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Sustainable Marke/ng
Social Responsibility and Ethics

Learning Outcomes

Topic 10: Ethics & Social Responsibility

Outline

Sustainable Marke4ng
Social Cri4cisms of Marke4ng
Consumer Ac4ons to Promote Sustainable Marke4ng
Business Ac4ons Toward Sustainable Marke4ng
Marke4ng Ethics
The Sustainable Company

At the end of this chapter/module, you will be

able to:
Discuss the major social cri4cisms of
marke4ng
Dene the term consumerism and
environmentalism
Describe the principles of enlightened/
sustainable marke4ng

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Social Cri/cisms of Marke/ng

Sustainable Marke/ng
Mee4ng needs of consumers while preserving the
ability of future genera4ons to meet their needs

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Marke/ngs Impact on Individual Consumers

1. High Prices
2. Decep4ve Prac4ces
3. High-Pressure Selling
4. Shoddy, Harmful or Unsafe Products
5. Planned Obsolescence
6. Poor Service to Disadvantaged Consumers
Marke/ngs Impact on Society as a Whole
1. False Wants and Too Much Materialism
2. Too few social goods
3. Cultural Pollu4on

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Social Cri/cisms of Marke/ng

Social Cri/cisms of Marke/ng

Marke/ngs Impact on Individual Consumers

Marke/ngs Impact on Individual Consumers

2. Decep/ve Prac/ces

1. High Prices
Complaint:

Response:

Prices are too high due to

high costs of:
Distribu4on
Adver4sing and
promo4on
Excessive mark-ups

Intermediaries are
important and oer value
Adver4sing informs
buyers of availability and
merits of a brand
Consumers dont
understand the cost of
doing business

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Complaint: Companies use decep4ve prac4ces

that lead customers to believe they will get more
value than they actually do. These prac4ces fall
into three categories:
Decep4ve pricing
Decep4ve promo4on
Decep4ve packaging
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Social Cri/cisms of Marke/ng

Social Cri/cisms of Marke/ng

Marke/ngs Impact on Individual Consumers

2. Decep/ve Prac/ces

Response:
Support legisla4on to protect consumers from decep4ve
prac4ces
Make lines clearIs it decep4on, alluring, or puery
(hype) that is just an exaggera4on for eect?
Products that are harmful
Products that provide liale benet
Products that are not made well

Marke/ngs Impact on Individual Consumers

3.
H
igh-Pressure
Selling

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Complaint:

Response:

Salespeople use high-

pressure selling that
persuade people to buy
goods they had no
inten4on of buying.

Most selling involves

building long-term
rela4onships and
valued customers. High-
pressure or decep4ve
selling can damage
these rela4onships.

Copyright 2014 by Pearson Educa4on, Inc. All rights reserved

Social Cri/cisms of Marke/ng

Social Cri/cisms of Marke/ng

Marke/ngs Impact on Individual Consumers

Marke/ngs Impact of Individual Consumers

5. Planned Obsolescence

4. Shoddy, Harmful, or Unsafe Products

Complaint:
Products have poor
quality, provide liale
benet, and can be
harmful.

Complaint:

Response:
Good marketers realize
there is no value in
marke4ng shoddy,
harmful, or unsafe
products.

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1. False Wants and Too Much Materialism

Complaint:

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Copyright 2014 by Pearson Educa4on, Inc. All rights reserved

Marke/ngs Impact on Society as a Whole

Marke/ngs Impact on Individual Consumers

6. Poor Service to Disadvantaged Consumers

Marketers serve
disadvantaged customers
poorly. Some retail
companies redline poor
neighborhoods and avoid
placing stores there.

Planned obsolescence is
really the result of
compe44ve market
forces leading to ever-
improving goods and
services.
Customer customers like
style changes and want
the latest innova4ons

Social Cri/cisms of Marke/ng

Social Cri/cisms of Marke/ng

Complaint:

Response:

Producers cause their

products to become
obsolete and change
consumers concepts of
acceptable styles to
encourage more and
earlier buying.

Response:

The marke4ng system

urges too much interest
in material possessions.
People are judged by
what they own rather
than who they are,
crea4ng false wants that
benet industry more
than they benet
consumers.

Some marketers protably

target these customers and
the FTC has taken ac4on
against marketers that do
adver4se false values,
wrongfully deny service, or
charge disadvantaged
customers too much.

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Response:
People do have strong
defenses against
adver4sing and other
marke4ng tools.
Marketers are most
eec4ve when they
appeal to exis4ng wants
rather than crea4ng new
ones. The high failure
rate of new products
shows that companies
cannot control demand.

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12/7/14

Social Cri/cisms of Marke/ng

Social Cri/cisms of Marke/ng

Marke/ngs Impact on Society as a Whole

2. Too Few Social Goods

Marke/ngs Impact on Society as a Whole

3. Cultural Pollu/on

Complaint:

Response:

Businesses oversell
private goods at the
expense of public goods
and require more public
goods to support them

Marke4ng and adver4sing

create cultural pollu4on

Marke4ng and adver4sing

are planned to reach only a
target audience, and
adver4sing makes radio and
television free to users and
helps to keep down the costs
of newspapers and
magazines. Todays
consumers have alterna4ves
to avoid marke4ng and
adver4sing from technology.

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Copyright 2014 by Pearson Educa4on, Inc. All rights reserved

Social Cri/cisms of Marke/ng

Consumer Ac/ons to Promote

Sustainable Marke/ng

Marke/ngs Impact on Other Businesses

Consumerism is the organized movement of
ci4zens and government agencies to improve
the rights and power of buyers in rela4on to
sellers

Acquisi4on of compe4tors
Marke4ng prac4ces that create barriers to
entry
Unfair compe44ve marke4ng prac4ces

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Consumer Ac/ons to Promote

Sustainable Marke/ng

Consumerism

Consumerism

Advocates call for:

Traditional buyers rights include:

The right not to buy a product that is oered 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
Though the buyer can refuse to buy, cri4cs feel that the
buyer has too liale informa4on, educa4on, and
protec4on to make wise decisions when facing
sophis4cated sellers.

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Consumer Ac/ons to Promote

Sustainable Marke/ng

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Response:

Complaint:

There needs to be a
balance between private
and public goods
Producers should bear full
social costs of their
opera4ons
Consumers should pay the
social costs of their
purchases

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The right to be well informed about important

aspects of the product
The right to be protected against ques4onable
products and marke4ng prac4ces
The right to inuence products and marke4ng
prac4ces in ways that will improve the quality of
life
The right to consume now in a way that will preserve
the world for future genera4ons of consumers

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Business Ac/ons Toward Sustainable Marke/ng

Consumer Ac/ons to Promote

Sustainable Marke/ng

Sustainable Marke/ng Principles

Environmentalism

Environmentalism is an organized movement of

concerned ci4zens, businesses, and government
agencies to protect and improve peoples living
environment
Environmental sustainability is gejng prots
while helping to save the planet

Consumer-Oriented Marke4ng

Customer-Value Marke4ng

marke4ng ac4vi4es from the

consumer's point of view
Deliver superior value

Invest in customer-value building

marke4ng
Create value FOR customers

Innova4ve Marke4ng
Company seeks real product and
marke4ng improvements

Sense-of-mission Marke4ng
Dene mission in broad social terms
rather than narrow product terms

Societal Marke4ng
consumers wants
the companys requirements
consumers long-run interests
societys long-run interests

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Business Ac/ons Toward Sustainable

Marke/ng

Business Ac/ons Toward Socially

Responsible Marke/ng

Societal Marke/ng

Marke/ng Ethics

Corporate marke/ng ethics are broad

guidelines that everyone in the
organiza4on must follow that cover
distributor rela4ons, adver4sing
standards, customer service, pricing,
product development, and general
ethical standards

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Business Ac/ons Toward Socially

Responsible Marke/ng

Business Ac/ons Toward Socially

Responsible Marke/ng

Marke/ng Ethics

The Sustainable Company

Who should guide companies?

The free market and the legal system?
Individual companies and managers?

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Goes beyond caring for the needs of

todays customers and has concern for
tomorrows customers and the broader
world

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