Marketing Ethics and Social Responsibility Chapter 20 Sustainable Marketing

Social Criticisms of Marketing Marketing’s Impact on Individual Consumers High Prices High costs of distribution High advertising & promotion costs Excessive markups

Social Criticisms of Marketing Marketing’s Impact on Individual Consumers Deceptive Practices Pricing Promotion Packaging High-Pressure Selling

Social Criticisms of Marketing Marketing’s Impact on Individual Consumers Inferior, Poor, or Unsafe Products Planned Obsolescence Poor Service to Disadvantaged Consumers

Planned obsolescence Critics also have charged that some companies practice planned obsolescence, causing their products to become obsolete before they actually should need replacement. Marketers respond that consumers like design changes; they get tired of the old goods and want a new look in fashion. Or they want the latest high-tech innovations, even if older models still work. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Social 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

Social Criticisms of Marketing Marketing’s Impact on Other Businesses Acquisitions of Competitors Marketing Practices Creating Barriers to Entry

Social Criticisms of Marketing Slotting fees are charged by retailers for manufacturers to place a new product in their stores or to keep existing products on the shelves. These fees can be as high as $30,000 per brand Slotting fees cause a barrier to entry for smaller manufacturers 20 - 7

Citizen & 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

Business actions toward sustainable marketing Consumer oriented marketing Customer value marketing Innovative marketing Sense of mission marketing Societal marketing At first, many companies opposed consumerism, environmentalism, and other elements of sustainable marketing. They thought the criticisms were either unfair or unimportant. But now, most companies have grown to embrace the new consumer rights, at least in principle. Sustainable Marketing Principles The philosophy of sustainable marketing holds that a company’s marketing should support the best long run performance of the marketing system.

Business Actions Toward Socially Responsible Marketing Enlightened Marketing Customer-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 Enlightened Marketing 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.

Business Actions Toward Socially Responsible Marketing 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.

Societal Classifications of Products 20 - 13