BUSI 141 Week 2

PRINCIPLES OF MARKETINGETHICS & SUSTAINABILITY

PROFESSOR CONRADBUSI 141

TODAY’S AGENDA•Value•The Marketing Process•Ethics•Sustainability

WHAT IS VALUE?•The amount of money that something is worth : the price or cost of something•Something that can be bought for a low or fair price•Usefulness or importance

Merriam-Webster Dictionary (2016). Accessed 09/01/16. http://meriam-webster.com

VALUE PROPOSITION•A marketplace offering that fairly and accurately sums up the value that the customer will realize if he or she purchases the product.•More than just the benefits of the product, but the benefits of the whole organization

VALUE PERSPECTIVES

Customer• Not from the features, but

the benefits• Invokes feelings,

emotions, self-awareness• Generated by customer

through WOM and social media

Organization• One sale does not provide

value• Relationship marketing• Strive for “lifetime value

of customer” (Est how much they spend – cost of maintaining relationship = LV

DIFFERENCES IN VALUE?

THE MARKETING PROCESS•Marketing plan•Written document•Describes environment•Outlines objectives and strategies• Identifies responsibilities

THE MARKET

Mass Market• Old school• All possible customers in

the market regardless of differences in wants and needs• What product uses this?

Market Segmentation• Distinct group of

customers• Similar to one another• Needs differ from the

larger group• Target market(s) – your

focus

Ethical Norms• Do no harm• Foster trust in the

marketing system• Embrace ethical values

Ethical Values• Honesty• Responsibility• Fairness• Respect• Transparency• Citizenship

WHAT IS ETHICS?AMERICAN MARKETING ASSOCIATION

(AMA)

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BUSINESS ETHICS•Basic values that guide an organization’s behavior•Governs all marketing planning decisions•Creates a strong relationship with stakeholders by building trust

UNETHICAL MARKETING•Marketing serves the rich and exploits the poor• Products are not safe• Poor-quality products• Planned obsolescence•Marketing creates an interest in products that pollute the environment• Easy consumer credit makes people buy things they don’t need and can’t afford

ETHICAL OR UNETHICAL?YOU DECIDE

• Your grandparents are in the 70’s• They were persuaded to purchase a life insurance policy of

$7,000 for $180/month• They list you as beneficiary• The agent calls you to set an appointment so she can explain

the process to file a claim and show you “some additional options available to you”• When you meet her, she spends 5 minutes explaining the

process and 45 minutes trying to sell you a policy

SUSTAINABILITY•Used in triple bottom-line orientation•“Development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (Lockrey, 2015)

Lockrey, S. (2015). A review of life cycle based ecological marketing strategy for new product development in the organizational environment. Journal of Cleaner Production, 95, 1-15.

WHY USE SUSTAINABILITY?•More than financial focus (Economic BL)•Contributes to community (Social BL)•Protect the environment (Environmental BL)

XProbe the past Prepare today

Preserve tomorrow

HOW TO USE SUSTAINABILITY?

•Target market strategies – understand attitudes•Product strategies – environmentally friendly products•Price strategies – price same or close to traditional products•Place/distribution strategies – buy from nearby suppliers•Promotion strategies – educate and inform consumers

UPCOMING ASSIGNMENTS•This week•MML – Chapter 1 Simulation: Marketing Mix due by Sunday•Start on Ethics written assignment

This Week• MML – Week 1 Simulation:

Marketing Mix due Sunday• Start on Ethics written

assignment

Next Week• Ethics written assignment due Thursday•MML – Week 2 Simulation: The Marketing Environment due Sunday• Journal Entry #2 due Sunday• Start on Journal Entries 3 & 4

WHAT DO I GOTTA DO???

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