CH4 Flashcards
What is conscious marketing?
Conscious marketing is an approach to marketing that recognizes four key principles: a higher purpose, stakeholders, conscious leadership and culture, and ethics. It aims to benefit the largest number of stakeholders while avoiding harm to any group.
What is the first principle of conscious marketing?
The first principle is the recognition of marketing’s greater purpose. This means acknowledging that a business should have a purpose beyond just making profits, such as being environmentally responsible or supporting local communities.
What is a stakeholder in the context of conscious marketing?
A stakeholder is anyone who might be affected by a firm’s actions. This includes not only shareholders and customers but also employees, suppliers, government agencies, the environment, and local or global communities.
What is the difference between business ethics and marketing ethics?
Business ethics focuses on general ethical principles in a commercial setting, while marketing ethics specifically addresses ethical issues related to marketing practices, such as environmental impact, the use of child labor, or misleading advertising.
What does marketing’s greater purpose encompass?
Marketing’s greater purpose goes beyond making profits. It involves considering the broader responsibilities a company has to society, including ethical, social, and environmental obligations to a wide range of stakeholders.
What is corporate social responsibility (CSR)?
Corporate social responsibility (CSR) refers to voluntary actions taken by a company to address the ethical, social, and environmental impacts of its operations, as well as the concerns of its stakeholders.
What does CSR focus on in terms of performance?
CSR focuses on achieving the triple bottom line, which measures performance based on three criteria: economic, social, and environmental performance
What is the “triple bottom line”?
The triple bottom line is a framework for measuring a company’s performance based on three key areas: economic impact, social responsibility, and environmental sustainability.
Are CSR activities mandated by law?
No, CSR activities are not mandated by law. They are voluntary actions that companies take to address the concerns of stakeholders and the broader society.
What is the relationship between CSR and conscious marketing?
CSR is an element of conscious marketing, as it aligns with the broader purpose of marketing that includes not only profit but also positive contributions to society, ethics, and sustainability.
How does conscious marketing benefit employees?
Conscious marketing benefits employees by creating a safe and supportive work environment, offering benefits like on-site daycare and flextime, and promoting work-life balance. For example, REI’s decision to close on Thanksgiving for its #OptOutside campaign prioritizes employees’ well-being, contributing to both employee happiness and company success.
How do conscious marketing efforts benefit customers?
Conscious marketing benefits customers by addressing their concerns, such as product healthiness or privacy in a digital world. It also raises consumer awareness, which can improve brand equity and drive sales. Disney’s extensive charitable giving and employee volunteer efforts reflect its commitment to customer-focused initiatives, which in turn enhance customer loyalty and trust.
How does conscious marketing influence the marketplace?
In the marketplace, firms that adopt conscious marketing practices often set trends that competitors must follow. For instance, Unilever’s sustainability initiatives, such as creating vegan Hellmann’s mayonnaise, push other companies to adopt similar responsible goals. This creates a competitive advantage for leaders in conscious marketing and encourages broader industry changes.
How does conscious marketing benefit society?
Conscious marketing benefits society by encouraging companies to engage in activities that improve communities and the environment. Firms are increasingly expected to act responsibly, and those that fail to do so risk damage to their reputation and their stakeholders. For example, societal concerns over artificial sweeteners have led companies to offer healthier alternatives, such as stevia-based products.
How does conscious marketing help balance the interests of various stakeholders?
Conscious marketing helps balance the interests of diverse stakeholders by considering the needs of employees, customers, the marketplace, society, and the environment in decision-making. By addressing these broad concerns, companies can create value for all stakeholders and avoid harm to any group, contributing to long-term business success.
How does conscious marketing affect a company’s competitive advantage?
Companies practicing conscious marketing often gain a competitive advantage by aligning with social, environmental, and ethical trends. By leading the way in responsible practices, like sustainability and social responsibility, these companies attract consumers who value these issues, making them more competitive in the marketplace.
How can conscious marketing be integrated into a firm’s culture?
Conscious marketing can be integrated into a firm’s culture by establishing decision rules and norms that encourage ethical practices throughout the organization. This is achieved by including conscious marketing principles in the firm’s mission and vision statements, as well as considering the broader impact of marketing decisions at each stage of the strategic marketing planning process.
What is the role of leadership in the planning phase of conscious marketing?
In the planning phase, strong leadership ensures that conscious marketing principles are embedded in the firm’s mission or vision statements. Leaders define the firm’s commitment to ethical policies and standards and decide how to balance stakeholder needs, guiding the company’s approach to marketing from the outset.
How can companies measure the success of their conscious marketing efforts during the control phase?
In the control phase, companies evaluate whether the conscious marketing issues raised in the planning phase have been addressed. Managers are held accountable for implementing ethical practices, and systems are in place to react to emerging issues, ensuring that marketing strategies align with conscious principles.
Why is the control phase crucial for conscious marketing?
The control phase is crucial because it ensures that conscious marketing practices are being properly executed and maintained. It involves monitoring for new ethical issues, such as privacy concerns or data security breaches, and adjusting strategies accordingly to maintain a conscious approach to marketing.
How does conscious marketing remain relevant over time?
Conscious marketing remains relevant over time by being continuously integrated into the firm’s strategic marketing process. It is an ongoing component that evolves as new issues, technologies, and societal concerns emerge, ensuring that companies maintain their ethical standards and respond appropriately to changing circumstances.
Why do consumers care about ethical marketing practices?
Consumers are increasingly motivated by ethical considerations, with studies showing that many are willing to pay more for products from companies that support causes they care about. Ethical marketing can enhance a firm’s brand equity and appeal to a growing consumer base that values social and environmental responsibility.
What is the first step in the ethical decision-making framework?
The first step is to identify the issue. This involves recognizing the ethical dilemma at hand, such as how consumer data is collected and whether it will be used in a misleading or harmful way.
What is the second step in ethical decision making?
The second step is to gather information and identify stakeholders. This includes collecting relevant facts, legal information, and identifying all individuals or groups affected by the decision, such as employees, customers, shareholders, and the wider community.
