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Sustainable Marketing

Social
Responsibility
and Ethics

Chapter 3 - Duane Weaver


3-1 Copyright 2012 Pearson Canada Inc.
Sustainable Marketing
Sustainable Marketing:
Socially and environmentally responsible
marketing that meets the present needs of
consumers and businesses while preserving
or enhancing the ability of future generations
to meet their needs.

3-2 Copyright 2012 Pearson Canada Inc.


Take a minute
.and write down on a piece of paper one
example of a time you purchased something
that you felt was unfairly marketed or
promoted to you

i.e. the product broke down, quality was


poor, was found cheaper elsewhere, over-
sold on the product, etc.

3-3 Copyright 2012 Pearson Canada Inc.


Social Criticisms of Marketing
Marketings impact on individual
consumers has been criticized in terms of
three factors that are cited as leading to
high prices:
High costs of distribution
High advertising and promotion costs
Excessive markups

3-4 Copyright 2012 Pearson Canada Inc.


Social Criticisms of Marketing
Marketers may be accused of deceptive
practices including:
Pricing: falsely advertising wholesale or
factory prices or large reductions from phony
high retail list prices
Promotion: misrepresenting a products
features or performance, or luring consumers
to store for out-of-stock items
Packaging: exaggerating package contents
through design, misleading labeling, or size
3-5 Copyright 2012 Pearson Canada Inc.
Social Criticisms of Marketing
Deceptive practices have led to legislation
and other protective consumer actions:
Competition Bureau acts as a watchdog to
prevent deceptive practices
Use of puffery is legal, but may harm
consumers in subtle ways

3-6 Copyright 2012 Pearson Canada Inc.


Social Criticisms of Marketing
Salespeople can be accused of using
high-pressure selling tactics

3-7 Copyright 2012 Pearson Canada Inc.


Social Criticisms of Marketing
Criticisms of shoddy or unsafe products:
Poor product quality or function
Products deliver little benefit or are harmful

3-8 Copyright 2012 Pearson Canada Inc.


Social Criticisms of Marketing
Planned obsolescence causes products to
become obsolete before replacement by:
Using materials and components that break,
wear, rust, or rot before they should
Continually changing acceptable styles
Intentionally holding back functional features,
then introducing them later to make older
models obsolete

3-9 Copyright 2012 Pearson Canada Inc.


Social Criticisms of Marketing
Marketers are accused of poorly serving
disadvantaged consumers:
Forced to shop in smaller stores, paying more
for inferior goods
National chain stores, insurers, and health
care providers practice redlining and refuse
to open businesses in poor neighborhoods

3 - 10 Copyright 2012 Pearson Canada Inc.


In small groups
.discuss and share your original examples
you came up with. Can you think of other
examples? Are social criticisms of
marketing common if so, which ones are
most common?

3 - 11 Copyright 2012 Pearson Canada Inc.


Impact on Society
Marketings impact on society has been
criticized as:
Creating false wants and encouraging
materialism that benefits industry more than
consumers
Creating cultural pollution, stemming from
constant exposure to marketing messages

3 - 12 Copyright 2012 Pearson Canada Inc.


Consumer Actions
1: Consumerism:
An organized movement of citizens and
government agencies to improve the rights
and power of buyers in relation to sellers
Sellers rights include the right to:
Introduce any product in any size and style
Charge any price for the product
Spend any amount to promote the product
Use any product message
Use any buying incentive schemes

3 - 13 Copyright 2012 Pearson Canada Inc.


Consumer Actions
Buyers rights include the right to:
Not buy a product that is offered for sale
Expect the product to be safe
Expect the product to perform as claimed

3 - 14 Copyright 2012 Pearson Canada Inc.


Consumer Actions
Consumer advocates call for more rights to:
Be well informed about aspects of the product
Be protected against questionable products
and marketing practices
Influence products and marketing practices in
ways that will improve quality of life
Consume now in a way that will preserve the
world for future generations of consumers

3 - 15 Copyright 2012 Pearson Canada Inc.


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

3 - 16 Copyright 2012 Pearson Canada Inc.


Consumer Actions
Environmental sustainability:
Involves developing strategies that both
sustain the environment and produce profits
for the company
Environmental sustainability portfolio:
Pollution prevention
Product stewardship
New clean technologies
Sustainability vision
3 - 17 Copyright 2012 Pearson Canada Inc.
Business Actions
Consumer-Oriented Marketing:
A companys marketing activities are viewed and organized from the consumers
point of view

Customer-Value Marketing:
A company puts most of its resources into customer-value-building marketing
investments

Innovative Marketing:
A company seeks real product and marketing improvements

Sense-of-Mission Marketing:
A companys mission is defined in broad social terms rather than narrow product
terms

Societal Marketing:
- Marketing decisions are made by considering consumers wants and interests,
the companys requirements, and consumers and societys long-run interests

3 - 18 Copyright 2012 Pearson Canada Inc.


Marketing Ethics
Firms must develop corporate marketing
ethics policies as broad guidelines for staff
Ethics policies should cover:
Distributor relations
Advertising standards
Customer service
Pricing
Product development
General ethical standards
3 - 19 Copyright 2012 Pearson Canada Inc.
Break time!
Take 15 minutes and have a break! When
we come back we will apply what we have
discussed in the Pink Ribbon debate.

3 - 20 Copyright 2012 Pearson Canada Inc.