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SOCIALLY RESPONSIBLE MARKETINGAND MARKETING ETHICSBy Nandan M Naveen

Socially Responsible MarketingCorporate Social ResponsibilitySustainabilityCause Related Marketing

What is CSR ?It is the continuing commitment by business to behave ethically and contribute to the economic development while improving the quality of life of employees and society at large.

Rationale for investing in CSR

Companies need to differentiate themselves

Corporate heads and boards need to understand social pressures and opportunities.

Companies need to build public goodwill to offset potential criticisms

Employees, investors and partners will be more motivated and loyal

CSR AT STONYFIELD FARMCo-founded in 1983 by Gary Hirshberg.All natural dairy products.Suppliers avoid productivity practices of agro business i.e., antibiotics, growth harmones, pesticides etc.,

CSR AT STONYFIELD FARMModified the plastic lids on yogurt, saving million pounds of plastic each year.Add on-package messages about global warming, perils of harmones and genetically modified foods.

CSR AT STONYFIELD FARMIt has also added cultures or dietary supplements to improve immune system.The company produces low-fat versions of its products.

CSR AT STONYFIELD FARMDonates 10 % of profits to efforts that help protect and restore earth Highly pricedRelies on PR and word of mouth

SUSTAINABILITY

What is Sustainability ?Ability to meet human needs without harming the future generations.Coca-Cola, AT&T, and DuPont have even appointed Chief Sustainability officers.

CauseRelatedMarketing

What is Cause Marketing ?Cause Related Marketing links the firms contributions to a designated cause to customers engaging in revenue producing transactions with the firm.

Buckets for Cure donated 50 cents to Susan G. Komen for the cure foundation for every $5 pink bucket purchased.

Result: More than $8.5 Million raised.

What are ethics ?Ethics is the art and science of determining good and bad or right or wrong moral behavior.

Marketing ethics is the area of applied ethics which deals with the moral principles behind the operation and regulation of marketing.

Why ethics ?Customers develop positive attitude towards the firm, its products and its services.To create a good image of the company in the minds of customers and employees.

ETHICAL ISSUES IN MARKETING

Market SegmentationSegmenting and targeting vulnerable populations like children.E.g., Kinder joy attracts children through toys.

Marketing ResearchIt is the responsibility of the researcher to keep the information secret he collects from the respondents.Misuse of information.

Product ManagementConsumer SafetyProduct counterfeiting.For e.g., fake Rolex watches, knockoff levi jeans and illegally pirated video and audio tapes of popular movies and music.

PricingPrice gouging: Companies raise the prices of items that are temporarily in high demand.E.g., Price of plywood jumps after a flood.Predatory pricing : Lowering price to increase demand.

AdvertisementsDeceptive advertising

ConclusionIn order to attract and retain more customers, marketing ethics should be followed.All the unethical marketing practices should be avoided in order to increase the customer base.