Marketing Final Exam Part 1

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marketing
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the process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationship with stakeholders in a dynamic environment
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customers
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the purchasers of organizations’ products; the focal point of all marketing activities
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target market
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a specific group of customers on whom an organization focuses its marketing efforts
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marketing mix
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four marketing activities that a firm can control to meet the needs of customers within its target market
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product
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a good, service, or idea
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marketing mix activities
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product, place, price, promotion
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value
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customer’s subjective assessment of benefits relative to costs in determining the worth of a product
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exchanges
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provision or transfer of goods, services, or ideas in return for something of value
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stakeholders
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constituents who have a “stake”, or claim, in some aspect of a company’s products, operations, markets, industry, and outcomes
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marketing environment
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competitive, economic, political, legal and regulatory, technological, and sociocultural forces that surround the customer and affect the marketing mix
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marketing concept
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a managerial philosophy that an organization should try to satisfy customers’ needs through a coordinated set of activities that also allows the organization to achieve its goals
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Production Orientation
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manufactured goods in high demand, but intense competition
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Sales Orientation
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Need to focus on selling products to many buyers
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Market Orientation
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an organization wide commitment to researching and responding to customer needs
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customer relationship management (CRM)
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using information about customers to create marketing strategies that develop and sustain desirable customer relationships
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relationship marketing
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establishing long-term, mutually satisfying buyer-seller relationships
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customer lifetime value
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a key measurement that forecasts a customer’s lifetime economic contribution based on continued relationship marketing efforts
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green marketing
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a strategic process involving stakeholder assessment to create meaningful long-term relationships with customers while maintaining, supporting, and enhancing the natural environment
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strategic marketing management
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the process of planning, implementing, and evaluating the performance of marketing activities and strategies, both effectively and efficiently
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strategic planning
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the process of establishing an organizational mission and formulating goals, corporate strategy, marketing objectives, and marketing strategy
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mission statement
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a long-term view, or vision, of what the organization wants to become
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corporate strategy
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a strategy that determines the means for utilizing resources int he various functional areas to reach the organization’s goals
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strategic business unit (SBU)
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a division, product line, or other profit center within the parent company
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market
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a group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products
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market share
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the percentage of a market that actually buys a specific product from a particular company
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market growth/market share matrix
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a helpful business tool, base don the philosophy that a product’s market growth rate and its market share are important considerations in determining its marketing strategy.
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stars
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dominant share of the market and good prospects for growth (BCG)
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cash cows
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dominate share of the market, but low prospects for growth (BCG)
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dogs
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subordinate share of the market and low prospects for growth
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question marks
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small share of a growing market and require a large amount of cash to build market share
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core competencies
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things a company does extremely well, which sometimes give it an advantage over its competition
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market opportunity
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a combination fo circumstances and timing that permits an organization to take action to reach a particular target market
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strategic windows
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temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a company competing in that market
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competitive advantage
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the result of a company matching a core competency to opportunities it has discovered in the marketplace
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SWOT analysis
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assessment of an organization’s strengths, weaknesses, opportunities, and threats
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opportunities
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favorable conditions in the environment that could produce rewards for the organization if acted upon
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threats
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barriers that could prevent the company from reaching its objectives
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first-mover advantage
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the ability of an innovative company to achieve long-term competitive advantages by being the first to offer a certain product in the marketplace
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late-mover advantage
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the ability of later market entrants to achieve long-term competitive advantages by not being the first to offer a certain product in a marketplace
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marketing objective
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statement of what is to be accomplished through marketing activities
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marketing strategy
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plan of action for identifying and analyzing a target market and developing a marketing mix to meet the needs of that market
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sustainable competitive advantage
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an advantage that the competition cannot copy
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marketing implementation
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the process of putting marketing strategies into action
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centralized organization
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a structure in which top-level managers delegate little authority to lower levels
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decentralized organization
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decision-making authority is delegated as far down the chain of command as possible
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strategic performance evaluation
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establishing performance standards, measuring actual performance, comparing actual performance with established standards, and modifying the marketing strategy, if needed
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performance standard
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an expected level of performance against which actual performance can be compared
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sales analysis
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analysis of sales figures to evaluate a firm’s performance
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marketing cost analysis
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analysis of costs to determine which are associated with specific marketing efforts
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marketing plan
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a written condiment that specifies the activities to be performed to implement and control the organization’s marketing strategies
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environmental scanning
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the process of collecting information about forces in the marketing environment
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environmental analysis
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process of assessing and interpreting the information gathered through environmental scanning
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competition
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other organizations that market products that are similar to or can be substituted for a marketer’s products in the same geographic area
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brand competitors
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firms that market products with similar features and benefits to the same customers at similar prices; Coke v Pepsi
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product competitors
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firms that compete in the same product class but market products with different features, benefits, and prices; Coke v. juice
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generic competitors
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firms that provide very different products that solve the same problem or satisfy the same basic customer need; Coke v. tap water
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total budget competitors
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firms that compete for the limited financial resources of the same customers; Coke v. gum
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monopoly
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competitive structure in which an organization offers a product that has no close substitutes, making that organization the sole source of supply
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oligopoly
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a competitive structure in which a few sellers control the supply
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monopolistic competition
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a competitive structure in which a firm has many potential competitors and tries to develop a marketing strategy to differentiate its product
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pure competition
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a market structure characterized by an extremely large number of sellers, none strong enough to significantly influence price or supply
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businss cycle
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a pattern of economic fluctuations that has four stages: prosperity, recession, depression, and recovery
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prosperity
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a stage of the business cycle characterized by low unemployment and relatively high total income, which together ensure high buying power (provided the inflation rate stays low)
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recession
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a stage of the business cycle during which unemployment rises and total buying power declines, stifling both consumer and business spending
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depression
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a stage of the business cycle when unemployment is extremely high, wages are very low, total disposable income is at a minimum, and consumers lack confidence in the economy
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recovery
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a stage of the business cycle in which the economy moves from recession or depression toward prosperity
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buying power
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resources, such as money, goods, and services, that can be traded in an exchange
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income
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for an individual the amount of money received through wages, rents, investments, pensions, and subsidy payments for a given period
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disposable income
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after-tax income
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discretionary income
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disposable income available for spending and saving after an individual has purchased the basic necessities of food, clothing, and shelter
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credit
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enables people to spend future income now or in the near future
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wealth
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the accumulation of past income, natural resources, and financial resources
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willingness to spend
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an inclination to buy because of expected satisfaction from a product, influenced by the ability to buy and numerous psychological and social forces
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Federal Trade Commission (FTC)
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an agency that regulates a variety of business practices and curbs false advertising, misleading pricing, and deceptive packaging and labeling
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Better Business Bureau (BBB)
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system of nongovernmental, independent, local regulatory agencies supported by local businesses that helps settle problems between customers and specific business firms
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National Advertising Review Board (NARB)
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self-regulatory unit that considers challenges to issues raised by the National Advertising Division (an arm of the Council of Better Business Bureaus) about an advertisement
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technology
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application of knowledge and tools to solve problems and perform tasks more efficiently
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dynamics of technology
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constant change that often challenges the structures of social institutions, including social relationships, the legal system, religion, education, business, and leisure
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reach of technology
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broad nature as technology moves through society
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self-sustaining nature of technology
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technology acts as a catalyst to spur even faster development
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technology assessment
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managers attempt to foresee effects of new products and processes their firm’s operations, on other business organizations, and on society in general
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sociocultural forces
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influences in a society and its culture(s) that change people’s attitudes, beliefs, norms, customs, and lifestyles
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consumerism
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organized efforts by individuals, groups, and organizations to protect consumers’ rights
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social responsibility
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organization’s obligation to maximize its positive impact and minimize its negative impact on society
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marketing citizenship
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adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders
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stakeholder orientation
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companies that consider the diverse perspectives of stakeholders in their daily operations and strategic planning
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marketing ethics
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principles and starboards that define acceptable marketing conduct as determined by various stakeholders
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cause-related marketing
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the practice of linking products to a particular social cause on an ongoing or short-term basis
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strategic philanthropy
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synergistic use of organizational core competencies and resources to address key stakeholders’ interests and achieve both organizational and social benefits
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sustainability
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potential for the long-term well-being of the natural environment, including all biological entities, as well as the interaction among nature and individuals, organizations, and business strategies
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Consumerism rights
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informed, choose, heard
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ethical issue
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identifiable problem, situation, or opportunity requiring a choice among several actions that must be evaluated as right or wrong, ethical or unethical
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product recalls
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Companies ask customers to return products found to be defective
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bribery
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incentive offered in exchange for an illicit advantage
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price gouging
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pricing products at exorbitant levels
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bait and switch pricing
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gain consumer interest with a low-priced product, but then switch the buyer to a more expensive item or add-on
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channel stuffing
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shipping surplus inventory to wholesalers and retailers at an excessive rate
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Organizational/corporate culture
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set of values, beliefs, goals, norms, and rituals that members of an organization share
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codes of conduct
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formalized rules and standards that describe what the company expects of its employees
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ethics
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individual and group decisions
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social responsibility
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total effect of marketing decisions on society

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