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Marketing and Society: Social Responsibility

and Marketing Ethics


Chapter 4
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Principles of Marketing, Sixth Canadian Edition


4.2
Learning Objectives

After studying this chapter, you should be able to:


Understand marketings multiple responsibilities, and identify
the major social and ethical criticisms of marketing
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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

Principles of Marketing, Sixth Canadian


Lessons for Socially Responsible Companies 4.3

What you sell is important


Be proud to be in business
Make a solid commitment to change
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Focus on two bottom lines


Forget the hype

Source: Thea Singer, Can Business Still Save the World? Table 4.1
Inc., April 30, 2001, pp58-71; and MEC website, www.mec.ca

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Marketings Impact on Individual Consumers 4.4

High prices:
High costs of distribution
High advertising and promotion costs
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Excessive markups
Deceptive practices:
Pricing, promotion, packaging, and telephone fraud
High pressure selling
Shoddy or unsafe products
Planned obsolescence
Poor service to disadvantaged consumers

Principles of Marketing, Sixth Canadian


Marketings Impact on Society as a Whole 4.5

False wants and too much materialism


Too few social goods
Cultural pollution
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Too much political power

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Marketings Impact on Other Businesses 4.6

Acquisition of competitors reduces competition


Marketing practices create barriers to entry
High promotional spending
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Abuse of patent protection


Unfair competitive marketing
practices
Predatory pricing
Supplier relations

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4.7
Sellers Versus Consumers Rights

Sellers rights: Consumers rights:


To introduce products of To choose
different styles and sizes, To be informed
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provided they are not To safety


hazardous
To be heard
To set its own prices,
To redress
provided no
discrimination occurs To consumer education
To spend to promote the To participate in
product marketplace decision
making
To use any product
To have access to basic
message, provided it is
services
not misleading
To a sustainable
To use buying incentives
environment

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4.8
Environmentalism

Environmentalism:
An organized movement of concerned citizens and government
agencies
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To protect and improve peoples living environment

Environmental sustainability:
Management approach
Develop strategies that both
sustain the environment and
Produce profits for the company

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4.9
Socially Responsible Marketing

Enlightened marketing:
Consumer-oriented marketing
Innovative marketing
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Value marketing
Sense-of-mission marketing
Societal marketing

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Ethical Issues Associated with Marketing Practice 4.
10
Marketing research:
Invalid or unreliable research studies
Invasion of consumer privacy, not respecting confidentiality
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Disguising sales as research


Failure to secure voluntary and informed participation
Competitive intelligence gathering
Segmentation/target marketing:
Redlining: discriminating against poor
or disadvantaged consumers
Targeting inappropriate products to
vulnerable audiences
Table 4.2

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Ethical Issues Associated with Marketing Practice 4.
11
Positioning:
Making socially undesirable products more desirable
Positioning on questionable benefits
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Product:
Marketing unsafe products
Product testing: on animals or insufficient testing to
reveal safety concerns
Marketing socially controversial products
Packaging and labelling:
Actual versus apparent size
Misleading or inadequate information
Excessive or environmentally-unfriendly packaging Table 4.2

Principles of Marketing, Sixth Canadian


Ethical Issues Associated with Marketing Practice 4.
12
Pricing:
Collusion with competitors
Negative option billing
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Prejudice in negotiated prices


Price discrimination
Advertising:
Sex role stereotyping
Dehumanizing images and portraying people
as products
Bait-and-switch advertising

Table 4.2

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Ethical Issues Associated with Marketing Practice 4.
13
Sales and channel management:
High pressure sales tactics
Unfairly disparaging competitors goods
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Channel loading

Table 4.2

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Some Morally Difficult Situations in Marketing 4.
14
You are considering hiring a product manager who just left a competitors
company. She would be more than happy to tell you all the competitors
plans for the coming year. What do you do?
You have a chance to win a big account that will mean a lot to you and your
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company. The purchasing agent hints that a gift would influence the
decision. Your assistant recommends sending a fine colour television set to
the buyers home. What do you do?
You are interviewing a capable woman applicant for a job as a salesperson.
She is better qualified than the men just interviewed. Nevertheless, you
know that some of your important customers prefer dealing with men, and
you will lose some sales if you hire her. What do you do?
You are a sales manager in an encyclopedia company. Your competitors
salespeople are getting into homes by pretending to take a research survey.
After they finish the survey, they switch to their sales pitch. This technique
seems to be very effective. What do you do?
Table 4.3

Principles of Marketing, Sixth Canadian


4.
In Conclusion
15
The learning objectives for this chapter were:
Understand marketings multiple responsibilities and identify
the major social and ethical criticisms of marketing
Copyright 2005 Pearson Education Inc.

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

Principles of Marketing, Sixth Canadian