3.4 The Political–Social and Cultural Environments

Question 1

Definition of Political Environment

Answer 1

Political environment:

Laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society.

Question 2

What is public policy to guide commerce?

Answer 2

Sets of laws and regulations that limit business for the good of society as a whole.

Almost every marketing activity is subject to a wide range of laws and regulations.

Question 3

Legislation affecting business around the world has increased steadily over the years. Like many other countries, Canada has laws covering issues such as…

Answer 3

Competition
Fair-trade practices
Environmental protection
Product safety
Truth in advertising
Consumer privacy
Packaging and labelling
Pricing
and other important areas

Question 4

Section 34: Pricing

Answer 4

Forbids suppliers from charging different prices to competitors purchasing like quantities of goods (price discrimination). Forbids price cutting that lessens competition (predatory pricing).

Question 5

Section 36: Pricing and Advertising

Answer 5

Forbids advertising prices that misrepresent the “usual” selling price (misleading price advertising).

Question 6

Section 36: Pricing and Advertising

Answer 6

Forbids advertising prices that misrepresent the “usual” selling price (misleading price advertising).

Question 7

Section 38: Pricing

Answer 7

Forbids suppliers from requiring subsequent resellers to offer products at a stipulated price (resale price maintenance).

Question 8

Section 38: Pricing

Answer 8

Forbids suppliers from requiring subsequent resellers to offer products at a stipulated price (resale price maintenance).

Question 9

Section 33: Mergers

Answer 9

Forbids mergers by which competition is, or is likely to be, lessened to the detriment of the interests of the public.

Question 10

National Trade Mark and True Labelling Act

Answer 10

Established the term Canada Standard, or CS, as a national trademark; requires certain commodities to be properly labelled or described in advertising for the purpose of indicating material content or quality.

Question 11

Consumer Packaging and Labelling Act

Answer 11

Provides a set of rules to ensure that full information is disclosed by the manufacturer, packer, or distributor. Requires that all prepackaged products bear the quantity in French and English in metric as well as traditional Canadian standard units of weight, volume, or measure.

Question 12

Motor Vehicle Safety Act

Answer 12

Establishes mandatory safety standards for motor vehicles.

Question 13

Food and Drug Act

Answer 13

Prohibits the advertisement and sale of adulterated or misbranded foods, cosmetics, and drugs.

Question 14

Personal Information Protection and Electronic Documents Act

Answer 14

Establishes rules to govern the collection, use, and disclosure of personal information that recognize the right of privacy of individuals.

The law recognizes the needs of organizations to collect, use, or disclose personal information for appropriate purposes.

Question 15

Business legislation has been enacted for a number of reasons.

What are they?

Answer 15

The first is to protect companies from each other

To protect consumers from unfair business practices

To protect the interests of society

Question 16

International marketers will encounter dozens, or even hundreds, of agencies set up to enforce trade policies and regulations.

What are some found in Canada?

Answer 16

In Canada, several federal agencies, such as

Health Canada
The Canadian Food Inspection Agency
Industry Canada
The Canadian Environmental Assessment Agency

Because such government agencies have some discretion in enforcing the laws, they can have a major impact on a company’s marketing performance.

Question 17

What kinds of laws do marketers need to know about and at what level?

Answer 17

Marketers need to know about the major laws protecting competition, consumers, and society. They need to understand these laws at the local, provincial/territorial, national, and international levels.

Question 18

What do “Enlightened companies” encourage in their managers/

Answer 18

Enlightened companies encourage their managers to look beyond what the regulatory system allows and simply “do the right thing.”

These socially responsible firms actively seek out ways to protect the long-run interests of their consumers and the environment.

Question 19

What are some ethical practices we should think about in the face of new technology?

Answer 19

Critics worry most about online privacy issues. There has been an explosion in the amount of personal digital data available. Users themselves supply some of it.

Legitimate businesses track consumers’ online browsing and buying behaviour and collect, analyze, and share digital data from every move consumers make at their online sites. Critics worry that these companies may now know too much and might use digital data to take unfair advantage of consumers.

Question 20

What is Cause-Related Marketing?

Answer 20

Cause-Related Marketing

To exercise their social responsibility and build more positive images, many companies are link themselves to worthwhile causes.

Question 21

What are some other names for Cause-Related marketing?

Answer 21

Some companies are founded on cause-related missions. Under the concept of “values-led business” or “caring capitalism,” their mission is to use business to make the world a better place.

Question 22

What are the benifits of Cause-Related Marketing?

Answer 22

Cause-related marketing has become a primary form of corporate giving. It lets companies “do well by doing good” by linking purchases of the company’s products or services with benefiting worthwhile causes or charitable organizations.

Beyond being socially admirable, cause-related marketing can make good economic sense for the company.

Question 23

What is some of the contravercy surrounding Cause-related marketing?

Answer 23

Critics worry that cause-related marketing is more a strategy for selling than a strategy for giving—that “cause-related” marketing is really “cause-exploitative” marketing.

Thus, companies using cause-related marketing might find themselves walking a fine line between an improved image and perceptions of exploitation or inauthenticity.

Question 24

What can happen if cause-related marketing is handled well?

Answer 24

if handled well, cause-related marketing can greatly benefit both the company and the cause. The company gains an effective marketing tool while building a more positive public image. The charitable organization or cause gains greater visibility and important new sources of funding and support.

Question 25

Definition of Cultural environment

Answer 25

Cultural environment:

Institutions and other forces that affect society’s basic values, perceptions, preferences, and behaviours.

Question 26

What are some cultural beliefs held by many Canadians?

Answer 26

People in a given society hold many beliefs and values. Their core beliefs and values have a high degree of persistence.

For example, many Canadians believe in cultural diversity (versus assimilation), democracy, gender equality, sustainable development, universal healthcare, a love of nature, hard work, and being honest. These beliefs shape more specific attitudes and behaviours found in everyday life.

Question 27

What are core beliefs?

Answer 27

Core beliefs and values are passed on from parents to children and are reinforced by schools, businesses, religious institutions, and government.

Question 28

What are secondary beliefs?

Answer 28

Secondary beliefs and values are more open to change.

Believing in marriage is a core belief; believing that people should get married early in life is a secondary belief.

Question 29

Why do marketers want to pay close attention to secondary beliefs?

Answer 29

Marketers have some chance of changing secondary values but little chance of changing core values.

Marketers want to predict cultural shifts to spot new opportunities or threats.

Question 30

What are the major cultura calues of a society expressed as?

Answer 30

The major cultural values of a society are expressed in people’s views of themselves and others as well as in their views of organizations, society, nature, and the universe.

Question 31

What are some of the variates in peoples views of themselves? How can we use this in marketing?

Answer 31

People vary in their emphasis on serving themselves versus serving others.

Some people seek personal pleasure, wanting fun, change, and escape. Others seek self-realization through religion, recreation, or the avid pursuit of careers or other life goals. Some people see themselves as sharers and joiners; others see themselves as individualists.

People use products, brands, and services as a means of self-expression, and they buy products and services that match their views of themselves.