Marketing Ethics and Social Responsibility

1. Marketing Ethics and Social Responsibility CHAPTER SIXTEEN

2. Learning Objectives • Overall: To Understand the Meaning of Marketing Ethics and Social Responsibility. • To Learn About Potential Unethical Marketing Practices Involving Targeting Especially Vulnerable or Unaware Consumers. • To Learn How Marketers Can Ambush Consumers with Unexpected Ads, Tinker with Their Perceptions, and Mislead Them. • To Understand How Marketers Can Advance Society’s Interests via Such Practices as Advocating Social Benefits. Chapter Sixteen Slide

3. Why Is the Sponsor of This Ad Criticizing McDonald’s, and What Business Concept Did McDonald’s Ignore by Using Trans Fats? Chapter Sixteen Slide

4. McDonald’s Ignored Consumer’s Interests and the Societal Marketing Concept. Chapter Sixteen Slide

5. Societal Marketing Concept “Marketers should endeavor to satisfy the needs and wants of their target markets in ways that preserve and enhance the well-being of consumers and society as a whole, while fulfilling the objectives of the organization” 5 Chapter Sixteen Slide

6. Exploitive Targeting • Marketing to Children • Overaggressive Promotion • Selling Pharmaceuticals directly to consumers • The perils of precision targeting Chapter Sixteen Slide

7. Marketing to Children • Guidelines by Children’s Advertising Review Unit (CARU) • Guidelines include: • No misleading claims about product’s performance or benefits • Must not exploit children’s imagination • Can not create unrealistic expectations • Products must be shown in safe situation • No encouragement of inappropriate behavior 7 Chapter Sixteen Slide

8. Annual Exposure by Category and Program Type - Figure 16.2 Chapter Sixteen Slide

9. Discussion Questions • Think back to when you were a kid. • What products seemed more appealing in their ad than in actuality. Why? • As a student: • What marketers try to sell you products that might not be in your best interest? • What marketing tactics do they use? 9 Chapter Sixteen Slide

10. Overaggressive Promotion • Recession due in part to Americans’ rising credit and easy credit to risky groups Chapter Sixteen Slide

11. Selling Pharmaceuticals Directly to Consumers • Began in 1997 • Television, print, and the Internet 11 Chapter Sixteen Slide

12. The Perils Of Precision Targeting • Narrowcasting • Directed messages to small audiences • Data providers support the marketers with information • GPS • Cell phones and cars • Gives marketers your location Chapter Sixteen Slide

13. Data Collection by Web CompaniesFigure 16.3 – Part A Chapter Sixteen Slide

14. Data Collection by Web CompaniesFigure 16.3 – Part B Chapter Sixteen Slide

15. Manipulating Consumers • Forced exposure to advertising • Tinkering with consumers’ perceptions • Covert marketing • Socially undesirable representations • False or misleading advertising Chapter Sixteen Slide

16. Forced Exposure To Advertising • Product placement • Advertorials • Infomercials Chapter Sixteen Slide

17. Tinkering With Consumers’ Perceptions • Increased consumption from: • Organization of merchandise • Size of package • Symmetry of display • Perceived variety of display • Store Environments • Relative Pricing Chapter Sixteen Slide

18. Covert Marketing • Also called masked or stealth marketing • Messages appear to be from independent parties but are company driven. • Disagreement as to whether they violate FTC guidelines Chapter Sixteen Slide

19. A Typology of Masked Marketing Practices Table 16.3 Chapter Sixteen Slide

20. A Typology Of Masked Marketing PracticesTable 16.3 (continued) Chapter Sixteen Slide

21. Discussion Questions • Do you think covert marketing is wrong? • Why might others have a different opinion from you? 21 Chapter Sixteen Slide

22. Socially Undesirable Representations • Children’s Toys • Barbie and G.I. Joe • Thin models in the media • Brands that promote violence • Stereotypes Chapter Sixteen Slide

23. False or Misleading Advertising • Puffery • Truth-in-advertising laws • Deceptive advertising • Corrective advertising Chapter Sixteen Slide

24. Social Responsibility • Advocating socially beneficial causes • Cause-related marketing • Green marketing • Consumer ethics Chapter Sixteen Slide

25. Advocating Socially Beneficial Causes • Not-for-profits • Government agencies • Consumer advocacy groups Chapter Sixteen Slide

26. What Is the Name and Meaning of the Marketing Approach Featured in this Ad? Chapter Sixteen Slide

27. Advocating Socially Beneficial Causes or To Promote Socially Desirable Behaviors Chapter Sixteen Slide

28. What Is the Ad’s Objective, and Why Is the CSPI Sponsoring It? Chapter Sixteen Slide

29. It is Aimed at Educating Consumers About Unhealthy Products at School – The CSPI is a Consumer Advocacy Group Chapter Sixteen Slide

30. Cause-Related Marketing • Contribute a portion of revenues • Good fit between cause and company’s positioning is important Chapter Sixteen Slide

31. Green Marketing • Promoting of healthy, reusable, and ecofriendly products Chapter Sixteen Slide

32. What Is the Name and Purpose of the Marketing Practice Depicted in the Three Ads and How Did Each of the Three Carmakers Featured Adopt This Practice? Chapter Sixteen Slide

33. Green Marketing Better Mileage Responsibility and Luxury Social Conscience Chapter Sixteen Slide

34. Discussion Questions • Do you make an effort to purchase green products? • If a product is better for the environment than the alternative, are you more likely to purchase the green product? Would you pay more for the green product? 34 Chapter Sixteen Slide

35. Measuring Consumers’ Attitudes Toward Green Products – Table 16.4 (excerpt) Chapter Sixteen Slide

36. Consumer Ethics • Returning used product • Software privacy Chapter Sixteen Slide