Transcript Chapter 1

Chapter 16
Marketing and Society: Social
Responsibility and Marketing Ethics
16-1
Road Map: Previewing the Concepts
Identify the major social 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.
16-2
Marketing’s Impact on Individual
Consumers
High Prices
Criticisms Leveled
at the Marketing
Function by
Consumers, and
Others
Deceptive Practices
High-Pressure Selling
Shoddy, Unsafe Products
Planned Obsolescence
Poor Service to Some
16-3
Marketing’s Impact on Individual
Consumers: High Prices
High Prices Caused by the Following Factors
High
Costs of
Distribution
High
Advertising
and
Promotion
Costs
Excessive
Markups
16-4
Marketing’s Impact on Individual
Consumers: Deceptive Practices
Deceptive
Pricing
Deceptive
Promotion
Deceptive
Packaging
Falsely Advertising “Factory” or
“Wholesale” Prices, Large Reduction
From Phony High List Price
Overstating the Product’s Features,
Luring Customers to the Store for
Out-of-Stock Bargains, etc.
Exaggerating Package Contents, Not
Filling Package to the Top, Using
Misleading Labeling
16-5
Marketing’s Impact on Individual
Consumers
High-Pressure
Selling
Some products –
such as cars and
jewelry – are said to
be sold, not bought.
Such tactics damage
marketer’s long-run
relationship with
customers.
Shoddy or Unsafe
Products
Complaint that many
products are not
made well.
Second, many
products deliver little
benefit.
Third, concerns
product safety.
16-6
American Association of
Advertising Agencies
This ad demonstrates
that advertising can’t
make consumers buy
things that they don’t
need despite highpressure selling.
16-7
Marketing’s Impact on Individual
Consumers
Planned
Obsolescence
Change consumer
concepts of
acceptable styles.
Hold back attractive
functional features.
May break, wear,
rust, or rot sooner
than should.
Poor Service to
Disadvantaged
Consumers
May pay more for
inferior goods.
“Redlining” may
occur where major
chain retailers avoid
placing stores in
disadvantaged
neighborhoods.
16-8
Marketing’s Impact on Society
as a Whole
False Wants & Too
Much Materialism
Producing Too Few
Social Goods
Marketing’s Perceived
Negative Impact on
Society as a
Whole
Too Much Political
Power
Cultural Pollution
16-9
Marketing’s Impact on Other
Businesses
Acquisitions
of
Competitors
Marketing
Practices
Create
Barriers to
Entry
Unfair
Competitive
Marketing
Practices
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Consumerism
Consumerism is an Organized Movement of Citizens
and Government Agencies to Improve the Rights and
Power of Buyers in Relation to Sellers.
Buyers’
Sellers’
Rights
Rights
16-11
Consumerism – Buyers’ Rights
The Right Not to Buy a Product 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 the Product
The Right to Be Protected Against Questionable Products
The Right to Be Heard About “Quality of Life” Issues
16-12
Environmentalism
Have a
Sustainability
Vision
Plan for New
Environmental
Technologies
Practice
Pollution
Prevention
Adopt Design
for the
Environment
Practices
Practice
Product
Stewardship
16-13
Major Legal Issues Facing
Marketing Management (Fig. 16-2)
16-14
Enlightened Marketing
Holds That a Company’s Marketing Should Support the
Best Long-Run Performance of the Marketing System.
Consumer-Oriented Marketing
Innovative Marketing
Value Marketing
Sense-of-Mission Marketing
Societal Marketing
16-15
Societal Classification of Products
(Fig. 16-3)
16-16
Compare the marketing concept with
the principle of societal marketing.
Should all marketers adopt the societal
marketing concept? Why or why not?
16-17
Marketing Ethics
Companies Need to Develop Corporate Marketing
Ethics Policies – Broad Guidelines That Everyone in
the Organization Must Follow and Should Address:
 Distributor Relations
 Advertising
Standards
 Customer Service
 Pricing
 Product
Development
 General Ethical
Standards
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Marketing Ethics
Principles That Should Guide Companies and
Marketing Managers On Issues of Ethics and Social
Responsibility:
Decided by the
Free Market and
Legal System
Responsibility of
Individual
Companies
And Managers
16-19
Form students into groups of three to five.
Each group should focus on the following
scenario.
You are the marketing manager for a small kitchen
appliance firm. While conducting field tests, you
discover a design flaw in one of your popular
appliances that could potentially be harmful to a
small number of your customers. However, a
product recall would likely bankrupt your company
and cause all of the employees (including
yourself) to lose their jobs. What would you do?
Explain.
16-20
Rest Stop: Reviewing the Concepts
Identify the major social 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.
16-21