basic16_ppt.ppt 199KB Sep 05 2010 10:46:10 PM

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Chapter Sixteen

Marketing Ethics

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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.

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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

Nike – Socially Responsible?

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}

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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}

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High Prices



_{Caused by:}

– High costs of distribution

– High advertising and promotion costs

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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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Poor Service to

Disadvantaged Consumers



_{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.

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Marketing’s Impact on

Society as a Whole



_{False wants and too much materialism}



_{Producing too few social goods}



_{Cultural pollution}

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Marketing’s Impact on Other

Businesses



_{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.

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Consumerism



_{Consumerism is an organized}

movement of citizens and government

agencies to improve the rights and

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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 safety; or, if it is, to include proper warnings and controls.

2. charge any price for the product, provided no discrimination exists among similar kinds of buyers.

3. spend any amount to promote the product,

provided it is not defined as unfair competition. 4. use any product message, provided it is not

misleading or dishonest in content or execution. 5. use any buying incentive schemes, provided they

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Buyers’ Rights

 _{The right to:}

1. not buy a product that is offered for sale. 2. expect the product to be safe.

3. expect the product to perform as claimed.

4. be well informed about important aspects of the product.

5. be protected against questionable products and marketing practices.

6. influence products and marketing practices in ways that will improve “quality of life.”

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Environmentalism



_{An organized movement of concerned}

citizens and government agencies to

protect and improve people’s living

environment.

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Environmental Sustainability



_{A management approach that involves}

developing strategies that both sustain

the environment and produce profits

for the company.



_{Levels of environmental sustainability:}

– Pollution prevention

– Product stewardship

– New environmental technologies

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Enlightened Marketing



_{A marketing philosophy holding that a}

company’s marketing should support

the best long-run performance of the

marketing system.

– Customer-oriented marketing

– Innovative marketing

– Customer-value marketing

– Sense-of-mission marketing

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Enlightened Marketing



_{Consumer-Oriented Marketing:}

– The philosophy of enlightened marketing that holds that the company should view and organize its marketing activities from the consumer’s point of view.

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Enlightened Marketing



_{Innovative Marketing:}

– A principle of enlightened marketing that requires that a company seek real product and marketing improvements.

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Enlightened Marketing



_{Customer-Value Marketing:}

– A principle of enlightened marketing that holds that a company should put most of its resources into value-building marketing investments.

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Enlightened Marketing



_{Sense-of-Mission Marketing:}

– A principle of enlightened marketing that holds that a company should define its mission in broad social terms rather than narrow product terms.

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Enlightened Marketing



_{Societal Marketing:}

– A principle of enlightened marketing that holds that a company makes marketing decisions by considering consumers’ wants and interests, the company’s requirements, and society’s long-run interests.

• _{Seeks to introduce desirable products,} rather than those that are deficient,

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Marketing Ethics

 _{Corporate Marketing Ethics Policies:}

– Broad guidelines that everyone in the organization must follow.

 _{These should cover:} – Distributor relations

– Advertising standards

– Customer service

– Pricing

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Marketing Ethics



_{What principle should guide companies}

and marketing managers on issues of

ethics and social responsibility?

– _{Free market and legal system}

– Responsibility falls to individual companies and managers

– International marketers face special challenges

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Rest Stop:

Reviewing 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.

(1)

16-21

Enlightened Marketing



_{Customer-Value Marketing:}

– A principle of enlightened marketing that holds that a company should put most of its resources into value-building marketing investments.

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Enlightened Marketing



_{Sense-of-Mission Marketing:}

– A principle of enlightened marketing that holds that a company should define its mission in broad social terms rather than narrow product terms.

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16-23

Enlightened Marketing



_{Societal Marketing:}

• _{Seeks to introduce desirable products,}

rather than those that are deficient, displeasing, or salutary.

(4)

Marketing Ethics

 _{Corporate Marketing Ethics Policies:}

– Broad guidelines that everyone in the organization must follow.

 _{These should cover:}

– Distributor relations – Advertising standards – Customer service