Assessment of Skills and Knowledge(ASK) in Fundamental Marketing Concepts Practice Test

Which of the following marketing strategies focuses on social responsibility?

1. Green marketing

2. Targeted advertising

3. Cost leadership

4. Market development

The correct answer is: Green marketing

The focus on social responsibility in marketing is best exemplified by green marketing. This strategy emphasizes promoting products or services that are environmentally friendly, sustainable, and ethically produced. Companies engaging in green marketing often communicate their commitment to reducing their ecological footprint and contributing positively to society. This approach appeals to consumers who prioritize sustainability and corporate social responsibility in their purchasing decisions. Green marketing not only enhances a company's reputation but also can lead to increased customer loyalty and a differentiated market position. Businesses adopting this strategy usually implement practices such as eco-friendly packaging, responsible sourcing of materials, energy-efficient production methods, and transparent communication about their sustainability efforts. In contrast, the other strategies do not inherently emphasize social responsibility. Targeted advertising focuses on reaching specific consumer segments effectively, cost leadership aims at achieving the lowest operational costs to maximize profit margins, and market development is centered around expanding a company’s reach into new markets. While these strategies can incorporate elements of social responsibility, they do not fundamentally prioritize it in the way that green marketing does.