1. Copyright © 2008 Pearson Education CanadaPrinciples of Marketing, Seventh Canadian Edition Chapter 4 Marketing and Society: Social Responsibility and Marketing Ethics

2. Copyright © 2008 Pearson Education CanadaPrinciples of Marketing, Seventh Canadian Edition 4-2 Learning Goals 1.Understand marketing’s multiple responsibilities, and identify the major social and ethical criticisms of marketing 2.Define consumerism and environmentalism and explain how they affect marketing strategies 3.Describe the principles of socially responsible marketing 4.Explain the role of ethics in marketing

3. Copyright © 2008 Pearson Education CanadaPrinciples of Marketing, Seventh Canadian Edition 4-3 Ben & Jerry’s – The Body Shop Early 1980’s revolutionaries such as Ben & Jerry’s or The Body Shop were social activists first, business people second Second wave are business people who are passionate about a cause Companies can improve their bottom lines while doing good by selling “quality products, treating employees, vendors, and franchisees with integrity and upgrading their environmental practices”

4. Copyright © 2008 Pearson Education CanadaPrinciples of Marketing, Seventh Canadian Edition 4-4 Mountain Equipment Co-op (MEC) Mountain Equipment Co-operative (MEC) founded in 1971 Its early mission was to provide quality outdoor equipment at affordable prices Member-owned co-operative Focus on environmental responsibility Statement of values and ethical behaviour Development of lifetime relationships with its members 2 million members, sales of $197 m in 2005 Operates retail stores in 9 Canadian cities

5. Copyright © 2008 Pearson Education CanadaPrinciples of Marketing, Seventh Canadian Edition 4-5 Learning Goals 1.Understand marketing’s multiple responsibilities, and identify the major social and ethical criticisms of marketing. 2.Define consumerism and environmentalism and explain how they affect marketing strategies 3.Describe the principles of socially responsible marketing 4.Explain the role of ethics in marketing

6. Copyright © 2008 Pearson Education CanadaPrinciples of Marketing, Seventh Canadian Edition 4-6 Social and Ethical Criticisms of Marketing Marketing’s Impact on Individual Consumers –High Prices High costs of distribution High advertising and promotion costs Excessive markups

7. Copyright © 2008 Pearson Education CanadaPrinciples of Marketing, Seventh Canadian Edition 4-7 Social and Ethical Criticisms of Marketing Marketing’s Impact on Individual Consumers –Deceptive Practices Pricing Promotion Packaging –High-Pressure Selling

8. Copyright © 2008 Pearson Education CanadaPrinciples of Marketing, Seventh Canadian Edition 4-8 Consumer groups, including Generation Green are claiming that Splenda’s campaign “made from sugar so it tastes like sugar” is misleading The claim is that it leads customers to believe that Splenda is a natural sugar alternative rather than an artificial sweetener The group is appealing to the FTC to have them stop this campaign Social and Ethical Criticisms of Marketing

9. Copyright © 2008 Pearson Education CanadaPrinciples of Marketing, Seventh Canadian Edition 4-9 Social and Ethical Criticisms of Marketing Marketing’s Impact on Individual Consumers –Shoddy or unsafe products –Planned obsolescence –Poor service to disadvantaged consumers

10. Copyright © 2008 Pearson Education CanadaPrinciples of Marketing, Seventh Canadian Edition 4-10 Social and Ethical Criticisms of Marketing Marketing’s Impact on Society as a Whole –False wants and too much materialism –Too few social goods –Cultural pollution –Too much political power

11. Copyright © 2008 Pearson Education CanadaPrinciples of Marketing, Seventh Canadian Edition 4-11 Social and Ethical Criticisms of Marketing Marketing’s Impact on Other Businesses –Acquisitions of competitors –Marketing practices which create barriers to entry –Unfair competitive marketing practices

12. Copyright © 2008 Pearson Education CanadaPrinciples of Marketing, Seventh Canadian Edition 4-12 Learning Goals 1.Understand marketing’s multiple responsibilities, and identify the major social and ethical criticisms of marketing. 2.Define consumerism and environmentalism and explain how they affect marketing strategies 3.Describe the principles of socially responsible marketing 4.Explain the role of ethics in marketing

13. Copyright © 2008 Pearson Education CanadaPrinciples of Marketing, Seventh Canadian Edition 4-13 Consumerism –Traditional seller’s rights –Fundamental consumer rights –Additional rights proposed by consumer advocates Each proposed right has led to more specific proposals by consumerists Citizen & Public Actions to Regulate Marketing

14. Copyright © 2008 Pearson Education CanadaPrinciples of Marketing, Seventh Canadian Edition 4-14 Environmentalism –An organized movement of concerned citizens, businesses and government agencies to protect and improve people’s living environment –Environmental Sustainability Pollution prevention Product stewardship New environmental technologies Sustainability vision Citizen & Public Actions to Regulate Marketing

15. Copyright © 2008 Pearson Education CanadaPrinciples of Marketing, Seventh Canadian Edition 4-15 Public Actions to Regulate Marketing –Major legal issues affect every area of marketing management, including: Selling and advertising decisions Channel decisions Product decisions Packaging decisions Price decisions Competitive reaction decisions Citizen & Public Actions to Regulate Marketing

16. Copyright © 2008 Pearson Education CanadaPrinciples of Marketing, Seventh Canadian Edition 4-16 Learning Goals 1.Understand marketing’s multiple responsibilities, and identify the major social and ethical criticisms of marketing 2.Define consumerism and environmentalism and explain how they affect marketing strategies 3.Describe the principles of socially responsible marketing 4.Explain the role of ethics in marketing

17. Copyright © 2008 Pearson Education CanadaPrinciples of Marketing, Seventh Canadian Edition 4-17 Enlightened Marketing –Consumer-Oriented Marketing: Companies view and organize their marketing activities from the consumer’s point of view. –Innovative Marketing: Companies seek real product and marketing improvements. Business Actions Toward Socially Responsible Marketing

18. Copyright © 2008 Pearson Education CanadaPrinciples of Marketing, Seventh Canadian Edition 4-18 Enlightened Marketing –Customer-Value Marketing: Companies put most of their resources into value- building marketing investments. –Sense-of-Mission Marketing: Companies define their mission in broad social terms rather than in narrow product terms. Business Actions Toward Socially Responsible Marketing

19. Copyright © 2008 Pearson Education CanadaPrinciples of Marketing, Seventh Canadian Edition 4-19 Enlightened Marketing –Societal Marketing: Companies make marketing decisions by considering consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests. Business Actions Toward Socially Responsible Marketing

20. Copyright © 2008 Pearson Education CanadaPrinciples of Marketing, Seventh Canadian Edition 4-20 Enlightened Marketing –Societal Classification of Products Deficient products Pleasing products Salutary products Desirable products Business Actions Toward Socially Responsible Marketing

21. Copyright © 2008 Pearson Education CanadaPrinciples of Marketing, Seventh Canadian Edition 4-21 Learning Goals 1.Understand marketing’s multiple responsibilities, and identify the major social and ethical criticisms of marketing 2.Define consumerism and environmentalism and explain how they affect marketing strategies 3.Describe the principles of socially responsible marketing 4.Explain the role of ethics in marketing

22. Copyright © 2008 Pearson Education CanadaPrinciples of Marketing, Seventh Canadian Edition 4-22 Marketing Ethics –Corporate marketing ethics policies Distributor relations, advertising standards, customer service, pricing, product development and general ethical standards –Guiding principle in policy determination Free market and legal system Individual companies and managers –International ethical policies are a special challenge Business Actions Toward Socially Responsible Marketing

23. Copyright © 2008 Pearson Education CanadaPrinciples of Marketing, Seventh Canadian Edition 4-23 Learning Goals 1.Understand marketing’s multiple responsibilities, and identify the major social and ethical criticisms of marketing 2.Define consumerism and environmentalism and explain how they affect marketing strategies 3.Describe the principles of socially responsible marketing 4.Explain the role of ethics in marketing