Page 113 - Foundations of Marketing

80 Part 1 | Strategic Marketing and Its Environment

5. What are the goals of the Federal Trade Commission? 8. In what ways are cultural values changing? How are
List the ways in which the FTC affects marketing activi- marketers responding to these changes?
ties. Do you think that a single regulatory agency should 9. What is social responsibility, and why is it important?
have such broad jurisdiction over so many marketing 10. What are four dimensions of social responsibility?
practices? Why or why not? What impact do they have on marketing decisions?
6. Name several nongovernmental regulatory forces. 11. What are some major social responsibility issues? Give
Do you believe that self-regulation is more or less an example of each.
effective than governmental regulatory agencies? 12. Describe consumerism. Analyze some active consumer
Why? forces in your area.
7. Discuss the impact of technology on marketing 13. What is the difference between ethics and social
activities. responsibility?

Marketing Applications

1. Assume that you are opening one of the following retail countries. However, the importance of each competi-
businesses. Identify publications at the library or online tive force might vary depending upon the industry. For
that provide information about the environmental forces instance, legal and regulatory forces limit many of the
likely to affect the business. Briefly summarize the activities of cigarette firms. While rising prices might
information each provides. impact the purchase of luxury goods, necessities such as
1. Convenience store diapers and antibiotics will not experience as much of
2. Women’s clothing store an impact, as people require them whether the prices are
3. Grocery store high or not. With this in mind, examine the impacts that
4. Fast-food restaurant economic forces, political forces, legal and regulatory
5. Furniture store forces, technological forces, and sociocultural forces
2. Identify at least one technological advancement and one have upon Exxon Mobil, General Motors, and Procter
sociocultural change that have affected you as a con- & Gamble. Rate each of these factors on a scale of 1 – 5 ,
sumer. Explain the impact of each on your needs as a with 5 being most important and 1 as least important.
customer. Based on these three companies, which environmental
3. Identify an organization in your community that has a variable do you think would be the highest priority for
reputation for being ethical and socially responsible. each company and why? And which environmental vari-
What activities account for this image? Is the company able do you feel would be most important for marketers?
successful? Why or why not? 5. Develop your analytical and communication skills
4. Competitive forces are very important to compa- using the Role-Play Exercises online at
nies, particularly those that operate in many different www. cengagebrain.com.

Internet Exercise

Business for Social Responsibility

Business for Social Responsibility (BSR) is a non- 1. What types of businesses join BSR, and why?
profit organization for companies desiring to operate 2. Describe the services available to member com-
responsibly and demonstrate respect for ethical values, panies. How can these services help companies
people, communities, and the natural environment. improve their performances?
Founded in 1992, BSR offers members practical infor- 3. Peruse the “BSR Conference—Overview” tab,
mation, research, educational programs, and techni- located at the top of the home page. What are some
cal assistance, as well as the opportunity to network advantages to attending the BSR conference and
with peers on current social responsibility issues. Visit listening to industry leaders and experts in corporate
http://www.bsr.org . social responsibility?

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