CHAPTER 20 MARKETING AND SOCIETY: RESPONSIBILITY AND MARKETING ETHICS

CHAPTER OBJECTIVES

1. Identify the major social criticisms of marketing. 2. Define consumerism and environmentalism and explain how they affect marketing strategies. 3. Describe the principles of socially-responsible marketing. 4. Explain the role of ethics in marketing. 5. List the major principles for public policy toward marketing.

CHAPTER OVERVIEW

This chapter examines the social effects of private marketing practices. A marketing system should sense, serve, and satisfy consumer needs and improve the quality of consumers lives. In working to meet the consumers needs, marketers may take some actions that are not approved of by all the consumers or publics within the social sector. Marketing managers must understand the criticisms that the marketing function may encounter. By understanding the criticisms, the manager is better prepared to respond to it in a proactive manner.

The primary criticisms of the marketing function have been categorized as being: (1) high prices; (2) deceptive practices; (3) high-pressure selling; (4) shoddy or unsafe products; (5) planned obsolescence; and (6) poor service to disadvantaged consumers. These criticisms have come from a failure to meet individual consumer welfare needs.

A separate set of criticisms are directed at the marketing function by society in general. Criticism from this larger public body includes comments on creating: (1) false wants and too much materialism; (2) too

few social goods; (3) cultural pollution; and (4) too much political power. In addition, critics have also pointed out that marketings impact on businesses may not be good either. Marketing is accused of harming competitors and reducing competition by acquiring competitors, creating barriers to entry, and using unfair marketing practices.

Concerns about the marketing function have led action groups to form consumer and environmental movements and protest organizations. Marketings response to action groups and social criticism has largely been positive and proactive. Many companies that were originally opposed to social movements and legislation that was created to address their complaints have now recognized a need for positive consumer information, education, and protection. The most successful of these firms have reorganized their companies to follow enlightened marketing. This concept is based on the principles of consumer orientation, innovation, value creation, social mission, and social orientation. Also, companies are increasingly responding to the need to provide company policies and guidelines to help their managers deal with questions and issues in marketing ethics. These policies cover issues in distributor relations, advertising standards, customer service, pricing, product development, and general ethical standards. Companies that are able to harness social change, understand it, and develop meaningful policies that help create new values in a socially responsible way will have dynamic growth and receive the sales reward from the consumer in the future.

CHAPTER OUTLINE

1. Introduction a. Responsible marketers discover what consumers want and respond with the right products, priced to give good value to buyers and profit to the producer. 1). The marketing concept is a philosophy of customer service and mutual gain. 2). Not all marketers follow the marketing concept (for example, cigarette manufacturers). b. Private transactions may involve lager questions of public policy.

*****Use Discussing the Issues #1 with the opening illustration (Gerber) in the

chapter*****

2. Social Criticisms of Marketing a. Marketing receives much criticism. Some of this is justified and some is not. b. Social critics claim that certain marketing practices hurt individual consumers, society as a whole, and other business firms.

Marketings Impact on Individual Consumers c. Consumers have many concerns about how well the American marketing system serves their interests. d. There are six primary criticisms leveled at the marketing function by consumers, consumer advocates, and government agencies. e. High Prices. Many critics charge the American marketing system causes prices to be higher than need be. Some factors to which these critics point are as follows: 1). High costs of distribution. Greedy middlemen mark-up prices beyond the value of their services. There are too many middlemen and they duplicate services. a). Retailers have responded by saying that: 1]. The work performed by the intermediaries is necessary and takes away the responsibility from the retailer or the manufacturer. 2]. The rising mark-up is really the result of improved services. 3]. Operating costs are what is driving up prices. 4]. In reality, retailer profit margins are low because of intense competition. b). Strong retailers (such as Wal-Mart) pressure their channel members to keep

prices low.

2). High advertising and promotion costs. a). Marketing is accused of driving up promotion and advertising costs. b). Marketers respond by saying that: 1]. Consumers want more than the merely functional qualities of products, they want psychological benefits. 2]. Branding gives buyers confidence. 3]. Heavy advertising is needed to inform millions of potential buyers of the merits of a brand. 4]. Heavy advertising and promotion may be necessary for a firm to match competitors efforts. 5]. Heavy sales promotion is needed because sometimes goods are produced ahead of demand in a mass-production economy.

*****Use Discussing the Issues #2 Here*****

3). Excessive mark-ups. a). Critics charge that some companies mark-up goods excessively. b). Marketers respond by saying that: 1]. Most businesses try to deal fairly with consumers because they want the repeat business. 2]. Most consumer abuses are unintentional. 3]. When shady marketers do take advantage of consumers, they should be reported to the authorities.

4]. Consumers often do not understand the reason for the high mark-up. f. Marketers are sometimes accused of deceptive practices that lead consumers to believe that they will get more value than they actually do. 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 products features or performance, luring the customer to the store for a bargain that is out of stock, or running rigged contests. 3). Deceptive packaging includes exaggerating package contents through subtle design, not filling the package to the top, using misleading labeling, or describing size in misleading terms. 4). Deceptive practices have led to legislation and other consumer protection actions. g. High-pressure selling is another criticism of marketing. 1). Laws require door-to-door salespeople to announce that they are selling a product. 2). Also, buyers have a three-day cooling-off period in which they can cancel a contract after rethinking it. h. Shoddy or unsafe products is another criticism leveled against marketers. 1). Complaints are made about products not being made well. 2). Products deliver little benefit. 3). Product safety has been a problem for several reasons: a). Manufacturer indifference. b). Increased production complexity. c). Poorly trained labor.

d). Poor quality control. 4). Responses to these complaints from marketers are positive. Marketers in general want to make beneficial and safe products.

*****Use Marketing Highlight 20-1 When Consumer Reports Talks, Buyers Listen Here*****

i. Planned obsolescence is a strategy of causing products to become obsolete before they actually need replacement and is a criticism leveled by consumers. 1). Fashion is often cited as an example. 2). Marketers respond that consumers like lifestyle changes; they get tired of old goods and want a new look. 3). Much of so-called planned obsolescence is actually the normal interaction of competitive and technological forces in a free society. j. In contemporary society poor service to disadvantaged consumers is another criticism against marketing. 1). Clearly better marketing systems must be built in low-income areas. 2). The Federal Trade Commission has taken action against merchants who advertise false values, sell old merchandise as new, or charge too much for credit.

*****Use Chapter Objective #1 Here; Use PowerPoint Slide #20-2 Here*****

Marketings Impact on Society as a Whole k. Some criticisms have also been leveled at marketing because of its perceived

negative impact on society as a whole. l. Criticisms include marketing creating: 1). False wants and too much materialism. 2). Producing too few social goods. 3). Cultural pollution--constant assaults on privacy by advertising and noise clutter. 4). Too much political power.

*****Use PowerPoint Slide #20-3 Here*****

Marketings Impact on Other Businesses m. Critics charge that a companys marketing practices can harm other companies and reduce competition. Three problems are involved. 1). Acquisitions of competitors. 2). Marketing practices create barriers to entry. 3). Unfair competitive marketing practices. Predatory competition is dangerous to the overall well-being of the economy.

*****Use PowerPoint Slide #20-4 Here***** 3. Citizen and Public Actions to Regulate Marketing a. Because some people view business as the cause of many economic and social ills, grass roots movements have arisen from time to time to keep business in line. Two major movements have emerged.

Consumerism b. American business firms have been the target of organized consumer movements

on three occasions (the early 1900s, the mid-1930s, and the 1960s). c. Consumerism is an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers. d. Traditional sellers rights include: 1). Right to introduce any product in any size and style, provided it is not hazardous to personal health or safety; or, if it is, to include proper warnings and controls. 2). Right to charge any price for the product, provided no discrimination exists among similar kinds of buyers. 3). Right to spend any amount to promote the product, provided it is not defined as unfair competition. 4). Right to use any product message, provided it is not misleading or dishonest in content or execution. 5). Right to use buying incentive schemes, provided they are not unfair or misleading. e. Traditional buyers rights include: 1). Right not to buy a product that is offered for sale. 2). Right to expect the product to be safe. 3). Right to expect the product to perform as claimed. f. Consumer advocates call for the following additional consumer rights: 1). Right to be well-informed about important aspects of the product. 2). Right to be protected against questionable products and marketing practices. 3). Right to influence products and marketing practices in ways that will improve the quality of life. g. Consumers have the right but also the responsibility to protect themselves instead

of leaving this function to someone else.

*****Use Key Term consumerism Here; Use Chapter Objective #2 Here; Use Applying the Concepts #2 Here; Use PowerPoint Slide #20-5 Here*****

Environmentalism h. Environmentalists are concerned with marketings effects on the environment and with the costs of serving consumers needs and wants. i. Environmentalism is an organized movement of concerned citizens and government agencies to protect and improve peoples living environment. j. Environmentalists are not against marketing and consumption. They simply want people and organizations to operate with more care for the environment. k. The marketing systems goal should be to maximize life quality. l. Environmentalism has hit some industries very hard. 1). The first environmental wave was driven by environmental groups and concerned consumers of the 1960s and 1970s. 2). The second wave was driven by government, which passed laws in the 1970s and 1980s governing industrial practices impacting the environment. 3). The third wave is forming. This wave is one where companies will act responsibly and not harm the environment. 4). Companies are adopting environmental sustainability--developing strategies that both sustain the environment and produce profits for the company. m. Marketers must check into the ecological properties of their products and packaging. Marketers must: 1). Practice pollution prevention.

2). Practice product stewardship. 3). Adopt design for the environment (DFE) practices. 4). Plan for new environmental technologies. 5). Have a sustainability vision.

*****Use Key Term environmentalism and environmental sustainability Here; Use Marketing Highlight 20-2 The New Environmentalism and Green Marketing Here; Use Chapter Objective #2 Here; Use Discussing the Issues #3 Here; Use Figure 20-1 Here; Use PowerPoint Slide #20-6 Here*****

Public Actions to Regulate Marketing n. Citizen concerns about marketing practices usually lead to public attention and legislative proposals. o. The task for the marketer is to translate laws into the language that marketing executives understand as they make decisions about competitive relations, products, price, promotion, and channels of distribution.

*****Use Figure 20-2 Here; Use Applying the Concepts #1 Here; Use Company Case #20 Here*****

4. Business Actions Toward Socially-Responsible Marketing a. Many companies have responded positively to consumerism and environmentalism in order to serve the consumer needs better.

Enlightened Marketing

b. Enlightened marketing is a philosophy holding that a companys marketing should support the best long-run performance of the marketing system. It has five principles: 1). Consumer-oriented marketing. A principle of enlightened marketing which holds that the company should view and organize its marketing activities from the consumers point of view. 2). Innovative marketing. A principle of enlightened marketing which requires that a company seek real product and marketing improvements.

3). Value marketing. A principle of enlightened marketing which holds that a company should put most of its resources into value-building marketing investments. 4). Sense-of-mission marketing. A principle of enlightened marketing which holds that a company should define its mission in broad social terms rather than narrow product terms.

*****Use Key Terms enlightened marketing, consumer-oriented marketing, innovative marketing, value marketing, and sense-of-mission marketing Here; Use Discussing the Issues #4 Here; Use Marketing Highlight 20-3 Mission: Social Responsibility Here; Use PowerPoint Slide #20-7 Here*****

5). Societal marketing. A principle of enlightened marketing which holds that a company should make marketing decisions by considering consumers wants, the companys requirements, consumers long-run interests, and societys

long-run interests. a). A societally-oriented marketer wants to design products that are pleasing and beneficial. b). Products can be classified according to their degree of immediate consumer satisfaction and long-run consumer benefit. 1]. Deficient products are products that have neither immediate appeal nor long-term benefits. 2]. Pleasing products are products that give high immediate satisfaction but may hurt consumers in the long-run. 3]. Salutary products are products that have low appeal but may benefit consumers in the long-run. 4]. Desirable products are products that give both high immediate satisfaction and high long-run benefits.

*****Use Key Terms social marketing, deficient products, pleasing products, salutary products, and desirable products Here; Use Chapter Objective #3 Here; Use PowerPoint Slide #20-8 Here; Use Figure 20-3 Here; Use Discussing the Issues #5 Here*****

Marketing Ethics c. Conscientious marketers face many moral dilemmas. d. Companies need to develop corporate marketing ethics policies--broad guidelines that everyone in the organization must follow. e. The finest guidelines cannot resolve all the difficult ethical situations a marketer faces.

f. What principle should guide companies and marketing managers on issues of ethical and social responsibility? Two general philosophies are used: 1). Issues are decided by the free market and legal system. 2). Issues are the responsibility of individual companies and managers. This approach says that the company should have a social conscience that guides action. g. Each company and marketing manager must work out a philosophy of sociallyresponsible and ethical behavior. h. Ethics provides special challenges for international marketers. 1). The American Marketing Association, an international association of marketing managers and scholars, developed a code of ethics. 2). More than 200 of the United Statess top companies have appointed ethics officers to champion ethics issues and to help resolve ethical problems and concerns facing employees. 3). Written codes and ethics programs do not ensure ethical behavior i. Given the challenges of the next century, companies that are able to create new values in a socially-responsible way will have a world to conquer.

*****Use Table 20-1 and 20-2 Here; Use Chapter Objective #4 Here; Use Discussing the Issues #7 Here; Use PowerPoint Slide #20-9 Here*****

5. Principles for Public Policy Toward Marketing a. Marketing has suggested principles that underlie much of modern marketing theory and practice. b. Seven principles that might guide the formulation of public policy toward

marketing are: 1). The principle of consumer and producer freedom. As much as possible, marketing decisions should be made by consumers and producers under relative freedom. 2). The principle of curbing potential harm. As much as possible, transactions freely entered into by producers and consumers are their private business. 3). The principle of meeting basic needs. The marketing system should serve disadvantaged consumers as well as affluent ones. 4). The principle of economic efficiency. The marketing system strives to supply goods and services efficiently and at low prices. 5). The principle of innovation. The marketing system encourages authentic innovation to bring down production and distribution costs and to develop new products to meet changing consumer needs. 6). The principle of consumer education and information. An effective marketing system invest heavily in consumer education and information to increase long-run consumer satisfaction and welfare. 7). The principle of consumer protection. Consumer education and information cannot do the whole job of protecting consumers. c. The above seven principles are based on the assumption that marketings goal is

not to maximize company profits or total consumption or consumer choice, but rather to maximize life quality. d. Properly managed, the marketing system can help to create and deliver a higher quality of life to people around the world.

*****Use Chapter Objective #5 Here; Use Discussing the Issues #6 Here; Use

Comprehensive Case IV Here (or with material found in Chapter 19); Use PowerPoint Slide #20-10 Here***** DISCUSSING THE ISSUES

1. Was Gerber right or wrong not to recall its baby food after customers complained of finding glass fragments in bottles? Without considering what you know about how things turned out, analyze the situation facing Gerber in 1986. What action would you have recommended at the time? Some students may feel that Gerber should have recalled its products until it had proved that the threat of glass fragments was eliminated. These students should be asked to consider the fact that many malicious and nonsensical rumors have been spread about different companies--Procter & Gamble and Satanism, McDonald's and "wormburgers," and others--showing that consumer complaints may be groundless. Where do these students think that Gerber should have drawn the line--at 200 consumer complaints? 50? 1? Would an examination by the FDA of 80,000 fragment-free jars have satisfied them? 150,000 jars? A million? They will probably be annoyed by these questions, and feel that it is improper to try to quantify this "life or death" decision, but they should come to see that companies must weigh the evidence and potential consequences of their decisions--they cannot act to avoid any possible harm, however slight or unlikely. These questions can be turned around for students who feel that Gerber made the right decision. How does a company make the tradeoff between a few million dollars lost in a product recall versus the potential losses in lawsuits if people had died as a result of glass fragments? What about the injuries to babies, the suffering of parents, the emotional burden on the decision makers at Gerber, and the harm to company morale, if the complaints about glass fragments were valid? There is no way to wrap up this discussion to leave everyone feeling good, but it will help students recognize the complexity of questions of social responsibility in marketing.

2. You have been invited to be a spokesperson for sound marketing practice in the beverage industry. You appear on a panel along with an economist and a representative of the advertising industry. You are somewhat shocked when the economist begins the discussion by listing numerous social criticisms of marketing (especially focusing on the high costs and deceptive practices of marketing). Rather than following your prepared speech you feel compelled to respond to defend the general field of marketing and your industry. What would be your specific response to the economists attack? This question asks students to put themselves of an industry spokesperson that does not have an easy task. First, the rules of the discussion just changed. Second, you are not prepared for a discussion in the area (even though your opponent is). Third, the audience would probably prefer to hear the

negative argument (because it is inflammatory and interesting) instead of a prepared speech. Fourth, what ever you say will probably make no difference to those who wish to protest and may even make your situation worse. Especially, if it is reported (perhaps out of context) by the press. What do you do? Students should be encouraged to really think about this (especially, in light of the difficulties mentioned above). Their creative response should be interesting. The instructor might also wish to assign roles (consistent with the roles described in the question) to members of the class and let them present their cases.

3. If you were a marketing manager at Dow Chemical Company, tell which you would prefer: government regulations on acceptable levels of air and water pollution, or a voluntary industry code suggesting target levels of emissions. Why? Industries often fight against increased government regulations, but for ethical companies, legal constraints may be preferable to voluntary restraints. If the government sets the limits on air and water pollution levels, for example, all companies must comply. If maximum pollution levels are set by an industry code, companies that choose not to comply gain a competitive advantage by not paying for smokestack scrubbers, low-sulfur coal, or other pollution-control devices that their more principled competitors use. Thus, Dow Chemical might want to influence the government's determination of what levels are acceptable, but it would probably prefer government regulations to a stringent industry code that some competitors might violate.

4. Discuss which of the following firms (if any) practice the principle of enlightened marketing: (a) McDonalds, (b) Proctor & Gamble, (c) General Motors, and (d) Johnson and Johnson. The philosophy of enlightened marketing holds that a companys marketing should support the best long-run performance of the marketing system. Enlightened marketing consists of five principles: consumer-oriented marketing, innovative marketing, value marketing, sense-of-mission marketing, and societal marketing. McDonalds is generally referred to as an enlightened marketing because of its views on recycling, social activities (the Ronald McDonald House program), its low cost approach to what they perceive of as value meals, their innovativeness in the fast food business (most major changes in menu items in the industry have come from McDonalds), and the companys sense-of-mission by mandating that all franchisees follow the McDonalds philosophies and practices. Procter & Gamble is clearly an "enlightened marketer," practicing consumer-oriented marketing. It is also one of the best examples of an innovative marketer. P&G has long emphasized advertising over sales promotion as a way of building customer loyalty. Its official Statement of Purpose describes the company's mission: "We'll provide products of superior quality and value that best fill the needs of the world's consumers." And it follows the principle of societal marketing. P&G withdrew its highly

successful Rely tampons after evidence linked the product to the sometimes fatal toxic-shock syndrome, a strong demonstration of corporate social responsibility. General Motors should probably receive a mixed review. The company is innovative (especially in new model design), they have a sense-of-mission, and, in some respects, are socially active. However, GMs record of reform is not especially good. Their reputation as a value marketer, being consumer aware, and socially responsible is not the same as Saturns reputation. GM seems to do things because they are forced by the government or it is politically correct rather than because it is the right thing to do. Students will have mixed opinions about GM. Lastly, is Johnson and Johnson. Similar to Proctor & Gamble, Johnson and Johnson is generally considered to be an enlightened marketer. All of the aforementioned principles of enlightenment are usually followed by this company. In addition, this company is often mentioned as one that is liked by its employees and stockholders alike. Most consumers trust this company and its products.

5. Compare the marketing concept with the principle of societal marketing. Do you think marketers should adopt the societal marketing concept? Why or why not? The marketing concept can be expressed as "find a need and fill it, at a profit." The societal marketing concept is more elaborate: "find a need and fill it, at a profit, taking into account the consumer's and society's long-run interests." On the surface, the societal marketing concept appears so reasonable that every company should immediately adopt it. Yet, there are both philosophical and pragmatic objections to this concept. The philosophical objection is that this practice has businesspeople substituting their perceptions of what is in the social good, for consumers' perceptions or the views of elected policymaking officials. The pragmatic objection is that marketing managers have no special expertise in defining and acting in the public interest. Marketers may not foresee the unintended consequences of their "socially responsible" actions. For example, when a cereal manufacturer reduces a product's sugar content to save children's teeth, the result may be a substitution of even sweeter and less nutritious breakfast products rather than a reduction in cavities. Unfortunately, like most matters of social responsibility in marketing, this question is not as clearcut as these arguments suggest. Are marketers supposed to ignore consumers' and society's long-run interests? Even if consumers are willing to ignore product hazards, is it moral to sell the products to them?

6. If you had the power to change our marketing system in any way feasible, decide what improvements you would make. What improvements could you make as a consumer or entry-level marketing practitioner? A major theme in the textbook and this instructor's manual is that marketing is a part of students' lives, now and in the future. The views presented have generally been positive, because there is much

that is admirable in our marketing system. It is not perfect, though, and students should recognize that they can help make it better. They can improve our marketing system as practitioners by offering value and integrity to consumers, and they can improve it as consumers by demanding the same from the companies with which they interact.

7. You are the marketing manager for a small kitchen appliance firm. In doing product research field tests, you discover a design flaw in one of your popular appliances that could potentially be harmful to your customers. However, a product recall would bankrupt your company and cause all of the employees (including yourself) to loose their jobs. Considering the difficulty of the situation, outline a plan to deal with the situation that would be a proper response both personally and ethically. Students will find this question a difficult task. Most instructors prefer to make the assignment and then discuss the answers in class. The unusual fact about this question is the number of students who will recommend doing nothing or covering up. The question is presented in a difficult way just to demonstrate this fact. As indicated in the chapter (and as a general philosophy in this textbook), there is always one right answer--even if the answer is very difficult. Is saving a life worth a bankruptcy? Only the student and their personal moral and ethical values can answer that question.

APPLYING THE CONCEPTS

1. Changes in consumer attitudes, especially the growth of consumerism and environmentalism, have led to more societal marketing -- and to more marketing that is supposedly good for society, but is actually closer to deception. (a) List three examples of marketing campaigns that you feel are genuine societal marketing. If possible, find examples of advertising or packaging that support these campaigns. (b) Find three examples of deceptive or borderline imitations of societal marketing. How are you able to tell which campaigns are genuine and which are not? (c) What remedies, if any, would you recommend for this problem? 2. Consumer rights (for both the seller and buyer) have been publicized since the 1960s. Advocates have added to these lists over the years. However, one modern avenue of marketing activity and commerce has yet to be dealt with effectively--the Internet. Propose a set of rights for marketing on the Internet. Be sure to address both buyer and seller needs. Comments on Applying the Concepts for Chapter 20 1. (a) Societal marketing is on the increase, but it requires great efforts on the part of the company that undertakes it. Polaroid, for example, has made great strides in reducing environmental impacts.

Polaroid has redesigned its manufacturing processes to reduce the amount of toxic waste produced, and to improve the disposal of what is unavoidably produced. The company has made strong efforts to reduce packaging and packing materials, and to use recycled and recyclable materials to the greatest extent possible. These efforts earned Polaroid a place on the "Most Improved" list in Fortune magazine's survey of corporate environmental impacts. Newer companies are often very conscious of societal marketing. The Body Shop, for example, carefully assesses every corporate action for its social and environmental impact. It has built factories in areas of high unemployment, supported grassroots economic development in the Third World, and supported environmental causes. Ben and Jerry's ice cream supports peace-related causes, lobbies for children's issues, and works to minimize environmental impacts from its plants. (b) What distinguishes true societal marketing from imitation societal marketing is the beneficiary. In true societal marketing, all of society benefits. In imitation societal marketing, the marketer is the primary beneficiary. This type of marketing is very common for alcohol and tobacco products. Beer manufacturers often run ads sponsoring moderation, and asks teens not to drink and drive. These efforts are probably at least partially sincere, but they are also designed to prevent restrictive legislation. Furthermore, the credibility of the campaigns is undercut by other efforts of the beer manufacturers to increase consumption per capita. The hottest trend in beer in late 1993 was larger bottles: 20- to 22-ounce tankers that people can order instead of the usual 12-ounce size. This is hardly the type of marketing that will increase moderation! 2. This question is often used in the classroom as a demonstration project. First, it is wise to review the series of consumer and seller rights shown in the chapter. Second, students should be asked to do research on the Internet. Think about rights (such as the right to privacy, the right to access, freedom of speech, security, childrens rights and protection, et cetera) and the consequences associated with maintaining or violating those rights. For example, everyone is for free speech. However, free speech and free and unrestrained access to the Internet also protects the rights of pornographers. The average e-mail box on AOL receives four pornographic solicitation e-mail offers per day. Students should list their desired rights on the board and then discuss how to achieve, maintain, and protect those rights. They should be reminded that rights are for everyone--not just those we prefer. This assignment is a good completion assignment for the course. It should also demonstrate how much the students have learned about ethical business practice and consumerism.

Sustainable Marketing Social Responsibility and Ethics Presentation Transcript

1. Chapter Twenty Sustainable Marketing Social Responsibility and Ethics 2. Sustainable Marketing Social Responsibility and Ethics Sustainable Marketing Social Criticisms of Marketing Consumer Actions to Promote Sustainable Marketing Business Actions Toward Sustainable Marketing Topic Outline 3. Meeting needs of consumers while preserving the ability of future generations to meet their needs Figure 20.1 Sustainable Marketing 4. Social Criticisms of Marketing Marketings Impact on Individual Consumers 5. Social Criticisms of Marketing Marketings Impact on Individual Consumers High Cost of Distribution 6. Social Criticisms of Marketing Complaint: Companies use deceptive practices that lead customers to believe they will get more value than they actually do. These practices fall into three categories: Deceptive pricing Deceptive promotion Deceptive packaging Marketings Impact on Individual Consumers Deceptive Practices 7. Social Criticisms of Marketing Response: Support Legislation to protect consumers from deceptive practices Make lines clearIs it deception, alluring, or puffery that is just an exaggeration for effect? Products that are harmful Products that provide little benefit Products that are not made well Marketings Impact on Individual Consumers Deceptive Practices 8. Social Criticisms of Marketing High-Pressure Selling Marketings Impact on Individual Consumers Deceptive Practices 9. Social Criticisms of Marketing Shoddy, Harmful, or Unsafe Products Marketings Impact on Individual Consumers Deceptive Practices 10. Social Criticisms of Marketing Planned Obsolescence Marketings Impact on Individual Consumers Deceptive Practices 11. Social Criticisms of Marketing Poor Service to Disadvantaged Consumers Marketings Impact on Individual Consumers Deceptive Practices 12. Social Criticisms of Marketing Marketings Impact on Society as a Whole 13. Social Criticisms of Marketing False Wants and Too Much Materialism Marketings Impact on Society as a Whole 14. Social Criticisms of Marketing Too Few Social Goods Marketings Impact on Society as a Whole 15. Social Criticisms of Marketing Cultural Pollution Marketings Impact on Society as a Whole

16. Social Criticisms of Marketing Acquisition of competitors Unfair competitive marketing practices Marketings Impact on Other Businesses 17. Consumer Actions to Promote Sustainable Marketing Consumerism is the organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers 18. Consumer Actions to Promote Sustainable Marketing Traditional buyers rights include: The right not to buy a product that is offered for sale The right to expect the product to be safe The right to expect the product to perform as claimed Comparing these rights, many believe that the balance of power lies on the sellers side Consumerism 19. Consumer Actions to Promote Sustainable Marketing Advocates call for: The right to be well informed about important aspects of the product The right to be protected against questionable products and marketing practices The right to influence products and marketing practices in ways that will improve the quality of life The right to consume now in a way that will preserve the world for future generations of consumers Consumerism 20. Consumer Actions to Promote Sustainable Marketing Environmentalism is an organized movement of concerned citizens, businesses, and government agencies to protect and improve peoples living environment 21. Consumer Actions to Promote Sustainable Marketing Environmental sustainability is getting profits while helping to save the planet Environmentalism 22. Consumer Actions to Promote Sustainable Marketing Pollution prevention Product stewardship Design for environment (DFE) New clean technologies Sustainability vision Environmentalism Environmental Sustainability 23. Consumer Actions to Promote Sustainable Marketing Pollution prevention involves not just cleaning up waste but also eliminating or minimizing waste before it is created Product stewardship involves minimizing the pollution from production and all environmental impact throughout the full product life cycle Design for environment (DFE) involves thinking ahead to design products that are easier to recover, reuse, or recycle Environmentalism Environmental Sustainability 24. Consumer Actions to Promote Sustainable Marketing 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 companys products, process, and policies must evolve and what is needed to get there Environmentalism Environmental Sustainability 25. Consumer Actions to Promote Sustainable Marketing Public Actions to Regulate marketing 26. Business Actions Toward Sustainable Marketing Sustainable Marketing Principles

27. Business Actions Toward Sustainable Marketing View marketing activities from the consumer's point of view Deliver superior value Consumer-Oriented Marketing 28. Business Actions Toward Sustainable Marketing Invest in customer-value building marketing Create value FOR customers Customer-Value Marketing 29. Business Actions Toward Sustainable Marketing Company seeks real product and marketing improvements Innovative Marketing 30. Business Actions Toward Sustainable Marketing Define mission in broad social terms rather than narrow product terms Sense-of-Mission Marketing 31. Business Actions Toward Sustainable Marketing Societal Marketing 32. Business Actions Toward Socially Responsible Marketing Corporate marketing ethics are broad guidelines that everyone in the organization must follow that cover distributor relations, advertising standards, customer service, pricing, product development, and general ethical standards Marketing Ethics 33. Business Actions Toward Socially Responsible Marketing Who should guide companies? The free market and the legal system? Individual companies and managers? Marketing Ethics 34. Business Actions Toward Socially Responsible Marketing Goes beyond caring for the needs of todays customers and has concern for tomorrows customers and the broader world The Sustainable Company