16-1

Chapter 16

Marketing and Society: Social Responsibility and Marketing Ethics

16-2

Road Map: Previewing the ConceptsIdentify 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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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

High PricesHigh Prices

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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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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.

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 high-pressure 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.

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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False Wants & Too Much Materialism

Too Much Political Power

Producing Too FewSocial Goods

Cultural Pollution

Marketing’s 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

Consumerism is an Organized Movement of Citizens and Government Agencies to Improve the Rights and Power of Buyers in Relation to

Sellers.

Consumerism

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The Right Not to Buy a Product Offered for SaleThe Right Not to Buy a Product Offered for Sale

The Right to Expect the Product to be SafeThe Right to Expect the Product to be Safe

The Right to Expect the Product to Perform as ClaimedThe Right to Expect the Product to Perform as Claimed

The Right to Be Protected Against Questionable ProductsThe Right to Be Protected Against Questionable Products

The Right to Be Heard About “Quality of Life” IssuesThe Right to Be Heard About “Quality of Life” Issues

The Right to Be Well Informed About the ProductThe Right to Be Well Informed About the Product

Consumerism – Buyers’ Rights

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Plan for New EnvironmentalTechnologies

Adopt Designfor the

Environment Practices

Have a Sustainability

Vision

PracticeProduct

Stewardship

PracticePollution

Prevention

Environmentalism

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Major Legal Issues Facing Marketing Management (Fig. 16-2)

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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

Holds That a Company’s Marketing Should Support the Best Long-Run Performance of the

Marketing System.

Enlightened Marketing

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Societal Classification of Products (Fig. 16-3)

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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

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:

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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 ConceptsIdentify 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.