marketing and society: social responsibility and marketing ethics
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16. Marketing and Society: Social Responsibility and Marketing Ethics. ROAD MAP: Previewing the Concepts. Identify the major social criticisms of marketing. Define consumerism and environmentalism and explain how they affect marketing strategies. - PowerPoint PPT PresentationTRANSCRIPT
Marketing and Society: Marketing and Society: Social Responsibility and Social Responsibility and Marketing EthicsMarketing Ethics
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ROAD MAP: Previewing the Concepts
• Identify the major social criticisms of Identify the major social criticisms of marketing.marketing.
•Define Define consumerismconsumerism and and environmentalismenvironmentalism and explain how and explain how they affect marketing strategies.they affect marketing strategies.
•Describe the principles of socially Describe the principles of socially responsible marketing.responsible marketing.
•Explain the role of ethics in Explain the role of ethics in marketing.marketing.
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Criticisms of Marketing
High Prices
Deceptive Practices
High-Pressure Selling
Shoddy or Unsafe Products
Planned Obsolescence
Poor Service to Disadvantaged Consumers
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High Prices
Caused by:
High Costs of Distribution
High Advertising and Promotion Costs
Excessive Markups
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High Costs
A heavily promoted brand of aspirin sells for much more than a virtually identical non-branded or store-branded product. Critics charge that promotion adds only psychological value to the product rather than functional value.
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Social Responsibility
Click the picture above to play video
Honest Tea offers Honest Tea offers customers, in customers, in addition to tea, a addition to tea, a relationship with a relationship with a community.community.
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Deceptive Practices
• Deceptive Pricing:Deceptive Pricing:– Falsely advertising “factory” or “wholesale” Falsely advertising “factory” or “wholesale”
prices or large reductions from phony high retail prices or large reductions from phony high retail list prices.list prices.
• Deceptive Promotion:Deceptive Promotion:– Overstating a product’s features or Overstating a product’s features or
performance, running rigged contests.performance, running rigged contests.
• Deceptive Packaging:Deceptive Packaging:– Exaggerating package contents through subtle Exaggerating package contents through subtle
design, using misleading labeling, etc.design, using misleading labeling, etc.
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High-Pressure Selling
• Salespeople are trained to deliver Salespeople are trained to deliver smooth, canned talks to entice smooth, canned talks to entice purchase.purchase.
• Hard sales can occur because of Hard sales can occur because of prizes going to top sellers.prizes going to top sellers.
• High-pressure selling not good for High-pressure selling not good for long- term relationships.long- term relationships.
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Shoddy or Unsafe Products
• Products not made well or service Products not made well or service not performed well.not performed well.
• Products deliver little benefit or can Products deliver little benefit or can be harmful.be harmful.
• Unsafe products due to manufacturer Unsafe products due to manufacturer indifference, increased production indifference, increased production complexity, poorly trained labor, and complexity, poorly trained labor, and poor quality control. poor quality control.
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Product Safety
Following its recall of 6.5 million flawed Firestone tires, product liability and safety concerns have driven Bridgestone/ Firestone to the brink of bankruptcy.
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Planned Obsolescence
• Products needing replacement before Products needing replacement before they should be obsolete.they should be obsolete.
• Producers change consumer Producers change consumer concepts of acceptable styles.concepts of acceptable styles.
• Intentionally holding back attractive Intentionally holding back attractive functional features, then introducing functional features, then introducing them later to make old model them later to make old model obsolete.obsolete.
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Poor Service to Disadvantaged Consumers
• Poor may pay more for inferior Poor may pay more for inferior goods.goods.
• ““Redlining” may occur in Redlining” may occur in disadvantaged neighborhoods.disadvantaged neighborhoods.
• Higher insurance premiums to people Higher insurance premiums to people with poor credit ratings.with poor credit ratings.
• ““Weblining” can occur.Weblining” can occur.
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Marketing’s Impact on Society as a Whole
False Wants & Too Much Materialism (i.e.,
what you own vs. who you are).
Too Much Political Power
Producing Too FewSocial Goods
Cultural Pollution
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Cultural Pollution
Our senses are sometimes assaulted by commercial messages.
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Marketing’s Impact on Other Businesses
Acquisitions of Competitors
Marketing Practices That Create Barriers to Entry
Unfair Competitive Marketing Practices
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Consumerism
• Consumerism is an Consumerism is an organized organized movement of movement of citizens and citizens and government government agencies to improve agencies to improve the rights and the rights and power of buyers in power of buyers in relation to sellers.relation to sellers.
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Consumerism: Sellers’ RightsThe right to introduce any product in any size and style, provided it is not hazardous to personal health or safety; or, if it is, to include proper warnings and controls.
The right to charge any price for the product, provided no discrimination exists among similar kinds of buyers.
The right to spend any amount to promote the product, provided it is not defined as unfair competition.
The right to use any product message, provided it is not misleading or dishonest in content or execution.
The right to use any buying incentive schemes, provided they are not unfair or misleading.
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Consumerism: Buyers’ Rights
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.
The right to be well informed about important aspects of the product.
The right to influence products and marketing practices in ways that will improve “quality of life.”
The right to be protected against questionable products and marketing practices.
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Environmentalism
• An organized An organized movement of movement of concerned citizens concerned citizens and government and government agencies to agencies to protect and protect and improve people’s improve people’s living living environment.environment.
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Environmental Sustainability
• A management A management approach that approach that involves involves developing developing strategies that strategies that both sustain the both sustain the environment and environment and produce profits for produce profits for the company.the company.
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Environmental Sustainability Grid
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Legal Issues Facing Marketing Mgmt.
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Enlightened Marketing
• A marketing philosophy holding that A marketing philosophy holding that a company’s marketing should a company’s marketing should support the best long-run support the best long-run performance of the marketing performance of the marketing system.system.
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Enlightened Marketing
• Consumer-Oriented Marketing:Consumer-Oriented Marketing:– The philosophy of enlightened The philosophy of enlightened
marketing that holds that the company marketing that holds that the company should view and organize its marketing should view and organize its marketing activities from the consumer’s point of activities from the consumer’s point of view.view.
• Innovative Marketing:Innovative Marketing:– A principle of enlightened marketing A principle of enlightened marketing
that requires that a company seek real that requires that a company seek real product and marketing improvements.product and marketing improvements.
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Innovative Marketing
Colgate’s Total toothpaste is perhaps the best example of Colgate's passion for innovation. The breakout brand provides a combination of benefits, including cavity prevention, tartar control, fresh breath, and long-lasting effects.
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Enlightened Marketing
• Value Marketing:Value Marketing:– A principle of enlightened marketing A principle of enlightened marketing
that holds that a company should put that holds that a company should put most of its resources into value-building most of its resources into value-building marketing investments.marketing investments.
• Sense-of-Mission Marketing:Sense-of-Mission Marketing:– A principle of enlightened marketing A principle of enlightened marketing
that holds that a company should define that holds that a company should define its mission in broad social terms rather its mission in broad social terms rather than narrow product terms.than narrow product terms.
– Click Here to View Ben & Jerry's Mission Statement
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Societal Classification of Products
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•Based on the societal Based on the societal classification scheme, how would classification scheme, how would you classify the following you classify the following products?products?– McDonald’s Big MacMcDonald’s Big Mac– A handgunA handgun– Airbags in an automobileAirbags in an automobile– Daily vitamins Daily vitamins
Discussion Question
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Marketing Ethics
• Corporate Marketing Ethics Policies:Corporate Marketing Ethics Policies:– Broad guidelines that everyone in the Broad guidelines that everyone in the
organization must follow.organization must follow.
• These should cover:These should cover:– Distributor relationsDistributor relations– Advertising standardsAdvertising standards– Customer serviceCustomer service– PricingPricing– Product developmentProduct development– General ethical standardsGeneral ethical standards
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Marketing Ethics
• What principle should guide companies What principle should guide companies and marketing managers on issues of and marketing managers on issues of ethics and social responsibility?ethics and social responsibility?
Free market and legal system
Responsibility falls to
individual companies and
managers
Click Here to See: "Malden Mills: A Study in Leadership"
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Ethics Programs
PricewaterhouseCoopers established a comprehensive ethics program, which begins with a code of conduct called “The Way We Do Business.” Says PwC’s CEO, “Ethics is in everything we say and do.”
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•Choose a partner and discuss the Choose a partner and discuss the following:following:– Should companies follow the axiom Should companies follow the axiom
“When In Rome…” when making ethical “When In Rome…” when making ethical decisions in foreign countries?decisions in foreign countries?
– Why or why not?Why or why not?
Interactive Student Assignment
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Rest Stop: Reviewing the Concepts
1.1. Identify the major social criticisms of Identify the major social criticisms of marketing.marketing.
2.2. Define Define consumerismconsumerism and and environmentalismenvironmentalism and explain how and explain how they affect marketing strategies.they affect marketing strategies.
3.3. Describe the principles of socially Describe the principles of socially responsible marketing.responsible marketing.
4.4. Explain the role of ethics in Explain the role of ethics in marketing.marketing.
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Q: Which of the following are common product complaints?
1. poorly made products 1. poorly made products
2. products that deliver little 2. products that deliver little benefit benefit
3. unsafe products 3. unsafe products
4. all of the above4. all of the above
AK, 7e – Chapter 16
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Q: Among the deceptive marketing practices cited by critics are _____.
1. deceptive packaging 1. deceptive packaging
2. deceptive pricing 2. deceptive pricing
3. deceptive promotion 3. deceptive promotion
4. all the above4. all the above
AK, 7e – Chapter 16
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Q: Deceptive practices have led to legislation, such as the _____ Act.
1. Robinson-Patman 1. Robinson-Patman
2. FTC 2. FTC
3. Consumer Product Safety 3. Consumer Product Safety
4. Wheeler-Lea4. Wheeler-Lea
AK, 7e – Chapter 16
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Q: The question, "What aspects of our production process create the most pollution?" is likely to come out of what
practice of environmental sustainability?
1. Sustainability vision 1. Sustainability vision
2. New environmental 2. New environmental technology technology
3. Pollution prevention 3. Pollution prevention
4. Product stewardship4. Product stewardship
AK, 7e – Chapter 16
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Q: The question, "Would making our products recyclable add value for our customers?" is likely to come out of what
practice of environmental sustainability?
1.Sustainability vision 1.Sustainability vision
2.New environmental 2.New environmental technology technology
3.Pollution prevention 3.Pollution prevention
4.Product stewardship4.Product stewardship
AK, 7e – Chapter 16
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Q: The statement, "Our mission is for our company to evolve in ways that help solve social and environmental problems" is likely to come out of what practice of environmental
sustainability?
1. Sustainability vision 1. Sustainability vision
2. New environmental technology 2. New environmental technology
3. Pollution prevention 3. Pollution prevention
4. Product stewardship4. Product stewardship
AK, 7e – Chapter 16
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Q: Consumer advocates would like to expand buyers’ rights to include all the
following except:
1. the right to be well informed about 1. the right to be well informed about important aspects of the product. important aspects of the product.
2. the right to be protected against 2. the right to be protected against questionable products and marketing questionable products and marketing practices. practices.
3. the right to a full refund if the buyer is 3. the right to a full refund if the buyer is unsatisfied, no questions asked. unsatisfied, no questions asked.
4. the right to influence products and 4. the right to influence products and marketing practices in ways that will marketing practices in ways that will improve the "quality of life."improve the "quality of life."
AK, 7e – Chapter 16
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Q: Do you think it would be proper to give a "gift" in order to win an account?
1. Yes1. Yes
2. No2. No
AK, 7e – Chapter 16
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Q: Do you think drug companies are justified in charging high prices for their products?
1. Yes1. Yes
2. No2. No
AK, 7e – Chapter 16
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Q: A delicious and nutritious salad is an example of a ___________.
1. pleasing product 1. pleasing product
2. desirable product 2. desirable product
3. salutary product 3. salutary product
4. deficient product4. deficient product
AK, 7e – Chapter 16
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Q: Junk food is an example of a ____________.
1. pleasing product 1. pleasing product
2. desirable product 2. desirable product
3. salutary product 3. salutary product
4. deficient product4. deficient product
AK, 7e – Chapter 16