Expert answer:Assume the role of Marketing Manager. Select a pro
Answer & Explanation:Assume the role of Marketing Manager. Select a product (good or service) that is sold in the United States and has sales opportunities in a foreign market. Apply your critical thinking skills and the knowledge you have acquired throughout this course and address the following in your Final Paper:Describe the product you selected in terms of the four utilities of customer value. Identify the product’s target market at home and in your stated foreign market.Indicate the competition of the product category in both home and foreign markets.Explain how you would apply the segmentation, targeting, and positioning (STP) approach to market the product in the foreign market.Discuss the major environmental facts and trends in the foreign markets that might affect sales of the product.Explain how you would develop, execute and measure a campaign for this product considering the four p’s (product, price, promotion, and place).Discuss the U.S. and international ethical marketing considerations.Writing the Final PaperThe Final Paper:Must be eight to ten double-spaced pages in length, and formatted according to APA style as outlined in the Ashford Writing Center.Must include a title page with the following:Title of paperStudent’s nameCourse name and numberInstructor’s nameDate submittedMust begin with an introductory paragraph that has a succinct thesis statement.Must address the topic of the paper with critical thought.Must end with a conclusion that reaffirms your thesis.Must use at least five scholarly references beyond the course text.Must document all sources in APA style, as outlined in the Ashford Writing Center.Must include a separate reference page, formatted according to APA style marketing_ethics_and_children_text.docxcorporate_social_responsibility_text.docxmarketing_process_text.docx
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MARKETING ETHICS AND CHILDREN TEXT
10.1 Responsibility to the Public
Kellogg’s “Big Breakfast” campaign blends promotion and socialmedia with a cause-related tiein. For each breakfast photouploaded to shareyourbreakfast.com, the Kellogg Companydonated a bre
akfast to an underserved child.
Associated Press
An in-store poster shows a wellknown rap artist holding a brightlycolored can of a potent fruitflavored alcoholic beverage. “Works everytime,” the ad’s slogan lasciviously proclaims. A te
levision commercialshowschildren pouring into the street to enjoy a communal breakfast o
fcereal, followed by a pitch to “share your breakfast with us and we’llshare breakfast with a
child who needs it.” A movie trailer featuringMattel’s Monster High line of dolls promises ”
It’s cool to be kind” as partof a nationwide anti-bullying campaign.
What’s going on here? Promotion—
and entertainment. The line betweenthe two has become increasingly blurred.
Asmarketing communications move into new message channels, newforms of promotions h
ave proliferated that bear little resemblance topaid advertising. The many forms of “advert
ainment” in today’s socialmedia place the burden on the public to decide if products are bei
ngpitched—and in which instances that is appropriate behavior formarketers.
When you step from being part of the general public to a role in themarketing profession, y
ou become ethically bound to serve the public’swellbeing. That will, at times, make you the target of criticism.
Criticisms of theMarketing Function
Themarketing field is frequently criticized for its negative impact on individual consumers,
other businesses, and society at large. Overthe years there have been enough instances of u
nethical behavior by businesses to warrant not just criticism but specific legislationdesigne
d to constrain damagingmarketing practices.
Critics ofmarketing have charged that some companies use unfair practices to harm other b
usinesses; some of these practices are listedin Table 10.1. Legislation designed to limit unfa
ir practices exists, but it cannot keep up with emerging methods. In December 2011online r
etailer Amazon encouraged customers to report local retailers’ prices using a specially desi
gned smartphone app and rewardedthose who did so with discounts on purchases of those
items. The move, while legal, was met with a barrage of criticism from the pressand other b
usinesses (Mandelbaum, 2011).
Table 10.1: Somemarketing practices’ effects on other businesses
Practice
Effect
Acquiring competitors
Reduces d
Using patents to protect processes
Blocks com
Spending heavily on promotions
Drives up
Demanding exclusivity in channel partnercontracts
Constrain
Pricing below costs
Discourag
Limiting the circumstances in which promotionaldiscounts are available
Constrain
Marketers may be tempted to use unethical practices to achieve competitive advantage. Each of the above may qualify
Marketing’s impact on society as a whole has been widely criticized. The emphasis on prom
otion of goods and services in the developedworld has been accused of fostering materialis
m and creating visual pollution, while contributing little to social wellbeing. Critics pointout that the market system gives industries too much power over the pu
blic interest without commensurate responsibility for thepublic’s health and safety.
The emergence of organizations like Adbusters and offerings like Adblock Plus give evidenc
e of the public’s desire to oppose the negativepractices of some businesses.
Field Trip 10.1: Adbusters and Adblock Plus
Follow these links to learn more about organizations and offerings that oppose negative pr
actices of some businesses.
Adbusters is a global network of social activists aiming to use message channels creatively t
o disrupt the way corporations wieldpower.
http://adbusters.org/
Adblock Plus software frees users’ Internet experience of loud and intrusive ads but leaves
those that are simple, static, andinformative:
http://adblockplus.org/en
In Defense ofMarketing
Marketing has indeed earned some of the criticism leveled at it—
but where would we be without it? Withoutmarketing communications,how would prospec
tive buyers learn about the goods and services that might fill their needs and desires? What
financial model wouldreplace paidmarketing communications to support the many busine
sses and organizations that are currently underwritten byadvertisers?
Marketing has value. For individuals, it assumes economic importance, allowing companies
to thrive in a competitive market and thusprovide employment. Promotional activity leads
to higher sales that in turn make more offerings more affordable to more people.Advertisin
g subsidizes much of the information and entertainment available in contemporary society
(Kurtz, 2010). Without advertisingto cover the costs of newsgathering, we would have much less access to responsible journalism. Without sponsorship
s and productplacement, we would see fewer movies and television programs.
For businesses,marketing activity leads to new customers, increased brand loyalty, and gre
ater stability and growth. Without theseimportant benefits, businesses would not be able to
provide the economic advantages they do.
Other organizations including nonprofit groups and governmental agencies frequently depl
oy the techniques ofmarketing communicationto achieve aims that benefit the public. As di
scussed in Chapter 3, selling the idea of behavioral change is so effective and widelypractic
ed it has its own term: socialmarketing. These arguments are summarized in Table 10.2.
Table 10.2: The value ofmarketing
Stakeholder
Individuals
Beneficial Effect
•
•
•
Businesses
Public
Provides employment
Makes more offerings more affordable
Subsidizes information and entertainment
•
Leads to new customers
Increases brand loyalty
Creates stability/growth
•
Promotes positive behavioral change
•
•
Marketing has value for individuals, businesses, and the general public.
UnacceptableMarketing Practices
Marketing has power. Some uses of that power fall outside acceptable boundaries, such as
manipulation of vulnerable consumers(including the very old and very young, the mentally
ill, and others at risk), invasion of privacy, and theft of personal information.
The blurring of the distinction between advertising and entertainment has been an increasi
ng concern where advertising tochildren isconcerned. Food companies have come under fir
e for their use of entertaining online games and smartphone apps to build relationshipswit
h youngchildren (Richtel, 2011).
The position of the advertising industry is that marketers are obligated to gain the trust ofc
hildren and their parents through honestmessages, while parents must accept responsibilit
y for monitoring theirchildren’s media habits and developing their consumer literacy. Astra
tegic alliance of major advertising trade associations formed theChildren’s Advertising Revi
ew Unit (CARU) in 1974 to promoteresponsibility inchildren’s advertising. CARU’s guidelin
es, which address the level ofchildren’s knowledge, sophistication, and maturity,apply to all
advertising in print, radio, and broadcast and cable television, and on the Internet directed
tochildren under age 12(Advertising Education Foundation, 2012).
Misuse of personal data is another issue that has been an object of public concern. Data bre
aches are the most obvious danger; even themost dependable and established companies o
n the Internet, such as Amazon and eBay, have not proven capable of keeping personaldata
safe (Perlroth, 2012). Financial transactions conducted over the Internet and profiles on so
cial media sites were once the mainvulnerabilities for personal data. But as devices have pr
oliferated that collect information from individuals, new vulnerabilities—andquestions—
have arisen. How will that trove of personal information be used?
Most consumers are aware that Google analyzes search terms to discover trends—
information it sells for profit. In 2009 Googleresearchers worked with the Centers for Disea
se Control to create a predictive model called Google Flu Trends that can predict regionalflu
activity with a lag of only about a day. The model is based on flurelated Web searches tied to searchers’ Internet addresses thatindicate their physical locati
on.
That Flu Trends report, originally intended to serve public health, became the cornerstone
of an advertising campaign for Vicks in late2011. The company introduced the Behind Ear
Thermometer. Vicks’s advertising agency developed a mobile campaign to reach mothers(t
he primary purchasers of thermometers) using mobile apps like Pandora that collect demo
graphic data about users. By marryingGoogle’s Flu Trends reports to the demographic data
on mobile app users, Vicks targeted its campaign for the Behind Ear Thermometer.Vicks se
nt its ads only to smartphones belonging to mothers living within 2 miles of retailers carryi
ng the Vicks thermometers. Each adnoted the location of the nearest store selling the produ
ct.
Is Vicks being helpful or creepy by taking its datadriven mobile campaign to such a degree of targetmarketing? Advertisingcommentators fel
t that because the information is useful and relevant, and the finetuned behavioral targeting is not overly obvious torecipients, the campaign does not cross t
he line into misuse of data (Newman, 2011). You may feel differently.
Acceptablemarketing practices will always be a moving target reflecting changing technolo
gy and societal norms. By its nature, themarketing discipline will always be pushing into ne
w territory in its search to break through existing advertising clutter and commandtarget c
onsumers’ attention. As newmarketing methods appear, the process of judging what practi
ces are unethical will continue.
Field Trip 10.2: Industry Self-Regulation Regarding Online Privacy
A turquoise triangular icon appearing in the upper right corner of banner ads signifies a me
ans for Internet users to improve thequality of the targeting of ads they see online. The AdC
hoice icon represents participation in the selfregulatory program for onlinebehavioral advertising developed by the industry trade grou
p Digital Advertising Alliance.
Read an article announcing the unveiling of the first ad campaign explaining what the icon i
s and how it helps users control the adsthey see online:
http://www.nytimes.com/2012/01/20/business/media/the-push-for-online-privacyadvertising.html
Visit the website of the Digital Advertising Alliance:
http://www.aboutads.info/
EthicalMarketing
Companies that serve consumers who share aMarketing 3.0 outlook will be expected to pra
ctice a philosophy of ethicalmarketingthatrequires them to be socially responsible and cult
urally sensitive. Ethicalmarketing serves the sustainability of the entire market system—
not merely corporate self-interest. A company following ethicalmarketing practices will:
1. Organize itself around its customers’ point of view and perceptions of value;
2. Seek continuous improvement and innovation; and
3. Reflect a triple bottom line of profitability, environmental health, and social progress.
Financial profit cannot take priority over social or environmental impacts. Ethicalmarketin
g benefits consumers, companies, and societyas a whole (Mish & Scammon, 2010).
Some companies go so far as to organize around a mission of achieving philanthropic goals
—
placing social progress or environmentalhealth before profits, while maintaining a commit
ment to all three measures of the triple bottom line. This structure, which may be forprofit or nonprofit, is known as the social enterprise model. This model is particularly neces
sary in emerging markets where socialneeds are greatest. “Eradicating poverty is arguably
humankind’s biggest challenge,” wrote the authors of Marketing 3.0. Promotion ofentrepren
eurship, more than governmental or nonprofit aid groups, will be the force that lifts the wo
rld’s poor toward greater security.Why? Because corporations already operate in a market
structure that leads to economic development. By bringing this structure to thedeveloping
world, even if only to expand markets for their offerings, corporations can play a major role
in achieving greater human rightsand well-being for the world’s poor (Kotler et al., 2010).
An example of a social enterprise is Culture Kitchen of San Francisco, which connects local f
ood lovers to immigrant women who canteach them to cook authentic ethnic cuisine. Foun
ders Abby Sturges and Jennifer López describe their vision as “showing that much moretha
n food gets made in the kitchen.” The women they employ (who represent seven different c
ultural traditions) prepare ethnic disheswhile sharing stories about their recipes and cultur
e. The classes allow participants to feel as though they are in a grandmother’s kitchen,choo
sing to cook or just to watch before sitting down to eat together (Springwise.com, 2012).
Whether or not companies organize as social enterprises, corporate social responsibility (C
SR) is the foundation on which they buildethicalmarketing practices. This form of selfregulation is built into a company’s business model and corporate values. It takes the form
of written policies to ensure compliance with the spirit (not just the letter) of laws governi
ngmarketing practice and to the unwritten lawof ethical standards. The goal of a company’s
CSR policy is to embrace responsibility for its actions, to encourage positive impact (Wood,
1991).
Can ethicalmarketing be sustainable, given the intense competition in most industries? Can
organizations remain competitive whilecommitted to social responsibility? Yes—
if they can find a structure that supports caring without creating competitive disadvantage.
Evenif the moral and ethical legitimacy of social responsibility is evident, the fact remains t
hat such initiatives cost money, and organizationsface an economic imperative to remain pr
ofitable, which means remaining competitive.
Competition solely on price leaves little room for caring. The company that can differentiat
e its offerings sufficiently can operate “in aclass by itself,” and thus afford commitment to s
ocial responsibility. The business case forethicsdriven practices can be compelling: suchpolicies create competitive advantage, attract inve
stment, reduce cost and risk of legal fines or government intervention, attract andmotivate
better talent, and foster innovation (Chavez, 2011).
EthicalMarketing in Action
Starbucks: Innovation and SocialResponsibility
We live in the time of the Responsibility Renovation; businessesare integrating social responsibility in
to their corporate culture.”Doing good is good business” in today’s marketplace. How hasStarbucks m
arketed its company as a “good” company?
Themarketing approach of British chocolate manufacturer Green & Black’s presents an exa
mple of ethicalmarketing deliveringcompetitive advantage. The chocolate industry has com
e to resemble the wine industry, with proliferating varieties and price points andsources fr
om corporate conglomerates to boutique producers. In this crowded marketplace, Green &
Black’s chose to focus on raisingconsumers’ awareness of its organic offerings and Fair Tra
de certification.
Planters developed offbeat parks in lowincome neighborhoods inNew Orleans, Washington D.C., and Manhattan with the Nutmobileand Mr. P
eanut attending ribbon-cuttings—an example of asuccessful ethicalmarketing initiative.
Associated Press
Green & Black’s marketers chose experiential and digitalmarketingtactics. From April to Oc
tober 2011, the company created an experienceat food and wine events in five U.S. cities wi
th booths designed to fosterengagement with attendees as brand ambassadors who introdu
cedflavors, explained ingredients, and entertained with dessertbuildingdemonstrations. They also hosted brief seminars about the company’sglobal sourci
ng and Fair Trade credentials. The farmers who supply cocoato Green & Black’s receive a g
uaranteed minimum price, plus additionalfunds to invest in their countries’ environmental,
social, and economicdevelopment (Birkner, 2011). The campaign created a brand relations
hipwith consumers that lifted Green & Black’s above commodity status.
Other examples of successful ethicalmarketing initiatives include thefollowing:
• In summer 2011 several major retailers pledged to put stores incommunities with limit
ed access to nutritious food—
designated”food deserts.” Executives from Walmart, Walgreens, SuperValue,and other s
tores announced a pledge to open 1,500 stores, at theurging of Michelle Obama as part
of the Partnership for a HealthierAmerica, her campaign to reduce childhood obesity (
Walsh, 2011).
• Planters, the snack nut brand owned by Kraft Food, paid for and developed parks in low
income neighborhoods in New Orleans,Washington D.C., and Manhattan. The offbeat pa
rks feature peanutinspired landscape designs, plantings of fruit and nut trees, andrain gardens. Experienti
almarketing events accompany the ribbon-cuttings, with the Nutmobile (a peanutshaped vehicle poweredby biodiesel) and Mr. Peanut himself, in signature top hat and
monocle (Foderaro, 2011).
Field Trip 10.3: Ethisphere
Ethisphere is a magazine and website with a mission to help guide business leaders toward
better business practices and corporatecitizenship while maintaining a sustainable competi
tive advantage. Each year they recognize the “World’s Most Ethical Companies”—
those its judges feel demonstrate real and sustained principled leadership within their indu
stries.
http://www.ethisphere.com/rankings-and-ratings/
As has been shown, many marketers and the corporate leaders they report to have taken se
riously their responsibility to the public’sbest interest. This comes in response to criticism
ofmarketing for contributing to confusion between advertising and entertainment, andenga
ging in practices with negative impacts on individual consumers, businesses, and society. In
defense ofmarketing, we must recognizeits contributions to a healthy marketplace. Promot
ional activity leads to growth and stability for companies; jobs, information, andentertainm
ent for individuals; andmarketing of ideas that lead to positive behavioral changes in societ
y.
Ethicalmarketing and the social enterprise business model have emerged to place value on
the triple bottom line of “profits, people,planet” over profits alone. Marketers are discoveri
ng how to use social responsibility to establish competitive differentiation that liftsthem ab
ove competing solely on price.
As the examples cited illustrate, many companies are now actively responding to the major
forces identified withMarketing 3.0. They arecarving out positions of authentic competitive
differentiation, engaging consumers in meaningful ways, and serving human andenvironme
ntal welfare through social initiatives.
Questions to Consider
During the recent recession, some state governments began to consider legalizing, licensing
, and taxing Internet gambling to generatenew revenue to help fill budget gaps. Legalizing o
nline gaming would help states maintain needed services, but it might put morepeople at ri
sk for gambling addiction. What is your view of theethics of the situation?
CORPORATE SOCIAL RESPONSIBILITY TEXT
10.3 Responsibility to Your Organization
When you accept a marketing position, you become ethically bound to serve the public and
the marketing profession. You also accept anethical responsibility to your employer. The re
lationship is not simply economic; it is a mutual dependency with impact on both employer
and employee. The employer has an obligation to consider employees’ welfare. The employ
ee has a duty to give a full measure of effortin return for a paycheck. In addition, employees
have an obligation to behave ethically in all transactions with sta …
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