Deck 3: Social and Mobile Marketing

Question 1

A health inspector found some rodent droppings in one batch of granola made by this same company. What should the company do? Base your decision on either of the ethical decision-making metrics in Exhibits 3.6 and 3.8, whichever you prefer.

Answer 1

Marketing:
Marketing refers to a function performed by a manager through which he tries to promote the goods and services of a brand or company using a relevant marketing mix.
Ethics can be defined as the reasoning behind why a person does what he does. Morals of a person can be influenced by many factors such as upbringing, political and religious views, etc.
The findings of the health inspector should be taken very seriously by the company as it can have a very negative impact on the brand image which positions itself in the market for health products. Following actions should be taken by the company to ensure that their reputation is not damaged:
1) Company should take responsibility for their mistake and should not try to downplay them.
2) The company should identify how it happened and take action against those responsible.
3) The company should set up new measures in place to avoid such incidents in the future. This might include new and strict control measures, advanced training of the employees, etc.
Following matrix will help them identify the company their confidence in their decisions:

Question 2

According to the American Marketing Association Code of Ethics, what are the six ethical values?
2. Identify the four stages in the ethical decision-making framework.

Answer 2

Marketing:
Marketing refers to a function performed by a manager through which he tries to promote the goods and services of a brand or company using a relevant marketing mix.
Marketing ethics are defined as the principles which guide the behaviour of a marketer in all the communication and other marketing activities.
1) According to association A, six codes of marketing ethics are as follows:
A. Responsibility: A company that is engaging in marketing activities should undertake the responsibility for the negative and positive consequences that might arise because of t it.
B. Honesty: Company should be fair and honest about its goals, message, objectives, etc.
C. Respect: Company should not promote a message which might be hurtful for a particular segment of the society.
D. Fairness: Company should be fair in all its dealings with all the stakeholders.
E. Transparency: Company should be fair about its business operations, how it sources and manufactures products etc.
F. Citizenship: All the marketing activities should fulfil the local legal, political, social, and other responsibilities.
2) Four stages in the ethical decision-making framework are as follows:
A. Assessment: In this step, the marketer should collect all the possible information about the dilemma that he faces.
B. Alternatives: In this step, all the possible solutions for the problem should be collected.
C. Analysis: In this step, all the solutions should be compared to understand which one is the best suited for the current objective.
D. Application Control: In this step, the selected solution should be implemented and tracked to see whether the desired results were attained or not.

Question 3

Choose a company that you believe is particularly socially responsible. Using the Corporate Social Responsibility Framework in Exhibit 3.9, justify your choice.

Answer 3

Marketing:
Marketing refers to a function performed by a manager through which he tries to promote the goods and services of a brand or company using a relevant marketing mix.
Corporate social responsibility is defined as the philanthropic activities undertaken by the companies to improve the societies that they operate in. Many companies see this with strategical importance to ensure that the goodwill is maintained with the local population and to avoid government penalties.
Company R which is a conglomerate fulfills its social responsibility effectively. Following points help us understand why:
1) Company R supports the fight against local social problems whether it is girl child education or any other social problem.
2) It listens to the feedback of its consumers and constantly engages in activities that improve its relationship with the local population and clientele.
3) Company R also ensures to incorporate sustainable methods of production to reduce its carbon footprint.

Question 4

Why are marketers likely to be faced with more ethical dilemmas than members of other functional areas, like finance, accounting, or real estate?

Question 5

Perhaps no subdiscipline of marketing receives more scrutiny regarding ethical compliance than direct marketing, a form of nonstore retailing in which customers are exposed to and purchase merchandise or services through an impersonal medium such as telephone, mail, or the Internet. Ethical issues in direct marketing cover a broad spectrum because this means of selling is conducted through all forms of communication. The Direct Marketing Association (DMA) takes ethics very seriously and has numerous programs to ensure its member organizations comply with its Code of Ethics. Go to the website for the Direct Marketing Association ( www.the-dma.org/ ). Click on "Advocacy Issues." List the different ways that the DMA was involved in assisting consumers and the industry to create a more ethical marketplace.

Question 6

Using the framework for ethical decision making presented in the chapter (Exhibit 3.6), analyze Britt's dilemma. Should she go to the company's ethics officer and report what she knows about the use of insider information?

Question 7

What ethical questions should a marketing manager consider at each stage of the marketing plan?

Question 8

Develop an argument for why a children's toy manufacturer should build and maintain an ethical climate.

Question 9

An increasing number of firms are stating their strong commitment to corporate social responsibility initiatives. The Corporate Social Responsibility Newswire Service keeps track of these various initiatives and posts stories on its website about what various corporations are doing. Go to http://www.csrwire.com/ and choose one story. Write a description of the corporation and the initiative.

Question 10

Do you feel that Britt, as the most junior member of the team, has less of an ethical duty to report the actions of the team than more senior members of the team do? Why or why not?

Question 11

How has corporate social responsibility evolved since the turn of the twentieth century?
2. Identify the inputs and outputs of the corporate social responsibility framework.

Question 12

A pharmaceutical company gives generously to charities and sponsors cancer awareness programs.It also charges remarkably high prices and receives high margins for life-saving medications, mostly targeted toward elderly consumers. Evaluate this company from an ethical and social responsibility perspective.

Question 13

If you were the ethics officer for this firm would you address the belief among employees that it is acceptable to discuss a pending proposal with members of the decision team? If so, how? If you would not discuss this belief, why not?

Question 14

A large U.S.-based dog food company is negotiating with a company in Korea to make a new line of organic dog food. The manufacturer wants a high-quality product at a reasonable cost but is concerned that the Korean workers will be underpaid and asked to work long hours in unpleasant conditions. Develop a stakeholder analysis matrix similar to that in Exhibit 3.5 to assess the impact of this decision on the relevant stakeholders.

Question 15

Based on the dog food manufacturing scenario you developed for Question 4, provide responses to Ethical Decision-Making Metric I from Exhibit 3.7. Provide a rationale for your confidence score for each question.

Question 16

A company that makes granola and other "healthy" snacks has the following mission statement: "Our goal is to profitably sell good-tasting, healthy products and to better society." Although its products are organic, they also are relatively high in calories. The company gives a small portion of its profits to the United Way. Evaluate the mission statement by using Ethical Decision-Making Metric II from Exhibit 3.9.

Question 17

The granola company described in the previous question is thinking about starting an advertising campaign directed at children that would air on Saturday morning television. Explain why you think it should or should not do so by using the ethical decision-making metrics in both Exhibits 3.6 and 3.8. Which metric do you find more useful?