Management and Organizational Studies 2320A/B Chapter Notes - Chapter 4: Progressive Tax, North American Free Trade Agreement, Meat Industry
20 Feb 2013
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Document Summary
Chapter 4: social responsibility and ethics: sustainable marketing. Societal marketing concept: considers the future welfare of consumers. Strategic planning concept: considers future company needs. Consumers hold mixed and slightly unfavourable attitudes toward marketing practices. High prices: marketing system causes prices to be higher than they would be under more sensible systems due to three factors: high costs of distribution: Intermediaries mark up prices beyond the value of their services. Markups reflect services that consumers themselves want and unnecessary/duplicate services. Consumers pay for excessive costs in the margins low form of higher prices: high advertising and promotion costs: Marketers push up prices to finance heavy advertising and sales promotion. Packaging and promotion adds only psychological value rather than function value. Adds value to product by informing the availability and merits of the brand. Consumers want and are willing to pay more for products that provide psychological benefits. Necessary for firm to match competitor"s efforts: excessive markups:
