1. Marketing Ethics and Social Responsibility
Chapter Sixteen
Marketing Ethics and Social Responsibility

2. Identify the major social criticisms of marketing.
4/17/2017
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.
Copyright 2007, Prentice Hall, Inc.
Copyright 2005 Brainy Betty, Inc.

3. Nike – Socially Responsible?
Case Study
Nike – Socially Responsible?
Background
Nike has been heavily criticized for NOT being socially responsible.
Accusation: use of sweatshops and child labor overseas, and horrible working conditions.
Accusation: targeting low-income families by making shoes an expensive status symbol for poor urban street kids.
Behavior
Code of conduct and six-point plan ensures more socially responsible labor practices & commissioned an independent study of Nike factories abroad.
Created a huge social responsibility department and publishes CRS report.
Donates more than $37 million to sports programs and 3% of earnings to charity.
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4. Criticisms of Marketing
High prices
Deceptive practices
High-pressure selling
Shoddy, harmful, or unsafe products
Planned obsolescence
Poor service to disadvantaged consumers
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5. High Prices Caused by: High costs of distribution
High advertising and promotion costs
Excessive markups
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6. Deceptive Practices Deceptive Pricing: Deceptive Promotion:
Falsely advertising “factory” or “wholesale” prices or large reductions from phony high retail list prices.
Deceptive Promotion:
Overstating a product’s features or performance, running rigged contests.
Deceptive Packaging:
Exaggerating package contents through subtle design, using misleading labeling, etc.
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7. High-Pressure Selling
Salespeople are trained to deliver smooth, canned talks to entice purchase.
High-pressure selling persuades people to buy goods they had no intention of buying.
High-pressure selling can occur because of prizes going to top sellers.
High-pressure selling is not good for long-term relationships.
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8. Shoddy or Unsafe Products
Includes:
Products that are not made well or services that are not performed well.
Products that deliver little benefit or that may even be harmful.
Unsafe products due to manufacturer indifference, increased production complexity, poorly trained labor, and poor quality control.
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9. Planned Obsolescence Refers to:
Products needing replacement before they should because they are obsolete.
Producers who change consumer concepts of acceptable styles.
Intentionally holding back attractive functional features, then introducing them later to make old model obsolete.
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10. Poor Service to Disadvantaged Consumers
Disadvantaged consumers are served poorly when:
Poor are forced to shop in smaller stores where they pay more for inferior goods.
“Redlining” by national chain stores occurs in disadvantaged neighborhoods.
Redlining charges have also been leveled against insurers, banking, health care providers and other industries.
Poor are targeted for “rapid refunds.”
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11. Marketing’s Impact on Society as a Whole
False wants and too much materialism
Producing too few social goods
Cultural pollution
Too much political power
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12. Marketing’s Impact on Other Businesses
Critics charge that a firm’s marketing practices can harm other companies and reduce competition.
Acquisitions of competitors.
Marketing practices that create barriers to entry.
Unfair competitive marketing practices.
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13. Consumerism
Consumerism is an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers.
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14. 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.
charge any price for the product, provided no discrimination exists among similar kinds of buyers.
spend any amount to promote the product, provided it is not defined as unfair competition.
use any product message, provided it is not misleading or dishonest in content or execution.
use any buying incentive schemes, provided they are not unfair or misleading.
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15. Buyers’ Rights The right to:
not buy a product that is offered for sale.
expect the product to be safe.
expect the product to perform as claimed.
be well informed about important aspects of the product.
be protected against questionable products and marketing practices.
influence products and marketing practices in ways that will improve “quality of life.”
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16. Environmentalism
An organized movement of concerned citizens and government agencies to protect and improve people’s living environment.
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17. Environmental Sustainability
A management approach that involves developing strategies that both sustain the environment and produce profits for the company.
Levels of environmental sustainability:
Pollution prevention
Product stewardship
New environmental technologies
Sustainability vision
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18. Enlightened Marketing
A marketing philosophy holding that a company’s marketing should support the best long-run performance of the marketing system.
Customer-oriented marketing
Innovative marketing
Customer-value marketing
Sense-of-mission marketing
Societal marketing
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19. Enlightened 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.
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20. Enlightened Marketing
Innovative Marketing:
A principle of enlightened marketing that requires that a company seek real product and marketing improvements.
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21. Enlightened Marketing
Customer-Value Marketing:
A principle of enlightened marketing that holds that a company should put most of its resources into value-building marketing investments.
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22. Enlightened 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.
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23. Enlightened Marketing
Societal Marketing:
A principle of enlightened marketing that holds that a company makes marketing decisions by considering consumers’ wants and interests, the company’s requirements, and society’s long-run interests.
Seeks to introduce desirable products, rather than those that are deficient, displeasing, or salutary.
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24. Marketing Ethics Corporate Marketing Ethics Policies:
Broad guidelines that everyone in the organization must follow.
These should cover:
Distributor relations
Advertising standards
Customer service
Pricing
Product development
General ethical standards
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25. Marketing Ethics
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
International marketers face special challenges
Copyright 2007, Prentice Hall, Inc.

26. Identify the major social criticisms of marketing.
4/17/2017
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.
Copyright 2007, Prentice Hall, Inc.
Copyright 2005 Brainy Betty, Inc.