Chapter 3 Review & Applications

Ch 3. Questions 2.4, 5.1, 9.3
2.4 Do you think a code of ethics will actually influence an employee’s behavior? Why or why not?

Currently many businesses are expanding ethics training. McDaniel, lamb and Hair (2008) found that 33 percent of big companies in the past seven years have now including ethics resources (p. 71). Having a code of ethics can reduce uncertainty in decision making. Many companies are taking a proactive approach to ethics versus having the government regulate questionable decisions. Starting at the top, good ethical decisions trickle down throughout a company.

On the downside to stating ethics is companies that have vague or hard to understand book or statement can lead to confusion. If top management doesn’t get on board, it can seem like an empty promise.

5.1 Baby boomers in America are aging. Describe how this might affect the marketing mix for the following:A. Bally’s Health Club

I went to Bally’s web site http://www.ballyfitness.com/discover-bally/our-member-success/robert-story.aspx and found Robert’s story. A few years ago, Robert had a goal to climb a few mountains. Now at the age of 60, he’s in top shape and climbing fast. The story went into Robert’s successful career, past military background and his self discipline. Robert’s profile fit right in with the notions of baby boomers breaking traditional molds. They want to remain physically active and enjoy traveling. Bally’s site explained in detail and in bullets how this Boomer accomplished his tasks with the help of the gym.

B. McDonald’s

I visited http://www.mcdonalds.com/usa/eat/nutrition_info.html and found this restaurant chain is focusing on nutrition, saving time, familiar surroundings and balance. McDaniel, lamb and Hair (2008) found boomers are “looking for balance” (p. 81). Boomers are busy people and they enjoy products and services that save time and some express little interest in upscale dining.

C. Whirlpool Corporation

I visited http://www.whirlpool.com/catalog/new_products.jsp and found some relatable marketing towards baby boomers. Whirlpool focused on kitchen convenience. For example, the new Cabrio top loader washing machine uses a third less water. Being a top loader, one doesn’t have to bend down to load the machine with clothes. Top loaders are very traditional which would fit well into product placement and promotion to baby boomers.

D. The state of Florida

I found an article on senior living that focused on the growing Florida baby boomer market. In the Senior Journal.com-Senior citizen’s information and news: Retirement market booming, boomers to keep it hot for decades found that the “top ranking retiree markets are:
● Ocala, Florida with the highest percentage of retired adults (36%)
● Fort Myers- Naples, Florida (34%)
● Daytona Beach, Florida (33%)
● West Palm Beach, Florida (31%)
● Melbourne-Titusville-Cocoa, Florida (29%)”
Florida is the number one market for baby boomers. I found numerous state sponsored, media articles and advertising for anything from vitamin supplements for baby boomers, to driving programs for older drivers, all being a part of the marketing mix for boomers.

E. Target Stores

I visited http://weeklyad.target.com/target/default.aspx?action=entryflash&site=weeklyad.target.com and found a host of marketing towards all demographic groups. This week’s ad at Target featured many dollar items that could fit in with Boomers looking for balance and value is important.

5.2 You have been asked to address a local Chamber of Commerce on the subject of ‘Generation Y.” Prepare an outline for your talk.

Introduction: Dear Chamber we are missing out on business opportunities with a younger generation or what is called generation Y.

History: Y’ers are known for having deep pocket and have the ability to stimulate the economy under the right conditions. For example towns with Wi-Fi and lots of generation Y’ers business do very well.

Proposal: Making Wi-Fi publicly available to all, including the tech savvy generation Y

Here is the benefit:

• Retailers by locally advertising specials (Y’ers manage time well and like specials now)
• Gas stations could advertise their price right into cars (Y’ers are street smart)
• Electronic sales would likely increase

Summary: Catering to generation Y’ers and making Wi-Fi publicly available has the history of business success. This proposal will help the town, the tax base and business.