1. Chapter 1: An Overview of Marketing
Marketing cannot be accomplished in isolation. Even though the marketing function resides with marketers, the concept of marketing must permeate the entire organization.
Chapter 1: An Overview of Marketing
Copyright 2010 by Cengage Learning Inc. All Rights Reserved

2. What is Marketing?

3. What is Marketing?
A Philosophy
An Attitude
A Perspective
A Management Orientation
A Set of Activities
Products
Distribution
Promotion
Pricing
NOTES:
Marketing has two facets. The first is that it’s a philosophy. Second, marketing is an organization function and a set of processes used to implement the philosophy.
David Packard, cofounder of Hewlett-Packard, stated that “marketing is too important to be left only to the marketing department.” Marketing is a process that focuses on delivering value and benefits to customers. It uses communication, distribution, and pricing strategies to provide customers with the goods and services they want. It includes building long-term, mutually rewarding relationships. It entails an understanding that organizations have many connected stakeholder partners, including employees, suppliers, stockholders, distributors, and others.
AMA: 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.

4. Exchange At Least Two Parties
Something of Value
Communication and Delivery
Freedom to Accept or Reject
Desire to Deal with Other Party
Conditions for Exchange
People giving up something to receive something they would rather have.

5. Customer value and beneficial relationships
What is Marketing?
Product
Price
Place
Promotion
Exchange
A B
Delivering
Value
Communicating
Creating
Customer value and beneficial relationships

6. The Four Marketing Management Philosophies
Production
Sales
Marketing
Societal
What can we make or do best?
How can we sell more aggressively?
What do customers want and need?
What do customers want and need, and how can we benefit society?
Orientation
Focus

7. Achieving a Marketing Orientation
Obtain information about customers, competitors, and markets
Examine the information from a total business perspective
Determine how to deliver superior customer value
Implement actions to provide value to customers
Discussion/Team Activity:
Discuss companies that have a market orientation. L.L. Bean Zappos.com Amazon.com Overstock.com USAA Fairmont Hotels Lexus Trader Joe’s
Discuss companies that lack(ed) a market orientation. Encyclopedia Britannica Western Union Kmart

8. Customer Value Requirements
Offer products that perform
Earn trust
Avoid unrealistic pricing
Give the buyer facts
Offer organization-wide commitment in service and after-sales support
Co-Creation

9. Sales vs. Marketing Orientations
Organization’s
Focus
Firm’s
Business
For
Whom?
Primary
Profit Goal?
Tools to Achieve
Selling goods and services
Everybody
Maximum sales volume
Primarily promotion
Inward
Sales Orientation:
Market Orientation:
Outward
Coordinated
use of all marketing activities
Customer satisfaction
Specific groups of people
Satisfying wants and needs
NOTES:
This comparison is not meant to belittle the role of promotion, especially personal selling, in the marketing mix. Salespeople in market-oriented organizations are generally perceived as problem solvers and links to supply sources and new products.
Discussion/Team Activity:
Identify organizations with sales or market orientations. Discuss the effectiveness of each organization’s strategy.

10. Why Study Marketing?

11. Why Study Marketing? Plays an important role in society
Vital to business survival, profits and growth
Offers career opportunities
Affects your life every day

12. Chapter 2: Strategic Planning for Competitive Advantage
Marketing cannot be accomplished in isolation. Even though the marketing function resides with marketers, the concept of marketing must permeate the entire organization.
Copyright 2012 by Cengage Learning Inc. All Rights Reserved

13. The Nature of Strategic Planning
Chapter 2 Strategic Planning for Competitive Advantage
The Nature of Strategic Planning
Understand the importance of strategic marketing and know a basic outline for a marketing plan.

14. Chapter 2 Strategic Planning for Competitive Advantage
The managerial process of creating and
maintaining a fit between the
organization’s objectives and resources
and evolving market opportunities.
The goal is long-term profitability
and growth.
Notes:
Strategic planning creates and maintains a fit between the organization’s resources and objectives and the evolving market opportunities. The goal is to sustain and increase long-run profitability and growth. Strategic decisions require long-term commitments of resources.
Strategic errors can threaten a firm’s survival, but a good plan can help protect and grow the firm.
Examples of strategic decisions: * General Electric shifts its focus to being an environmentally conscious company with its “Ecomagination” effort * Toys “R” Us expands its baby line, Babies “R” Us, in response to weak toy sales * McDonald’s decision to offer more healthful foods * S.C. Johnson’s introduction of Shout Color Catchers
Discussion/Team Activity:
Discuss strategic planning decisions of other companies.
Discuss why strategic planning is important for these companies.

15. Why Write a Marketing Plan?
Chapter 2 Strategic Planning for Competitive Advantage
Why Write a Marketing Plan?
Provides a basis for comparison of
actual and expected performance
Provides clearly stated activities to
work toward common goals
Serves as a reference for the success of
future activities
Provides an examination of the marketing
environment
Allows entry into the marketplace with
awareness
LOI
Notes: Writing a marketing plan allows the examination of the marketing environment in conjunction with the inner workings of the businesses. Once written it serves as a reference point for future activities, and allows the marketing manager to enter the marketplace with an awareness of problems and opportunities.

16. Marketing Plan Elements
Chapter 2 Strategic Planning for Competitive Advantage
Marketing Plan Elements
Notes:
Some elements are common to all marketing plans. These include the business mission and objectives, performing a SWOT analysis, determining a target market, and establishing a marketing mix.
Other elements that may be included are budgets, implementation timetables, required marketing research efforts, or elements of advanced strategic planning.
Exhibit 2.1: Elements of a marketing plan
The Marketing Plan Appendix contains a Marketing Plan Outline.

17. Defining the Business Mission
Chapter 2 Strategic Planning for Competitive Advantage
Defining the Business Mission
Answers the question, “What business are we in?”
Focuses on the market(s) rather than the good or service
Strategic Business Units (SBUs) may also have a mission statement
Notes:
The foundation of any marketing plan is the firm’s mission statement. The mission statement is based on an analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions. The mission statement establishes boundaries for all subsequent decisions, objectives, and strategies.
Discussion/Team Activity:
Find the mission statements for various organizations. Compare the mission statements with the markets served and the products sold by these organizations.

18. Southwest Airlines Mission Statement
Chapter 2 Strategic Planning for Competitive Advantage
Southwest Airlines Mission Statement
Notes:
The Southwest Airlines mission statement is shown here and in Exhibit 2.2.
Source:

19. Strategic Business Units (SBUs)
Chapter 2 Strategic Planning for Competitive Advantage
Strategic Business Units (SBUs)
Characteristics: An SBU HAS…
A distinct mission and specific target market
Control over its resources
Its own competitors
Plans independent of other SBUs
Notes: An organization may need to define a mission statement and objectives for a Strategic Business Unit (SBU), which is a subgroup of a single business or a collection of related businesses within the larger organization.

20. Chapter 2 Strategic Planning for Competitive Advantage
SWOT Analysis
©South-Western College Publishing S W O T
Things the company does well.
Things the company does not do well.
Conditions in the external environment that favor strengths.
Conditions in the external environment that do not relate to existing strengths or favor areas of current weakness.
Internal
External
Notes:
Performance of a situation (SWOT) analysis helps firms identify their competitive advantage.
Strengths and Weaknesses are an internal assessment. Opportunities and Threats are an external environment assessment.
Discussion/Team Activity:
Perform a SWOT analysis for companies within the same industry. How could you use this information if you worked for a particular company or for a competitive company?

21. Scanning the Marketing Environment
The process of continually acquiring/interpreting info on the events occurring outside the organization to identify and interpret potential trends.

22. Scanning the Marketing Environment

23. Chapter 2 Strategic Planning for Competitive Advantage
Marketing Objectives
“Our objective is to increase sales of Purina brand cat food by 15 percent over 2009 sales of $300 million.”
Realistic
Measurable
Time specific
Compared to a benchmark
Notes:
Objectives must also be consistent with and indicate the priorities of the organization
Objectives should flow from the business mission statement to the rest of the marketing plan

24. Criteria for Good Marketing Objectives
Chapter 2 Strategic Planning for Competitive Advantage
Criteria for Good Marketing Objectives
Realistic, measurable, and time-specific objectives consistent with the firm’s objectives:
1. Communicate marketing management philosophy
2. Provide management direction
3. Motivate employees
4. Force executives to think clearly
5. Allow for better evaluation of results

25. Competitive Advantage
Chapter 2 Strategic Planning for Competitive Advantage
Competitive Advantage
The set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition.
Niche Strategies
Cost
Product/Service Differentiation
Types of Competitive Advantage
Notes:
A firm’s competitive advantage is the reason or reasons that cause customers to patronize that firm and not the competition.

26. Cost Competitive Advantage
Chapter 2 Strategic Planning for Competitive Advantage
Cost Competitive Advantage
Being the low-cost competitor in an industry while maintaining satisfactory profit margins.
Obtain inexpensive raw materials
Create efficient plant operations
Design products for ease of manufacture
Control overhead costs
Avoid marginal customers
Notes:
Having a cost competitive advantage means being the low-cost competitor in an industry while maintaining satisfactory profit margins. This enables a firm to deliver superior customer value.
Cost leadership can result from the reasons listed on this slide.
Cost competitive advantages are subject to continual erosion.
Discussion/Team Activity:
Identify firms that have a cost competitive advantage and describe how they deliver superior value. Examples: DuPont Dell Computers Wal-Mart Corporation Southwest Airlines Nike General Electric

27. Sources of Cost Reduction
Chapter 2 Strategic Planning for Competitive Advantage
Sources of Cost Reduction
Experience Curves
Efficient Labor
No-frills Goods and
Services
Government Subsidies
Product Design
Reengineering
Production Innovations
New Service Delivery Methods
Notes:
Sources of Cost Reduction:
Experience Curves: Costs decline as experience with a product increases, and encompasses marketing, manufacturing, and administration costs.
Efficient Labor: Labor costs in low-skill, labor-intensive industries can be reduced by going offshore or by outsourcing.
No-frills Goods and Services: Removing frills and options can reduce costs.
Government subsidies: Governments may provide grants and interest-free loans for target industries.
Product design: Cutting-edge design and reverse engineering can offset costs.
Reengineering: Reengineering in the form of pruning product lines, closing obsolete factories, or renegotiating supplier contracts can make firms more efficient.
Product innovations: New technology and simplified production techniques can reduce production costs.
New methods of service delivery: Examples include: * Outpatient surgery and walk-in clinics in the medical industry * Internet ticket booking and self-check-in kiosks in the airline industry

28. Product/Service Differentiation
Chapter 2 Strategic Planning for Competitive Advantage
Product/Service Differentiation
The provision of something that is unique and valuable to buyers beyond simply offering a lower price than the competition’s.
Brand names
Strong dealer network
Product reliability
Image
Service

29. Niche Competitive Advantage
Chapter 2 Strategic Planning for Competitive Advantage
Niche Competitive Advantage
Used by small companies with limited resources
May be used in a limited geographic market
Product line may be focused on a specific product category
Discussion/Team Activity:
Discuss how a small firm serving a particular niche market can successfully compete against larger, global firms with greater resources. (For example, how might a small bookstore owner compete with Barnes & Noble and Amazon.com?)

30. Sources of Sustainable Competitive Advantage
Chapter 2 Strategic Planning for Competitive Advantage
Sources of Sustainable Competitive Advantage
Patents
Copyrights
Locations
Equipment
Technology
Customer Service
Promotion
Skills and Assets of an Organization
Notes:
A sustainable competitive advantage lasts only as long as the time it takes a competitor to imitate the strategy and plans.
Marketing managers should continually look for skills and assets that create and sustain competitive advantage.
A sustainable competitive advantage is a function of the speed with which competitors can imitate a company’s strategy and plans. Imitation requires a competitor to identify the leader’s competitive advantage, determine how it is achieved, and learn how to duplicate it.
Discussion/Team Activity:
Discuss examples of firms that have sustainable competitive advantage in each skill and asset source listed.

31. Sources of Competitive Advantage
Chapter 2 Strategic Planning for Competitive Advantage
Sources of Competitive Advantage
Sources of Competitive Advantage
Cost $
Product/Service Differentiation A vs. B vs. C
Niche Strategies

32. Strategy

33. Ansoff’s Strategic Opportunity Matrix
Chapter 2 Strategic Planning for Competitive Advantage
Ansoff’s Strategic Opportunity Matrix
Present Product
New Product
New Market
Market
Penetration
Development
Product
Diversification
Present Market
Notes:
Exhibit 2.4 is an example of Ansoff’s Strategic Opportunity Matrix for McDonald’s.
Discussion/Team Activity: Select various companies and complete the Ansoff Strategic Opportunity Matrix.

34. Strategic Alternatives
Chapter 2 Strategic Planning for Competitive Advantage
Strategic Alternatives
Market Penetration
Market
Development
Product Development
Diversification
Increase market share among
existing customers
Attract new customers to
existing products
Introduce new products
into new markets
Create new products for
present markets
Notes:
Examples of Strategic Alternatives
Market Penetration: Manufacturer cents-off coupons McDonald’s Happy Meals with Ty’s Teeny Beanie Babies
Market Development: Sara Lee is entering the market for meals on the go by introducing Hillshire Farm Salad Entrees, kits that contain meat and other ingredients that the company already makes, to be added to lettuce.
Product development: Brooks Brothers Joseph A. Bank Clothiers
Diversification: Coca-Cola’s water-treatment and water-conditioning equipment

35. Setting Strategic Direction
Where are we now?
Where do we want to go?

36. Setting Strategic Direction – Where are we now?
Customers
Competencies
Competitors
Business sectors
SWOT analysis
Environmental scanning

37. Setting Strategic Direction – Where are we now?
Competencies – an organization’s special capabilities, including skills, technologies, and resources that distinguish it from other organizations
Competitive advantage – a unique strength relative to competitors, often based on quality, time, cost, or innovation
Benchmarking – discovering how others do something better than your own firm, so you can imitate or leapfrog competition. Studying operations in completely different businesses.

38. Setting Strategic Direction – Where do we want to go?
Growth strategies
Portfolio analysis
Market growth rate versus market share
Market-Product analysis
Analyze current and new products and markets

39. Critical Factors for Success
Customer relationships (value)
Innovation (new and unique value)
Quality
Efficiency

40. Strategic Marketing Process
The activities of selecting and describing one or more target markets and developing and maintaining a market mix that will produce mutually satisfying exchanges with target markets.

41. Target Market Strategy
Chapter 2 Strategic Planning for Competitive Advantage
Target Market Strategy
Segment the market based on groups with similar characteristics
Analyze the market based on attractiveness of market segments
Select one or more target markets

42. Target Market Strategy
Chapter 2 Strategic Planning for Competitive Advantage
Target Market Strategy
Appeal to the entire market with one marketing mix
Concentrate on one marketing segment
Appeal to multiple markets with multiple marketing mixes
Notes:
Three strategies for selecting target markets are shown here. These strategies are discussed in detail in Chapter 8.
Discussion/Team Activity:
Discuss the differences in the target markets for McDonald’s, Burger King’s, and Wendy’s.

43. Focusing Marketing Strategy with Segmentation and Positioning
Defining markets
Dimensions to use
Identifying segments
Identifying segments to target
Segmentation approaches
Positioning
Understanding customer’s view
Positioning techniques
Evaluating segment preferences
Differentiating the marketing mix
Relationship between
positioning & targeting

44. Market Segmentation
Involves aggregating prospective buyers into groups that
Have common needs, and
Will respond similarly to a marketing action

45. Product Segmentation
Using different marketing mix activities (features and advertising) to demonstrate perceive differences against competing products/brands
A firm selling two or more products with different features targeted to different market segments.
Good – Better – Best
Cost – Value – Premium

46. 5 Steps to Segmenting Markets
Form prospective buyers into segments
Form products to be sold into groups
Develop a market product grid and estimate size of market
Select target markets
Design marketing activities to each target market

47. Criteria for Forming Segments
Potential for increased profit/ROI
Similarity of needs
Difference of needs
Feasibility of marketing action to reach the targeted segment
Simplicity of cost of assigning potential buyers to a segment

48. Ways to Segment Consumer Markets
Customer Characteristics
Geographic
Demographic
Socioeconomic
Psychographic
Buying Situations
Outlet type
Benefits sought
Usage
Awareness and intentions
Behavior

49. Ways to Segment Consumer Markets

50. Market Segmentation Defines Possible Target Markets
This slide relates to material on pp
: Indicates place where slide “builds” to include the corresponding point.
Broad product-market (or generic market) name goes here (The bicycle-riders product-market)
Submarket 1
(Exercisers)
Submarket 2
(Off-road
adventurers)
Submarket 3
(Transportation riders)
Submarket 4
(Socializers)
Submarket 5
(Environmentalists)
Summary Overview
Market segmentation groups customers with similar needs.
Key Issues
Here we can see five different submarkets for the broad product market of bicycle riders.
Discussion Question: What are the primary needs for each of these submarkets for bicycles? :

51. Behavioral dimensions for segmenting consumer markets
This slide relates to material in Exhibit 3-8 on page 71.
: Indicates place where slide “builds” to include the corresponding point.
Benefits sought
Thoughts
Rate of use
Type of problem solving
Information required
Brand familiarity
Purchase relationship
Kind of shopping
Needs
Summary Overview
Segmenting dimensions guide marketing mix planning. Market segmentation forces marketing managers to decide which product-market dimensions might be useful for planning marketing strategies. A product-market may be described by behavioral segmentation dimensions.
Key Issues
Needs – for example, customer needs could be economic, functional, or pscyhological;
Benefits sought tend to be situation specific – for example a car buyer could be looking for good gas mileage or the ability to seat seven people.
Thoughts – buyers may be grouped by whether they have favorable or unfavorable attitudes or beliefs about the brand or product category.
Rate of use – some customers may be heavy, medium, light or even non-users
Purchase relationship – customers could be segmented by whether they have an ongoing relationship, intermittent use, or a bad relationship.
Brand familiarity – might vary from insisting on a brand to nonrecognition or rejection.
Kind of shopping – refers to whether buyers do comparison shopping or perhaps buy on a convenience basis.
Buyers might use different problem solving approaches – and could be grouped in this way.
Or buyers may have different information needs – some customers want a lot of information while others need little.
Discussion Question: What benefits do consumers seek in purchasing and using toothpaste? How do these benefits affect segmentation among consumers of toothpaste? : : : : :

52. Segmenting business markets
This slide relates to material in Exhibit 3-9 on p. 72.
: Indicates place where slide “builds” to include the corresponding point.
Kind of relationship
Purchasing methods
Type of customer
Segmentation
Type of buying situation
How customers will use the product
Summary Overview
There are also many possible segmentation dimensions in the business or organizational market.
Key Issues
Among these dimensions are:
Kind of relationship between buyer and seller – relationships might range from weak loyalty to strong loyalty to a vendor.
Type of customer – customers may be segmented by whether they are service producers, a government agency, or a manufacturer.
Demographics variables include geographic locations, size of the company, or industry.
How the customer will use the product –will the product being sold be used in an installation, as a component or as a raw material .
Type of buying situation – some characteristics of the buying situation might include the number of people involved in the purchase or whether the buying process is centralized or decentralized.
Purchasing methods refer to factors like whether the buyer uses bids, vendor analysis, e-commerce websites, or other methods of buying. : : : : :

53. Marketing Mix – 4P’s

54. Marketing Mix: The “Four Ps”
Chapter 2 Strategic Planning for Competitive Advantage
Marketing Mix: The “Four Ps”
The starting point of the “4 Ps”
Includes
Physical unit
Package
Warranty
Service
Brand
Image
Value
Product
Products can be…
Tangible goods
Ideas
Services
Notes:
The product is the starting point of the marketing mix. It is difficult to decide on a promotion campaign, determine a price, or design a distribution strategy until the product offering and product strategy are defined.
The product is not only the physical unit but also the packaging, warranty, after-sale service, brand name, company image, value, and other factors.
Products may be tangible goods, services, and ideas.
Product decisions are discussed in Chapter 10 and 11, services marketing in Chapter 12.

55. Marketing Mix: The “Four Ps”
Chapter 2 Strategic Planning for Competitive Advantage
Marketing Mix: The “Four Ps”
Product availability where and when customers want them
All activities from raw materials to finished products
Ensure products arrive in usable condition at designated places when needed
Place
Notes:
The goal of distribution is to ensure products arrive in usable condition at the right place when customers need them.
Distribution is covered in Chapters 15 and 16.

56. Marketing Mix: The “Four Ps”
Chapter 2 Strategic Planning for Competitive Advantage
Marketing Mix: The “Four Ps”
Promotion
Role is to bring about exchanges with target markets by:
Informing
Educating
Persuading
Reminding
Includes integration of:
Personal selling
Advertising
Sales promotion
Public relations
Notes:
Promotion includes personal selling, advertising, sales promotion, and public relations.
Each element of the promotion mix is coordinated with the others to create a promotional blend. Integrated Marketing Communications is discussed in Chapters 16, 17, and 18. Technology-driven aspects of promotional marketing are covered in Chapter 21.
A good promotion strategy can increase sales, but does not guarantee success.

57. Marketing Mix: The “Four Ps”
Chapter 2 Strategic Planning for Competitive Advantage
Marketing Mix: The “Four Ps”
Price
Price is what a buyer must give up to obtain a product.
The most flexible of the “4 Ps”-- quickest to change
Competitive weapon
Price x Units Sold = Total Revenue
Notes:
Price is an important competitive weapon and is often the most flexible of the marketing mix. Of the four Ps, it can be changed most quickly.
Price multiplied by the number of units sold equals total revenue for the firm.
Pricing decisions are discussed in Chapters 19 and 20.

58. Strategic Marketing Process

59. Following Up the Marketing Plan
Chapter 2 Strategic Planning for Competitive Advantage
Following Up the Marketing Plan
Implementation
Evaluation
Control
Marketing audit is…
Comprehensive
Systematic
Independent
Periodic
Notes:
Implementation is the process that turns marketing plans into action assignments and ensures that these assignments are executed in a way that accomplishes the plan’s objectives. These activities may involve job assignments, activity descriptions, timelines, budgets, and lots of communication.
Implementation is essentially “doing what you said you were going to do.” However, many organizations repeatedly experience failures in strategy implementation.
The marketing audit provides the mechanisms for evaluating marketing results compared to the plan’s goals.

60. Effective Strategic Planning
Chapter 2 Strategic Planning for Competitive Advantage
Effective Strategic Planning
Effective Strategic Planning requires…
Continual attention – ongoing rather than annual
Creativity – challenging assumptions
Management Commitment – support and participation from the top
Notes:
Continual Attention – Strategic planning should not be an annual exercise, but rather an ongoing process because the environment is continually changing and the firm’s resources and capabilities are continually evolving.
Creativity – Managers should challenge assumptions about the firm and the environment and establish new strategies.
Management Commitment – Support from top management is arguably the most important element of successful strategic planning. 60

61. Chapter 3: Ethics and Social Responsibility61

62. Six Modes of Social Control Formal and Informal Groups
Civil Society
Chapter 3 Ethics and Social Responsibility
Six Modes of Social Control
Ethics
Self Regulation
Laws
The Media
Notes:
All six factors individually and in combination are critical in achieving a socially coherent, vibrant, civilized society. These six factors are more important today than ever before due to the increasing complexity of the global economy and the melding of customs and traditions within societies.
Formal and Informal Groups
Active Civil Society

63. Chapter 3 Ethics and Social Responsibility
Ethical Behavior
Ethics
The moral principles or values that generally govern the conduct of an individual.
People usually base their individual choice of ethical theory on their life experiences
Deontology
Utilitarianism
Casuist
Moral Relativists
Virtue Ethics
Notes:
Ethics consist of unwritten rules that we have developed for our interactions with one another.
Many ethical conflicts develop from conflicts between the differing interests of company owners and their workers, customers, the surrounding community, and other stakeholders.
Discussion/ Team Activity:
Ask students to divide into groups and discuss recent examples of incidences where the interests of a company were at odds with a stakeholder group. Students should provide their input on whether these companies behaved ethically for each situation.

64. Ethical Decision Making
Chapter 3 Ethics and Social Responsibility
Influential Factors
Extent of Problems
Top Management Actions
Potential Consequences
Social Consensus
Probability of Harm
Time Until
Consequences
Number Affected
Notes:
There is no cut-and-dried formula for making ethical decisions, but these factors influence ethical decision making and judgments.

65. Code of Ethics Code of Ethics- A guideline to help
Chapter 3 Ethics and Social Responsibility
Code of Ethics
Code of Ethics- A guideline to help
marketing managers and other
employees make better decisions.
Online Activity:
Research corporate codes of ethics and compare the codes of three companies. What common themes do you find?
Notes:
Many companies have developed a code of ethics. A national study found that 70 percent of companies surveyed offered ethics training, and 33 percent employed an ethics officer.
A code of ethics should not be too vague or too detailed.
Exhibit 3.3 contains unethical practices marketing managers may have to deal with
Discussion/Team Activity:
Discuss companies with highly praised codes of ethics.

66. Creating Ethical Guidelines
Chapter 3 Ethics and Social Responsibility
Creating Ethical Guidelines
Helps identify acceptable business practices
Helps control behavior internally
Avoids confusion in decision making
Facilitates discussion about right and wrong

67. Ethical Guidelines and Training
Chapter 3 Ethics and Social Responsibility
Ethical Guidelines and Training
Exhibit 3.3
Notes:
Exhibit 3.4 provides an ethics checklist

68. Arguments for Social Responsibility
Chapter 3 Ethics and Social Responsibility
Discussion/Team Activity:
Compare the social responsibility initiatives of H.J. Heinz and Chiquita.

69. Corporate Social Responsibility
Chapter 3 Ethics and Social Responsibility
Stakeholders
Employees
Local Community
Management
Suppliers
Notes:
The stakeholder theory asserts that responsible companies must pay attention to the interests of every stakeholder in every aspect of their operations.
Customers
Owners

70. Sustainability The idea that socially responsible companies will
Chapter 3 Ethics and Social Responsibility
Sustainability
The idea that socially
responsible companies will
outperform their peers by
focusing on the world’s social
problems and reviewing
them as opportunities to build
profits and help the
world at the same time.
Notes:
The newest theory in social responsibility is sustainability. It is a view that companies can’t thrive for long in a world where people are suffering and desperately poor.
Skeptics say business should focus on making a profit and leave social and environmental problems to nonprofit organizations and government.
Discussion/Team Activity:
Discuss the pros and cons of the idea of sustainability.

71. Cause-Related Marketing
Chapter 3 Ethics and Social Responsibility
The cooperative efforts of a “for-profit” firm and a “non-profit” organization for mutual benefit.
“Five Questions to Ask Before Participating in a Cause-Related Marketing Program”
Is this company committed?
How is the program structured?
Who does the program benefit?
How will the organization that benefits use my money?
Is the program meaningful to me?