Title: Marketing and Society: Social Responsibility and Marketing Ethics
116
- Marketing and Society Social Responsibility and
Marketing Ethics
2Criticisms of Marketing
High Prices
Deceptive Practices
High-Pressure Selling
Shoddy or Unsafe Products
Planned Obsolescence
Poor Service to Disadvantaged Consumers
3High Prices
Caused by
High Costs of Distribution
High Advertising and Promotion Costs
Excessive Markups
4High Costs
A heavily promoted brand of aspirin sells for
much more than a virtually identical non-branded
or store-branded product. Critics charge that
promotion adds only psychological value to the
product rather than functional value.
5Deceptive Practices
- Deceptive Pricing
- Falsely advertising factory or wholesale
prices or large reductions from phony high retail
list prices. - Deceptive Promotion
- Overstating a products features or performance,
running rigged contests. - Deceptive Packaging
- Exaggerating package contents through subtle
design, using misleading labeling, etc.
6High-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 not good for long- term
relationships.
7Shoddy 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.
8Product Safety
Following its recall of 6.5 million flawed
Firestone tires, product liability and safety
concerns have driven Bridgestone/ Firestone to
the brink of bankruptcy.
9Planned 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.
10Poor 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. - Weblining can occur.
11Marketings Impact on Society as a Whole
Producing Too Few Social Goods
False Wants Too Much Materialism (i.e., what
you own vs. who you are).
Cultural Pollution
Too Much Political Power
12Cultural Pollution
Our senses are sometimes assaulted by commercial
messages.
13Marketings Impact on Other Businesses
Acquisitions of Competitors
Marketing Practices That Create Barriers to Entry
Unfair Competitive Marketing Practices
All Can Harm Other Companies Reduce Competition
14Consumerism
- Consumerism is an organized movement of citizens
and government agencies to improve the rights and
power of buyers in relation to sellers.
15Consumerism 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.
16Consumerism Buyers Rights
The right not to buy a product that is 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 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.
17Environmentalism
- An organized movement of concerned citizens and
government agencies to protect and improve
peoples living environment.
18Environmental Sustainability
- A management approach that involves developing
strategies that both sustain the environment and
produce profits for the company.
19Environmental Sustainability Grid
20Legal Issues Facing Marketing Mgmt.
21Enlightened Marketing
- A marketing philosophy holding that a companys
marketing should support the best long-run
performance of the marketing system.
22Enlightened Marketing
- Consumer-Oriented Marketing
- The philosophy of enlightened marketing that
holds that the company should view and organize
its marketing activities from the consumers
point of view. - Innovative Marketing
- A principle of enlightened marketing that
requires that a company seek real product and
marketing improvements.
23Societal Classification of Products
24Marketing Ethics
- What principle should guide companies and
marketing managers on issues of ethics and social
responsibility?
Responsibility falls to individual companies and
managers
Free market and legal system
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