Transcript Social Responsibility and Marketing Ethics

Copyright © 2005 Pearson Education Inc.
Marketing and Society: Social Responsibility
and Marketing Ethics
•Chapter 4
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•Instructor name
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Principles of Marketing, Sixth Canadian Edition
Learning Objectives
4.2
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• After studying this chapter, you should be able to:
– Understand marketing’s multiple responsibilities, and identify
the major social and ethical criticisms of marketing
– Define consumerism and environmentalism and explain how
they affect marketing strategies
– Describe the principles of socially
responsible marketing
– Explain the role of ethics in
marketing
Principles of Marketing, Sixth Canadian Edition
Copyright © 2005 Pearson Education Inc.
Lessons for Socially Responsible Companies
4.3
• What you sell is important
• Be proud to be in business
• Make a solid commitment to change
• Focus on two bottom lines
• Forget the hype
Source: Thea Singer, “Can Business Still Save the World?”
Inc., April 30, 2001, pp58-71; and MEC website, www.mec.ca
Table 4.1
Principles of Marketing, Sixth Canadian Edition
Marketing’s Impact on Individual Consumers
4.4
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• High prices:
– High costs of distribution
– High advertising and promotion costs
– Excessive markups
• Deceptive practices:
– Pricing, promotion, packaging, and telephone fraud
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High pressure selling
Shoddy or unsafe products
Planned obsolescence
Poor service to disadvantaged consumers
Principles of Marketing, Sixth Canadian Edition
Copyright © 2005 Pearson Education Inc.
Marketing’s Impact on Society as a Whole
•
•
•
•
4.5
False wants and too much materialism
Too few social goods
Cultural pollution
Too much political power
Principles of Marketing, Sixth Canadian Edition
Marketing’s Impact on Other Businesses
4.6
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• Acquisition of competitors reduces competition
• Marketing practices create barriers to entry
– High promotional spending
– Abuse of patent protection
• Unfair competitive marketing
practices
– Predatory pricing
– Supplier relations
Principles of Marketing, Sixth Canadian Edition
Seller’s Versus Consumers’ Rights
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Sellers’ rights:
4.7
Consumers’ rights:
– To introduce products of
different styles and sizes,
provided they are not
hazardous
– To set its own prices,
provided no
discrimination occurs
– To spend to promote the
product
– To use any product
message, provided it is
not misleading
– To use buying incentives
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To choose
To be informed
To safety
To be heard
To redress
To consumer education
To participate in
marketplace decision
making
– To have access to basic
services
– To a sustainable
environment
Principles of Marketing, Sixth Canadian Edition
Environmentalism
4.8
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• Environmentalism:
– An organized movement of concerned citizens and government
agencies
– To protect and improve people’s living environment
• Environmental sustainability:
– Management approach
– Develop strategies that both
sustain the environment and
– Produce profits for the company
Principles of Marketing, Sixth Canadian Edition
Socially Responsible Marketing
4.9
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• Enlightened marketing:
– Consumer-oriented marketing
– Innovative marketing
– Value marketing
– Sense-of-mission marketing
– Societal marketing
Principles of Marketing, Sixth Canadian Edition
Ethical Issues Associated with Marketing Practice
4.10
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• Marketing research:
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–
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Invalid or unreliable research studies
Invasion of consumer privacy, not respecting confidentiality
Disguising sales as research
Failure to secure voluntary and informed participation
Competitive intelligence gathering
• Segmentation/target marketing:
– Redlining: discriminating against poor
or disadvantaged consumers
– Targeting inappropriate products to
vulnerable audiences
Table 4.2
Principles of Marketing, Sixth Canadian Edition
Ethical Issues Associated with Marketing Practice
4.11
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• Positioning:
– Making socially undesirable products more desirable
– Positioning on questionable benefits
• Product:
– Marketing unsafe products
– Product testing: on animals or insufficient testing to
reveal safety concerns
– Marketing socially controversial products
• Packaging and labelling:
– Actual versus apparent size
– Misleading or inadequate information
– Excessive or environmentally-unfriendly packaging
Table 4.2
Principles of Marketing, Sixth Canadian Edition
Ethical Issues Associated with Marketing Practice
4.12
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• Pricing:
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Collusion with competitors
Negative option billing
Prejudice in negotiated prices
Price discrimination
• Advertising:
– Sex role stereotyping
– Dehumanizing images and portraying people
as products
– Bait-and-switch advertising
Table 4.2
Principles of Marketing, Sixth Canadian Edition
Ethical Issues Associated with Marketing Practice
4.13
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• Sales and channel management:
– High pressure sales tactics
– Unfairly disparaging competitors’ goods
– Channel loading
Table 4.2
Principles of Marketing, Sixth Canadian Edition
4.14
Some Morally Difficult Situations in Marketing
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You are considering hiring a product manager who just left a competitor’s
company. She would be more than happy to tell you all the competitor’s
plans for the coming year. What do you do?
You have a chance to win a big account that will mean a lot to you and your
company. The purchasing agent hints that a “gift” would influence the
decision. Your assistant recommends sending a fine colour television set to
the buyer’s home. What do you do?
You are interviewing a capable woman applicant for a job as a salesperson.
She is better qualified than the men just interviewed. Nevertheless, you
know that some of your important customers prefer dealing with men, and
you will lose some sales if you hire her. What do you do?
You are a sales manager in an encyclopedia company. Your competitor’s
salespeople are getting into homes by pretending to take a research survey.
After they finish the survey, they switch to their sales pitch. This technique
seems to be very effective. What do you do?
Table 4.3
Principles of Marketing, Sixth Canadian Edition
In Conclusion…
4.15
Copyright © 2005 Pearson Education Inc.
• The learning objectives for this chapter were:
– Understand marketing’s multiple responsibilities and identify
the major social and ethical criticisms of marketing
– Define consumerism and environmentalism and explain how
they affect marketing strategies
– Describe the principles of socially
responsible marketing
– Explain the role of ethics in
marketing
Principles of Marketing, Sixth Canadian Edition