Principles of Marketing: Chapter 4 Notes
Principles of Marketing: Chapter 4 Notes MKT 241N
Popular in Principles of Marketing
verified elite notetaker
Popular in Business
GR 3113- 01
verified elite notetaker
This 3 page Class Notes was uploaded by Lindsay Fialli on Tuesday October 4, 2016. The Class Notes belongs to MKT 241N at Salem State University taught by Timothy Goehlert in Fall 2016. Since its upload, it has received 6 views. For similar materials see Principles of Marketing in Business at Salem State University.
Reviews for Principles of Marketing: Chapter 4 Notes
Report this Material
What is Karma?
Karma is the currency of StudySoup.
Date Created: 10/04/16
Chapter 4: Marketing Ethics Business Ethics: the moral or ethical dilemmas that might arise in a business setting Marketing Ethics: examines those ethical problems that are specific to the domain of marketing Firms attempts to apply sound ethical principles must be a continuous and dynamic process Anyone involved in marketing must recognize the ethical implications of his or her actions o Societal issues, such as the sale of products or services that may damage the environment o Global issues, such as child labor o Individual consumer issues, such as deceptive advertising or the marketing of dangerous products Deceptive Advertising: a representation, omission, act, or practice in an advertisement that is likely to mislead consumers acting reasonably under the circumstances People in marketing interact directly with the public o Has the opportunity to build public trust Ethical Climate: the set of values within a marketing firm, or, in the marketing division of any firm, that guide decision making and behavior Each individual holds his or her own set of values, and sometimes those values result in inner turmoil or even conflicts between employees Once the rules are in place, there must be a system of controls that helps resolve such dilemmas and rewards appropriate behavior- that is, having consistent with the firm's values- and punishes inappropriate behavior Basic Ethical Values Marketers Should Aspire to: o Honesty o Responsibility o Fairness o Respect o Openness o Citizenship Influence of Personal Ethics Every individual is a product of his or her culture, upbringing, genes, and various other influences Survey of Unethical Behavior Among Employees o 45% participating in high-pressure, misleading, or deceptive sales tactics o 35% misrepresenting company earnings, sales, and/or revenues o 32% withholding or destroying information that could company sales or image o 31% conducting false or misleading advertisement In marketing, managers often face the choice of doing what is beneficial for them and possibly the firm in the short run and doing what is right and beneficial for the firm and society in the long run To align personal and corporate goals, firms need to have a strong ethical climate, explicit rules for the governing transactions including a code of ethics, and a system for rewarding and punishing inappropriate behavior Corporate Social Responsibility (CSR): generally entails voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders Being socially responsible generally mean going above and beyond the norms of corporate ethical behavior A Framework for Ethical Decision Making Step 1: Identify Issues Step 2: Gather Information and Identify Stakeholders o Firm focuses on gathering facts that are important to the ethical issue, including all relevant legal information o To get a complete picture, the firm must identify all the individuals and groups that have a stake in how the issue is resolved Stakeholders typically include the firm's employees & retires employees, suppliers, the government, customer groups, stock holders, and members of the community the firm operates in Step 3: Brainstorm Alternatives o All parties relevant to the decision should come together to brainstorm alternative courses of action Step 4: Choose a Course of Action o Weigh the various alternatives and choose a course of action that generates the best solution for the shareholders, using ethical practices o Management will rank the alternatives in order of preference, clearly establishing the advantages and disadvantages of each o Marketing managers use an ethical decision making metric Assess confidence in their decision Ask themselves questions: Would I want to see this action described on the front page of the local paper? Would the person I admire most engage in this activity, and would I want him or her to see me engaging in it? Can I give a clear explanation for my action, including an honest account of my motives? Will I be able to look at myself in the mirror and respect what I see? Would I want to be on the receiving end of this action and its consequences? Integrating Ethics in the Market Strategy 1 Planning Phase Include ethical statements in the firm's mission or vision statements 1 Implementation Phase Sometimes a firm's choice of target market and how it can lead to changes of unethical behavior Once the strategy is implemented, controls must be in place to be certain that the firm has actually done what it set out to do 1 Control Phase Systems must be in place to check whether each potential ethical issue raised in the planning process was successfully addressed Systems used in the control phase must also react to change Today, companies are undertaking a wide range of corporate social responsibility initiatives, such as establishing corporate charitable funds; supporting and associating with existing nonprofit groups; supporting minority activities; and following responsible marketing, sales, and production practices o Examples: diversity, fuel conservation, and alternative energy sources The most basic corporate social responsibility to employees is to ensure a safe working environment, free of threats to their physical safety, health, or well-being o Happy employees = more productive and higher quality work Especially as changes in the marketing environment emerge, firms must consider the effects on the customers who currently patronize them and future customers whom they are targeting When one firm in the industry leads the way toward CSR, its partners or competitors often have no choice but to follow- or run risk of not doing business or being left behind Firms expend considerable time and energy engaging in activities aimed at improving the overall community and the physical environment Companies cannot ignore societal demands for them to act responsibly Ethical vs Social Responsibility Socially Responsible Socially Irresponsible Ethical Both ethical and socially Ethical firm not involved with the responsible larger community Unethical Questionable firm practices, yet Neither ethical nor socially donates a lot to the community responsible Key CSR Stakeholders Employees o Employees o Their families Customers o Current customers o Potential customers Society o Community o Environment Marketplace o Partners o competitors