consumerism and marketing ethics

7/28/2019 Consumerism and Marketing Ethics

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CONSUMERISM & MARKETING

ETHICSJINESH JAIN, SWARNA LEKHA, ANUSHA PATIL,

BINDU THUSHARA

PGPBA:2012-2014, DATE: 09-11-2012, IGTC-BANGALORE


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CONSUMERISM

Consumerism=> emotional quotients +the purchasing of material possessions +consumption.

It is multi-cultural and non-geographical.

The comercial brand names and obviousstatus enhancing appeal play major part.

Consumerism can be referred as aconsumer culture.

Impulse buyers =shopaholics.


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CONSUMERISM IN INDIA

The Indian market is currently taking a transition from apredominantly "sellers market" to a "buyers market.

Consumers choice gets influenced by the level of consumer

awareness achieved.

Process of realizing the rights of the consumer as envisaged inthe Consumer Protection Act (1986).


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CONSUMER PROTECTION ACT PLAYERS


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CONSPICUOUS CONSUMPTION

The lavish spending on

goods and services

that are acquired

mainly for thepurpose of displaying

income or wealth to

attain or maintain

social status.


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GREED = HIGH CONSUMPTION


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Anti-Consumerists argue that manyluxuries and unnecessary consumerproducts are social signals.

Makes people identify alike mindedindividuals and relate only with them todisplay social appeal.

Strong belief that product relationships

or brand names, substitute healthyhuman relationships.

OPPOSITION TO CONSUMERISM


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ANTI-CONSUMERISM

Anti-consumerist activism is

parallel to Environmental

activism, Anti-globalization and

Animal-rights activism.


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SOURCES OFOPPOSITION FOR

ECONOMICMATERIALISATION

RELIGION

Opposes materialism, somestating that it interferes

with connection with thedivine, or that it leads to an

immoral lifestyle.

SOCIAL ACTIVISM

Social activists have linked

forms of materialism withwars, crimes, and generalsocial discomfort.


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ENVIRONMENTAL CONCERNS & GREEN

MOVEMENT

The environmental movement is a diverse scientific,social and political movement for addressing theconcerns of environmentalism.

The Green movement is a political movement whichadvocates goals common to Green parties, includingenvironmentalism, sustainability, nonviolence, and social

justice concerns.

From an organizational standpoint, environmentalconsiderations deals with all aspects of marketing newproduct development and communications and all pointsin between.


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GREEN MARKET & ORGANIC

FOOD


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CONSUMERISM & ENVIRONMENT


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CONSUMER PRIVACY

Seek toprotect fromany loss of

privacy.

Consumerloss is not

measurable.

Consumerloss is

stringent.

Commercialestablishme

nts do theopposite.


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Consumer

Privacy

ConsumerPrivacy

Concerns

ConsumerPrivacy

Measures


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BUSINESS AND MARKETING ETHICS

Business Ethics:

Art of applied ethics.

Examines ethical

principles and moral orethical problems in a

business environment.

Ethicism is seen its

increase.

Business ethics can be

normative and a

descriptive discipline.

Range and quantity of

business ethical issuesreflects to which

business is perceived

to be at odds with non

economical social

values.


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Marketing Ethics:


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Marketing Research:

Invasion of privacy: Is a legal term defined as a

violation of the right to be left alone.

Most common privacy that are invaded in the eyes of

law are as follows:

Intrusion of Solitude Public disclosure of private facts

False light

Appropriation


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Occurs because any analysis of real populationsneeds, make approximation and placeindividuals into groups.

Effects of Stereotyping:

Justification of any ill found and prejudicesand ignorance.

Unwillingness to rethink ones attitude andbehaviour towards stereotyped groups.

Theres usually more than one stereotype forthe same group.

Stereotyping:


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TARGET MARKET

Ethical danger points:

Targeting the vulnerable(e.g children, the elderly)

Excluding potential customers from the market.


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PRICING PRACTICES

Price fixing: Is an agreement between thebusiness competitors to sell the same productor service at the same price.


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Price Skimming: Involves charging a relativelyhigh price for a short time when a new, innovative

or much improved product is launched into themarket.


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Price Discrimination: Practiceof selling a commodity atdifferent prices to different

buyers, even though sales costare the same in all of thetransaction.


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VariablePricing

PriceShading

Auction

Variable Pricing:A form of first degree price discrimination, characterized

by individual bargaining and negotiation, and typically

used for highly differentiated high value items.


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Predatory pricing: Also known as destroyerpricing is a practice of a firm selling a product at a

very low price with the intent of drivingcompetitors out of the market, or create a barrierto enter the market for potential new competitors.


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Supra Competitive Price: Ispricing above what can besustained in a competitive

market.

Ex: A drug company.


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Price Wars: Is a term used in

business to indicate a state ofintense competitive rivalryaccompanied by a multi-lateralseries of price reduction.


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Bid rigging is a form of fraud in whicha commercial contract is promised to

one party even though for the sake ofappearance several other parties alsopresent a bid. This form of collusion isillegal in most countries

BID RIGGING


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In economics, "dumping" is a kind ofpredatory pricing, especially in thecontext of international trade. It occurs

when manufacturers export a product toanother country at a price either belowthe price charged in its home market, orin quantities that cannot be explainedthrough normal market competition.

DUMPING (PRICE POLICY)


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Issues overtruth andhonesty

Issues withviolence, sex

and profanity

Taste andcontroversy

Negativeadvertisingtechniques

AdvertisingMedia

ADVERTISING & PROMOTION


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MARKETING STRATEGY

UNETHICAL AND CONTROVERSIAL


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Bait & Switch: deceptive way of selling thatinvolves advertising a product at a very lowprice in order to attract customers who arethen persuaded to switch to a more expensiveproduct

UNETHICAL AND CONTROVERSIAL

MARKETING STRATEGIES


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A system of selling goods in which agency

rights are sold to an increasing number ofdistributors at successively lower levels.

PYRAMID SCHEME


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A policy of producing consumer goodsthat rapidly become obsolete and sorequire replacing, achieved by frequentchanges in design, termination of thesupply of spare parts, and the use ofnondurable materials

PLANNED OBSOLESCENCE


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In economics, vendor lock-in, alsoknown as proprietary lock-in, or

customer lock-in, makes a customerdependent on a vendor for products andservices, unable to use another vendorwithout substantial switching costs

VENDOR LOCK-IN


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VIRAL MARKETING

Gives away product or services

Provide for effortless transfer to others

Scales easily from small to very large

Exploits common motivation and behaviors

Utilizes existing communication networks

Takes advantage of others resources


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GUERILLA MARKETING

Unconventional

method

Lowbudget

Creativestrategy

Publicity


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ANTI COMPETITIVE PRICES

Dumping

Exclusive dealing

Barriers

Price fixing

Refusal to deal

Dividing Territories

Limit pricing

Product typing

Resale price


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Coercive monopoly

Absorption of a competitor

Subsidies from government

Regulations

Protectionism


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CONTROVERTIAL INTERNET

MARKETING STRATEGY

Search engineoptimization

Spamdexing

Embrace, extend andextinguish

Spyware

Adware


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CORPORATE SOCIAL RESPONSIBILITY

WorkPlace

Commun

ity

Environment

Marketplace


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SUMMARY

Consumerism &Marketing Ethics

Consumerism in India

Anti-Consumerism

Consumer safety &

Protection

Environmental

concerns and greenmovement

Consumer privacy

Business & MarketingEthics

Controversial Internet

marketing strategies.

Corporate Social

Responsibility


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QUESTIONS


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THANK YOU!!!

consumerism and marketing ethics

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