Transcript here - Pearson Canada

Chapter 4
Marketing and
Society:
Social Responsibility
and Marketing
Ethics
Copyright © 2008 Pearson Education Canada
Principles of Marketing, Seventh Canadian Edition
Learning Goals
1. Understand marketing’s multiple
responsibilities, and identify the major
social and ethical criticisms of marketing
2. Define consumerism and environmentalism
and explain how they affect marketing
strategies
3. Describe the principles of socially
responsible marketing
4. Explain the role of ethics in marketing
Copyright © 2008 Pearson Education Canada
4-2
Principles of Marketing, Seventh Canadian Edition
Ben & Jerry’s – The Body Shop
• Early 1980’s revolutionaries such as Ben & Jerry’s
or The Body Shop were social activists first,
business people second
• Second wave are business people who are
passionate about a cause
• Companies can improve their bottom lines while
doing good by selling “quality products, treating
employees, vendors, and franchisees with
integrity and upgrading their environmental
practices”
Copyright © 2008 Pearson Education Canada
4-3
Principles of Marketing, Seventh Canadian Edition
Mountain Equipment Co-op (MEC)
• Mountain Equipment Co-operative (MEC)
founded in 1971
• Its early mission was to provide quality outdoor
equipment at affordable prices
• Member-owned co-operative
• Focus on environmental responsibility
• Statement of values and ethical behaviour
• Development of lifetime relationships with its
members
• 2 million members, sales of $197 m in 2005
• Operates retail stores in 9 Canadian cities
Copyright © 2008 Pearson Education Canada
4-4
Principles of Marketing, Seventh Canadian Edition
Learning Goals
1. Understand marketing’s multiple
responsibilities, and identify the major
social and ethical criticisms of marketing.
2. Define consumerism and environmentalism
and explain how they affect marketing
strategies
3. Describe the principles of socially
responsible marketing
4. Explain the role of ethics in marketing
Copyright © 2008 Pearson Education Canada
4-5
Principles of Marketing, Seventh Canadian Edition
Social and Ethical
Criticisms of Marketing
• Marketing’s Impact on Individual
Consumers
– High Prices
• High costs of distribution
• High advertising and promotion costs
• Excessive markups
Copyright © 2008 Pearson Education Canada
4-6
Principles of Marketing, Seventh Canadian Edition
Social and Ethical
Criticisms of Marketing
• Marketing’s Impact on Individual
Consumers
– Deceptive Practices
• Pricing
• Promotion
• Packaging
– High-Pressure Selling
Copyright © 2008 Pearson Education Canada
4-7
Principles of Marketing, Seventh Canadian Edition
Social and Ethical
Criticisms of Marketing
• Consumer groups, including
Generation Green are claiming
that Splenda’s campaign “made
from sugar so it tastes like sugar”
is misleading
• The claim is that it leads
customers to believe that Splenda
is a natural sugar alternative
rather than an artificial sweetener
• The group is appealing to the FTC
to have them stop this campaign
Copyright © 2008 Pearson Education Canada
4-8
Principles of Marketing, Seventh Canadian Edition
Social and Ethical
Criticisms of Marketing
• Marketing’s Impact on Individual
Consumers
– Shoddy or unsafe products
– Planned obsolescence
– Poor service to disadvantaged consumers
Copyright © 2008 Pearson Education Canada
4-9
Principles of Marketing, Seventh Canadian Edition
Social and Ethical
Criticisms of Marketing
• Marketing’s Impact on Society as a Whole
–
–
–
–
False wants and too much materialism
Too few social goods
Cultural pollution
Too much political power
Copyright © 2008 Pearson Education Canada
4-10
Principles of Marketing, Seventh Canadian Edition
Social and Ethical
Criticisms of Marketing
• Marketing’s Impact on Other Businesses
– Acquisitions of competitors
– Marketing practices which create barriers to
entry
– Unfair competitive marketing practices
Copyright © 2008 Pearson Education Canada
4-11
Principles of Marketing, Seventh Canadian Edition
Learning Goals
1. Understand marketing’s multiple
responsibilities, and identify the major
social and ethical criticisms of marketing.
2. Define consumerism and environmentalism
and explain how they affect marketing
strategies
3. Describe the principles of socially
responsible marketing
4. Explain the role of ethics in marketing
Copyright © 2008 Pearson Education Canada
4-12
Principles of Marketing, Seventh Canadian Edition
Citizen & Public Actions
to Regulate Marketing
• Consumerism
– Traditional seller’s rights
– Fundamental consumer rights
– Additional rights proposed by consumer
advocates
• Each proposed right has led to more
specific proposals by consumerists
Copyright © 2008 Pearson Education Canada
4-13
Principles of Marketing, Seventh Canadian Edition
Citizen & Public Actions
to Regulate Marketing
• Environmentalism
– An organized movement of concerned
citizens, businesses and government agencies
to protect and improve people’s living
environment
– Environmental Sustainability
•
•
•
•
Pollution prevention
Product stewardship
New environmental technologies
Sustainability vision
Copyright © 2008 Pearson Education Canada
4-14
Principles of Marketing, Seventh Canadian Edition
Citizen & Public Actions
to Regulate Marketing
•Public Actions to Regulate Marketing
– Major legal issues affect every area of marketing
management, including:
• Selling and advertising decisions
• Channel decisions
• Product decisions
• Packaging decisions
• Price decisions
• Competitive reaction decisions
Copyright © 2008 Pearson Education Canada
4-15
Principles of Marketing, Seventh Canadian Edition
Learning Goals
1. Understand marketing’s multiple
responsibilities, and identify the major
social and ethical criticisms of marketing
2. Define consumerism and environmentalism
and explain how they affect marketing
strategies
3. Describe the principles of socially
responsible marketing
4. Explain the role of ethics in marketing
Copyright © 2008 Pearson Education Canada
4-16
Principles of Marketing, Seventh Canadian Edition
Business Actions Toward Socially
Responsible Marketing
• Enlightened Marketing
– Consumer-Oriented Marketing:
• Companies view and organize their marketing
activities from the consumer’s point of view.
– Innovative Marketing:
• Companies seek real product and marketing
improvements.
Copyright © 2008 Pearson Education Canada
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Principles of Marketing, Seventh Canadian Edition
Business Actions Toward Socially
Responsible Marketing
• Enlightened Marketing
– Customer-Value Marketing:
• Companies put most of their resources into valuebuilding marketing investments.
– Sense-of-Mission Marketing:
• Companies define their mission in broad social
terms rather than in narrow product terms.
Copyright © 2008 Pearson Education Canada
4-18
Principles of Marketing, Seventh Canadian Edition
Business Actions Toward Socially
Responsible Marketing
• Enlightened Marketing
– Societal Marketing:
• Companies make marketing decisions
by considering consumers’ wants, the
company’s requirements, consumers’
long-run interests, and society’s
long-run interests.
Copyright © 2008 Pearson Education Canada
4-19
Principles of Marketing, Seventh Canadian Edition
Business Actions Toward Socially
Responsible Marketing
• Enlightened Marketing
– Societal Classification of Products
•
•
•
•
Deficient products
Pleasing products
Salutary products
Desirable products
Copyright © 2008 Pearson Education Canada
4-20
Principles of Marketing, Seventh Canadian Edition
Learning Goals
1. Understand marketing’s multiple
responsibilities, and identify the major
social and ethical criticisms of marketing
2. Define consumerism and environmentalism
and explain how they affect marketing
strategies
3. Describe the principles of socially
responsible marketing
4. Explain the role of ethics in marketing
Copyright © 2008 Pearson Education Canada
4-21
Principles of Marketing, Seventh Canadian Edition
Business Actions Toward Socially
Responsible Marketing
• Marketing Ethics
– Corporate marketing ethics policies
• Distributor relations, advertising standards, customer
service, pricing, product development and general ethical
standards
– Guiding principle in policy determination
• Free market and legal system
• Individual companies and managers
– International ethical policies are a special challenge
Copyright © 2008 Pearson Education Canada
4-22
Principles of Marketing, Seventh Canadian Edition
Learning Goals
1. Understand marketing’s multiple
responsibilities, and identify the major
social and ethical criticisms of marketing
2. Define consumerism and environmentalism
and explain how they affect marketing
strategies
3. Describe the principles of socially
responsible marketing
4. Explain the role of ethics in marketing
Copyright © 2008 Pearson Education Canada
4-23
Principles of Marketing, Seventh Canadian Edition