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Learning Objectives

Define sustainable marketing and


discuss its importance.
Identify the major social criticisms of
marketing.
Define consumerism and
environmentalism and explain how
they affect marketing strategies.

Copyright 2015 Pearson Education, Inc.

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Learning Objectives

Describe the principles of


sustainable marketing.
Explain the role of ethics in
marketing.

Copyright 2015 Pearson Education, Inc.

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First Stop: Sustainability


at Unilever
Goal - Accomplishing a broader social
and environmental mission to improve
stagnant sales and profits
Sustainable Living Plan
Spans the entire value chain
Fuels innovation, resulting in new products
and new consumer benefits

Five Levers for Change - Inspires people


to adopt specific sustainable behaviors
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Figure 16.1 - Sustainable


Marketing

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Social Criticisms of
Marketing

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Marketings Impact on
Individual Consumers

High prices
Deceptive practices
High-pressure selling
Shoddy, harmful, or unsafe products
Planned and perceived obsolescence
Poor service to disadvantaged
consumers
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Marketings Impact on
Society as a Whole

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Marketings Impact on
Other Businesses
Acquisitions of
competitors
Marketing
practices that
create barriers to
entry
Unfair competitive
marketing
practices
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Traditional Rights
Sellers rights

Buyers rights

To introduce any product in


any size and style with
proper warnings and
controls, if necessary

To buy a product that is


offered for sale

To charge any price for the


product without any
discrimination

To expect the product to be


safe

To spend any amount to


promote the product if
competing fairly

To expect the product to


perform as claimed

To use any product message


that is not misleading or
dishonest
To use buying incentive
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Proposed Consumer Rights


To be well informed
To be protected against questionable
products and marketing practices
To influence products and marketing
practices to improve quality of life
To consume in a way to preserve the
world for future generations of
consumers
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Environmentalism
Protects and improves peoples current
and future living environment
Concerned with:
Damage to the ecosystem
Loss of recreational areas
Increase in health problems

Environmental sustainability:
Generating profits while helping protect
the environment
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Figure 16.2 - The


Environmental
Sustainability Portfolio

Source: Stuart L. Hart, Innovation, Creative Destruction, and Sustainability, Research Technology Management, SeptemberOctober 2005, pp. 2127.

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Major Marketing Decision Areas


That May Be Called into Question
under the Law
Decision areas

Legal issues

Selling decisions

Bribing
Stealing trade secrets
Disparaging customers
Misrepresenting
Disclosure of customer rights
Unfair discrimination

Advertising
decisions

False advertising
Deceptive advertising
Bait-and-switch advertising
Promotional allowances and
services

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Major Marketing Decision Areas


That May Be Called into Question
under the Law
Decision areas

Legal issues

Channel decisions

Exclusive dealing
Exclusive territorial
distributorship
Tying agreements
Dealers rights

Competitive relations
decisions

Anticompetitive acquisition
Barriers to entry
Predatory competition

Product decisions

Product additions and deletions


Patent protection
Product quality and safety
Product warranty

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Major Marketing Decision Areas


That May Be Called into Question
under the Law
Decision areas

Legal issues

Packaging decisions

Fair packaging and labeling


Excessive cost
Scarce resources
Pollution

Price decisions

Price fixing
Predatory pricing
Price discrimination
Minimum pricing
Price increases
Deceptive pricing

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Sustainable Marketing
Principles

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Sustainable Marketing
Principles

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Figure 16.4 - Societal


Classification of Products

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Marketing Ethics
Corporate marketing ethics policies should
be developed by firms as guidelines for
handling various issues and dilemmas.

Distributor relations
Advertising standards
Customer service
Pricing
Product development
General ethical standards

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Marketing Ethics
Principles are needed to guide companies
and marketing managers on issues of
ethics and social responsibility.
The free market and the legal system should
decide such issues.
Responsibility is in the hands of individual
companies and managers.

Addressing ethics helps build strong


customer relationships based on honesty
and trust.
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Ethical Codes Suggested by


American Marketing
Association

Do no harm
Foster trust in the marketing
system
Embrace ethical values

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The Sustainable Company


Sustainable companies create value
for customers through socially,
environmentally, and ethically
responsible actions.
Sustainable marketing provides the
context in which companies can
build profitable customer
relationships.
Copyright 2015 Pearson Education, Inc.

Learning Objectives

Define sustainable marketing and


discuss its importance.
Identify the major social criticisms of
marketing.
Define consumerism and
environmentalism and explain how
they affect marketing strategies.

Copyright 2015 Pearson Education, Inc.

16 - 24

Learning Objectives

Describe the principles of


sustainable marketing.
Explain the role of ethics in
marketing.

Copyright 2015 Pearson Education, Inc.

16 - 25

All rights reserved. No part of this publication may be reproduced, stored in a


retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.

Copyright 2015 Pearson Education, Inc.

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