Management and Organizational Studies 2320A/B Chapter Notes - Chapter 4: Consumerism, Longrun, Planned Obsolescence

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2320A/B
• Professor: Kevin Thompson

Document Summary

Marketing concept recognizes that organizations thrive from day to day by determining the current needs and wants of target group customers and fulfilling those needs and wants more effectively and efficiently than the competition. Marketing system causes prices to be higher which points to 3 factors: high costs of distribution. They say too many intermediaries, or that they provide unnecessary or duplicate services: high advertising and promotion costs. Modern marketing is also accused of pushing up prices to finance heavy advertising and sales promotion. Marketers respond hat advertising does add to product costs. But it adds values brands: excessive markups. Some companies mark up goods too much. High pressure selling persuade people to buy goods they had no intention of buying e. g. insurance, real estate, used cars. Poor product quality or function products not made well or services not performed well. Planned obsolescence products to become obsolete before they actually should need to be replaced.