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Roadmap: Previewing the Concepts
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.
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Background
Nike has been heavily
criticized for NOT being socially responsible.
Accusation: use of
sweatshops and child labor overseas, and
horrible working conditions.
Accusation: targeting
low-income families by making shoes an
expensive status symbol for poor urban street kids.
Nike – Socially Responsible? Nike – Socially Responsible?
Case Study Case Study
Behavior
Code of conduct and six-
point plan ensures more socially responsible labor
practices commissioned an independent study of
Nike factories abroad.
Created a huge social responsibility department
and publishes CRS report.
Donates more than 37 million to sports programs
and 3 of earnings to charity.
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Criticisms of Marketing
High prices
Deceptive practices
High-pressure selling
Shoddy, harmful, or unsafe products
Planned obsolescence
Poor service to disadvantaged
consumers
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High Prices
Caused by:
– High costs of distribution – High advertising and promotion costs
– Excessive markups
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Deceptive Practices
Deceptive Pricing:
– Falsely advertising “factory” or “wholesale” prices or large reductions from phony high retail
list prices.
Deceptive Promotion:
– Overstating a product’s features or performance, running rigged contests.
Deceptive Packaging:
– Exaggerating package contents through subtle design, using misleading labeling, etc.
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High-Pressure Selling
Salespeople are trained to deliver
smooth, canned talks to entice purchase.
– High-pressure selling persuades people to buy goods they had no intention of buying.
– High-pressure selling can occur because of prizes going to top sellers.
– High-pressure selling is not good for long- term relationships.
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Shoddy or Unsafe Products
Includes:
– Products that are not made well or services that are not performed well.
– Products that deliver little benefit or that may even be harmful.
– Unsafe products due to manufacturer indifference, increased production
complexity, poorly trained labor, and poor quality control.
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Planned Obsolescence
Refers to:
– Products needing replacement before they should because they are obsolete.
– Producers who change consumer concepts of acceptable styles.
– Intentionally holding back attractive functional features, then introducing them
later to make old model obsolete.
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Disadvantaged consumers are served
poorly when:
– Poor are forced to shop in smaller stores where they pay more for inferior goods.
– “Redlining” by national chain stores occurs in disadvantaged neighborhoods.
• Redlining charges have also been leveled against insurers, banking, health
care providers and other industries. – Poor are targeted for “rapid refunds.”
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False wants and too much materialism
Producing too few social goods
Cultural pollution
Too much political power
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Critics charge that a firm’s marketing
practices can harm other companies and reduce competition.
– Acquisitions of competitors. – Marketing practices that create barriers to
entry. – Unfair competitive marketing practices.
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Consumerism
Consumerism is an organized
movement of citizens and government agencies to improve the rights and
power of buyers in relation to sellers.
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Sellers’ Rights
The right to . . .
1. introduce any product in any size and style, provided it is not hazardous to personal health or
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