...Nature and Scope of Marketing Ethics O.C. Ferrell, Ph.D. Professor of Marketing Creative Enterprise Scholar The Robert O. Anderson School And Graduate School of Management MSC05 3090 1 University of New Mexico Albuquerque, NM 87131-0001 Phone: (505) 277-3468 ocferrell@mgt.unm.edu Nature and Scope of Marketing Ethics INTRODUCTION Marketing ethics is viewed as important because of marketing’s interface with many diverse stakeholders. Marketing is a key functional area in the business organization that provides a visible interface with not only customers, but other stakeholders such as the media, investors, regulatory agencies, channel members, trade associations, as well as others. It is important when addressing marketing ethics to recognize that it should be examined from an individual, organizational, and societal perspective. Examining marketing ethics from a narrow issue perspective does not provide foundational background that provides a complete understanding of the domain of marketing ethics. The purpose of this chapter is to define, examine the nature and scope, identify issues, provide a decision-making framework, and trace the historical development of marketing ethics from a practice and academic perspective. DEFINITION OF MARKETING ETHICS Ethics has been termed the study and philosophy of human conduct, with an emphasis on the determination of right and wrong. For marketers, ethics...
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...Nature and Scope of Marketing Ethics O.C. Ferrell, Ph.D. Professor of Marketing Creative Enterprise Scholar The Robert O. Anderson School And Graduate School of Management MSC05 3090 1 University of New Mexico Albuquerque, NM 87131-0001 Phone: (505) 277-3468 ocferrell@mgt.unm.edu Nature and Scope of Marketing Ethics INTRODUCTION Marketing ethics is viewed as important because of marketing’s interface with many diverse stakeholders. Marketing is a key functional area in the business organization that provides a visible interface with not only customers, but other stakeholders such as the media, investors, regulatory agencies, channel members, trade associations, as well as others. It is important when addressing marketing ethics to recognize that it should be examined from an individual, organizational, and societal perspective. Examining marketing ethics from a narrow issue perspective does not provide foundational background that provides a complete understanding of the domain of marketing ethics. The purpose of this chapter is to define, examine the nature and scope, identify issues, provide a decision-making framework, and trace the historical development of marketing ethics from a practice and academic perspective. DEFINITION OF MARKETING ETHICS Ethics has been termed the study and philosophy of human conduct, with an emphasis on the determination of right and wrong. For marketers, ethics...
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...Nature and Scope of Marketing Ethics O.C. Ferrell, Ph.D. Professor of Marketing Creative Enterprise Scholar The Robert O. Anderson School And Graduate School of Management MSC05 3090 1 University of New Mexico Albuquerque, NM 87131-0001 Phone: (505) 277-3468 ocferrell@mgt.unm.edu Nature and Scope of Marketing Ethics INTRODUCTION Marketing ethics is viewed as important because of marketing’s interface with many diverse stakeholders. Marketing is a key functional area in the business organization that provides a visible interface with not only customers, but other stakeholders such as the media, investors, regulatory agencies, channel members, trade associations, as well as others. It is important when addressing marketing ethics to recognize that it should be examined from an individual, organizational, and societal perspective. Examining marketing ethics from a narrow issue perspective does not provide foundational background that provides a complete understanding of the domain of marketing ethics. The purpose of this chapter is to define, examine the nature and scope, identify issues, provide a decision-making framework, and trace the historical development of marketing ethics from a practice and academic perspective. DEFINITION OF MARKETING ETHICS Ethics has been termed the study and philosophy of human conduct, with an emphasis on the determination of right and wrong. For marketers, ethics...
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...Key to key account management: relationship (guanxi) model Y.H. Wong Department of Business Studies, Hong Kong Polytechnic University, Kowloon, Hong Kong Introduction There are three major marketing problems facing most international firms today: the difficulty, arising from product range diversity, of segmenting its customers and maintaining long-term relationships with key customers; second, the obstacles of obtaining long-term business contracts from big multinationals; and third, how do the firms evaluate the relationship quality of their key customers? McDonnell Douglas, Peugeot and Japanese retailer Yaohan are all fighting for higher market shares in China because they are shaken down by the Government’s policy swings and railroaded into bad partnerships with key customers who mainly squeeze for advanced technology (Clifford et al., 1997). Many companies receive a big percentage of their sales from relatively few customers. Key account management has been increasingly important in international markets. Key account programs differ considerably across countries and firms, but all organizations have to decide how to identify their own major accounts and how to organize for effective relationship building with them. The purpose of this article is to assist organizations to determine the positioning of their major customer relationships so as to formulate key account relationship marketing strategies and implement them effectively in China and other Asian countries. This article...
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...BAM461: MARKETING Name: Nam Hoai Nguyen Student ID number: s1128290 Module tutor: Kandis Watson Course: MBA Word count: 2,854 I. According to Bloisi, W., Cook, C.W. and Hunsaker, P.L (2003), consumer market refers to the purchase of goods and services purely for personal consumption. Consumer market and consumer buying behaviour must be studies and understood before an appropriate marketing plan can be developed. In general, organisations and companies need to know and understand the behaviour not only for their own customers but also for all consumers. Multiple roles of Consumers As users of a product, consumers are concerned with product features, thus users define what is needed from a product. Payers are consumers who pay for the product and are primarily concerned with its price and other financial considerations (reasonable life cycle of the product, cost of maintenance, cost of consumables, etc). Buyers focus on the logistics of the products (online, by phone, mail or retail center).In a particular purchase situation, the roles may be filled by a signal individual or by multiple people, for example, a parent may decide on the type of baby food that they wish to purchase but their partner may also beinvolved in the decision making or transaction, while the baby is the ultimate user of the food. The stages of consumer buying process The consumer buying process: Irrespective of the particular role, consumers constantly face a number of choices: -Whether...
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...change: maintaining business systems * Strategic change: renewing business system * Strategic renewal: realigns (재편성) organization with their marketplace McDonalds – reason why slowed in growth in the 1990s * What’s wrong with McDonalds pamphlet (health accusations (고소)) * Lawsuits with coffee cups * Profit decreased * Tastes changed * Increasing competition * Products were misaligned (조정불량) with emerging taste so their rigid products no longer fit Strategic renewal process must be avoided and fix strategic drift (gets far from environment rather than changing its system) * Areas (Where does change need to take place, the business and organizational system) * The Business System (how a firm makes money): The specific configuration (구성) of resources, value-adding activities and product/service offerings directed at creating value for customers * Organizational System (how a firm is organized): How a firm gets its people to work together * Organizational structure: the clustering of tasks and people into smaller groups (what criteria used to differentiate tasks and cluster? – depending on span of control… many layers of management) Business system is supported by the organization system What are structuring criteria? * Output-based * Market segment structure – different groups of clients served * Account-based structure – different major client served * Business unit structure...
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...2 The Individual and Organizational Purchase Abstract Downstream of the sector, passengers buy air tickets for private or business use. Upstream, companies buy planes, equipment and services. Further upstream, plane or satellite manufacturers-integrators also buy components from their suppliers. Understanding the needs and the processes of upstream or downstream buying is the basis of marketing. This means analyzing the individual psychological, sociocultural and psychosocial factors which enter into the buying decision. The purchase context influences the buyer’s behavior. An analysis of buying behavior is also essential in Business to Business, where the purchase is not made for an individual but for a company, involving a variable number of people. To be more commercially efficient, the supplier must take into account the special nature of the industrial purchase, in particular the specific nature of the buying center, the buying process and buying situations. First we will look at the individual purchase and then the Business to Business purchase. 2.1 The Individual Purchase 2.1.1 Factors Influencing Buying Behavior Most models present factors influencing buying behavior in a hierarchical and simplified way. In fact, this classification in terms of importance of the factors depends for the most part on the context.1 For example in Muslim countries the power of religion is very important and almost certainly dominates other factors such as...
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...the resources of the organization which includes financial, manufacturing, marketing, technology, manpower etc are marshaled in pursuit of these objectives. Johnson and Scholes provide the following definition: Strategy is the direction and scope of an organization over the long term which achieves advantage for the organization through its configuration of resources within a changing environment and to fulfill stakeholder expectations. Henry Mintzberg observes strategy as a ‘pattern in a stream of decisions’ and describes five ways of looking at strategy as; • a plan which can be defined and followed.ie a consciously intended course of action, asset of guidelines in which to deal with a situation. Strategy in this regard is therefore concerned with how the leadership try to provide organizational direction and predetermined course of action. • a ploy; a move in a competitive business game or a stream of actions intended to outwit an opponent or competitor. • a pattern of consistent behavior or a stream of actions demonstrating consistency in behavior whether intended or unintended. • a means of identifying an organizations position in an environment. This position approach sees strategy as a mediating force which organizations find and protect their positions or niches in order to meet avoid or subvert competition in the external environment. • a reflection of the perspective on the business environment.ie distinct ways in which an organization works that is derived...
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...5Frederick E. Webster, Jr. The Changing Role of Marketing in the Corporation New organization forms, including strategic partnerships and networks, are replacing sinnple market-based transactions and traditional bureaucratic hierarchical organizations. The historical marketing management function, based on the microeconomic maximization paradigm, must be critically examined for its relevance to marketing theory and practice in the 1990s. A new conception of marketing will focus on managing strategic partnerships and positioning the firm between vendors and customers in the value chain with the aim of delivering superior value to customers. Customer relationships will be seen as the key strategic resource of the business. .^ ., OR the past two decades, some subtle changes in the concept and practice of marketing have been fundamentally reshaping the field. Many of these changes have been initiated by industry, in the form of new organizational types, without explicit concern for their underlying theoretical explanation or justification. On the academic side, prophetic voices have been speaking (Amdt 1979, 1981, 1983; Thorelli 1986; Van de Ven 1976; Williamson 1975) but seldom heard because, representing several different disciplines, they did not sing as a chorus. More basically, perhaps, few listeners were ready to hear the message or to do the intellectual work necessary to pull the several themes together. Like the Peruvian Indians who thought the sails of Ihe Spanish...
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...2011. Pp. 71-81 Marketing: An Islamic Perspective Md. Mahabub Alom* and Md. Shariful Haque** The purpose of this paper is to formulate and develop a marketing definition and its framework from Islamic perspective. In present business world, market and globalization are becoming the first truly world creed which binds all corners of the globe into a world-view and set of values. Here marketing practices are playing a vital role in raising the standards of business conducts worldwide. But the roots of it are secularism, valueneutral materialism, Social-Darwinism, Utilitarianism, and ‘rational economic man’ oriented. The spirits of these isms is selfishness, persuasion of profit, and want maximization. But in contrast, Islamic world-view comprises religious values, cultural values, and universal values which can be accepted and respected universally and can visualize a consumer oriented marketing culture which can ensure a balanced synthesis of both the material and the spiritual dimensions of life which emphasize to maximize the welfare of the world and the world hereafter and can establish fraternity and socio economic justice. This descriptive study will attempt to provide a brief review of conventional marketing literature at the same time it will formulate and develop a definition of Islamic Marketing and its framework based on The Holy Quran, ×adÊth and Islamic Literature. Field of Research: Marketing Keywords: Islam, Falah, Marketing, Hikmah, Need, Mutual...
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...Chapter 1 - Defining Marketing for the 21st Century Questions to be answered 1. Why is marketing important? 2. What is the scope of marketing? 3. What are some fundamental marketing concepts and new marketing realities? 4. What are the tasks necessary for successful marketing management? Reviewing important marketing concepts, tools, frameworks and issues. The Importance of marketing * Creating demand * Introduce and gain acceptance of new products * Increasing demand creates jobs * Allow firms to more engage in socially responsible activities The scope of marketing Marketing is about identifying and meeting human and social needs. 1. Meeting needs profitably Marketing is the activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners, and society at large. We see marketing management as the art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer value. Important part of Marketing (Peter Drucker) The aim of marketing is to know and understand the customer so well that the product of service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed then is to make the product or service available. What is marketed Marketers market 10 main types of entities: * Goods...
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...Session 2 : Foundations of strategic marketing Can you say what your strategy is? Companies that don’t have a simple and clear statement of strategy are likely to fall into the category of those that have failed to execute their strategy or those that never had one. Often many employees are frustrated that no clear strategy exists for the company. Leaders of firms assume that the initiatives described in the documentation that emerges from an annual budget or a strategic planning process will ensure competitive success; they fail to appreciate the necessity of having simple and clear strategy statement that everyone can internalize and use. A well understood statement of strategy aligns behaviour within the business: it allows everyone in the organization to make individual choices that reinforce one another. With a clear definition an executives know what they’re trying to create and implementation becomes simpler as the strategy can be communicated and easily internalised. Most executives don’t actually know what all the elements of strategy statements are, which make it impossible for them to develop one. Mike Rukstad identified three components (objective, scope and advantage) of a good strategy statement and believed that executives should be forced to be clear about them. Any strategy statement must begin with a definition of the ends that the strategy is designed to achieve; the definition of the objective should include not only an end point but also a time...
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...CHANGING ROLE OF MARKETING IN THE CORPORATION Frederick E. Webster, Jr. For the past two decades, some subtle changes in the concept and practice of marketing have been fundamentally reshaping the field. Many of these changes have been initiated by industry, in the form of new organizational types, without explicit concern for their underlying theoretical explanation or justification. On the academic side, prophetic voices have been speaking (Arndt 1979, 1981, 1983; Thorelli 1986; Van de Ven 1976; Williamson 1975) but seldom heard because, representing several different disciplines, they did not sing as a chorus. More basically, perhaps, few listeners were ready to hear the message or to do the intellectual work necessary to pull the several themes together. Like the Peruvian Indians who thought the sails of the Spanish invaders on the horizon were some phenomenon of the weather and did nothing to prepare themselves for attack (Handy 1990), marketers may ignore some important information in their environment simply because it is not consistent with their past experience. The purpose of this article is to outline both the intellectual and the pragmatic roots of changes that are occurring in marketing, especially marketing management, as a body of knowledge, theory, and practice and to suggest the need for a new paradigm of the marketing function within the firm. First, the origins of the marketing management framework, the generally accepted paradigm of the marketing discipline...
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...1 Foundations of Strategic Marketing Management The primary purpose of marketing is to create long-term and mutually beneficial exchange relationships between an entity and the publics (individuals and organizations) with which it interacts. Though this fundamental purpose of marketing is timeless, the manner in which organizations undertake it continues to evolve. No longer do marketing managers function solely to direct day-to-day operations; they must make strategic decisions as well. This elevation of marketing perspectives to a strategic position in organizations has resulted in expanded responsibilities for marketing managers. Increasingly, they find themselves involved in charting the direction of the organization and contributing to decisions that will create and sustain a competitive advantage and affect long-term organizational performance. The transition of the marketing manager from being only an implementer to being a maker of organization strategy has resulted in (1) the creation of the chief marketing officer (CMO) position in many organizations and (2) the popularity of strategic marketing management as a course of study and practice. Today, almost onehalf of Fortune 1000 companies have a CMO. Although responsibilities vary across companies, a common expectation is that a CMO will assume a leadership role in defining the mission of the business; analysis of environmental, competitive, and business situations; developing business objectives and goals; and defining...
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...CHAPTER LEARNING OBJECTIVES In this chapter, we will address the following questions: 1. What is the business market, and how does it differ from the consumer market? 2. What buying situations do organizational buyers face? 3. Who participates in the business-to-business buying process? 4. How do business buyers make their decisions? 5. How can companies build strong relationships with business customers? 6. How do institutional buyers and government agencies do their buying? CHAPTER SUMMARY 1. Organizational buying is the decision-making process by which formal organizations establish the need for purchased products and services, then identify, evaluate, and choose among alternative brands and suppliers. The business market consists of all the organizations that acquire goods and services used in the production of other products or services that are sold, rented, or supplied to others. 2. Compared to consumer markets, business markets generally have fewer and larger buyers, a closer customer supplier relationship, and more geographically concentrated buyers. Demand in the business market is derived from demand in the consumer market and fluctuates with the business cycle. Nonetheless, the total demand for many business goods and services is quite price inelastic. Business marketers need to be aware of the role of professional purchasers and their influencers, the need for multiple sales calls, and the importance of direct purchasing, reciprocity, and leasing. 3. The buying...
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