...possibility of producing defective products. If a company finds out that there have been defective products that have been produced and put out into the market it would be in their best interests for the company itself to find out first instead of their consumers. When consumers are the ones to notice first about the defective products, it can make news and the trust and credibility of the company can or will be lost. A few prime examples were when Firestone made headlines about producing defective tires and Toyota made headlines about their vehicles having a bad brake system. The last example would be Microsoft when it came down to their production of Xbox 360s, but is a little different compared to the first two because they knew they were defective but put it out into the market anyway which cost them a loss and millions in profit and is still making it up to this day. Although Microsoft has done everything they could possibly do in order to rectify their consumers of these defective consoles, it has in fact taken them years in order to once again gain their consumers trust. In this paper I am about to attend a meeting with the new CEO and other executives and will like to share my knowledge of the potential of defective products being sold. Although I am not sure if the others are aware of this issue knowing that the defective products could possibly lead to serious issues I will try to effectively present the issue of potential defective products to the CEO, directors and...
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...Defective International Legal and Ethical Issues in Business: BUSN310 - 1303B – 02 AIU September 3,2013 Abstract When deciding to Market a product a business should consider the need for the product. First, you need to do a market analysis in the regions where you plan to sell. Secondly, you should gather the information about the competition in the area. This paper explores the options available for the Marketing Mix which consist of the 4-P’s (Price, Product, Place, and Promotion). Introduction An upcoming meeting with your new company's chief executive officer (CEO) and other executives is a great opportunity for you to share your knowledge of potentially defective products being sold to customers. You are not sure if others are aware of this issue, and the defective products could possibly lead to serious injuries. To complicate matters, you are uncertain about your organization’s ethical guidelines because none have been communicated. How would you present this issue to the CEO, directors, and managers? What specific courses of action would you recommend with respect to internal actions and customer notification? In the longer term, what can be done to ensure that a strong sense of business ethics permeates your company? Consider aspects of the organization’s structure (such as adding an oversight function) as well as supporting policies and procedures. Answer the following questions regarding the scenario described: How would you effectively...
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...Defective Product: Recall or Repair November 13, 2014 Within the past several months, automobile manufacturers and baby care product industries have been recalling defective products to save the life of their consumers. Consumer safety is regulated by the Consumer Product Safety Commission (CPSC), an agency that strives to “protect the public from hazardous consumer products” this includes children and families (USCPSC, 2013, p. i). In unit one the discussion related to a defective memory chip; in unit two we deal with yet another defective product, in which a lead engineer saw the need to correctly deal with a defective fuel-line component. Product safety standards have been the number one concern for all businesses from automobile to toy manufacturers. In this scenario, Minnie discovered the defective fuel-line component; unfortunately, there are some risks associated with the company continuing to sale the product even if the product will cause little to no harm to consumers. In addition, the company will face some risks if management decides to recall the product. It is the responsibility of the management team of the manufacturer to recall or notify everyone involved about the defective product - this includes consumers. Soon as Minnie notified the management that the fuel line may potentially cause harm to consumers, swift action needed to be taken to prevent any further harm and save the company’s reputation and brand name. Therefore, if the company decides...
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...This disease is progressively becoming common, fuelled mostly by the poor lifestyle choices such lack of exercise and eating unhealthy foods though the use of medicines is important, there other measures that people can take to reduce blood pressure or even prevent it from happening. What is high blood pressure? A blood pressure reading appears as two numbers; the first and higher of the two is a measure of the pressure in the arteries when the heart beats and this is known as the systolic pressure. The second number measure the pressure when the heart rests between beats and is known as diastolic pressure .For example, if your blood pressure is 120/80 that means your systolic pressure is 120 and your diastolic pressure is 80. The ideal blood pressure for an adult human should generally be bellow 120/80 mm Hg .High blood pressure is also known as hypertension and refers to blood pressure that is above 140/90 mm Hg. What are the risk factors? Risk factors that cannot be changed by circumstances are genetics, ethnicity and age. Risk factors that can be changed include being overweight or obese,eating a diet that is rich in salt,drinking too much alcohol, a sedentary lifestyle and passive aggressiveness. What is high blood pressure managed? Medicines-The use of medicine is the single most important way to manage hypertension. Since the advent of the use of these medicines in development countries, there has been a significant...
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...recommendations for internal actions and customer notification of defective products which are being sold to consumers. This paper will give insight into what I think is right, ethically, from a business stand point on how to deal with such issues. I have been presented with the opportunity to inform my CEO and other executives of defected products being sold from our company to consumers. As history has repeated itself over and over again, injuries of any kind that are due to the fault of defected products from a company can lead to million dollar law suits, an affect on a business reputation, decline in customer satisfaction and ultimately putting the company out of business. Presenting the issue at hand of defective products being sold, must come from a place of a persons own ethical values and beliefs. As a walking and talking human being employed by this company, I have morals and standards that I must follow internally and once I clock-out for the day. As a company and individually, we have a responsibility for the well-being of our consumers and ensuring that 100% satisfaction will be given. Today, with many media outlets and information being readily available for the general public, people are more prong to hold the company accountable for what products they sell which are defected. Social network sites such as Twitter and Facebook can allow citizens to freely post surveys and polls in regards to the company and it’s product based on the information that’s being released in the...
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...1.0 Parties Responsible for a Defective Product after being sold. Anyone linked to the distribution of a product can be perceived as the responsible party. This includes manufacturers, wholesalers, retail outlets, and even someone in charge of assembling or installing the product. For strict liability to apply, the exchange of a product must occur somewhere in the professional supply chain. For example, someone who sells a product on the secondary market (e.g., garage sale) cannot be held accountable for product liability. 2.0 Defendants in Product Liability Cases Generally, the claimant in a product liability case should identify all parties in the product's chain of distribution that may have caused their injuries. The following outlines the parties involved in the chain of distribution that may be liable for a defective or faulty product. In some cases, there may be more than one potential defendant in each category. 2.1 Manufacturer (engineer) Manufacturing takes place at the beginning of a product's chain of distribution. The manufacturer of a faulty product may range from a large, multinational corporation to a person working out of a garage. When a defective product is part of a larger item, the injured consumer may have a claim against both the manufacturer of the faulty part and the maker of the product itself. For instance, if a consumer was injured in a motor vehicle containing an exploding battery, they could potentially file a claim against the automaker...
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...aware of the risks associated with products being sold. Societies need assurance that the products being marketed are not harmful and that the products are completely true to what is being presented. “Marketing of defective, unsafe, and deceptive products has generated hundreds of product liability suits with increasing compensatory and punitive damages claimed and awarded.” (Boedecker and Morgan 1986; Morgan 1982) With product liability lawsuits on the rise, marketers understand the risks and consequences associated with unethical marketing behaviors. Unethical marketing behaviors could potentially cause such extreme damage to a company. So much damage, that the name or image of the company could be negatively impacted forever. Dow Corning Corporation (DCC) is just one of many corporations that have gone to trial and unsuccessfully fought cases against the public in regards to product liability. DCC is the leading global silicone supplier based out of the United States. DCC offers many products and services, but we will be discussing the use of silicone gel-filled breast implants. “In December 1991, a San Francisco jury awarded a California woman $7.34 million in retributive damages.” (Journal of Marketing, pg. 44) The jury found that DCC had marketed her a defective silicone gel-filled breast implant that made her autoimmune disease extremely worsen. DCC did not market the potential side effects that could come from using the product. DCC did not make consumers aware of...
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...Retail Advertising and Marketing Association Gen/200 Retail Advertising and Marketing Association "Consumers know precisely what's wrong with advertising. Be it TV or print or whatever, they know that advertising is never creative enough ... never as witty, inspiring, sophisticated, entertaining and downright likable as they would like it to be” (Phil Dussonberry, former BBDO advertising executive). In the world of retail things are ever changing there is a constant need for new advertising or marketing to grab the consumers attention. Without these tools a retailers profits can quickly dwindle leaving them in the dust. One great tool for retailers is the Retail Advertising and Marketing Association(RAMA). This paper will explain what RAMA is, how it can increase my professional knowledge and abilities, and how perfecting my knowledge and abilities can affect my career success. The Retail Advertising & Marketing Association (RAMA) is a trade association of retail marketing and advertising professionals, plus their counterparts on the agency, media and service-provider sides of the business. RAMA is a division of the National Retail Federation, the world’s largest retail trade association (National Retail Federation, 2011). RAMA also is the producer of the annual Racie Awards Competition, the industry’s most prestigious creative contest for retail broadcast, web and print advertising (National Retail Federation, 2011). RAMA is an innovative association that connects retailers...
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...the strategic life cycle challenges for Paramount's current products as well as for Clean Edge? Changes in Non-Disposable Razor Category: The non-disposable razor category has seen changes in the recent years. A 5% growth per year from 2007 to 2010, attributed to innovations and product introductions, has to be the biggest change that the category has seen. Advertising expenditures increased dramatically for several non-disposable razor companies over the last couple of years because of the need to promote new benefits from advances in razor technologies. Changes in retail channel distribution have also been noted in the category. Male-grooming products seemed to be a bright spot in the industry from 2007 to 2010 and the segment saw more growth because shaving became more than just shaving – it started to include body spray, shower gel, etc. Channel distribution for the razor category has become increasingly important, with the recent re-introduction of Old Spice; there has been quite the demand for male-grooming products. Competitive Position: Paramount has established itself as a global consumer products giant with over $13 billion in worldwide sales and $7 billion in gross profits for 2009 since its entry into the market in 1962. Paramount established itself as unit-volume leader in 2009 based on non-disposable razor sales. The non-disposable razor category market is entering a new phase with technology products and new competitors entering the market, posing a threat to...
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... How Our Marketing Research Lead To A Position So Compelling That Consumers Chose Our Client’s Product Over A Larger, Wealthier Competitor CASE STUDY #64 “We are not as broadly distributed as our competition. What can we say - other than „free‟ that will convince consumers to inconvenience themselves and leave (or “walk”) from a retailer that doesn‟t carry our products to a retailer that does?” POINT OF VIEW We never lost sight of the mission: GET THE CUSTOMERS TO PREFER US, EVEN THOUGH WE AREN’T AS WELL DISTRIBUTED OR WEALTHY. The actionable marketing research we conducted enabled us to leap over our competitor’s entrenched, better-distributed brand, craft a message that resonated with the audience, and build preference for our client’s product. Win / Win for everybody except the competition. Situation The client had a great product, but was being outspent by the competition, which also had broader distribution. Our challenge was to craft a concept for the product so unique and compelling, it would encourage consumers to “walk” from a store they typically shop at that carries only the competitor’s product and go to a store that carries the client’s product. Approach Quantitative, qualitative and ethnographic research enabled us to uncover aspects of the client’s product that made it stand out over the competition’s. Then we developed a unique marketing research measurement that tracked awareness, interest, and the actual shopping trip. Result ...
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...potential customers. You have to figure out who your going to sell your product to and how to reach these individuals. The third challenge I see with setting up a business is coming up with the capital to start the business. It takes money to make money. Unless you have a nice savings account, you will probably have to get a business loan or find people who are willing to invest in your company. 2. Define what a “niche” product is. Give at least three examples of niche products. A niche product is something designed to appeal to specialized interests. Not for everyone, but a specific customer. Examples; speakers at the Bose store, Starbucks Coffee, a restaurant that sells Chinese food. 3. Explain why a niche company might have an advantage in a market. Would price necessarily be an advantage? Explain why or why not. A niche company has an advantage in the market because the customers are coming to the store specifically for a product that the company sells. If a woman walks into Victoria’s Secret, she’s shopping for women’s underclothes and she’s completely surrounded by women’s underclothes from the minute she walks into the store. Price might be an advantage if the company has a large enough surplus of the product, like Victoria‘s Secret. The product can be cheaper. But if the product is a specialty item the price might be higher. I think that the customer will be willing to pay more for a product at a niche...
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...STAT2011 Statistical Models sydney.edu.au/science/maths/stat2011 Semester 1, 2014 Computer Exercise Weeks 1 Due by the end of your week 2 session Last compiled: March 11, 2014 Username: mac 1. Below appears the code to generate a single sample of size 4000 from the population {1, 2, 3, 4, 5, 6}. form it into a 1000-by-4 matrix and then find the minimum of each row: > rolls1 table(rolls1) rolls1 1 2 3 4 5 6 703 625 679 662 672 659 2. Next we form this 4000-long vector into a 1000-by-4 matrix: > four.rolls=matrix(rolls1,ncol=4,nrow=1000) 3. Next we find the minimum of each row: > min.roll=apply(four.rolls,1,min) 4. Finally we count how many times the minimum of the 4 rolls was a 1: > sum(min.roll==1) [1] 549 5. (a) First simulate 48,000 rolls: > rolls2=sample(x=c(1,2,3,4,5,6),size=48000,replace=TRUE) > table(rolls2) rolls2 1 2 3 4 5 6 8166 8027 8068 7868 7912 7959 (b) Next we form this into a 2-column matrix (thus with 24,000 rows): > two.rolls=matrix(rolls2,nrow=24000,ncol=2) (c) Here we compute the sum of each (2-roll) row: > sum.rolls=apply(two.rolls,1,sum) > table(sum.rolls) sum.rolls 2 3 4 5 6 7 8 9 10 11 742 1339 2006 2570 3409 4013 3423 2651 1913 1291 1 12 643 Note table() gives us the frequency table for the 24,000 row sums. (d) Next we form the vector of sums into a 24-row matrix (thus with 1,000 columns): > twodozen=matrix(sum.rolls,nrow=24,ncol=1000,byrow=TRUE) (e) To find the 1,000 column minima use > min.pair=apply(twodozen,2,min) (f) Finally compute the...
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...Instamatic – Old Video Cameras Technology has changed greatly over the years. Specifically video cameras, they have decreased in the products size but increased in the quality over time. When video cameras were introduced back in the 1970’s, they were using an old film format as compared to digital in today’s era. As these video cameras were being developed and launched into the market for the first time, it reflected the way retailers could examine buyer behaviour. Even back when the first sets of video cameras were released, retail stores were mounting them on the ceilings not only for security purposes, but to track consumers shopping habits. This helps these stores better understand how consumers are shopping so they can predict the next move. As the format back in the 70’s was film, retailers had to manually view the cameras to predict popular areas in the store, for example. This helped retailers effectively manage their stores as they would place the newest, popular products in areas that attracted the highest number of consumers. Another way video cameras have impacted buyer behaviour is through the product mix. By retailers using cameras to evaluate their retail stores, they are able to evaluate their product density (too high or too low); amount of signage and even the labelling within the store that could’ve been confusing. A retail stores product mix is important to upper management, as they want to ensure the best possible consumer experience. In order for the customer...
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...Pick Me: Slotting Product “Some have argued that slotting allowances – and a variant known as pay-to-stay fees, paid by manufacturers to keep existing products on retailers’ shelves – harm consumers by, among other things, excluding certain manufacturers and thereby impairing competition that otherwise would take place. Defenders of slotting allowances have asserted that, among other things, they cover the cost of introducing new products to the marketplace and thereby tend to foster entry and innovation”. (ftc.gov 2001) While the Department of Justice concludes that the practice of slotting allowance is not an antitrust issue there is a possibility that there may be issues in the future with anticompetitive exclusion. Slotting allowance is a practice used by manufacturers and retailer to stock certain products on the shelves. It was most prevalent in supermarkets but spread to other store i.e. electronic stores and computer stores. For example, Microsoft pays a fee to have an end cap (spot at the end of an aisle) to display their product only. Some feel that it is an exclusivity practice that leaves out smaller businesses that cannot compete with the fees required by retailers. The process was for manufactures to introduce new product to customers. But it is now a wide spread practice to charge a fee to keep their mature (older) products on the shelf. The practice allows for retailers to build their market power. Pros and cons of slotting allowances: 1) Pros ...
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...Write a short critical essay explaining how the poor economic climate in the UK might affect the marketing mix of a start-up retail venture in the high street. I will look critically at setting up a retail business on the high street in the current economic climate and the affect this may have on the marketing mix. I will first give a brief overview of the economic situation in the UK and high street retail in general. The UK economy has undergone a protracted period of instability since the banking crisis of 2007/08, which sparked economic downturn for the UK and caused a dramatic fall in both consumer and business confidence. Between 2008 and 2012, the UK experienced two periods of recession and has been subject to austerity measures, such as public spending cuts, welfare reforms and increased taxation, imposed by the UK Government in an attempt to reduce the country’s budget deficit and reverse economic decline. These measures coupled with high inflation, rising levels of unemployment and low wage growth have contributed to less disposable household income and subsequently lower consumer spending across most of the UK. The economic constraints of the last five years, such as falling consumer spending, increasing operating costs for businesses (20% rise since 2006) alongside less available, affordable borrowing to businesses have led to large numbers of high street retailers closing their doors. The Centre for Retail Research (2013) reported that 54 retail companies...
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