Marketing and Society: Social Responsibility and Marketing Ethics 16

16-2 Deceptive Practices High-Pressure Selling Shoddy, Unsafe Products Planned Obsolescence Poor Service to Some Criticisms of Marketing Criticisms Leveled at the Marketing Function by Consumers, and Others High Prices

16-3 High Advertising and Promotion Costs High Advertising and Promotion Costs High Prices Caused by the Following Factors Excessive Markups Excessive Markups High Prices

16-4 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 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. Deceptive Practices

16-5 High-Pressure Selling Salespeople are trained to deliver smooth, canned talks to entice purchase. Salespeople are trained to deliver smooth, canned talks to entice purchase. Hard sales can occur because of prizes going to top sellers. Hard sales can occur because of prizes going to top sellers. High-pressure selling High-pressure selling

16-6 Shoddy or Unsafe Products Products not made well or service not performed well. Products not made well or service not performed well. Products deliver little benefit or can be harmful. Products deliver little benefit or can be harmful. Unsafe products due to manufacturer indifference, increased production complexity, poorly trained labor, and poor quality control. Unsafe products due to manufacturer indifference, increased production complexity, poorly trained labor, and poor quality control.

16-7 Planned Obsolescence Products needing replacement before they should be obsolete. Products needing replacement before they should be obsolete. Producers change consumer concepts of acceptable styles. Producers change consumer concepts of acceptable styles. Intentionally holding back attractive functional features, then introducing them later to make old model obsolete. Intentionally holding back attractive functional features, then introducing them later to make old model obsolete.

16-8 Deceptive Practices High-Pressure Selling Shoddy, Unsafe Products Planned Obsolescence Poor Service to Some Criticisms of Marketing Criticisms Leveled at the Marketing Function by Consumers, and Others High Prices

16-9 Poor Service to Disadvantaged Consumers Poor may pay more for inferior goods. Poor may pay more for inferior goods. “Redlining” may occur in disadvantaged neighborhoods. “Redlining” may occur in disadvantaged neighborhoods. Higher insurance premiums to people with poor credit ratings. Higher insurance premiums to people with poor credit ratings.

16-10 Marketing’s Impact on Society as a Whole False Wants & Too Much Materialism Too Much Political Power Producing Too Few Social Goods Cultural Pollution

16-11 Marketing’s Impact on Other Businesses Marketing Practices That Create Barriers to Entry Unfair Competitive Marketing Practices

16-12 Consumerism Consumerism is an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers. Consumerism is an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers.

16-13 Consumerism: Sellers’ Rights The right to introduce any product in any size and style, provided it is not hazardous to personal health or safety; or, if it is, to include proper warnings and controls. The right to charge any price for the product, provided no discrimination exists among similar kinds of buyers. The right to spend any amount to promote the product, provided it is not defined as unfair competition. The right to use any product message, provided it is not misleading or dishonest in content or execution. The right to use any buying incentive schemes, provided they are not unfair or misleading.

16-14 Consumerism: Buyers’ Rights The right not to buy a product that is offered for sale. The right to expect the product to perform as claimed. The right to be well informed about important aspects of the product. The right to influence products and marketing practices in ways that will improve “quality of life.” The right to be protected against questionable products and marketing practices.

16-15 Environmentalism An organized movement of concerned citizens and government agencies to protect and improve people’s living environment. An organized movement of concerned citizens and government agencies to protect and improve people’s living environment.

16-16 Environmental Sustainability A management approach that involves developing strategies that both sustain the environment and produce profits for the company. A management approach that involves developing strategies that both sustain the environment and produce profits for the company.

16-17 Plan for New Environmental Technologies Adopt Design for the Environment Practices Have a Sustainability Vision Practice Product Stewardship Practice Pollution Prevention Environmentalism

16-18 Environmental Sustainability Grid

16-19 Legal Issues Facing Marketing Mgmt.

16-20 Enlightened Marketing A marketing philosophy holding that a company’s marketing should support the best long-run performance of the marketing system. A marketing philosophy holding that a company’s marketing should support the best long-run performance of the marketing system.

16-21 Innovative Marketing Sense-of-Mission Marketing Societal Marketing Holds That a Company’s Marketing Should Support the Best Long-Run Performance of the Marketing System. Enlightened Marketing

16-22 Enlightened Marketing Consumer-Oriented Marketing: Consumer-Oriented Marketing: –The philosophy of enlightened marketing that holds that the company should view and organize its marketing activities from the consumer’s point of view. Innovative Marketing: Innovative Marketing: –A principle of enlightened marketing that requires that a company seek real product and marketing improvements.

16-23 Innovative Marketing Colgate’s Total toothpaste is perhaps the best example of Colgate's passion for innovation. The breakout brand provides a combination of benefits, including cavity prevention, tartar control, fresh breath, and long-lasting effects.

16-24 Enlightened Marketing Value Marketing: Value Marketing: –A principle of enlightened marketing that holds that a company should put most of its resources into value-building marketing investments. Sense-of-Mission Marketing: Sense-of-Mission Marketing: –A principle of enlightened marketing that holds that a company should define its mission in broad social terms rather than narrow product terms.

16-25 Societal Classification of Products

16-26 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:

16-27 Marketing Ethics What principle should guide companies and marketing managers on issues of ethics and social responsibility? What principle should guide companies and marketing managers on issues of ethics and social responsibility? Free market and legal system Responsibility falls to individual companies and managers

16-28 Final and Grading Final exam is on Friday June 10th, in the same room, at 9:50. Please remember your student ID card. Final exam is on Friday June 10th, in the same room, at 9:50. Please remember your student ID card. Final exam will include the following chapters: 5, 9, 14, 12, 13, 15 and 16. Final exam will include the following chapters: 5, 9, 14, 12, 13, 15 and questions will be extracted from chapters 12, 13, 15 and 16. The other 25 questions will be from the remaining chapters. 50 questions will be extracted from chapters 12, 13, 15 and 16. The other 25 questions will be from the remaining chapters. As mentioned in the syllabus, you have the right to drop your lowest exam score (Final not included), and one in- class assignment score. Your lowest scores will be automatically dropped for you. As mentioned in the syllabus, you have the right to drop your lowest exam score (Final not included), and one in- class assignment score. Your lowest scores will be automatically dropped for you.