Textbook Notes (363,419)
Canada (158,365)
MGMA01H3 (184)
Chapter 4

Chapter 4.docx

3 Pages
Unlock Document

University of Toronto Scarborough
Management (MGM)
Tarun Dewan

 Sustainable Marketing – Marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs o Considers both future needs of business, and future needs of consumers o Calls for socially and environmentally responsible actions that meet both the immediate and future needs of customers and the company.  High Prices o Critics charge that the marketing system cause prices to be higher than they would under more ‘sensible’ systems because of:  High costs of distribution  Supermarket chains are typically left with barely 1 percent profit on their sales  High advertising and Promotion Costs  Differentiated products –cosmetics, detergents, toiletries include promotion and packaging costs that can amount to 40 percent or more of the manufacturer’s price to the retailer.  Excessive Markups  Companies mark up goods excessively, pills costing 5 cents may cost $2  Deceptive Practices o Marketers are sometimes accused of deveptive practices that lead consumers to believe they will get more value than they actually do. It falls into three groups:  Deceptive Pricing  Includes practices such as falsely advertising ‘factory/wholesale’ prices  Deceptive Promotion  Includes practices as misrepresenting the products features or performance or luring the customers to the store for a bargain that is out of stock  Deceptive Packaging  Includes exaggerating package contents through subtle design, using misleading labeling or describing size in misleading terms. o Competition Bureau acts as a watchdog to prevent such practices.  High-Pressure Selling o Salespeople are sometimes accused of high-pressure selling that persuades people to buy goods they had no intention of buying  Planned Obselence o Products are claimed obsolete before they actually need replacement  Poor Service to Disadvantaged Consumers o Critics claim that the urban poor often have to shop in smaller stores that carry inferior goods and charge higher prices o Major chain retailers are ‘redlining ‘ drawing a red line aroud disadvantaged neighbourhoods and avoiding placing stores there  Too few Social Goods o E.g. Peope sell cars (private goods) and it requires more highways, traffic control and causes air pollution etc.  Cultural Pollution o Our senses are constantly being assaulted by marketing and advertising  Marketing’s Impact on Other Businesses o Companies expand by acquiring competitors rather than by developing their own products. o Patents and heavy promotion spending keep or drive out competitors. o Companies may set their prices below costs to discourage consumers from buying competitors’ products.  Cons
More Less

Related notes for MGMA01H3

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.