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

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

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

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

5 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?

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

7 Unfair Competitive Marketing Practices Marketing’s Impact on Other Businesses Marketing Practices Create Barriers to Entry Acquisitions of Competitors

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

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

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

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

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

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

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

15 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.