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Chapter 16

Chapter 16. Marketing and Society: Social Responsibility and Marketing Ethics. Road Map: Previewing the Concepts. Identify the major social criticisms of marketing. Define consumerism and environmentalism and explain how they affect marketing strategies.

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Chapter 16

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  1. Chapter 16 Marketing and Society: Social Responsibility and Marketing Ethics

  2. Road Map: Previewing the Concepts • Identify the major social 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.

  3. Criticisms Leveled at the Marketing Function by Consumers, and Others Marketing’s Impact on Individual Consumers High Prices Deceptive Practices High-Pressure Selling Shoddy, Unsafe Products Planned Obsolescence Poor Service to Some

  4. Marketing’s Impact on Individual Consumers: High Prices High Prices Caused by the Following Factors High Costs of Distribution High Advertising and Promotion Costs Excessive Markups

  5. Marketing’s Impact on Individual Consumers: Deceptive Practices Deceptive Pricing Falsely Advertising “Factory” or “Wholesale” Prices, Large Reduction From Phony High List Price Deceptive Promotion Overstating the Product’s Features, Luring Customers to the Store for Out-of-Stock Bargains, etc. Deceptive Packaging Exaggerating Package Contents, Not Filling Package to the Top, Using Misleading Labeling

  6. High-Pressure Selling Some products – such as cars and jewelry – are said to be sold, not bought. Such tactics damage marketer’s long-run relationship with customers. Shoddy or Unsafe Products Complaint that many products are not made well. Second, many products deliver little benefit. Third, concerns product safety. Marketing’s Impact on Individual Consumers

  7. American Association of Advertising Agencies • This ad demonstrates that advertising can’t make consumers buy things that they don’t need despite high-pressure selling.

  8. Planned Obsolescence Change consumer concepts of acceptable styles. Hold back attractive functional features. May break, wear, rust, or rot sooner than should. Poor Service to Disadvantaged Consumers May pay more for inferior goods. “Redlining” may occur where major chain retailers avoid placing stores in disadvantaged neighborhoods. Marketing’s Impact on Individual Consumers

  9. Marketing’s Impact on Society as a Whole Producing Too Few Social Goods False Wants & Too Much Materialism Marketing’s Perceived Negative Impact on Society as a Whole Cultural Pollution Too Much Political Power

  10. Unfair Competitive Marketing Practices Marketing Practices Create Barriers to Entry Acquisitions of Competitors Marketing’s Impact on Other Businesses All Can Harm Other Companies & Reduce Competition

  11. Buyers’ Rights Sellers’ Rights Consumerism Consumerism is an Organized Movement of Citizens and Government Agencies to Improve the Rights and Power of Buyers in Relation to Sellers.

  12. The Right Not to Buy a Product Offered for Sale The Right to Expect the Product to be Safe The Right to Expect the Product to Perform as Claimed The Right to Be Well Informed About the Product The Right to Be Protected Against Questionable Products The Right to Be Heard About “Quality of Life” Issues Consumerism – Buyers’ Rights

  13. Environmentalism Have a Sustainability Vision Practice Pollution Prevention Plan for New Environmental Technologies Practice Product Stewardship Adopt Design for the Environment Practices

  14. Major Legal Issues Facing Marketing Management (Fig. 16-2)

  15. Enlightened Marketing Consumer-Oriented Marketing Holds That a Company’s Marketing Should Support the Best Long-Run Performance of the Marketing System. Innovative Marketing Value Marketing Sense-of-Mission Marketing Societal Marketing

  16. Societal Classification of Products (Fig. 16-3)

  17. Discussion Question • Compare the marketing concept with the principle of societal marketing. • Should all marketers adopt the societal marketing concept? Why or why not?

  18. Distributor Relations Advertising Standards Customer Service Pricing Product Development General Ethical Standards Marketing Ethics Companies Need to Develop Corporate Marketing Ethics Policies – Broad Guidelines That Everyone in the Organization Must Follow and Should Address:

  19. Marketing Ethics Principles That Should Guide Companies and Marketing Managers On Issues of Ethics and Social Responsibility: Responsibility of Individual Companies And Managers Decided by the Free Market and Legal System

  20. Interactive Student Assignments • Form students into groups of three to five. Each group should focus on the following scenario. • You are the marketing manager for a small kitchen appliance firm. While conducting field tests, you discover a design flaw in one of your popular appliances that could potentially be harmful to a small number of your customers. However, a product recall would likely bankrupt your company and cause all of the employees (including yourself) to lose their jobs. What would you do? Explain.

  21. Rest Stop: Reviewing the Concepts • Identify the major social 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.

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