Transcript Marketing - Pearson Canada

Marketing: An Introduction
Marketing and Society:
Social Responsibility and Marketing Ethics
•Chapter Sixteen
•Lecture Slides
–Express Version
•Course
•Professor
•Date
Marketing: An Introduction
Looking Ahead
• After studying this chapter you should
be able to:
• 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
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Marketing: An Introduction
Social Criticisms of Marketing
• Impact on individual consumer welfare:
– High prices due to costs of distribution, advertising,
and excessive markups
– Deceptive practices: pricing, promotion
– High-pressure selling
– Shoddy or unsafe products
– Planned obsolescence
– Poor service to disadvantaged customers
• Impact on society:
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Creating false wants
Too few social goods
Cultural pollution
Too much political power
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Marketing: An Introduction
Social Criticisms of Marketing
• Impact on other businesses:
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Harming competitors
Reducing competition through acquisitions
Practices that create barriers to entry
Unfair competitive marketing practices
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Marketing: An Introduction
Consumerism
• Consumerism:
– An organized movement of citizens and government
agencies
– Protect the rights and power of buyers
• Consumers’ Association of Canada (CAC)
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The right to safety
The right to be informed
The right to choose
The right to be heard
The right to redress against damage
The right to consumer education
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Marketing: An Introduction
Environmentalism
• Environmentalism:
– An organized movement of citizens, businesses,
and government agencies
– Protect and improve peoples’ living environment
– The marketing system’s goal should be to maximize
life quality, rather than consumption, choice, or
satisfaction
– Government regulation to support these goals
• Environmental sustainability:
– Strategies to sustain the environment and product
profits for the company
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Marketing: An Introduction
The Environmental Sustainability Grid
Tomorrow
Today
New environmental technology
Sustainability vision
Is the environmental performance of
our products limited by our existing
technology base?
Does our corporate vision direct us
toward the solution of social and
environmental problems?
Is there potential to realize major
improvements through new technology?
Does our vision guide the development
of new technologies, markets, products,
and processes?
Pollution prevention
Product stewardship
Where are the most significant waste and
emission streams from our current
operations?
Where are the implications for product
design and development if we assume
responsibility for its entire life cycle?
Can we lower costs and risks by
eliminating waste at the source or by
using it as useful input?
Can we add value or lower costs
while simultaneously reducing the
impact of our products?
Internal
External
Source: S.L. Hart in The Harvard Business Review, 1997
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Figure 16-1
Marketing: An Introduction
Legal Issues Facing Marketing Management
Selling decisions
Product/packaging decisions
Bribing? Stealing trade secrets?
Disparaging customers? Misrepresenting?
Disclosure of customer rights?
Unfair discrimination?
Product additions/deletions? Patent protection?
Product quality, safety? Product warranty?
Fair packaging and labelling? Excessive cost?
Scarce resources? Pollution?
Advertising decisions
Price decisions
False advertising?
Deceptive advertising?
Bait-and-switch advertising?
Promotional allowances and services?
Price fixing? Predatory pricing?
Price discrimination?
Minimum pricing?
Price increases? Deceptive pricing?
Channel decisions
Competitive relations decisions
Exclusive dealing?
Exclusive territorial distributorship?
Tying agreements?
Dealers’ rights?
Anti-competitive acquisition?
Barriers to entry?
Predatory competition?
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Figure 16-2
Marketing: An Introduction
Socially Responsible Marketing
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Five principles of enlightened marketing:
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Consumer-oriented marketing
Innovative marketing
Value marketing
Sense-of-mission marketing
Societal marketing
• Deficient products
• Pleasing products
• Salutary products
• Desirable products
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Marketing: An Introduction
Looking Back
• Major social criticisms
of marketing
• Consumerism and
environmentalism
• Principles of socially
responsible marketing
• Role of ethics in
marketing
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