Textbook: Marketing – 3rd Edition
Chapter 2: Socially Responsive Marketing
Name:___________________________________
I. The Impact of Marketing
A. Marketing Affects Businesses
1. Marketing is responsible for the activities leading to the ____________________ of the
business’s products or services for the customer’s money.
2. Marketing research allows the business to determine customer __________________
3. Effective marketing helps a business ___________________ customer needs and wants.
4. Marketing helps the business make better decisions about ___________________ to sell
and how to sell it.
B. Marketing Helps People
1. Convenient ______________________, large __________________ of products, multiple
methods of payment.
2. Better products at lower prices. Higher sales volume results in lower _________________
costs. Example: The development of computers.
3. Greater job opportunities. _____________________ of all jobs are marketing jobs. A
Bachelor’s degree in marketing in one of the top 10 degrees in demand by employers.
C. Marketing Benefits Society
1. Marketing constantly creates ____________ and ________________ products. Safer cars,
safer products, reduction in pollution, increase in recycling.
2. Marketing improves the _________________ of __________________ because marketing
provides an abundance of products and a greater selection of products.
a. Bangladesh – the annual income is $1,300, the emphasis is on subsistence living.
b. China – has the fastest growing major __________________ in the world.
c. Luxemburg – has the highest per capita income in the ___________________.
3. Extensive marketing provides higher paying __________________.
4. Marketing improves international ___________________. International trade could not
exist without effective marketing.
D. Benefits of Marketing
1.
2.
3.
4.
5.
Businesses meet consumer ________________
Consumers make better decisions
Natural resources are used more effectively
Standard of living is improved
International trade increases
II. Criticisms of Marketing
A. Common Complaints about Marketing
1. Marketing causes __________________ purchases
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2. Marketing ___________________ money
3. Marketing is not always __________________
B. The Typical Costs of Marketing
1. The average costs of sales and advertising is __________% of product costs.
2. The average costs of ALL marketing activities is _________ % of product costs.
III. Marketing Solves Problems
A. Marketing increases public awareness
1. _____________________ (environmental) Marketing – consists of marketing activities
designed to satisfy customer needs without negatively impacting the environment.
2. Green Marketing – is related to _________________________- environmentally sustainable
development.
B. Marketing helps match ____________________ with _______________________
IV. _________________ _______________________ - Concern about the consequences of actions on
others. Also refers to the duty of a business to contribute to the well being of society.
A. Benefits of Social Responsibility - Recognition in the community and ____________ _________.
B. __________________________ - The organized actions of groups of consumers seeking to
increase their influence on business practices. The societal effort to protect
consumer rights by putting legal, moral, and economic pressure on business.
C. Ralph ________________ is often called the father of __________________. He was the Green
Party Nominee for President in 1996. He ran again as a write in candidate in the 2000 Presidential
election.
D. The __________________ Bill of Rights - Presented by President ___________________ in 1960
1.
2.
3.
4.
The right to adequate and accurate information.
The right to ____________________ products.
The right to product choices.
The right to communicate their opinions to business and government.
V. Consumer Protection
A. Influencing Business Practices
1. Using the consumer vote – don’t spend your money on the product if you don’t need or want it.
2. __________________________ – an organized effort to influence a company by refusing to
purchase its products.
3. Government regulation.
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B. Consumer Laws
1. _______________________ Antitrust Act, 1890 - To increase competition among businesses by
regulating monopolies.
2. Food and Drug Act, 1906 - To control the content and labeling of food and drug products by
forming the Food and Drug Administration (FDA).
3. Federal Trade Commission Act, 1914 - To form the Federal Trade Commission (FTC) to protect
consumer rights.
4. _______________________________ Act, 1936 - To protect small businesses from unfair
pricing practices between manufacturers and large businesses The Act prohibits selling the
same product, under the same circumstances, to different customers at different prices with
intent of harming competition.
5. _____________________________________, 1966 - To require packages to be accurately
labeled and fairly represent the contents. The identity of the product; the name and place of
business of the manufacturer, packer, or distributor; and the net quantity of contents.
6. Consumer Credit Protection Act, 1968 - To require disclosure of credit requirements and rates to
loan applicants.
7. Consumer Product Safety Act, 1972 - To set safety standards and to form the Consumer Product
Safety Commission (CPSC)
8. __________________________________ Act, 1990 - To prohibit discrimination and ensure
equal opportunity for persons with disabilities.
9. Telemarketing and Consumer Fraud and Abuse Prevention Act, 1994 - To prohibit deceptive
telemarketing practices and regulate calls made to consumers’ homes
10. Millennium Digital Commerce Act, 1999 To regulate the use of electronic contracts and
signatures for Internet business transactions
11. Gramm-Leach-Bliley Financial Modernization Act, 1999 - To limit the sharing of consumer
information by requiring financial services companies to inform consumers about how private
information is handled
VI. Improving Practices
1. ______________________ – are moral principles or values based on honesty and fairness.
2. __________________ of ethics – is a set of standards or rules that guide ethical business behavior.
3. _______________-regulation – taking personal responsibility for actions. The Better Business
Bureau is an organization that works to maintain standards in business and advertising. It is
supported by local businesses, they aim to serve businesses and consumers by encouraging
voluntary ethical business practices and providing services to the public.
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4. ___________________ action – many business people are concerned about the world in which
they live. Many are active in helping solve some of society’s serious problems by investing time
and money to help their communities.
VII. Responsibilities of the Marketer
A. Product development and management
 Disclosing all substantial risks associated with a product or service
 Identifying substitutions that change the product or impact buying decisions
 Identifying extra cost-added features
B. Promotions
 Avoiding false and misleading advertising
 Rejecting high-pressure or misleading sales tactics and promotion
C. Distribution
 Not exploiting customers by manipulating the availability of a product
 Not using coercion
 Not exerting undue influence over the reseller’s choice to handle a product
D. Pricing
 Not engaging in price fixing
 Not practicing predatory pricing
 Disclosing the full price associated with any purchase
E. Marketing research
 Prohibiting selling or ______________________ disguised as conducting research
 Avoiding misrepresentation and omission of pertinent research data
 Treating clients and suppliers fairly
XVII. Ethics in Marketing
A. _________________________ to customers – businesses have a responsibility to ensure the
safety of their customers.
1. ConAgra Foods voluntarily recalled all of its peanut butter even though salmonella
contamination was not found in the products. (Salmonella was detected in one factory.)
B. Harm and _________________________ – many unethical business practices hurt consumers
and can be illegal.
1. Bernie Madoff was sentenced to 150 years imprisonment for his part in operating a Ponzi
scheme.
2. A Ponzi scheme is a fraudulent investment operation that pays returns to separate investors
from their own money or money paid by other investors rather than from any actual profit
earned.
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