Honda Case Study

Case 3.2 The Marketing Environment, Ethics, and Social Responsibility at Scholfield Honda

Gallardo, Frank
Guzman, Tomirys
Torres, Alexandra

Principles of Marketing MAR1011
Professor Nealy- Blackman
October 3, 2012

Introduction
In 2006 when Al Gore 's film An Inconvenient Truth was released, whether many people believed in it, chose to make a mockery of the documentary or took it seriously, the film did raise awareness about many issues in our environment. By 2008 society started to change in many aspects, people started making more cautious decisions regarding their health and the environment. Corporations didn 't stay behind; every day companies come up with more innovative ideas and products in order to create a safer environment. Going Green has become a global movement to improve quality of life while raising the importance of recycling. The car industry has evolved and changed overtime because of the green craze. Companies tries to stay competitive and are investing heavily in developing fuel efficient technologies. Honda, for one, has always had a visionary scheme. They 've been producing fuel efficient cars to benefit our pockets and our environment since the 1970’s. One of their best developments is the natural gas fueled Civic GX that addresses air-quality issues. Lee Lindquist, an alternative fuels specialist at Scholfield Honda, located in Wichita, Kansas wanted to offer the Civic GX at Scholfield Honda, because much of the natural gas in the United States does indeed derive from Kansas. Lindquist had been pitching the idea to his boss Roger Scholfield, Owner of Scholfield Honda, but Scholfield was skeptic because of how impractical the car could be due to the lack of fueling stations. Scholfield decided to start small by revamping his dealership to be more environmentally friendly like most of Hondas upcoming new products. Lindquist convinced Scholfield to donate a GX along with a fueling station for their town, and this has made people more aware of alternative fueling.

1. How does Schofield Honda rate on the social responsibility pyramid? Do they meet all the criteria for a socially responsible company?

Schofield Honda does rate very high on the socially responsible pyramid, as well as meets all the criteria to be classified as socially responsible. To be a completely socially responsible company they must meet many demands. Such demands include marketing philosophies, policies, procedures, and actions whose primary objective is to enhance and protect the environment through efficient products and practices (Boone and Kurtz 25). Honda as stated in the book has always been ahead of the game in efficient and gas saving cars, they have been socially responsible long before the environment and going green was a significant issue. Honda is in every means of the word, responsible. 2. What social and cultural changes have affected the way car manufacturers design and market their product?

Car manufacturers must stay tuned with social and cultural changes if they want to competitive in the global market with demands for products that are cost effective and environmentally friendly. In addition, the global marketplace is now more diverse than ever and the advances in technology allow consumers to remain well informed with changes and innovation. One of the changes that have affected the auto industry is the shift in preference for smaller families in today’s society which has driven companies to produce smaller vehicles. A new consumer class has been created as women entered the work force and their needs and wants for a vehicle has had to be met. Also, environmental laws and governments are tightening the standards in the auto industry while eco-friendly people are turning to other means of transportation such as bicycles, walking and public transportation to reduce their footprint on the environment. Manufacturers must recognize that the world is in a constant state of change and must continue to advance their technology to produce efficient ecofriendly vehicles while their marketing strategy has to remain flexible and consistent with market trends and demands. 3. Should governmental regulations be placed on companies’ claims that their products are green? Should official classifications for environmental friendliness be defined?

There should be government regulations on companies claims that products are green because of the growing popularity of going green along with many companies’ excessive green washing. Green washing is a growing trend in which companies falsely advertise a product in order to attract more customers. With that said, official classifications for environmental friendliness should be defined because the consumers of these products are initially paying extra money to benefit their health and the environment we live in, therefore, it would be unfair and unethical for the government to allow that.

Work Cited
Boone and Kurtz. Contemporary Marketing. Ohio. Cenage Learning. 2012. Print

Cited: Boone and Kurtz. Contemporary Marketing. Ohio. Cenage Learning. 2012. Print