Post on 17-Jan-2016
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Chapter 20
Marketing and Society: Social Responsibility and Marketing
Ethics
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High PricesHigh Prices
Deceptive PracticesDeceptive Practices
High-Pressure SellingHigh-Pressure Selling
Shoddy, Unsafe ProductsShoddy, Unsafe Products
Planned ObsolescencePlanned Obsolescence
Poor Service to SomePoor Service to Some
Marketing’s Impact on Individual Consumers
Criticisms Leveled at the
Marketing Function by
Consumers, and Others
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High Costs of
Distribution
High Costs of
Distribution
High Advertising
And Promotion
Costs
High Advertising
And Promotion
Costs
High Prices Caused by the Following FactorsHigh Prices Caused by the Following Factors
ExcessiveMarkups
ExcessiveMarkups
Marketing’s Impact on Individual Consumers: High Prices
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DeceptivePricing
DeceptivePricing
Falsely Advertising “Factory” or “Wholesale” Prices, Large
ReductionFrom Phony High List Price
Falsely Advertising “Factory” or “Wholesale” Prices, Large
ReductionFrom Phony High List Price
DeceptivePackagingDeceptivePackaging
Exaggerating Package Contents, Not Filling Package to the Top,
Using Misleading Labeling
Exaggerating Package Contents, Not Filling Package to the Top,
Using Misleading Labeling
Deceptive PromotionDeceptive Promotion
Overstating the Product’s Features, Luring Customers to the Store for
Out-of-Stock Bargains, etc.
Overstating the Product’s Features, Luring Customers to the Store for
Out-of-Stock Bargains, etc.
Marketing’s Impact on Individual Consumers: Deceptive Practices
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Discussion Connections
Think back over the past three months or so and list the instances in which you’ve suffered a marketing abuse such as those just discussed. Analyze your list: What kinds of companies were involved? Were the abuses intentional? What did the situations have in common?
Pick one of the instances you listed and describe it in detail. How might you go about righting this wrong?
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False Wants & Too Much Materialism
Too Much Political Power
Producing Too FewSocial Goods
Cultural Pollution
Marketing PerceivedNegative Impact on
Society as aWhole
Marketing’s Impact on Society as a Whole
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Unfair Competiti
ve Marketing Practices
Marketing’s Impact on Other Businesses
Marketing Practices Create
Barriers to Entry
Acquisitions of
Competitors
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Buyers’
Rights
Sellers’
Rights
ConsumerismConsumerism 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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The Right toChoose & Be Informed
The Right toBe Safe & Protected
The Right to Be Heard About “Quality of Life” Issues
The Right to Choose & Expect the Product to Perform
Basic Consumer Rights
Consumerism
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Plan for New EnvironmentalTechnologies
Adopt Designfor the
Environment
Have a Sustainability
Economy
PracticeProduct
Stewardship
PracticePollution
Prevention
Environmentalism
Many companies use recycling as a selling po int of their products.
What other companies make a point of mentioning recycling on their pro duct or in advertising?
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Consumer-Oriented MarketingConsumer-Oriented Marketing
Innovative MarketingInnovative Marketing
Value MarketingValue Marketing
Sense-of-Mission MarketingSense-of-Mission Marketing
Societal MarketingSocietal Marketing
Enlightened Marketing Holds That a Company’s Marketing Should Support the Best Long-Run Performance of the
Marketing System.
Enlightened Marketing
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SalutaryProducts
DeficientProducts
DesirableProducts
PleasingProducts
Lon
g-R
un C
on
sum
er
Benefit
Low High
Immediate Satisfaction
High
Low
Societal Classification of Products (Fig. 20.3)
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Marketing Ethics
Distributor Relations
Advertising Standards
Customer Service
Pricing Product
Development General Ethical
Standards
Companies Need to Develop Corporate Marketing Ethics Policies – Broad Guidelines
That Everyone in the Organization Must Follow and Should Address:
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Decided by the Free Market and
Legal System
Decided by the Free Market and
Legal System
Responsibility of Individual Companies
And Managers
Responsibility of Individual Companies
And Managers
Marketing EthicsPrinciples That Should Guide Companies and
Marketing Managers On Issues of Ethics and Social Responsibility:
The international children’s symbol was adopted by the Outdoor Advertising Association of America to mark billboardsthat are “off-limits” to alcohol and tobacco ads.
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Review of Concept Connections
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.