Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Exchange: people giving up something to receive something they would rather have.

Conditions of exchange:

1. There must be at least two parties.
2. Each party has something that might be of value to the other party.
3. Each party is capable of communication and delivery.
4. Each party is free to accept or reject the exchange offer.
5. Each party believes it is appropriate or desirable to deal with other party.

Management Philosophies:

1. Production Orientation: a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace.
2. Sales Orientation: the idea that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits.
3. Market Orientation: a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer’s decision to purchase product. It is synonymous with the marketing concept.
4. Societal Marketing Orientation: the idea that an organization exists not only to satisfy customer wants and needs and to meet organization objectives but also to preserve and enhance individuals’ and society’s long-term best interests.

Marketing Concept: the idea that the social and economic justification for an organization’s existence is the satisfaction of customer wants and needs while meeting organizational objectives.

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Strategic Planning: the managerial process of creating and maintaining a fit between the organization’s objectives and resources and evolving market opportunities.

Planning: the process of anticipating future events and determining strategies to achieve organizational objectives in the future.

Marketing planning: designing activities relating to marketing objectives and the changing marketing environment.

Marketing plan: a written document that acts as a guidebook of marketing activities for the marketing manager.

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This is part of the project I’m working on right now for my Marketing class. It’s on ethics:

Company X has been barred from entering the market in a large Asian country by collusive efforts of the local bicycle manufacturers. The company could expect to net $5 million per year from sales if it could penetrate the market. Last week a businessman from the country contacted the management of Company X and stated that he could smooth the way for the company to sell in his country for a price of $500,000. If you were responsible, what are the chances that you would pay the price?

Just by reading this summary it seems Company X has more to gain than to lose from paying the businessman and selling in the foreign country. However, if this was a real life situation, I would need more information before I could make a decision:

1- What does the $5 million represent to the overall profit of the company worldwide? It could be that the company is neting over $100 million a year. If that’s the case then risking being on the bad side of the foreign country is not worth it. Bigger investment opportunities in the future with the country could be lost.

2- Who is this businessman? Is he reliable? What kind of contacts does he have? What happens if this man decides to double-cross the company? Could the company end up paying him more money? And what does “smooth the way” really mean? Will the company be able to enter the market or just be a step closer? I definitely need to know more about this person.

3- How much would Company X have to invest to enter the market? Are we looking to import or set a division in the country? I need to know what the company will be left with after all expenses are paid.

To me this is a numbers decision and not an ethical one. Be ethical to whom? If Company X is entering the market then it means local customers can expect to get same price as before or better. The government will continue to charge their taxes so they don’t have anything to worry about. If anyone is being unethical it would be the local businesses for not allowing a free market to prosper and the local people to get better prices at a greater quality. Company X would be creating new job opportunities, we are the good guys. As for the businessman, if he checks out to be trustworthy, then it’s 100k now and the rest when the job is done. Money.

Antonio Bullen

Dave Smith is developing an advertisement for a new housing development his firm is about to start. The development is located in a low area which has flooded in the past. The company has recently done some work to reduce the danger of flooding in the future. In the preliminary advertisement, Smith has included a statement indicating that the firm has solved the flooding problem. The fact is that if a flood occurs, the homes are still likely to be flooded with up to five feet of water. If you were Smith, what are the chances that you would include the statement in the advertisement?

Stop! What is Smith thinking? He has got to think about the long term image of the company. My number one rule is “everything is possible,” and in this case what is possible is not good at all. Sooner or later  the development is going to flood. What does he think is going to happen next? Let’s assume for a second the homes never gets flooded, he still has to live with the possibility that it could and the company could be in big trouble then. Unless he 100% solves the flooding problem, he shouldn’t say the problem is solved. Better yet, he shouldn’t say the problem is solved, period! Well… not unless people already know of the problem. Why tell people they would be buying houses in an area that could have been flooded? Smith is suicidal, he needs medical attention, STAT!

The chances that I would include the statement on my advertisement are zero. The chances that I would stop investing in homes on that property are very good, at least until the flooding problem is completely solved. This should have been taken into consideration before buying the land. This is not so much an ethical problem, but one of stupidity. What bank lent money to Smith? This is exactly why we are on a recession.

Antonio Bullen

Joan Brown is vice president of marketing for Tangy Spices, a large spice manufacturer. Brown recently joined in a private business venture with Tangy’s director of purchasing to import black pepper from India. Brown’s private venture is about to sign a five-year contract with Tangy to supply its black pepper needs, but the contract is set at a price three cents per pound above contracts available from other spice importers that provide comparable service and quality. If you were Brown, what are the chances that you would sign the contract?

First of all, there wasn’t a non-compete clause set by Tangy Spices? That was a big mistake. I was a little confused as to the roles Brown and Tangy are playing. If Brown is going to be importing and then supplying the black pepper to Tangy, then he’s got nothing to worry about. On the other hand, if Tangy is the one supplying to Brown, then he should never sign that contract. It doesn’t matter that he works for the company. Whomever is on the receiving end of the deal is going to lose and should not sign. The price is higher yet the quality and service are lower than the competition? That’s a no-brainer.

Ethics… where does it play on this one…? Well, buying low and selling high is not unethical, it’s business. Given that this is B2B, ethics are even less important. Businessmen should know better. Eventually somebody has to go out of business even if it is by getting duped. The party supplying the black pepper has everything to win, but it could also damage the relationship on the long term. Luckily they will have five years to come up with a solution.

Antonio Bullen
John Garcia is working in product development for an auto parts contractor. Garcia’s firm received a large contract last summer to manufacture transaxles for use in a new line of front wheel drive cars. The contract is very important to Garcia’s firm because prior to obtaining it, half of the firm’s employees, including Garcia, had been scheduled for an indefinite lay off. Final testing of the assemblies ended last Friday and the first shipments are scheduled for three weeks from today. As Garcia was examining the test reports, he discovered that the transaxle tended to fail when loaded at more than 120% of rated capacity and subjected to strong torsion forces. Such a condiditon could occur with a heavily loaded car braking hard for a curve down a mountain road. While the driver would not lose control of the car, the resulting damage to the car would cost several thousand dollars to repair. The manufacturer’s specifications call for the transaxle to carry 130% of its rated capacity without failing. Garcia showed the results to his supervisor and the company president both of whom indicated that they were aware of the report. If they did not deliver the assemblies on time, they would lose the contract. If you were Garcia, what are the chances that you would notify the auto manufacturer of the defect?

What’s that smell? Smells like something burning… Oh I know! That’s the rubber burning after my Bridgestone tires exploded! Sounds familiar? This is a simple case: Garcia’s company shook hands on 130% not 120%, they need to live up to their word if they plan to stay in business over the long term.

What the company needs to be doing is figuring out how much time it will take them to fix the problem and deliver the parts as contracted. Can’t deliver on time? Fine, setup a call with the auto manufacturer and let them know before the due date comes around, but not before having at least one solution for the problem on hand. After all, Garcia’s company has some leverage on this situation: they could argue that it would take them less time to fix the problem than it would take another company to start from scratch. They can even use this opportunity to build a better relationship with the auto manufacturer by reducing the price, of course, offer only if it came down to it.

Since the question was about Garcia, I would say he doesn’t need to notify the auto manufacturer. That is not his job. Ultimately it is not his responsibility, but that of his supervisor and the president of the company. What Garcia needs to do is make sure his ass is covered and find a new job. With contract or not, the company is already in bad shape. This Titanic is sinking, grab a life vest while you can and jump! Sooner or later this thing is going to “explode”, and Garcia needs to make sure he has prove he notified his superiors.

Antonio Bullen

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