Transcript Principles of Marketing - Lecture 12

Lecture 12
Principles of Marketing
Theocharis Katranis
Spring Semester 2013
Principles of Marketing
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 12
Today’s Lecture
1. We will define sustainable marketing and discuss its
importance.
2. We will identify the major social criticisms of marketing
3. We will define consumerism and environmentalism and
explain how they affect marketing strategies.
4. We will describe the principles of sustainable marketing.
5. We will explain the role of ethics in marketing
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 12
Sustainable Marketing
Definition:
It is the marketing that meets the present needs
of consumers and businesses while also
preserving or enhancing the ability of future
generations to meet their needs.
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Theocharis Katranis, MBA,
Spring Semester 2013
Lecture 12
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Theocharis Katranis, MBA,
Spring Semester 2013
Lecture 12
Social Criticisms of
Marketing
Marketing’s Impact on Individual Consumers
1. High Prices due to:
1.1 High Costs of Distribution
1.2 High Advertising and Promotion Costs
1.3 Excessive Markups
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Theocharis Katranis, MBA,
Spring Semester 2013
Social Criticisms of
Marketing
Lecture 12
Marketing’s Impact on Individual Consumers
2. Deceptive Practices through:
2.1 Deceptive Pricing – (Factory or Wholesale prices)
2.2 Deceptive Promotion – (Unreal product features
of performance)
2.3 Deceptive Packaging – (Misleading labelling and
Terms)
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Theocharis Katranis, MBA,
Spring Semester 2013
Lecture 12
Social Criticisms of
Marketing
Marketing’s Impact on Individual Consumers
3. High-Pressure Selling through:
Salespeople who put pressure to people and
persuade them to buy goods that they had no
thought of buying.
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Theocharis Katranis, MBA,
Spring Semester 2013
Lecture 12
Social Criticisms of
Marketing
Marketing’s Impact on Individual Consumers
4. Harmful or Unsafe Products
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Theocharis Katranis, MBA,
Spring Semester 2013
Lecture 12
Social Criticisms of
Marketing
Marketing’s Impact on Individual Consumers
5. Planned Obsolescence when:
Companies causing their products to become
obsolescence BEFORE they actually should need
replacement i.e. Producers use materials and
components that will break and/or rust.
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Theocharis Katranis, MBA,
Spring Semester 2013
Lecture 12
Social Criticisms of
Marketing
Marketing’s Impact on Individual Consumers
6. Poor Service to Disadvantaged Consumers
People who live in urban areas usually buy what they need
from the shop of their neighbourhood that has higher prices
and less products when comparing with the big
supermarkets in towns. Big supermarkets operate only in
big towns with a lot of customers. It is more profitable for
them.
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 12
Social Criticisms of
Marketing
Marketing’s Impact on Society as a Whole
1. False Wants and Too Much Materialism
2. Too Few Social Goods Vs Traffic Congestion,
gasoline shortages and air pollution.
3. Cultural Pollution Via Marketing and Advertising
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 12
Social Criticisms of
Marketing
Marketing’s Impact on Other Businesses
- Marketing Practices bar new companies from entering
an industry.
- Large marketing companies can use patents and heavy
promotion spending or tie up suppliers or dealers to keep
out or drive out competitors.
- Companies used unfair competitive marketing practices
with the intention of hurting or destroying other firms
i.e. prices below costs.
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 12
Consumer Action to Promote
Sustainable Marketing
Two Movements:
1. Consumerism
It is an organized movement of citizens and government
agencies to improve the rights and power of buyers in
relation to sellers
2. Environmentalism
It is an organized movement of concerned citizens and
government agencies to protect and improve people’s
current and future living environment.
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 12
Consumer Action to Promote
Sustainable Marketing
Environmental Sustainability
It is a management approach that involves
developing strategies that both sustain the
environment and produce profits for the
company
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 12
Consumer Action to Promote
Sustainable Marketing
The Environmental Sustainability Portfolio
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 12
Public Actions to
Regulate Marketing
People concern about marketing practices will
usually lead to public attention and legislative
proposals. New bills will be debated – many will be
defeated, others will be modified, and a few will
become workable laws.
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 12
Business Actions Towards
Sustainable Marketing
The FIVE Sustainable Marketing Principles:
1. Consumer-oriented Marketing
2. Customer-Value Marketing
3. Innovative Marketing
4. Sense-of-mission Marketing
5. Societal Marketing
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 12
Business Actions Towards
Sustainable Marketing
1. Consumer-oriented Marketing Principle
It is the Philosophy of sustainable marketing
that holds that the company should view and
organize its marketing activities from the
consumer’s point of view.
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 12
Business Actions Towards
Sustainable Marketing
2. Customer-Value Marketing Principle
It is the Principle of sustainable marketing
that holds that a company should put most of
its resources into customer-value-building
marketing investments.
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 12
Business Actions Towards
Sustainable Marketing
3. Innovative Marketing Principle
It is the Principle of sustainable marketing that
requires that a company seek real product and
marketing improvements.
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 12
Business Actions Towards
Sustainable Marketing
4. Sense-of-mission Marketing Principle
It is the Principle of sustainable marketing that
holds that a company should define its mission
in broad social terms rather than narrow
product terms.
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 12
Business Actions Towards
Sustainable Marketing
5. Societal Marketing Principle
It is the Principle of sustainable marketing that
holds that a company should make marketing
decisions by considering consumers’ wants, the
company’s requirements, consumers’ long-run
interests, and society’s long-run interests.
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Spring Semester 2013
Lecture 12
Marketing Ethics
Companies need to develop broad
guidelines that everyone in the organization
must follow. These policies should cover
distributor relations, advertising standards,
customer
service,
pricing,
product
development, and general ethical standards.
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 12
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 12
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Lecture 12
The Sustainable Company
Sustainable companies are those that create
value for customers through socially,
environmentally, and ethically responsible
actions.
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Spring Semester 2013
Lecture 12
Summary – Lecture 12
1. We defined sustainable marketing and discussed its
importance.
2. We identified the major social criticisms of marketing.
3. We defined consumerism and environmentalism and
explained how they affect marketing strategies.
4. We described the principles of sustainable marketing.
5. We explained the role of ethics in marketing.
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 12
Chapter 20
END of Lecture 12
Thank you for your attention
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Theocharis Katranis, MBA
Spring Semester 2013