Marketing Principles and Social Responsibility

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Questions and Answers

What is form utility in marketing?

The benefit of making products available when customers want them.

The benefit of transforming raw materials into finished products. (correct)

The benefit of allowing consumers to own and enjoy the product.

The benefit provided by storing products until they are needed.

Which of the following best describes time utility?

The benefit derived from purchasing products at a reasonable price.

The benefit of making products available where customers want them.

The benefit of transforming raw materials into finished products.

The benefit provided by storing products until they are needed. (correct)

What role do marketers play in addressing societal concerns?

They identify and respond to consumer concerns by tracking social awareness. (correct)

They uphold traditional marketing strategies without adapting to social changes.

They ignore consumer interests regarding societal issues.

They primarily focus on maximizing profit without social considerations.

What is meant by world trade?

The flow of goods and services among different countries. Signup and view all the answers

What is possession utility?

The benefit that allows consumers to take ownership of products affordably. Signup and view all the answers

Which factor requires flexibility in order to serve the needs of remote markets?

World trade. Signup and view all the answers

What is the significance of place utility in marketing?

To make products available where and when consumers require them. Signup and view all the answers

Who needs to be considered by marketers when addressing their stakeholders?

Buyers, sellers, investors, community residents, and all marketers involved. Signup and view all the answers

Which of the following is a step in the decision process to enter global markets?

Identifying which global market to enter. Signup and view all the answers

Which of these is NOT an argument for a single global marketplace?

Technological advancements. Signup and view all the answers

What is the purpose of marketing creating utility?

To provide benefits and usefulness to customers. Signup and view all the answers

Which aspect of marketing focuses on ensuring products are available when needed?

Time utility Signup and view all the answers

What is one potential benefit of taking on higher commitment levels in global market entry?

The rewards may be significantly greater despite the risks. Signup and view all the answers

What is countertrade?

Direct trade without currency exchange. Signup and view all the answers

What aspect must companies consider when developing strategies for international markets?

Adapting strategies to fit local market conditions. Signup and view all the answers

Which of these challenges impacts the future of the global marketplace?

Global warming. Signup and view all the answers

Who primarily conducts functional planning within an organization?

Top functional level management Signup and view all the answers

What is a characteristic of market planning mentioned in the content?

It includes a detailed 3 to 5 year broad plan. Signup and view all the answers

What role does the head of the marketing department play in the planning process?

They lead the planning process for each SBU. Signup and view all the answers

Which of the following elements is NOT part of market planning?

Monthly performance reviews Signup and view all the answers

How do SBUs at P&G approach their marketing plans?

Each SBU has its own specific marketing plan for different products. Signup and view all the answers

What is meant by product adaptation in global marketing decisions?

Modifying a product to suit local preferences Signup and view all the answers

Which of the following is a consequence of low ethical standards in marketing?

Loss of investor confidence Signup and view all the answers

How does ethical relativism define ethical behavior in different cultures?

Ethical behavior varies significantly across cultures Signup and view all the answers

What are gray markets in the context of pricing decisions?

Markets that exist outside of traditional distribution channels Signup and view all the answers

Which decision in the global marketing mix involves setting appropriate retail prices?

Price decisions Signup and view all the answers

Backward invention in product development refers to which of the following?

Reintroducing an older version of a product Signup and view all the answers

What is indicated by having a code of ethics in an organization?

Employees must adhere to a written standard of conduct Signup and view all the answers

Which of the following does NOT directly contribute to long-term relationships in marketing?

Unethical marketing practices Signup and view all the answers

How does income influence consumer behavior in marketing?

It directly impacts consumers' discretionary and non-discretionary spending power. Signup and view all the answers

What is a primary factor in demographic segmentation by social class?

Consumer purchasing motivations based on desired image. Signup and view all the answers

What role does geographic segmentation play in marketing?

It tailors products to meet preferences of specific geographic areas. Signup and view all the answers

What does psychographic segmentation utilize to categorize customers?

Psychological, sociological, and anthropological factors. Signup and view all the answers

What is an example of behavior segmentation approach mentioned?

Analyzing usage occasions and frequency of usage. Signup and view all the answers

How can marketers use the 80/20 rule within behavioral segmentation?

To identify that 80% of effects come from 20% of the causes. Signup and view all the answers

What does the term 'experiential loyalty' refer to in marketing?

Consumer connection to a brand through personal experiences. Signup and view all the answers

In behavioral segmentation, how might consumer usage rates be classified?

Based on the frequency and occasion of product use. Signup and view all the answers

Study Notes

Value for Society

Marketers should understand the social consciousness consumers are showing.
Consumers are increasingly concerned about equality, shown in protests.
Companies are engaging in movements for change.

Value for Clients and Partners

Marketers must meet the needs of multiple stakeholders, including buyers, sellers, investors, community residents, citizens where goods are made or sold, and everyone involved in the marketing process.

Marketing Creates Utility

Form Utility: Transforming raw materials into finished products, such as using fabric, thread, silk, and clasps to create a dress.
Place Utility: Making products available when and where customers want them, like delivering a dress from New York to Los Angeles in time for a wedding.
Time Utility: Storing products until they are needed, such as renting a wedding dress instead of buying it.
Possession Utility: Allowing consumers to own, use, and enjoy a product at a reasonable price.

Marketing on the Global Stage

Companies face uncertainty in the future of the global marketplace.
Arguments for a single marketplace are based on the challenges of globalization, with examples like the greenhouse effect, global warming, the Arab Spring, and the COVID-19 pandemic.
The text emphasizes individuals are part of a global community.

World Trade

The flow of goods and services between countries, encompassing all exports and imports of the world's nations.
Not all countries participate equally in world trade.
Marketers need flexibility to serve remote markets.
Countertrade is a consideration in global marketing.
The text cautions about unsafe products in global trade.

Steps in the Decision Process to Enter Global Markets

Step 1: Deciding whether to enter the global market or focus solely on domestic markets.
Step 2: Selecting target markets and countries, considering factors like market opportunity and potential for growth.
Step 3: Choosing an entry strategy, like exporting, foreign direct investment, or joint ventures, weighing risks and potential rewards.
Step 4: Developing marketing mix strategies for international markets, considering whether to standardize or localize the approach.

"P" or Not to "P"

Product Decisions
- Straight Extension: Using the same product domestically and internationally.
- Product Adaptation: Localizing products for specific markets.
- Product Invention: Creating new products for global markets.
- Backward Invention: Simpler product versions for developing countries.

Tweaking the Global Marketing Mix

Promotion Decisions: Adapting promotional strategies to different cultures.
Price Decisions: Determining appropriate pricing for international markets, considering factors like tariffs, currency exchange rates, and gray markets.
Place/ Distribution Decisions: Establishing distribution channels and logistics for global markets.

Ethics in Marketing Planning

Ethical behavior is crucial for long-term success in marketing.
Unethical marketing practices can damage a firm's reputation, lead to loss of investment, and harm employee retention.
Ethical standards can also impact public confidence in the economy.

Ethics in Global Business

Business ethics encompass the fundamental values that guide a firm's behavior.
Ethical behavior is often culturally nuanced, making it essential to understand different perspectives.
Ethical philosophies can guide decision-making in international business.
Ethical relativism considers the differences in ethical values across cultures, highlighting the importance of cultural sensitivity in global marketing.
A code of ethics is a written set of guidelines that all members of a company must adhere to.

Functional Planning

Functional planning is conducted by top-level managers within each functional department.
It involves developing short-term plans that support the organization's long-term strategic plan.
Market planning includes a situation analysis, a 3-5 year plan aligning with the strategic plan, and a detailed annual plan.
Organizations like P&G may have marketing plans for various product categories, addressing diverse market needs.

Segmentation for Marketing Planning

Demographic Segmentation
- Income: Marketers utilize income to match products with consumers based on their ability to purchase.
- Social Class: Marketers may target consumers based on their perceived social status, even if their actual income doesn’t reflect it.
Geographic Segmentation
- GIS (Geographic Information Systems): Marketers utilize GIS to tailor products to specific geographic regions based on consumer preferences.
Psychographic Segmentation
- Marketers use psychological, sociological, and anthropological factors to classify consumers.
- AIO's (Activities, Interests, and Opinions): Marketers understand consumer behavior through their activities, interests, and opinions.
Behavioral Segmentation
- Users vs. Nonusers: Distinguishing between consumers who use a product versus those who do not.
- 80/20 Rule: Recognizing that a small percentage of customers may drive a large percentage of sales.
- Customer Loyalty: Identifying and rewarding loyal customers.
- Experiential Loyalty: Understanding how customers interact with a brand and create emotional connections.
- Usage Rate: Categorizing customers based on how frequently they use a product.
- Long Tail Approach: Targeting niche markets with specialized products.
- Usage Occasions: Analyzing how consumers use products for different purposes.
- Marketers utilize behavioral segmentation by observing actual consumer interactions with products, considering factors beyond demographics and psychographics.

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Description

Explore the principles of marketing that emphasize societal value and utility creation. This quiz delves into how marketers can meet the needs of various stakeholders and adapt to increasing consumer demand for equality and responsibility. Understand the different types of utility in marketing and their significance.