Marketing Chapter 3

Marketspace info and communication based electronic exchange environment

occupied by digitized offerings
Sherman Antitrust Act (1890) lobbying by farmers against fixed railroad price

forbid contracts, combinations, or conspiracies in restraint of trade

actual monopolies or attempts to monopolize any part of trade or commerce

Clayton Act (1914)

forbids certain actions that are likely to lessen competition, although no

actual harm has yet occurred

Robinson Patman Act (1936) large chain store Great Atlantic & Pacific Tea threaten
small companies

unlawful to discriminate in prices, charged to different purchasers of the

same product, where effect may lessen competition or help create a
monopoly

Consumerism movement started to increase the influence, power, and rights of

consumers in dealing with institutions
Consumer Product Safety Act (1972)
FTC Act of 1914 monitor unfair business practices

issue cease and desist orders

order corrective advertising

Lanham Act (1946) provide for registration of trademarks

Self-regulation alternative to government control, whereby an industry attempts to
police itself
Ex. Better Business Bureau BBB practice moral suasion and get members to
comply with standards
Ethics moral principles and values that govern the actions and decisions of an
individual or a group

Societal culture and norm laws and regulation affecting particular society
Business culture and industry practice
o Ethical exchange both parties should be better off after a transaction
o Caveat Emptor let the buyer beware
o Consumer Bill of Rights (1962) JFK
Right to safety

To be informed
To choose and be heard

Ethics of competition

Economic espionage trade secrets or proprietary information about a

companys competitors
o Illegal, unethical, criminal charges
Bribery and kickbacks often disguised as gift, consultant fees, and favors.

Corporate culture set of values, ideas, and attitudes that is learned and shared
among the members of an organization
Ex. Way they dress and manners
Code of ethics formal statement of ethical principles and rules of conduct
Whistleblowers laws protecting them for reporting illegal actions of employers
Personal moral philosophies
1. Moral idealism personal moral philosophy that considers certain individual
rights or duties as universal, regardless of outcome
a. In consumer bill of rights
2. Utilitarianism personal moral philosophy that focuses on the greatest good
for the greatest number.
a. Benefit exceed cost ethical
b. Cost exceed benefit unethical
Social responsibility
1. Profit responsibility companies have a simple duty: max profit for
owners/stakeholders
2. Stakeholder responsibility obligations an organization has to those who can
affect achievement of its objectives
3. Societal responsibility obligation organization has to preserve ecological
environ. And general public
a. Triple bottom line improve state of people, the planet, and profit to
achieve long term growth
b. Green marketing produce, promote, and reclaim environmentally
sensitive products
c. Cause marketing tying charitable contributions directly to sale of a
product
d. Sustainable development conducting business in a way that protects
natural environment while making economic progress