Sustainable Marketing Social Responsibility and Ethics Chapter 3 - Duane Weaver

Sustainable Marketing Socially and environmentally responsible marketing that meets the present needs of consumers and businesses while preserving or enhancing the ability of future generations to meet their needs. LO 1: Define sustainable marketing and discuss its importance

Take a minute… ….and write down on a piece of paper one example of a time you purchased something that you felt was unfairly marketed or promoted to you… i.e. the product broke down, quality was poor, was found cheaper elsewhere, “over-sold” on the product, etc.

Social Criticisms of Marketing Marketing’s impact on individual consumers has been criticized in terms of three factors that are cited as leading to high prices: High costs of distribution High advertising and promotion costs Excessive markups LO 2: Identify the major social criticisms of marketing

Social Criticisms of Marketing Marketers may be accused of deceptive practices including: Pricing: falsely advertising “wholesale” or “factory” prices or large reductions from phony high retail list prices Promotion: misrepresenting a product’s features or performance, or luring consumers to store for out-of-stock items Packaging: exaggerating package contents through design, misleading labeling, or size LO 2: Identify the major social criticisms of marketing

Social Criticisms of Marketing Deceptive practices have led to legislation and other protective consumer actions: Competition Bureau acts as a watchdog to prevent deceptive practices Use of puffery is legal, but may harm consumers in subtle ways LO 2: Identify the major social criticisms of marketing Puffery is innocent exaggeration for effect.

Social Criticisms of Marketing Salespeople can be accused of using high-pressure selling tactics LO 2: Identify the major social criticisms of marketing

Social Criticisms of Marketing Criticisms of shoddy or unsafe products: Poor product quality or function Products deliver little benefit or are harmful LO 2: Identify the major social criticisms of marketing

Social Criticisms of Marketing Planned obsolescence causes products to become obsolete before replacement by: Using materials and components that break, wear, rust, or rot before they should Continually changing acceptable styles Intentionally holding back functional features, then introducing them later to make older models obsolete LO 2: Identify the major social criticisms of marketing

Social Criticisms of Marketing Marketers are accused of poorly serving disadvantaged consumers: Forced to shop in smaller stores, paying more for inferior goods National chain stores, insurers, and health care providers practice “redlining” and refuse to open businesses in poor neighborhoods LO 2: Identify the major social criticisms of marketing

In small groups… ….discuss and share your original examples you came up with. Can you think of other examples? Are social criticisms of marketing common – if so, which ones are most common?

Impact on Society Marketing’s impact on society has been criticized as: Creating false wants and encouraging materialism that benefits industry more than consumers Creating cultural pollution, stemming from constant exposure to marketing messages LO 2: Identify the major social criticisms of marketing

Consumer Actions 1: Consumerism: An organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers Seller’s rights include the right to: Introduce any product in any size and style Charge any price for the product Spend any amount to promote the product Use any product message Use any buying incentive schemes LO 3: Define consumerism and environmentalism and explain how they affect marketing strategies

Consumer Actions Buyers’ rights include the right to: Not buy a product that is offered for sale Expect the product to be safe Expect the product to perform as claimed LO 3: Define consumerism and environmentalism and explain how they affect marketing strategies

Consumer Actions Consumer advocates call for more rights to: Be well informed about aspects of the product Be protected against questionable products and marketing practices Influence products and marketing practices in ways that will improve “quality of life” Consume now in a way that will preserve the world for future generations of consumers LO 3: Define consumerism and environmentalism and explain how they affect marketing strategies

Consumer Actions Environmentalism: An organized movement of concerned citizens and government agencies to protect and improve people’s living environment LO 3: Define consumerism and environmentalism and explain how they affect marketing strategies

Consumer Actions Environmental sustainability: Involves developing strategies that both sustain the environment and produce profits for the company Environmental sustainability portfolio: Pollution prevention Product stewardship New clean technologies Sustainability vision LO 3: Define consumerism and environmentalism and explain how they affect marketing strategies

Business Actions Consumer-Oriented Marketing: A company’s marketing activities are viewed and organized from the consumer’s point of view Customer-Value Marketing: A company puts most of its resources into customer-value-building marketing investments Innovative Marketing: A company seeks real product and marketing improvements Sense-of-Mission Marketing: A company’s mission is defined in broad social terms rather than narrow product terms Societal Marketing: - Marketing decisions are made by considering consumers’ wants and interests, the company’s requirements, and consumers’ and society’s long-run interests LO 4: Describe the principles of sustainable marketing

Marketing Ethics Firms must develop corporate marketing ethics policies as broad guidelines for staff Ethics policies should cover: Distributor relations Advertising standards Customer service Pricing Product development General ethical standards LO 5: Explain the role of ethics in marketing

Break time! Take 15 minutes and have a break! When we come back we will apply what we have discussed in the Pink Ribbon debate.