much of their criticism is stemmed from the idea that marketers manipulate consumers’ behavior. Instead it directs marketing planners to first assess how/why people make various decisions and to use those assessments as the basis for designing products and setting prices. 4 3 reason why marketing professionals can’t claim that they are satisfying consumer needs —1 not all companies follow the marketing concept (mislay/lost marketing perspective) 2 satisfying customers needs does not equal satisfying societies needs (to assign the wrong eventuality view to marketing) 3—consumers might not know what they should need (to use marketing in an inappropriate fashion) 5 Captured agency the industry becomes the client instead of consumers exViox captured the FDA said “industry is our client.” This relates to business groups lobbying for industry wide regulations because the businesses can gain control of the industry through the regulations they can set prices for example. Regulations can protect industries from competition in the modern era. 6 7 Sometimes marketing is misplaced in that satisfying the consumer needs might be contrary to those of the greater society what works against companies taking a societal marketing approach is that there are some products that are not in the best interest for society as a whole but people still want ex gas guzzling car, cigarettes 8 The underlying reason why a marketing perspective is misplaced, possibly to consumers’ detriment, is an answer that still adheres to the Prime Direction. The managers are ignorant. Not ignorant in the sense of being stupid, but rather, they are unaware that anything might be wrong. They are unable to perceive any view other than their own. As a result, they do not perceive any problem when they provide product features customers don’t really desire, or focus on individual consumer desires instead of needs of the greater society, or serve consumer desires that those same consumers would be better off without because those consumers don’t know what they really need. Cheating just a little bit- in the context of the situation the businessperson was likely able to rationalize his actions as being a proper thing to do. 9- Dave Carroll’s is a misleading indicator of consumer power because he does not represent the average consumer. Most consumers do not possess the ability to write a country song, produce a music video for it and have it go viral. Had this incident happened to an every day consumer it would have never received the media attention that it did and would have likely gone unresolved.
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'