Critical Thinking Exercise Questions
Chapter 1 – Question 6
Ethical standards are based on the values and principles that are used to incorporate business activities and decisions. The practice of ethical standards makes the company sustainable due to the enhanced trust of investors which makes them trust in the business formula of the organization and incorporate their investments for long-term. These ethical standards enhance the brand image of the company due to which customers remain loyal to the company and increases the company’s ability to retain its customers. It enhances the integrity of the company towards its work processes and products due to which customers become highly attracted to the company’s products (Boone & Kurtz, 2013).
The company enjoys low employee turnover due to the prevalence of ethical conducts and values in the company and becomes sustainable. Marketers play a prominent role in implementing these standard because they position the company’s products in such manner that it indicates the company’s ethical perspectives. Marketers encompass the responsible means of advertising, fair description of product features and honest descriptions in personal selling campaigns in order to attract and retain its customers and hence, these standard are maintained in an effective manner (Boone & Kurtz, 2013).
Chapter 2 – Question 1
The potential benefit of opening a retail store and marketing pets will enhance the business prospects of the company. The company can enjoy cost effectiveness due to the availability of pet supplies and knowledge about the adequate supplies for pet maintenance. Similarly, the sales of pets will also increase the sales of company’s pet supplies which will enhance the bottom-line of the company. The potential drawback implies the increase in competition from the pet retail stores and the company will need trained staff to manage to the pets in retail store. The company will need adequate advertisement campaigns to acquire market share which will increase the overall cost of the project. It is suggested that the company incorporates the integrated market campaigns in which it promotes its pet supplies and pets in an effective manner (Boone & Kurtz, 2013).
Chapter 3 – Question 4
Rebates provide the company with a cost advantage over its competitors and help in attracting and retaining customers. The rebates are offered when company cuts its profit margin in order to increase sales by volume. Rebates are considered ethical because they are considered as to be part pricing and promotion strategy of the company’s marketing mix. The customers highly appreciate the prevalence of rebates as it reduces their cost and effects their buying behavior in a positive manner. In this manner, rebates are ethical because they do not misguide the customer with respect to their benefit and provides the company with the cost advantage over its competitors (Boone & Kurtz, 2013).
Boone, L. E., & Kurtz, D. L. (2013). Contemporary marketing. Cengage learning.
