Principles of Marketing

Module 6 Topics

Role of ethics in business

Social Marketing & Cause Related Marketing
Green Marketing
Digital Marketing
Ethics in Marketing
 Role of ethics & social responsibility in
Business
Lot of criticism about Businesses and their marketing
practices are not that they do illegal activities.
Many issues are ethical in nature
Ethical issues are those that may not be legally wrong, but
seen by various stakeholders as unfair/immoral
In today’s world, social criticism about unethical practices can
be very damaging for businesses
– Examples: Nike’s Challenges with Sweatshops, Coca Cola’s many
controversies including excessive use of ground water, McDonald’s
controversy of promoting unhealthy food for Kids
It is important for business to shoulder social responsibilities
and conduct their marketing activities ethically
 Ethical issues in ‘Product’ related
policies and decisions
Safety of products
– Are products sufficiently tested? Is packaging safe?
– Are there harms that can be result of excessive use or long
term use?
Disclosures
– Lack of complete information about products/Hiding partial
information
– Disclosures about long term impact of consumption
Deceptions
– Size, Content
 Ethical issues in Marketing
Communication

Misleading/Unverified claims
Use of surrogates
Comparative Advertisements
Stereotyping
Subliminal Advertisements
Using children in advertisements
 Ethical issues in Pricing

Deceptive Pricing
Price Fixing
Price Gauging/Excessive Pricing
Bait & Switch Tactics
Predatory Pricing
Social Marketing
When Marketing concepts are used to bring
in socially desirable behaviours

or

Application of commercial marketing

techniques to social problems
 Commercial vs. Social Marketing:

Commercial marketing tries to change people's

behavior for the benefit of the marketer
Social marketing tries to change people's
behavior for the benefit of the individual, or of
society as a whole
Behavioural Objectives could be

Accept New Behavior

Reject Potential Behaviour
Modify Current Behaviour
Abandon Old Behaviuor
 Additional P’s

PRODUCT

POLICY PARTNERSHIP

PROMOTION MARKETING MIX PRICE

PUBLIC POLITICS

PLACE

In Social marketing, 4 additional Ps are relevant in

addition to traditional 4Ps of commercial marketing
 Policy
• Social marketers need to work towards creating
favourable Policies/regulations that may help their cause
• Favourable policy (laws and regulations) influence the
desired behaviour in individuals
• Make strategies to influence the "upstream" behavior of
policymakers and those responsible for the environment
• Examples
• A no-smoking at public places will help a campaign
for reducing tobacco addiction
• Educational subsidies for girl education will help a
campaign like ‘educate girl child’
 Partnership
• The social marketing organization can enhance its program
effectiveness by teaming up with other organization(s)
pursuing similar goals.
• Avoid duplication of efforts, expanding resources,
minimizing costs and enhancing program effectiveness.
 Politics
• Social marketing efforts can benefit from political
backings
• Politics doesn’t always mean party politics – getting
the endorsements from religious leaders, social
organizations, village heads, community leaders etc
can help
• Right endorsements and backings can trigger social
change faster
 Public
• In commercial marketing, public at large may not
play any role to influence individual behaviour
• Social marketing organisations need to consider
getting the backing of public for their cause
 Challenges in Social Marketing

• Potential of social marketing unappreciated.

• Media is privately owned; airtime is expensive
• Social marketing is often done poorly/unprofessionally
• Policy decisions at local, national and international levels
often are influenced by commercial or political interests
and not social benefits
Cause Related Marketing
 Cause Related Marketing

Cause-related marketing (CRM) is a mutually

beneficial collaboration between a corporation
and a nonprofit designed to promote the
former's sales and the latter's cause.

In other words, socially beneficial marketing

activities done by companies with an intent of
commercially benefiting from them
Green Marketing
 GREEN MARKETING

Marketing products and services based on

environmental factors or awareness.
Companies involved in green marketing make
decisions by carefully evaluating the entire lifecycle
of the product – raw materials used, sourcing of
raw materials, processing/operations, packaging,
distribution, consumption and even disposal.
 GREEN MARKETING

Green marketing companies promote environmental

core values in the hope that consumers will
associate these values with their company or brand.

Also known as sustainable marketing, environmental

marketing or ecological marketing.
 Sustainable Marketing

Meeting needs of consumers while preserving the

ability of future generations to meet their needs

Figure 20.1
It is increasingly becoming necessary that
businesses look at building sustainable business
models
Sustainability can be seen as ‘’A balancing of
business benefits (profit) with social
benefits (interests of people) and
environmental benefits (interests of the
planet)
– Also known as Triple Bottom Line/3BL
approach
Sustainability can not be achieved only with
responsible actions taken by businesses
Consumers too need to change certain
behaviours to achieve sustainability
‘Consumerism’ and ‘Environmentalism’

Consumerism can be described as the movement of

citizens and government agencies to improve the
rights and power of buyers in relation to sellers
Environmentalism can be described as a movement
of concerned citizens, businesses, and
government agencies to protect and improve
people’s living environment
Both of these put great pressure on businesses to
go beyond ‘self interest’ and work towards
sustainable operations
 Sustainable Consumption
It is not just businesses that are responsible for creating
sustainability. Consumers have to play their role too.
‘Sustainable Consumption’ is to be accepted and adopted
by consumers if resources are to be preserved for future
generations
Sustainable consumption is the use of goods and services
in a manner that bring a better quality of life, while
minimising the use of natural resources, toxic materials
and emissions of waste and pollutants
 Emerging Trends in Sustainable
Consumption
Environmentally responsible products
– Eco-labelling
Product recapture
– Recycling, at least parts of products
Product sharing
– Examples: car-sharing, washing-machine-pooling
Reducing demand
– Example : Ban on free plastic bags
Digital Marketing
 Digital Marketing

Digital marketing refers to promotional

activities delivered through digital
channels such as search engines,
websites, social media, email, and mobile
apps.
 Tools/Methods to be considered in
digital marketing
Search Engine Optimization (SEO)
Websites/Microsites
Use of emails/opt-in emails
Use of Social Media (whole variety of social media available
today)
Pay-Per-Click (PPC) Advertisements
Content Marketing
Blogs/Articles/News Stories
Affiliate/Associate Programs
Online Business Listings