BUS 223 Chapter 8: CHAPTER 8
4 Dec 2017
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Document Summary
Introduction: marketing an organizational function and a set of processes for creating, Is a consumer"s willingness to pay the only ethical constraint: promotion, product, quality and safety of their products, placement. Contractual standards for product safety: caveat emptor let the buyer beware , caveat emptor approach understands marketing on a simple model of exchange b/w buyer and seller. Responsibility for products: advertising and sales: goal to marketing is the sale, the eventual exchange b/w seller and buyer. Ethical issues in advertising: advertising provides info for market exchanges and therefore contributes to market efficiency and overall happiness. By creating wants, advertising inverted the law of supply and demand: rather than supply being a function of demand, demand turns out to be a function of supply. Marketing and advertising tend to create irrational and trivial consumer wants and this distorts the entire economy: ex) a society that cannot provide min. health care to children spends millions annual for cosmetic surgery.
