Exam 1

Question 1

Ray Anderson and Interface

Answer 1

Mission Zero- to reduce emissions and look to the future, beyond 2020. Reduce emissions and waste.

Question 2

Triple Bottom line/balanced scorecard

Answer 2

Economic, environmental, social. States businesses must be about more than profit.

Question 3

Society mindfulness reasons

Answer 3

Technological improvements (media), rising prosperity and environmental values, awareness of earth’s limits, nongovernmental organizations (NGO’S), Branding as social phenomenon

Question 4

Define Market

Answer 4

“social arena where firms, their suppliers, customers, workers and governments interact”

Question 5

Define Marketing

Answer 5

“Activity, institutions and set of process for creating, communicating, delivering and exchanging products and services that have value for customers, clients, partners and society-at-large”

Question 6

Macromarketing

Answer 6

The big picture of marketing. Marketing systems their impact on society and society’s impact on marketing systems.

Question 7

The little M, the big M, the Biggest M

Answer 7

little M “tactical aspects of marketing at firm level”
big M “how tactical marketing impacts managerial decision making”
The biggest M “macro marketing wide angle big picture”

Question 8

Two Capital vs. Five Capital

Answer 8

Two capital financial (money) physical (goods)
Five Capital financial (money, Physical (goods), human (talents, abilities, focused interests), social capital (willingness and capability of people) Natural capital (sum total of ecological systems that support life)

Question 9

Five capital view

Answer 9

Financial (money), Physical (Goods), Human capital (talents, abilities, focused interests), social capital (willingness of people to cooperate), natural capital (sum total of ecological systems that support life)

Question 10

Alan Greenspan

Answer 10

Federal Reserve Chairman, disliked regulation and was in a firm believer in Liassez-Fair Economics, was surprised the market did not regulate itself.
Marketers sold “the American dream” to everyone even if they couldn’t afford it

Question 11

Efficient Market Hypothesis

Answer 11

at in given time in a liquid market, security prices fully reflect all available information. 3 forms weak, semi-strong, strong

Question 12

Lessons from great recession

Answer 12

Complexity of market can overwhelm elites

Develop resilience in complex markets

Question 13

Marketing system

Answer 13

network of individuals, groups and entities with economic exchange. Creates, assembles, transforms and makes available assortments.

Question 14

Resource-Advantage theory

Answer 14

Markets exist in disequilibrium, calls firms to gain a competitive advantage

Question 15

Joshua Bell

Answer 15

Without marketing could not command a price. With marketing can command $1000/minute

Question 16

Societal benefits of marketing

Answer 16

Adds value to goods and services by making them available to people that want them and at a desired price. benefits are aligned with the benefits of democracy

Question 17

Institutions

Answer 17

market exhanges

Question 18

Aggregate marketing system

Answer 18

The collection of all marketing systems in society:

Question 19

Aggregate marketing system flows

Answer 19

From the very beginning, raw product to delivery of the finished product to the final consumer

Question 20

Externalities 2 types

Answer 20

Calculated benefits or costs
Positive-flu shots it protects others by reducing spread
Negative-air pollution

Question 21

Debt Flows

Answer 21

Post WW2 credit revolution-credit cards, extensive system for loans

Question 22

Max Kieth

Answer 22

CEO of Coca-Cola created new flavors

Question 23

Primary stakeholders (SPICE)

Answer 23

S-society and communities
P-partners
I-investors
C-customers
E-employees

Question 24

Secondary stakeholders

Answer 24

government, media, competitors, NGO’s, future generations, environment

Question 25

NGO

Answer 25

Non-governmental organization

Question 26

Stakeholder mindset

Answer 26

“stewardship ethics” security and identity for members, partners include suppliers and lenders

Question 27

Costco and stakeholder mindset

Answer 27

Advocate for their consumers, 87% membership renewal, serves as a buying agent for members

Question 28

Doug Ivestor

Answer 28

CEO of Coca-Cola championed discipline, lacked diplomacy

Question 29

Agency view of management

Answer 29

Explains the relationship between principals and business

Question 30

Milton Friedman

Answer 30

“The business of business is business” social responsibility of business is to increase profits

Question 31

John Mackey

Answer 31

“Whole Foods measures success by ‘how much value we can create for all six of our most important stakeholders: customers, employees, investors, vendors, communities and the environment.”

Question 32

Corporate Responsibility (CSR)

Answer 32

the duties of a firm to society

Question 33

UN Global Compact

Answer 33

To align business operations and strategies with 10 principles in the areas of human rights, labor, environment, and anti-corruption

Question 34

International Standards organization

Answer 34

to ensure that products and services are safe, reliable and of good quality

Question 35

Novo Nordisk

Answer 35

Pharmaceutical company-drugs for people with diabetes, hemophilia, and growth hormone deficiency

Question 36

ESG and sustainabiltiy reporting

Answer 36

Environmental, Social and Governance. investors seek sustainable companies, some countries make sustainability reporting mandatory

Question 37

Concious capatilism

Answer 37

view a business as a community of people working together to create value for other people and all the stakeholders.