Transcript Chapter 1

PRINCIPLES OF
MARKETING
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CHAPTER 16:
Marketing and Society:
Social Responsibility and
Marketing Ethics
Armstrong, G. & Kotler, P. Marketing:
An Introduction
(6th ed.) Prentice Hall © 2003.
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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.
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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
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Marketing’s Impact on Individual
Consumers: High Prices
High Prices Caused by the Following Factors
High
Costs of
Distribution
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High
Advertising
and
Promotion
Costs
Excessive
Markups
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Marketing’s Impact on Individual
Consumers: Deceptive Practices
Deceptive
Pricing
Deceptive
Promotion
Deceptive
Packaging
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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
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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.
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Shoddy or Unsafe Products
Complaint that many products
are not made well.
Second, many products
deliver little benefit.
Third, concerns product
safety.
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American Association of Advertising
Agencies
This ad demonstrates that
advertising can’t make
consumers buy things that they
don’t need despite highpressure selling.
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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.
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Poor Service to Disadvantaged
Consumers
May pay more for inferior
goods.
“Redlining” may occur where
major chain retailers avoid
placing stores in
disadvantaged
neighborhoods.
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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
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Cultural Pollution
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Marketing’s Impact on Other Businesses
Acquisitions
of
Competitors
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Marketing
Practices
Create
Barriers to
Entry
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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.
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Buyers’
Sellers’
Rights
Rights
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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
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Environmentalism
Have a
Sustainability
Vision
Plan for New
Environmental
Technologies
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Practice
Pollution
Prevention
Adopt Design
for the
Environment
Practices
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Practice
Product
Stewardship
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Major Legal Issues Facing Marketing
Management (Fig. 16-2)
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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
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Societal Classification of Products (Fig.
16-3)
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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
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 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
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Responsibility of
Individual
Companies
And Managers
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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.
© UMT 2004
Version: 11-10-04
Visit UMT online at www.umtweb.edu
16-20
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