Marketing and Society: Social Responsibility and Marketing Ethics Chapter 20 Marketing and Society: Social Responsibility and Marketing Ethics

Marketing’s Impact on Individual Consumers Criticisms Leveled at the Marketing Function by Consumers, and Others High Prices Deceptive Practices High-Pressure Selling Shoddy, Unsafe Products Planned Obsolescence Poor Service to Some

Marketing’s Impact on Individual Consumers: High Prices High Prices Caused by the Following Factors High Costs of Distribution High Advertising And Promotion Costs Excessive Markups

Marketing’s Impact on Individual Consumers: Deceptive Practices Pricing Falsely Advertising “Factory” or “Wholesale” Prices, Large Reduction From Phony High List Price Deceptive Promotion Overstating the Product’s Features, Luring Customers to the Store for Out-of-Stock Bargains, etc. Deceptive Packaging Exaggerating Package Contents, Not Filling Package to the Top, Using Misleading Labeling

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?

Marketing’s Impact on Society as a Whole False Wants & Too Much Materialism Producing Too Few Social Goods Marketing Perceived Negative Impact on Society as a Whole Cultural Pollution Too Much Political Power

Marketing’s Impact on Other Businesses Acquisitions of Competitors Marketing Practices Create Barriers to Entry Unfair Competitive Marketing Practices All Can Harm Other Companies & Reduce Competition

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

Consumerism Basic Consumer Rights The Right to The Right to Choose & Be Informed The Right to Be Safe & Protected Consumerism Basic Consumer Rights The Right to Be Heard About “Quality of Life” Issues The Right to Choose & Expect the Product to Perform

Environmentalism Have a Practice Sustainability Pollution Economy Prevention Plan for New Environmental Technologies Practice Product Stewardship Adopt Design for the Environment

Enlightened Marketing Consumer-Oriented Marketing Enlightened Marketing Holds That a Company’s Marketing Should Support the Best Long-Run Performance of the Marketing System. Innovative Marketing Value Marketing Sense-of-Mission Marketing Societal Marketing

Societal Classification of Products (Fig. 20.3) Immediate Satisfaction Low High Salutary Products Deficient Desirable Pleasing High Long-Run Consumer Benefit Low

Marketing Ethics Companies Need to Develop Corporate Marketing Ethics Policies – Broad Guidelines That Everyone in the Organization Must Follow and Should Address: Distributor Relations Advertising Standards Customer Service Pricing Product Development General Ethical Standards

Marketing Ethics Principles That Should Guide Companies and Marketing Managers On Issues of Ethics and Social Responsibility: Decided by the Free Market and Legal System Responsibility of Individual Companies And Managers

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.