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

2. 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

3. 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

4. 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

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. 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

7. 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

8. 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

9. 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

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

11. 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

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

13. 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

14. 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

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.