Transcript Document
Marketing Ethics and
Social Responsibility
Chapter 20
Sustainable
Marketing
Social Criticisms of
Marketing
Marketing’s Impact
on Individual
Consumers
High Prices
High costs of
distribution
High advertising &
promotion costs
Excessive markups
20- 1
Social Criticisms of
Marketing
Marketing’s Impact on Individual
Consumers
Deceptive Practices
Pricing
Promotion
Packaging
High-Pressure
Selling
20- 2
Social Criticisms of
Marketing
Marketing’s Impact on Individual
Consumers
Inferior, Poor, or Unsafe
Products
Planned
Obsolescence
Poor Service to
Disadvantaged
Consumers
20- 3
Planned
obsolescence
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Social 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
20- 5
Social Criticisms of
Marketing
Marketing’s
Impact on Other
Businesses
Acquisitions of
Competitors
Marketing
Practices
Creating Barriers
to Entry
20- 6
Social Criticisms of Marketing
Slotting fees are
charged by retailers for
manufacturers to place
a new product in their
stores or to keep
existing products on
the shelves.
These fees can be as
high as $30,000 per
brand
Slotting fees cause a
barrier to entry for
smaller manufacturers
20 - 7
20- 7
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
20- 8
Business actions
toward sustainable marketing
Consumer oriented
marketing
Customer value marketing
Innovative marketing
Sense of mission
marketing
Societal marketing
Business Actions Toward
Socially Responsible
Marketing
Enlightened Marketing
Customer-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.
20- 10
Business Actions Toward
Socially Responsible
Marketing
Enlightened Marketing
Value Marketing:
Companies put most of their
resources into value-building
marketing investments.
Sense-of-Mission Marketing:
Companies define their mission in
broad social terms.
20- 11
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.
20- 12
Societal Classifications
of Products
20 - 13
20- 13