Marketing 2

Define marketing ethics, ethics issue, and marketing citizenship

Marketing ethics: a dimension of social responsibility that involves principles and standards that define acceptable conduct in marketing

Ethical issues: situations that occur as a result of a moral conflict that must be resolved

Marketing citizenship: adoption of a strategic focus for fulfilling social responsibilities expected by stakeholders

Define a code of conduct and its purpose

Ethical standards for behavior within an organization guide decision-making and promote integrity.

The purpose is to formalize rules and expectations that describe what the company expects from its employees. (A formal outline)

Define social responsibility

An organization’s responsibility is to maximize its positive impact and minimize its negative impact on society

Influences on the ethical decision-making process

Individual: Personal values/principles of right and wrong

Organizational: Relationships, work groups, committees, etc., that involve a corporate culture with shared beliefs and values

Opportunity: Business/organizational conditions that limit, punish, encourage, or reward ethical/unethical decisions

Define cause-related marketing

Practice of linking products to a particular cause on an ongoing short-term basis (if you buy, we donate)

Pyramid of corporate social responsibility

Financial: Be profitable

Legal: Follow the law

Ethical: Be ethical

Philanthropic: Be a good corporate citizen

Dimensions of social responsibility

Consumerism: Activities taken by independent individuals, groups, or organizations to protect consumers’ rights

Sustainability: Consumers insisting on a good quality of life and a good environment to maintain a high standard of living

Community relations: Being a good corporate citizen, trying to improve living conditions of the community

Consumer problem solving process

Routine: frequent, low-cost items with little search and decision effort

Limited: Occasional purchase; need info about an unfamiliar brand or product category

Extended: Unfamiliar, expensive, or infrequently bought products

Impulse: Unplanned; urge to purchase immediately

Stages of consumer-buying decision process

Problem recognition: Buyer becomes aware of a desired state and actual condition; rapidly or slowly

Information search: Conducting internal and external searches for information

Evaluated alternatives: Consideration and evaluation of different options and characteristics of what’s important

Purchase: Choose product/brand; negotiate terms, settle issues, makes/terminates purchase

Post-purchase evaluation: expectations met/doubt/likely to seek reassurance

Define consumer buying behavior

Buying behavior of people who purchase products for personal use and not for business purposes

Social influences

Roles: Actions one does based on expectations of others

Family: Customer socialization, gatekeeper role, influencer role, decider role, buyer role

Reference group: Group that a buyer either identifies with, aspires to belong to, or wants to dissociate themselves from

Opinion leader: Knowledgeable person who provides specific information

Digital influencers: Opinions of those on social media

Social class: Upper, middle, working, lower

Culture: Values, knowledge, beliefs, etc.

Subcultures: Those with similar values/behavior that differ from those of surrounding culture

Influencers on consumer buying behavior

Situational: Factors that can shorten, lengthen, or terminate the buying process (Time, weather, etc.)

Psychological: People’s general behavior (mood, personality, etc.)

Social: Others’ opinions on ones buying (see social influences)

Psychological influences

Perception: Selecting, organizing, and interpreting inputs to create meaning

Motives: Internal energizing force that directs behavior towards needs/goals

Patronage motives: Influence where a person purchases

Personality: Internal traits/behavioral tendencies that result in consistent patterns of behavior

Self concept: Perception/view of self

Lifestyle: One’s pattern of living expressed through activities/interests/opinions

Maslow’s hierarchy of needs

Physiological needs → safety needs → social needs → esteem needs → self-actualization needs

Level of involvement

Intensity of interest in a product and the importance of the product to the buyer

Enduring: Lots of time/energy spent; long-term

Situational: Short and quick, little time spent

Selective exposure and selective retention

Exposure: The process of selecting inputs to be aware of and ignoring others

Retention: Remembering information that supports personal feelings/beliefs and forgetting others that don’t

4 classifications of business products

Producer: To produce products or use in daily operations

Reseller: Buys finished goods to resell

Government: For daily operations and anything/anyone that’s government-funded

Institutional: For daily operations, private organizations, hospitals, charities, etc.

Define a business market and why they buy products

Individuals or groups that purchase a specific type of product for resale, to produce other products, or for use in daily operations

Buying center roles

Users: Ones that actually use the products

Influencer: Helps develop specifications or alternatives

Buyers: Those who select suppliers and negotiate terms of purchase

Deciders: Choose the product/have final say on what’s bought

Gatekeepers: Control the flow of information to others in the buying center

Define value analysis and vendor analysis

Value: Evaluation of each component of a potential purchase

Vendor: Evaluation of current and potential vendors

Stages of buying decision process

Problem recognition

Developing product specifications: assessing needs, determining what is needed

Searching: evaluating possible products and suppliers (Value/vendor analysis)

Select: Which product/supplier to purchase from

Post-purchase evaluation

Types of business purchases

New task: First time of purchase of a product and brand

Straight rebuy: Routine purchase of the same product and brand

Modified rebuy: New-task purchase that is altered, or a straight rebuy that is modified

Concept of reciprocity

Buyer and seller purchase from one another

Consumer buyers: Purchase for personal use

Business buyers: Purchase for resale, daily use, or to produce another product

Business buying methods

Description: When products are standardized by size, shape, weight, and color

Inspection: When products have a unique characteristic and may vary

Sampling: When products are homogeneous and examining the entire lot isn’t feasible

Negotiation: For one-time projects