Marketing Module 2 (Part2)

Front 1

standard business norms and regulations as defined by senior management. [sometimes summarized in a ‘code of ethics’]

Back 1

Policies and rules

Front 2

how far people are trusted to behave in a responsible way and are held personally responsible for their actions.

Back 2

Trust and responsibility

Front 3

the extent to which employees view coworkers as having high moral standards.

Employees who observe other employees doing things that bother them from a moral point of view will perceive the workplace as having more negative ethical climate and the peer behavior dimension of the ethical climate will be reduced.

Back 3

Peer behavior

Front 4

pressure employees feel to prioritize increased sales, profits, margins, or other financial returns over all other concer

Back 4

Bottom-line sales emphasis

Front 5

consists of favoring different customers on price or terms of sale when the discrimination has a harmful effect on competition

Back 5

Price discrimination

Front 6

occurs when competitors conspire to set prices, agree to divide territories on a noncompetitive basis, or join together to act to the detriment of another competitor

Back 6

Collusion

Front 7

Competitors who conspire to set or maintain uniform prices and profit margins are

Back 7

Price fixing

Front 8

occur when purchasers are forced to buy an unwanted item or items in return for being allowed to purchase a product in heavy demand

Back 8

Tie-in sales

Front 9

consists of agreements in which a manufacturer or wholesaler grants one dealer exclusive rights to sell a product in a certain trading area or insists that the dealer not carry competing lines.

Back 9

Exclusive dealing

Front 10

Competitors colluding to divide a market into noncompetitive territories or to restrict competition in a market are in

Back 10

Restraint of trade

Front 11

consists of selecting only suppliers who will also purchase from the buyer

—“Buy from me and I’ll buy from you.”

Back 11

Reciprocity

Front 12

are goods that are not ordered but shipped along with an existing order in hopes that the buyer will pay for them

Back 12

Unordered goods

Front 13

Companies may not misrepresent delivery dates, fail to actually fill an order, or not fill an order in a reasonable time. Terms of sale include warranties and guarantees, the ability of the buyer to cancel a contract or obtain a refund.

Back 13

Inaccurate orders/terms of sale

Front 14

Salespeople must never misrepresent the company’s financial strength, length of time in business, or reputation, nor may they misrepresent facts concerning its plant, equipment, or facilitie

Back 14

False business descriptions

Front 15

salespeople must not misrepresent the way a product is produced (e.g., claim that mass-produced products are custom-made.)

Back 15

False product descriptions

Front 16

Placing undue pressure, intimidation, or fear on the buyer into a sale is illegal

Back 16

Customer coercion

Front 17

Business slander, Business libel, Product disparagement, unfair competition.

Back 17

Business defamation

Front 18

T/F

We might be tempted to follow simple rules like “always obey the law”, but sometimes legal actions may be unethical, illegal actions can be ethical.

Back 18

TRUE

Front 19

in the form of ambiguity or conflict.

Back 19

ethical stress

Front 20

occurs when the sales manager simply does not know what to do in a given situation;

Back 20

Ambiguity

Front 21

arises when the sales manager is torn between multiple courses of action, each with different moral implications for the people involved.

Back 21

Conflict

Front 22

when they place the moral treatment of others ahead of short-term personal gain.

Interestingly, age is one of the strongest causal factors for ethical actions.

Back 22

ethical maturity

Front 23

Salespeople reach ethical maturity when they place the moral treatment of others ahead of short- term personal gain.

Back 23

Understanding ethics

Front 24

Monitor the ethical climate with surveys

Back 24

Measuring the ethical climate

Front 25

A positive, healthy, and moral ethical work climate begins at the top with sales management.

Back 25

Leading by example

Front 26

prompt, accurate payment of salary, commissions, and bonuses as well as timely reimbursement of selling expenses

Back 26

Compensation

Front 27

fair assignment of sales territories

Back 27

Sales territories

Front 28

setting realistic achievable sales quotas

Back 28

Sales quotas

Front 29

sexism, racism, and ageism must not influence managerial decision

Back 29

Hiring, promoting, and firing