Transcript High Prices
16 Marketing and Society: Social Responsibility and Marketing Ethics Criticisms of Marketing 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 16-2 High Prices High Prices Caused by the Following Factors High Advertising and Promotion Costs Excessive Markups 16-3 Deceptive Practices Deceptive Promotion 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 16-4 High-Pressure Selling • Salespeople are trained to deliver smooth, canned talks to entice purchase. • Hard sales can occur because of prizes going to top sellers. • High-pressure selling 16-5 Shoddy or Unsafe Products • Products not made well or service not performed well. • Products deliver little benefit or can be harmful. • Unsafe products due to manufacturer indifference, increased production complexity, poorly trained labor, and poor quality control. 16-6 Planned Obsolescence • Products needing replacement before they should be obsolete. • Producers change consumer concepts of acceptable styles. • Intentionally holding back attractive functional features, then introducing them later to make old model obsolete. 16-7 Criticisms of Marketing 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 16-8 Poor Service to Disadvantaged Consumers • Poor may pay more for inferior goods. • “Redlining” may occur in disadvantaged neighborhoods. • Higher insurance premiums to people with poor credit ratings. 16-9 Marketing’s Impact on Society as a Whole False Wants & Too Much Materialism Too Much Political Power Producing Too Few Social Goods Cultural Pollution 16-10 Marketing’s Impact on Other Businesses Marketing Practices That Create Barriers to Entry Unfair Competitive Marketing Practices 16-11 Consumerism • Consumerism is an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers. 16-12 Consumerism: Sellers’ Rights The right to introduce any product in any size and style, provided it is not hazardous to personal health or safety; or, if it is, to include proper warnings and controls. The right to charge any price for the product, provided no discrimination exists among similar kinds of buyers. The right to spend any amount to promote the product, provided it is not defined as unfair competition. The right to use any product message, provided it is not misleading or dishonest in content or execution. The right to use any buying incentive schemes, provided they are not unfair or misleading. 16-13 Consumerism: Buyers’ Rights The right not to buy a product that is offered for sale. The right to expect the product to perform as claimed. The right to be well informed about important aspects of the product. The right to be protected against questionable products and marketing practices. The right to influence products and marketing practices in ways that will improve “quality of life.” 16-14 Environmentalism • An organized movement of concerned citizens and government agencies to protect and improve people’s living environment. 16-15 Environmental Sustainability • A management approach that involves developing strategies that both sustain the environment and produce profits for the company. 16-16 Environmentalism Have a Sustainability Vision Plan for New Environmental Technologies Practice Pollution Prevention Adopt Design for the Environment Practices Practice Product Stewardship 16-17 Environmental Sustainability Grid 16-18 Legal Issues Facing Marketing Mgmt. 16-19 Enlightened Marketing • A marketing philosophy holding that a company’s marketing should support the best long-run performance of the marketing system. 16-20 Enlightened Marketing Holds That a Company’s Marketing Should Support the Best Long-Run Performance of the Marketing System. Innovative Marketing Sense-of-Mission Marketing Societal Marketing 16-21 Enlightened Marketing • Consumer-Oriented Marketing: – The philosophy of enlightened marketing that holds that the company should view and organize its marketing activities from the consumer’s point of view. • Innovative Marketing: – A principle of enlightened marketing that requires that a company seek real product and marketing improvements. 16-22 Innovative Marketing Colgate’s Total toothpaste is perhaps the best example of Colgate's passion for innovation. The breakout brand provides a combination of benefits, including cavity prevention, tartar control, fresh breath, and long-lasting effects. 16-23 Enlightened Marketing • Value Marketing: – A principle of enlightened marketing that holds that a company should put most of its resources into value-building marketing investments. • Sense-of-Mission Marketing: – A principle of enlightened marketing that holds that a company should define its mission in broad social terms rather than narrow product terms. 16-24 Societal Classification of Products 16-25 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 Pricing Product Standards Customer Service Development General Ethical Standards 16-26 Marketing Ethics • What principle should guide companies and marketing managers on issues of ethics and social responsibility? Free market and legal system Responsibility falls to individual companies and managers 16-27 Final and Grading • Final exam is on Friday June 10th, in the same room, at 9:50. Please remember your student ID card. • Final exam will include the following chapters: 5, 9, 14, 12, 13, 15 and 16. • 50 questions will be extracted from chapters 12, 13, 15 and 16. The other 25 questions will be from the remaining chapters. • As mentioned in the syllabus, you have the right to drop your lowest exam score (Final not included), and one inclass assignment score. Your lowest scores will be automatically dropped for you. 16-28