Marketing and Society: Social Responsibility and Marketing Ethics

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Chapter 16

• Marketing and Society Social Responsibility and
  Marketing Ethics

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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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Marketings Impact on Individual Consumers
High Prices
Deceptive Practices

High-Pressure Selling
Shoddy, Unsafe Products
Planned Obsolescence
Poor Service to Some
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Marketings Impact on Individual Consumers High
Prices
High Prices Caused by the Following Factors
High Costs of Distribution
High Advertising and Promotion Costs
Excessive Markups
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Marketings Impact on Individual Consumers
Deceptive Practices
Deceptive Pricing
Falsely Advertising Factory or Wholesale
Prices, Large Reduction From Phony High List
Price
Deceptive Promotion
Overstating the Products Features, Luring
Customers to the Store for Out-of-Stock Bargains,
etc.
Deceptive Packaging
Exaggerating Package Contents, Not Filling
Package to the Top, Using Misleading Labeling
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Marketings Impact on Individual Consumers

• High-Pressure Selling
• Some products such as cars and jewelry are
  said to be sold, not bought.
• Such tactics damage marketers 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.

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American Association of Advertising Agencies

• This ad demonstrates that advertising cant make
  consumers buy things that they dont need despite
  high-pressure selling.

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Marketings 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.

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Marketings Impact on Society as a Whole
Producing Too Few Social Goods
False Wants Too Much Materialism
Marketings Perceived Negative Impact on
Society as a Whole
Cultural Pollution
Too Much Political Power
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Marketings Impact on Other Businesses
All Can Harm Other Companies Reduce Competition
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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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Consumerism Buyers Rights
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Environmentalism
Have a Sustainability Vision
Practice Pollution Prevention
Plan for New Environmental Technologies
Practice Product Stewardship
Adopt Design for the Environment Practices
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Major Legal Issues Facing Marketing Management
(Fig. 16-2)
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Enlightened Marketing
Consumer-Oriented Marketing
Holds That a Companys Marketing Should Support
the Best Long-Run Performance of the Marketing
System.
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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Discussion Question

• Compare the marketing concept with the principle
  of societal marketing.
• Should all marketers adopt the societal marketing
  concept? Why or why not?

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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

• 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
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Interactive Student Assignments

• 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.

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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.