PowerPoint PresentationMarketing and Society: Social Responsibility and Marketing Ethics
Chapter 4
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Copyright © 2005 Pearson Education Inc.
Learning Objectives
Understand marketing’s multiple responsibilities, and identify the major social and ethical criticisms of marketing
Define consumerism and environmentalism and explain how they affect marketing strategies
Describe the principles of socially responsible marketing
Explain the role of ethics in marketing
Copyright © 2005 Pearson Education Inc.
Lessons for Socially Responsible Companies
What you sell is important
Be proud to be in business
Make a solid commitment to change
Focus on two bottom lines
Forget the hype
Copyright © 2005 Pearson Education Inc.
Marketing’s Impact on Individual Consumers
High prices:
Excessive markups
Deceptive practices:
High pressure selling
Marketing’s Impact on Society as a Whole
False wants and too much materialism
Too few social goods
Marketing’s Impact on Other Businesses
Acquisition of competitors reduces competition
Marketing practices create barriers to entry
High promotional spending
Sellers’ rights:
To introduce products of different styles and sizes, provided they are not hazardous
To set its own prices, provided no discrimination occurs
To spend to promote the product
To use any product message, provided it is not misleading
To use buying incentives
To a sustainable environment
Environmentalism
Environmentalism:
To protect and improve people’s living environment
Environmental sustainability:
Management approach
Produce profits for the company
Copyright © 2005 Pearson Education Inc.
Socially Responsible Marketing
Ethical Issues Associated with Marketing Practice
Marketing research:
Invasion of consumer privacy, not respecting confidentiality
Disguising sales as research
Competitive intelligence gathering
Targeting inappropriate products to vulnerable audiences
Table 4.2
Ethical Issues Associated with Marketing Practice
Positioning:
Positioning on questionable benefits
Marketing unsafe products
Product testing: on animals or insufficient testing to reveal safety concerns
Marketing socially controversial products
Ethical Issues Associated with Marketing Practice
Pricing:
Bait-and-switch advertising
Table 4.2
Ethical Issues Associated with Marketing Practice
Sales and channel management:
High pressure sales tactics
Unfairly disparaging competitors’ goods
Some Morally Difficult Situations in Marketing
You are considering hiring a product manager who just left a competitor’s company. She would be more than happy to tell you all the competitor’s plans for the coming year. What do you do?
You have a chance to win a big account that will mean a lot to you and your company. The purchasing agent hints that a “gift” would influence the decision. Your assistant recommends sending a fine colour television set to the buyer’s home. What do you do?
You are interviewing a capable woman applicant for a job as a salesperson. She is better qualified than the men just interviewed. Nevertheless, you know that some of your important customers prefer dealing with men, and you will lose some sales if you hire her. What do you do?
You are a sales manager in an encyclopedia company. Your competitor’s salespeople are getting into homes by pretending to take a research survey. After they finish the survey, they switch to their sales pitch. This technique seems to be very effective. What do you do?
Table 4.3
In Conclusion…
Understand marketing’s multiple responsibilities and identify the major social and ethical criticisms of marketing
Define consumerism and environmentalism and explain how they affect marketing strategies
Describe the principles of socially responsible marketing
Explain the role of ethics in marketing