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Marketing Ethics and Social Responsibility CHAPTER SIXTEEN.

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Presentation on theme: "Marketing Ethics and Social Responsibility CHAPTER SIXTEEN."— Presentation transcript:

1 Marketing Ethics and Social Responsibility CHAPTER SIXTEEN

2 Learning Objectives 1.Overall: To Understand the Meaning of Marketing Ethics and Social Responsibility. 2.To Learn About Potential Unethical Marketing Practices Involving Targeting Especially Vulnerable or Unaware Consumers. 3.To Learn How Marketers Can Ambush Consumers with Unexpected Ads, Tinker with Their Perceptions, and Mislead Them. 4.To Understand How Marketers Can Advance Society’s Interests via Such Practices as Advocating Social Benefits. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall2Chapter Sixteen Slide

3 Why Is the Sponsor of This Ad Criticizing McDonald’s, and What Business Concept Did McDonald’s Ignore by Using Trans Fats? 3Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Sixteen Slide

4 McDonald’s Ignored Consumer’s Interests and the Societal Marketing Concept. 4Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Sixteen Slide

5 Societal Marketing Concept “Marketers should endeavor to satisfy the needs and wants of their target markets in ways that preserve and enhance the well-being of consumers and society as a whole, while fulfilling the objectives of the organization” 5Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall5Chapter Sixteen Slide

6 Exploitive Targeting Marketing to Children Overaggressive Promotion Selling Pharmaceuticals directly to consumers The perils of precision targeting Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall6Chapter Sixteen Slide

7 Marketing to Children Guidelines by Children’s Advertising Review Unit (CARU) Guidelines include: – No misleading claims about product’s performance or benefits – Must not exploit children’s imagination – Can not create unrealistic expectations – Products must be shown in safe situation – No encouragement of inappropriate behavior 7Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall7Chapter Sixteen Slide

8 Annual Exposure by Category and Program Type - Figure 16.2 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall8Chapter Sixteen Slide

9 Discussion Questions Think back to when you were a kid. – What products seemed more appealing in their ad than in actuality. Why? As a student: – What marketers try to sell you products that might not be in your best interest? – What marketing tactics do they use? 9Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall9Chapter Sixteen Slide

10 Overaggressive Promotion Recession due in part to Americans’ rising credit and easy credit to risky groups Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall10Chapter Sixteen Slide

11 Selling Pharmaceuticals Directly to Consumers Began in 1997 Television, print, and the Internet 11Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall11Chapter Sixteen Slide

12 The Perils Of Precision Targeting Narrowcasting – Directed messages to small audiences – Data providers support the marketers with information GPS – Cell phones and cars – Gives marketers your location Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall12Chapter Sixteen Slide

13 Data Collection by Web Companies Figure 16.3 – Part A Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall13Chapter Sixteen Slide

14 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall14Chapter Sixteen Slide Data Collection by Web Companies Figure 16.3 – Part B

15 Manipulating Consumers Forced exposure to advertising Tinkering with consumers’ perceptions Covert marketing Socially undesirable representations False or misleading advertising Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall15Chapter Sixteen Slide

16 Forced Exposure To Advertising Product placement Advertorials Infomercials Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall16Chapter Sixteen Slide

17 Tinkering With Consumers’ Perceptions Increased consumption from: – Organization of merchandise – Size of package – Symmetry of display – Perceived variety of display Store Environments Relative Pricing Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall17Chapter Sixteen Slide

18 Covert Marketing Also called masked or stealth marketing Messages appear to be from independent parties but are company driven. Disagreement as to whether they violate FTC guidelines Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall18Chapter Sixteen Slide

19 A Typology of Masked Marketing Practices Table 16.3 PracticeDescription Posers (disguised communicator) Actors or salespeople who pretend to be ordinary people or researchers conducting a survey to explain product benefits and give potential consumers the chance to examine, sample, or use a product. Buzz and viral marketing (disguised communicator) Recruitment of people to talk about products through free samples or discounts before the product is available to the general public and suggestions on what to say and how to approach people about the product. Some refer to this as viral marketing when the contact with potential consumers is done electronically. Advertorials (disguised format) Advertisements that appear to be information from an independent source, such as prepared television news stories: infomercials that appear to be consumer television shows; and print advertisements that appear to be editorial content. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall19Chapter Sixteen Slide

20 A Typology Of Masked Marketing Practices Table 16.3 (continued) PracticeDescription Disguised monitoring of queries via search engines Use of invisible metatags by a marketer or the sale of priority by a search engine of the results from a particular query when the results are not identified as biased. Urgent ad-formation (disguised format) Advertisements that appear in the form of important account information from firms with an existing business relationship, government notices, sweepstakes prize notices, or checks that are simply discount coupons. Advertainment (disguised format) Product and advertising placement in television shows, at sporting events, and in video games. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall20Chapter Sixteen Slide

21 Discussion Questions Do you think covert marketing is wrong? Why might others have a different opinion from you? 21Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall21Chapter Sixteen Slide

22 Socially Undesirable Representations Children’s Toys – Barbie and G.I. Joe Thin models in the media Brands that promote violence Stereotypes Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall22Chapter Sixteen Slide

23 False or Misleading Advertising Puffery Truth-in-advertising laws Deceptive advertising Corrective advertising Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall23Chapter Sixteen Slide

24 Social Responsibility Advocating socially beneficial causes Cause-related marketing Green marketing Consumer ethics Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall24Chapter Sixteen Slide

25 Advocating Socially Beneficial Causes Not-for-profits Government agencies Consumer advocacy groups Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall25Chapter Sixteen Slide

26 What Is the Name and Meaning of the Marketing Approach Featured in this Ad? 26Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Sixteen Slide

27 Advocating Socially Beneficial Causes or To Promote Socially Desirable Behaviors 27Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Sixteen Slide

28 What Is the Ad’s Objective, and Why Is the CSPI Sponsoring It? 28Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Sixteen Slide

29 It is Aimed at Educating Consumers About Unhealthy Products at School – The CSPI is a Consumer Advocacy Group 29Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Sixteen Slide

30 Cause-Related Marketing Contribute a portion of revenues Good fit between cause and company’s positioning is important Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall30Chapter Sixteen Slide

31 Green Marketing Promoting of healthy, reusable, and ecofriendly products Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall31Chapter Sixteen Slide

32 What Is the Name and Purpose of the Marketing Practice Depicted in the Three Ads and How Did Each of the Three Carmakers Featured Adopt This Practice? 32Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Sixteen Slide

33 Green Marketing 33 Better Mileage Social Conscience Responsibility and Luxury Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Sixteen Slide

34 Discussion Questions Do you make an effort to purchase green products? If a product is better for the environment than the alternative, are you more likely to purchase the green product? Would you pay more for the green product? 34Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall34Chapter Sixteen Slide

35 Measuring Consumers’ Attitudes Toward Green Products – Table 16.4 (excerpt) A Scale Measuring Consumers’ Attitudes Toward Green Products I believe there are a lot of exaggerations about companies taking environmental risks nowadays. I believe the government is doing all that is possible to safeguard the environment. I believe that we should not slow down industry progress because of concern for the environment. I believe environmental safety is the responsibility of the government, not individual citizens. I believe that government legislation adequately regulates environmental protection. I believe a well-known brand is always a safe product to buy. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall35Chapter Sixteen Slide

36 Consumer Ethics Returning used product Software privacy Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall36Chapter Sixteen Slide

37 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall37Chapter Sixteen Slide


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