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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.