Figure 20.1: Sustainable Marketing Social Responsibility and Ethics

9/1/2015
Sustainable Marketing
Social Responsibility and Ethics
Topic Outline
• Sustainable Marketing
• Social Criticisms of Marketing
Chapter Twenty • Consumer Actions to Promote Sustainable
Marketing
Sustainable Marketing • Business Actions Toward Sustainable
Marketing
Social Responsibility and Ethics
Copyright © 2009 Pearson Education, Inc. Copyright © 2010 Pearson Education, Inc.
Chapter 20 - slide 1 Chapter 20 - slide 2
Publishing as Prentice Hall Publishing as Prentice Hall
Social Criticisms of Marketing

Marketing’s Impact on Individual Consumers
Meeting needs of consumers while preserving the
ability of future generations to meet their needs High Prices
Deceptive Practices
High-Pressure Selling
•Figure 20.1 Shoddy, Harmful or Unsafe Products
Planned Obsolescence
Poor Service to Disadvantaged

Consumers
Marketing’s Impact on Marketing’s Impact on Individual Consumers

Individual Consumers Deceptive Practices
High Cost of Distribution High‐Pressure Selling
Complaint: Response:
• Salespeople use high-pressure • Most selling involves building

Complaint: Response: selling that persuade people to long-term relationships and
buy goods they had no intention valued customers. High-pressure
• Intermediaries are of buying.
buying or deceptive selling can damage
• P
Prices
i are ttoo hi
high
h these relationships.
due to high costs of: important and offer
• Distribution value
• Advertising informs Shoddy, Harmful, or Unsafe Products
• Advertising and
buyers of availability
promotion and merits of a brand Complaint: Response:
• Excessive mark-ups • Consumer’s don’t • Products have poor quality, • Good marketers realize there is
understand the cost of provide little benefit, and can no value in marketing shoddy,
doing business be harmful. harmful, or unsafe products.
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Planned Obsolescence Social Criticisms of Marketing

Marketing’s Impact on Society as a Whole
• Producers cause their products to • Planned obsolescence is really the
become obsolete and change result of competitive market forces
consumers’ concepts of acceptable leading to ever-improving goods and
services.
False Wants and Too Much Materialism
styles to encourage more and
earlier buying. • Customer customers like style
changes and want the latest Complaint: Response:
innovations
• The marketing g system
y • People
p do have strong g
Poor Service to Disadvantaged Consumers urges too much interest in defenses against
material possessions. advertising and other
People are judged by what marketing tools. Marketers
they own rather than who are most effective when
• American marketers serve • Some marketers profitably target they are, creating false they appeal to existing
disadvantaged customers poorly. these customers and the FTC has wants that benefit industry wants rather than creating
Some retail companies “redline” taken action against marketers that more than they benefit new ones. The high failure
poor neighborhoods and avoid do advertise false values, consumers. rate of new products shows
placing stores there. wrongfully deny service, or charge that companies cannot
disadvantaged customers too control demand.
much.
Too Few Social Goods Consumer Actions to Promote

• Businesses oversell private goods • There needs to be a balance
at the expense of public goods between private and public goods Consumerism
and require more public goods to • Producers should bear full social
support them costs of their operations Consumerism is the organized movement of citizens
• Consumers should pay the social
costs of their purchases and government agencies to improve the rights and
power of buyers in relation to sellers
Cultural Pollution
Cu tu a o ut o
Traditional buyers’ rights include:
• The right not to buy a product that is offered for sale
• Marketing and advertising • Marketing and advertising are
create cultural pollution planned to reach only a target • The right to expect the product to be safe
audience, and advertising makes
radio and television free to users • The right to expect the product to perform as claimed
and helps to keep down the costs of
newspapers and magazines. Today’s
consumers have alternatives to
• Comparing these rights, many believe that the
avoid marketing and advertising balance of power lies on the seller’s side
from technology.
Consumer Actions to Promote Consumer Actions to Promote

Sustainable Marketing Sustainable Marketing
Environmentalism Environmentalism
Environmental Sustainability
• Environmentalism is an organized Pollution prevention involves not just cleaning up
movement of concerned citizens, waste but also eliminating or minimizing waste
b i
businesses, and government agencies to
d i before it is created
before it is created
protect and improve people’s living Product stewardship involves minimizing the
environment pollution from production and all environmental
impact throughout the full product life cycle
• Environmental sustainability is getting
Design for environment (DFE) involves thinking
profits while helping to save the planet
ahead to design products that are easier to
recover, reuse, or recycle
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Consumer Actions to Promote Public Actions to Regulate marketing

Environmentalism
Environmental Sustainability
New clean technologies involve looking
ahead and planning new technologies for
competitive advantage
Sustainability vision is a guide to the future
that shows the company that the
company’s products, process, and policies
must evolve and what is needed to get
there
Business Actions Toward Sustainable Marketing

Sustainable Marketing Principles Societal Marketing
Consumer-Oriented Marketing
• View marketing activities from the consumer's point of view
• Deliver superior value
Customer-Value Marketing
• Invest in customer‐value building marketing
i l b ildi k i
• Create value FOR customers
Innovative Marketing
• Company seeks real product and marketing improvements
Sense-of-Mission Marketing
• Define mission in broad social terms rather than narrow product
terms
Societal Marketing
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 20 - slide 15 Copyright © 2010 Pearson Education, Inc.
Chapter 20 - slide 16
Business Actions Toward Business Actions Toward

Socially Responsible Marketing Socially Responsible Marketing
Marketing Ethics The Sustainable Company
Corporate marketing ethics are broad • Goes beyond caring for the needs of
guidelines that everyone in the today’s customers and has concern for
organization must follow that cover tomorrow’s customers and the broader
di ib
distributor relations, advertising
l i d ii
standards, customer service, pricing,
world
product development, and general ethical
standards
• Who should guide companies?
• The free market and the legal system?
• Individual companies and managers?
3
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Corporate Social Responsibility

Pertamina
All rights reserved. No part of this publication may be reproduced, stored in a

retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
Copyright © 2010 Pearson Education, Inc.


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9/1/2015

Social Criticisms of Marketing

•Figure 20.1 Shoddy, Harmful or Unsafe Products

Poor Service to Disadvantaged

Marketing’s Impact on Marketing’s Impact on Individual Consumers

• Salespeople use high-pressure • Most selling involves building

Planned Obsolescence Social Criticisms of Marketing

Too Few Social Goods Consumer Actions to Promote

Consumer Actions to Promote Consumer Actions to Promote

Consumer Actions to Promote Public Actions to Regulate marketing

Business Actions Toward Sustainable Marketing

Business Actions Toward Business Actions Toward

Corporate Social Responsibility

All rights reserved. No part of this publication may be reproduced, stored in a

Copyright © 2010 Pearson Education, Inc.

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