Transcript Document

Marketing Ethics and
Social Responsibility
Chapter 20
Sustainable
Marketing
Social Criticisms of
Marketing
Marketing’s Impact
on Individual
Consumers
 High Prices
High costs of
distribution
 High advertising &
promotion costs
 Excessive markups

20- 1
Social Criticisms of
Marketing
Marketing’s Impact on Individual
Consumers
 Deceptive Practices
Pricing
 Promotion
 Packaging

 High-Pressure
Selling
20- 2
Social Criticisms of
Marketing
Marketing’s Impact on Individual
Consumers
 Inferior, Poor, or Unsafe
Products
 Planned
Obsolescence
 Poor Service to
Disadvantaged
Consumers
20- 3
Planned
obsolescence
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Social Criticisms of
Marketing
Marketing’s Impact on Society as a
Whole
 False Wants and
Too Much
Materialism
 Too Few Social
Goods
 Cultural Pollution
 Too Much Political
Power
20- 5
Social Criticisms of
Marketing
Marketing’s
Impact on Other
Businesses
 Acquisitions of
Competitors
 Marketing
Practices
 Creating Barriers
to Entry
20- 6
Social Criticisms of Marketing
Slotting fees are
charged by retailers for
manufacturers to place
a new product in their
stores or to keep
existing products on
the shelves.
These fees can be as
high as $30,000 per
brand
Slotting fees cause a
barrier to entry for
smaller manufacturers
20 - 7
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Citizen & Public Actions to
Regulate Marketing
Public Actions to Regulate Marketing
 Major legal issues affect every area of
marketing management, including:
Selling and advertising decisions
 Channel decisions
 Product decisions
 Packaging decisions
 Price decisions
 Competitive reaction decisions

20- 8
Business actions
toward sustainable marketing
Consumer oriented
marketing
Customer value marketing
Innovative marketing
Sense of mission
marketing
Societal marketing
Business Actions Toward
Socially Responsible
Marketing
Enlightened Marketing
 Customer-Oriented Marketing:

Companies view and organize their
marketing activities from the
consumer’s point of view.
 Innovative Marketing:

Companies seek real product and
marketing improvements.
20- 10
Business Actions Toward
Socially Responsible
Marketing
Enlightened Marketing
 Value Marketing:

Companies put most of their
resources into value-building
marketing investments.
 Sense-of-Mission Marketing:

Companies define their mission in
broad social terms.
20- 11
Business Actions Toward
Socially Responsible
Marketing
Enlightened Marketing
 Societal Marketing:

Companies make marketing decisions
by considering consumers’ wants, the
company’s requirements, consumers’
long-run interests, and society’s
long-run interests.
20- 12
Societal Classifications
of Products
20 - 13
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