INTRODUCTION

There are many perception and wrong impression of how many people see the practice of
marketing.

A layman’s definition of a market will be a place where buyers and sellers meet to
transact business. Economics use the term to refer to a collection of buyers and sellers
who deal in particular products class as in the mobile phone or housing markets. A
market comprises the set of all actual and potential buyers of a particular product and or
service.

According to the American Marketing Association, “marketing is the process of planning

and executing the conception; pricing, promotion and distribution of ideas goods and
services to create exchange that satisfy individual and organizational objectives.”

Philip Kotler- a guru of marketing has described the subject as a social and managerial
process by which individuals and groups obtain what they need and want through
creating, and exchanging products and value with others. For managerial definition,
marketing has often described as the art of selling products’.

HERE ARE SOME CRITICISMS LEVELLED AGAINST MARKETING ALONG

WITH SOME TIPS ON HOW TO PROTECT YOU:

There are some harsh criticisms of the practice however. Some companies use this form
of marketing to make a lot of money for themselves and the people who work with them,
but others take advantage of the popularity of this unique marketing form. Like any other
type of business, therefore, it pays to do your homework and to investigate a marketing
opportunity thoroughly before getting started It is frequently claimed that marketing can
be criticized because it is the only business function that deliberately sets out to
emphasize the gap between a persons reality and their expectations in such a way that
people feel 'lacking' in either self esteem or possessions so that they feel compelled to
close the gap by unnecessary spending.

Responsible marketers discover what consumers want and respond with the right
products at right price to give good value to buyers, and profit to the producer. The
marketing concept is a philosophy of customer satisfaction and mutual gain. Its practice
leads the economy by an invisible hand to satisfy the many and changing needs of
millions of consumers.

• Sometimes the hype built around it by some marketing companies creates over-zealous
individuals who ignore other forms of marketing. Be sure to explore alternate forms of
selling or marketing your product, in addition to a network or residual marketing format.

• Some multi level marketing (MLM) companies claim to be environmentally or socially

responsible but sell highly processed or mass-produced products with questionable
benefits (especially in the health, food or weight loss arenas). Research a product to see if
it's really as "green" as it claims to be. "Green-washing" is a popular practice nowadays
where companies claim that their product is organic or environmentally friendly but it
really isn't.

• Pyramid schemes disguised as legitimate marketing opportunities give MLM a bad

name. Pyramid schemes, or what have also become known as "Ponzi schemes" after a
famous proprietor of these illegal forms of business, are just that: Illegal and wrong.
Marketing involves selling a real and useful product or service while paying fair
commissions to everyone in the network who sells that product or service. Pyramid
schemes, on the other hand, are designed to draw people into and do not market good
products. They are only aimed at inducing people to give others their money.

•Marketing by its very nature causes y The increasing trend of fair trade is an example of
the impact of ethical marketing. The idea of fair trade is that consumers pay a guaranteed
commodity price to a small group of producers. The producers agree to pay fair labor
prices and conserve the environment. This agreement sets the stage for a commerce that
is ethically sound.
The philosophy of marketing is not lost with this newfound ethical slant, but rather hopes
to win customer loyalty by reinforcing the positive values of the brand, creating a strong
citizen brand. However, this new way of thinking does create new challenges for the
marketer of the 21st century, in terms of invention and development of products to add
long-term benefits without reducing the product's desirable qualities.

Ethical marketing should not be confused with government regulations brought into force
to improve consumer welfare, such as reducing sulfur dioxide emissions to improve the
quality of the air. A government regulation is a legal remedy intended to mitigate or
correct an ethical issue, such as pollution of the air that we all share. Enlightened ethical
marketing is at work when the company and marketer recognize further improvements
for humankind unrelated to those enforced by governments or public opinion. By way of
example, the Coop Group refuses to invest money in tobacco, fur and any countries with
oppressive regimes.

However, Marketing receives much criticism. Some of this is justified and some is not.
Social critics claim that certain marketing practices hurt individual consumers, society as
a whole, and other business firms. Consumers have many concerns about how well the
marketing system serves their interests. There are primary criticisms leveled at the
marketing function by consumers, consumer advocates, and government agencies.

Harming consumers through high prices: Many critics charge the marketing system
causes prices to be higher than need be. Some factors to which these critics point are as
follows:

High costs of distribution. Greedy intermediaries mark up prices beyond the value of
their services. There are too many intermediaries and they duplicate services. Resellers
have responded by saying that: the work performed by the intermediaries is necessary
and takes away the responsibility from the consumer or the manufacturer, the rising
mark-up is really the result of improved services, operating costs are driving up prices, in
reality, profit margins are low because of intense competition. Strong retailers pressure
their channel members to keep prices low.
High advertising and promotion costs. Marketing is accused of driving up promotion
and advertising costs. Marketers respond by saying that: consumers want more than the
merely functional qualities of products, they want psychological benefits, branding, even

Though it may cost more, gives buyers confidence, heavy advertising is needed to inform
millions of potential buyers of the merits of a brand, Heavy advertising and promotion
may be necessary for a firm to match competitors’ efforts. Companies are cost-conscious
and try to spend their promotional dollars wisely.

• Excessive mark-ups. Critics charge that some companies mark up goods excessively.
This charge is responded by the marketers respond by saying as: most businesses try to
deal fairly with consumers because they want the repeat business, most consumer abuses
are unintentional, when shady marketers do take advantage of consumers, and they
should be reported to the authorities, Consumers often do not understand the reason for
the high mark-up.

ii. Deceptive Pricing: Marketers are sometimes accused of deceptive practices that lead
consumers to believe that they will get more value than they actually do. Three groups
exist with respect to these alleged practices:

1). Deceptive pricing includes such practices as falsely advertising “factory” or

“wholesale” prices, or a large reduction from a phony high list price.

2). Deceptive promotion includes such practices as overstating the product’s features or
performance, luring the customer to the store for a bargain that is out of stock, or running
rigged contests.

• You buy more products than you sell. Another criticism is that you become part of
someone's market by purchasing their product. Say, for example, you want to sell a
vitamin that makes skin look more youthful which you receive via mail on a monthly
basis. If you don't recruit anyone else to buy this vitamin regimen, you're spending
money every month but you aren't bringing any money in for yourself. If you don't have
the personality or drive to work on your business, you won't be able to make money with
marketing. You cannot simply sit back and watch the money roll in with little or no
effort, which is what some companies claim.

If you want to get involved with a marketing business, look at each prospective product
and judge it carefully based on the above criteria and criticisms before starting. As with
any other business transaction, "let the buyer beware," and use your best judgment before
proceeding.

I know you're thinking it's never possible to really tell if you're getting scammed,
especially online. Well true. But sometimes you just have to bite the bullet, especially
with those companies that are well-known to have been in existence for years.

And the only way you can succeed as a marketer is to first learn the secrets to success in
today's environment as this is what will determine whether you become a winner or a
loser. Even more important is if you are marketing in Germany.

To be successful in this industry, you must first learn the "ins and out" - the efficient
methods to start and run your own marketing business.

Conclusion
With reference to this research work on the criticism levelled against marketing practices
whether is justified or not. Increasingly, we may all arrive at different opinions, however,
on the basis of how to operate your business will determine your success or failure. The
above illustrations are the views of many authors.

References
Market (definition) Bylon Abeeku Bamfo of KNUST School of Bus. ,lect..handout,
principles of marketing.

Marketing (Definition) from Kotler, P (2003), marketing management, 11 th edition.

Prentice hall, London.

American marketing association CIM companion (2002), strategic marketing

management; planning and control, the chartered institute of marketing

KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY

 COLLEGE OF ARTS AND SOCIAL SCIENCES

SCHOOL OF BUSINESS

TOPIC; ARE THE CRITICISM LEVELLED AGAINST MARKETING

PRACTICES JUSTIFIED?

PRINCIPLES OF MARKETING

COURSE CODE: MCS 272

(PART TIME GROUP 1)

LECTUER: BYLON ABEEKU BAMFO

DATE: 21ST MARCH, 2011.

INDEX NUMBER: 4660010