Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Principles of Marketing Theocharis Katranis Lecture 12 Spring Semester

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture 12 2 Today’s Lecture 1. We will define sustainable marketing and discuss its importance. 2. We will identify the major social criticisms of marketing 3. We will define consumerism and environmentalism and explain how they affect marketing strategies. 4. We will describe the principles of sustainable marketing. 5. We will explain the role of ethics in marketing

Principles of MarketingTheocharis Katranis, MBA,Spring Semester 2013 Sustainable Marketing Lecture 12 3 It is the marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs. Definition:

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Principles of MarketingTheocharis Katranis, MBA,Spring Semester 2013 Lecture 12 5 Social Criticisms of Marketing Marketing’s Impact on Individual Consumers 1. High Prices due to: 1.1 High Costs of Distribution 1.2 High Advertising and Promotion Costs 1.3 Excessive Markups

Principles of MarketingTheocharis Katranis, MBA,Spring Semester 2013 Lecture 12 6 Social Criticisms of Marketing Marketing’s Impact on Individual Consumers 2. Deceptive Practices through: 2.1 Deceptive Pricing – (Factory or Wholesale prices) 2.2 Deceptive Promotion – (Unreal product features of performance) 2.3 Deceptive Packaging – (Misleading labelling and Terms)

Principles of MarketingTheocharis Katranis, MBA,Spring Semester 2013 Lecture 12 7 Social Criticisms of Marketing Marketing’s Impact on Individual Consumers 3. High-Pressure Selling through: Salespeople who put pressure to people and persuade them to buy goods that they had no thought of buying.

Principles of MarketingTheocharis Katranis, MBA,Spring Semester 2013 Lecture 12 8 Social Criticisms of Marketing Marketing’s Impact on Individual Consumers 4. Harmful or Unsafe Products

Principles of MarketingTheocharis Katranis, MBA,Spring Semester 2013 Lecture 12 9 Social Criticisms of Marketing Marketing’s Impact on Individual Consumers 5. Planned Obsolescence when: Companies causing their products to become obsolescence BEFORE they actually should need replacement i.e. Producers use materials and components that will break and/or rust.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Social Criticisms of Marketing Marketing’s Impact on Individual Consumers 6. Poor Service to Disadvantaged Consumers People who live in urban areas usually buy what they need from the shop of their neighbourhood that has higher prices and less products when comparing with the big supermarkets in towns. Big supermarkets operate only in big towns with a lot of customers. It is more profitable for them.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Social Criticisms of Marketing Marketing’s Impact on Society as a Whole 1. False Wants and Too Much Materialism 2. Too Few Social Goods Vs Traffic Congestion, gasoline shortages and air pollution. 3. Cultural Pollution Via Marketing and Advertising

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Social Criticisms of Marketing Marketing’s Impact on Other Businesses - Marketing Practices bar new companies from entering an industry. - Large marketing companies can use patents and heavy promotion spending or tie up suppliers or dealers to keep out or drive out competitors. - Companies used unfair competitive marketing practices with the intention of hurting or destroying other firms i.e. prices below costs.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Consumer Action to Promote Sustainable Marketing Two Movements: 1. Consumerism It is an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers 2. Environmentalism It is an organized movement of concerned citizens and government agencies to protect and improve people’s current and future living environment.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Consumer Action to Promote Sustainable Marketing Environmental Sustainability It is a management approach that involves developing strategies that both sustain the environment and produce profits for the company

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Consumer Action to Promote Sustainable Marketing The Environmental Sustainability Portfolio

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Public Actions to Regulate Marketing People concern about marketing practices will usually lead to public attention and legislative proposals. New bills will be debated – many will be defeated, others will be modified, and a few will become workable laws.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Business Actions Towards Sustainable Marketing The FIVE Sustainable Marketing Principles: 1. Consumer-oriented Marketing 2. Customer-Value Marketing 3. Innovative Marketing 4. Sense-of-mission Marketing 5. Societal Marketing

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Business Actions Towards Sustainable Marketing 1. Consumer-oriented Marketing Principle It is the Philosophy of sustainable marketing that holds that the company should view and organize its marketing activities from the consumer’s point of view.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Business Actions Towards Sustainable Marketing 2. Customer-Value Marketing Principle It is the Principle of sustainable marketing that holds that a company should put most of its resources into customer-value-building marketing investments.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Business Actions Towards Sustainable Marketing 3. Innovative Marketing Principle It is the Principle of sustainable marketing that requires that a company seek real product and marketing improvements.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Business Actions Towards Sustainable Marketing 4. Sense-of-mission Marketing Principle It is the Principle of sustainable marketing that holds that a company should define its mission in broad social terms rather than narrow product terms.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Business Actions Towards Sustainable Marketing 5. Societal Marketing Principle It is the Principle of sustainable marketing that holds that a company should make marketing decisions by considering consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Marketing Ethics Companies need to develop broad guidelines that everyone in the organization must follow. These policies should cover distributor relations, advertising standards, customer service, pricing, product development, and general ethical standards.

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Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture The Sustainable Company Sustainable companies are those that create value for customers through socially, environmentally, and ethically responsible actions.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Summary – Lecture We defined sustainable marketing and discussed its importance. 2. We identified the major social criticisms of marketing. 3. We defined consumerism and environmentalism and explained how they affect marketing strategies. 4. We described the principles of sustainable marketing. 5. We explained the role of ethics in marketing.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Chapter 20 Lecture END of Lecture 12 Thank you for your attention