kotler pom13e student 20
TRANSCRIPT
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Chapter 20 - slide 1Copyright 2009 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter Twenty
Sustainable Marketing
Social Responsibility andEthics
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Chapter 20 - slide 2Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Sustainable MarketingSocial Responsibility and Ethics
Sustainable Marketing
Social Criticisms of Marketing
Consumer Actions to Promote
Sustainable Marketing
Business Actions Toward
Sustainable Marketing
Marketing Ethics
The Sustainable Company
Topic Outline
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Chapter 20 - slide 3Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Meeting needs of consumers while
preserving the ability of future
generations to meet their needs
Sustainable Marketing
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Chapter 20 - slide 4Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Social Criticisms of Marketing
Marketings Impact on IndividualConsumers
High Prices
Deceptive Practices
High-Pressure Selling
Shoddy, Harmful or Unsafe Products
Planned Obsolescence
Poor Service to DisadvantagedConsumers
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Chapter 20 - slide 5Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Social Criticisms of Marketing
Complaint:
Prices are too high due tohigh costs of:
Distribution
Advertising andpromotion
Excessive mark-ups
Response:
Intermediaries areimportant and offer value
Advertising informs
buyers of availability andmerits of a brand
Consumers dontunderstand the cost ofdoing business
Marketings Impact on IndividualConsumers
High Cost of Distribution
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Chapter 20 - slide 6Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Social Criticisms of Marketing
Complaint: Companies use deceptive practicesthat lead customers to believe they will get
more value than they actually do. These
practices fall into three categories:
Deceptive pricing
Deceptive promotion
Deceptive packaging
Marketings Impact on IndividualConsumers
Deceptive Practices
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Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Social Criticisms of Marketing
Response:
Support Legislation to protect consumers fromdeceptive practices
Make lines clearIs it deception, alluring, orpuffery that is just an exaggeration for
effect? Products that are harmful
Products that provide little benefit
Products that are not made well
Marketings Impact on IndividualConsumers
Deceptive Practices
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8/34Chapter 20 - slide 8Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Social Criticisms of Marketing
High-Pressure Selling
Marketings Impact on Individual
Consumers
Deceptive Practices
Complaint:
Salespeople use high-pressure selling thatpersuade people to buygoods they had nointention of buying.
Response:
Most selling involvesbuilding long-termrelationships and valuedcustomers. High-pressure or deceptiveselling can damage theserelationships.
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Publishing as Prentice Hall
Social Criticisms of Marketing
Shoddy, Harmful, or Unsafe Products
Marketings Impact on Individual
Consumers
Deceptive Practices
Complaint:
Products have poorquality, provide littlebenefit, and can beharmful
Response:
Good marketersrealize there is novalue in marketingshoddy, harmful, orunsafe products.
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Chapter 20 - slide 10Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Social Criticisms of Marketing
Planned Obsolescence
Marketings Impact on Individual
Consumers
Deceptive Practices
Complaint:
Producers cause theirproducts to becomeobsolete and changeconsumers concepts ofacceptable styles toencourage more and earlierbuying.
Response:
Planned obsolescence isreally the result ofcompetitive market forcesleading to ever-improvinggoods and services.
Customer customers likestyle changes and want thelatest innovations
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Chapter 20 - slide 11Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Social Criticisms of Marketing
Poor Service to Disadvantaged Consumers
Marketings Impact on Individual
Consumers
Deceptive Practices
Complaint:
American marketers servedisadvantaged customerspoorly. Some retailcompanies redline poorneighborhoods and avoidplacing stores there.
Response:
Some marketers profitablytarget these customers andthe FTC has taken actionagainst marketers that doadvertise false values,wrongfully deny service, orcharge disadvantagedcustomers too much.
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Chapter 20 - slide 12Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Social Criticisms of Marketing
Marketings Impact on Society as aWhole
False wants and too muchmaterialism
Too few social goods
Cultural pollution
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Chapter 20 - slide 13Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Social Criticisms of Marketing
False Wants and Too Much Materialism
Marketings Impact on Society as aWhole
Complaint:
The marketing system urgestoo much interest in materialpossessions. People arejudged by what they own
rather than who they are,creating false wants thatbenefit industry more thanthey benefit consumers.
Response:
People do have strongdefenses against advertisingand other marketing tools.Marketers are most effective
when they appeal to existingwants rather than creatingnew ones. The high failurerate of new products showsthat companies cannot controldemand.
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Chapter 20 - slide 14Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Social Criticisms of Marketing
Too Few Social Goods
Marketings Impact on Society as aWhole
Complaint:
Businesses oversell privategoods at the expense ofpublic goods and requiremore public goods to supportthem.
Response:
There needs to be a balancebetween private and publicgoods.
Producers should bear fullsocial costs of theiroperations.
Consumers should pay thesocial costs of theirpurchases.
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Chapter 20 - slide 15Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Social Criticisms of Marketing
Cultural Pollution
Marketings Impact on Society as aWhole
Complaint:
Marketing and advertisingcreate cultural pollution
Response:
Marketing and advertising areplanned to reach only a targetaudience, and advertisingmakes radio and television free
to users and helps to keepdown the costs of newspapersand magazines. Todaysconsumers have alternatives toavoid marketing and advertisingfrom technology.
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Chapter 20 - slide 16Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Social Criticisms of Marketing
Acquisition of competitors
Unfair competitive marketing practices
Marketings Impact on Other Businesses
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Chapter 20 - slide 17Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Consumer Actions to PromoteSustainable Marketing
Consumerism is the organized movement ofcitizens and government agencies to
improve the rights and power of buyers inrelation to sellers
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Chapter 20 - slide 18Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Consumer Actions to PromoteSustainable Marketing
Traditional buyers rights include:
The right not to buy a product that is offered
for sale
The right to expect the product to be safe
The right to expect the product to perform as
claimed Comparing these rights, many believe that
the balance of power lies on the sellers side
Consumerism
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Chapter 20 - slide 19Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Consumer Actions to PromoteSustainable Marketing
Advocates call for: The right to be well informed about important
aspects of the product The right to be protected against questionable
products and marketing practices
The right to influence products and marketing
practices in ways that will improve the quality oflife
The right to consume now in a way that will
preserve the world for future generations of
consumers
Consumerism
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Chapter 20 - slide 20Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Environmentalism is an organized movementof concerned citizens, businesses, andgovernment agencies to protect and improve
peoples living environment
Consumer Actions to PromoteSustainable Marketing
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Chapter 20 - slide 21Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Consumer Actions to PromoteSustainable Marketing
Environmental sustainability is getting
profits while helping to save the planet
Environmentalism
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Chapter 20 - slide 22Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Consumer Actions to PromoteSustainable Marketing
Pollution prevention
Product stewardship
Design for environment (DFE)
New clean technologies
Sustainability vision
EnvironmentalismEnvironmental Sustainability
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Chapter 20 - slide 23Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Consumer Actions to PromoteSustainable Marketing
Pollution prevention involves not just cleaning up
waste but also eliminating or minimizing wastebefore it is created
Product stewardship involves minimizing the pollutionfrom production and all environmental impact
throughout the full product life cycle
Design for environment (DFE) involves thinking aheadto design products that are easier to recover, reuse,
or recycle
EnvironmentalismEnvironmental Sustainability
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Chapter 20 - slide 24Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Consumer Actions to PromoteSustainable Marketing
New clean technologies involve looking ahead and
planning new technologies for competitiveadvantage
Sustainability vision is a guide to the future that shows
the company that the companys products, process,and policies must evolve and what is needed to get
there
EnvironmentalismEnvironmental Sustainability
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Chapter 20 - slide 25Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Consumer-OrientedMarketing
Customer-Value
MarketingInnovativeMarketing
Sense-of-missionMarketing
SocietalMarketing
Business Actions Toward SustainableMarketing
Sustainable Marketing Principles
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Chapter 20 - slide 26Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Business Actions TowardSustainable Marketing
View marketing activities from the
consumer's point of view Deliver superior value
Consumer-Oriented Marketing
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Chapter 20 - slide 27Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Business Actions TowardSustainable Marketing
Invest in customer-value building
marketing Create value FOR customers
Customer-Value Marketing
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Chapter 20 - slide 28Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Business Actions TowardSustainable Marketing
Company seeks real product and
marketing improvements
Innovative Marketing
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Chapter 20 - slide 29Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Business Actions TowardSustainable Marketing
Define mission in broad social terms
rather than narrow product terms
Sense-of-Mission Marketing
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Chapter 20 - slide 30Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Business Actions TowardSustainable Marketing
Company considers:
Customers wants and interests Companys own requirements
Societys long-run interests
Societal Marketing
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Chapter 20 - slide 31Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Business Actions TowardSocially Responsible Marketing
Corporate marketing ethics are broadguidelines that everyone in the organization
must follow that cover distributor relations,
advertising standards, customer service,
pricing, product development, and general
ethical standards
Marketing Ethics
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Chapter 20 - slide 32Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Business Actions TowardSocially Responsible Marketing
Who should guide companies?
The free market and the legal system? Individual companies and managers?
Marketing Ethics
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Chapter 20 - slide 33Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Business Actions TowardSocially Responsible Marketing
Goes beyond caring for the needs of
todays customers and has concern fortomorrows customers and the broader
world
The Sustainable Company
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Chapter 20 slide 34Copyright 2010 Pearson Education Inc
All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall