Kotler POM13e Student 20

7/30/2019 Kotler POM13e Student 20

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Chapter 20 - slide 1Copyright 2009 Pearson Education, Inc.

Publishing as Prentice Hall

Chapter Twenty

Sustainable Marketing

Social Responsibility andEthics


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Sustainable MarketingSocial Responsibility and Ethics


Social Criticisms of Marketing

Consumer Actions to Promote


Business Actions Toward


Marketing Ethics

The Sustainable Company

Topic Outline


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Meeting needs of consumers while

preserving the ability of future

generations to meet their needs



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Marketings Impact on IndividualConsumers

High Prices

Deceptive Practices

High-Pressure Selling

Shoddy, Harmful or Unsafe Products

Planned Obsolescence

Poor Service to DisadvantagedConsumers


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Complaint:

Prices are too high due tohigh costs of:

Distribution

Advertising andpromotion

Excessive mark-ups

Response:

Intermediaries areimportant and offer value

Advertising informs

buyers of availability andmerits of a brand

Consumers dontunderstand the cost ofdoing business


High Cost of Distribution


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Complaint: Companies use deceptive practicesthat lead customers to believe they will get

more value than they actually do. These

practices fall into three categories:

Deceptive pricing

Deceptive promotion

Deceptive packaging


Deceptive Practices


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Copyright 2010 Pearson Education, Inc.



Response:

Support Legislation to protect consumers fromdeceptive practices

Make lines clearIs it deception, alluring, orpuffery that is just an exaggeration for

effect? Products that are harmful

Products that provide little benefit

Products that are not made well


Deceptive Practices


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High-Pressure Selling

Marketings Impact on Individual

Consumers

Deceptive Practices

Complaint:

Salespeople use high-pressure selling thatpersuade people to buygoods they had nointention of buying.

Response:

Most selling involvesbuilding long-termrelationships and valuedcustomers. High-pressure or deceptiveselling can damage theserelationships.


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Shoddy, Harmful, or Unsafe Products


Consumers

Deceptive Practices

Complaint:

Products have poorquality, provide littlebenefit, and can beharmful

Response:

Good marketersrealize there is novalue in marketingshoddy, harmful, orunsafe products.


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Chapter 20 - slide 10Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall


Planned Obsolescence


Consumers

Deceptive Practices

Complaint:

Producers cause theirproducts to becomeobsolete and changeconsumers concepts ofacceptable styles toencourage more and earlierbuying.

Response:

Planned obsolescence isreally the result ofcompetitive market forcesleading to ever-improvinggoods and services.

Customer customers likestyle changes and want thelatest innovations


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Poor Service to Disadvantaged Consumers


Consumers

Deceptive Practices

Complaint:

American marketers servedisadvantaged customerspoorly. Some retailcompanies redline poorneighborhoods and avoidplacing stores there.

Response:

Some marketers profitablytarget these customers andthe FTC has taken actionagainst marketers that doadvertise false values,wrongfully deny service, orcharge disadvantagedcustomers too much.


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Marketings Impact on Society as aWhole

False wants and too muchmaterialism

Too few social goods

Cultural pollution


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False Wants and Too Much Materialism


Complaint:

The marketing system urgestoo much interest in materialpossessions. People arejudged by what they own

rather than who they are,creating false wants thatbenefit industry more thanthey benefit consumers.

Response:

People do have strongdefenses against advertisingand other marketing tools.Marketers are most effective

when they appeal to existingwants rather than creatingnew ones. The high failurerate of new products showsthat companies cannot controldemand.


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Too Few Social Goods


Complaint:

Businesses oversell privategoods at the expense ofpublic goods and requiremore public goods to supportthem.

Response:

There needs to be a balancebetween private and publicgoods.

Producers should bear fullsocial costs of theiroperations.

Consumers should pay thesocial costs of theirpurchases.


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Cultural Pollution


Complaint:

Marketing and advertisingcreate cultural pollution

Response:

Marketing and advertising areplanned to reach only a targetaudience, and advertisingmakes radio and television free

to users and helps to keepdown the costs of newspapersand magazines. Todaysconsumers have alternatives toavoid marketing and advertisingfrom technology.


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Acquisition of competitors

Unfair competitive marketing practices

Marketings Impact on Other Businesses


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Consumer Actions to PromoteSustainable Marketing

Consumerism is the organized movement ofcitizens and government agencies to

improve the rights and power of buyers inrelation to sellers


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Traditional buyers rights include:

The right not to buy a product that is offered

for sale

The right to expect the product to be safe

The right to expect the product to perform as

claimed Comparing these rights, many believe that

the balance of power lies on the sellers side

Consumerism


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Advocates call for: The right to be well informed about important

aspects of the product The right to be protected against questionable

products and marketing practices

The right to influence products and marketing

practices in ways that will improve the quality oflife

The right to consume now in a way that will

preserve the world for future generations of

consumers

Consumerism


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Environmentalism is an organized movementof concerned citizens, businesses, andgovernment agencies to protect and improve

peoples living environment



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Environmental sustainability is getting

profits while helping to save the planet

Environmentalism


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Pollution prevention

Product stewardship

Design for environment (DFE)

New clean technologies

Sustainability vision

EnvironmentalismEnvironmental Sustainability


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Pollution prevention involves not just cleaning up

waste but also eliminating or minimizing wastebefore it is created

Product stewardship involves minimizing the pollutionfrom production and all environmental impact

throughout the full product life cycle

Design for environment (DFE) involves thinking aheadto design products that are easier to recover, reuse,

or recycle



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New clean technologies involve looking ahead and

planning new technologies for competitiveadvantage

Sustainability vision is a guide to the future that shows

the company that the companys products, process,and policies must evolve and what is needed to get

there



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Consumer-OrientedMarketing

Customer-Value

MarketingInnovativeMarketing

Sense-of-missionMarketing

SocietalMarketing

Business Actions Toward SustainableMarketing

Sustainable Marketing Principles


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Business Actions TowardSustainable Marketing

View marketing activities from the

consumer's point of view Deliver superior value

Consumer-Oriented Marketing


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Invest in customer-value building

marketing Create value FOR customers

Customer-Value Marketing


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Company seeks real product and

marketing improvements

Innovative Marketing


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Define mission in broad social terms

rather than narrow product terms

Sense-of-Mission Marketing


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Company considers:

Customers wants and interests Companys own requirements

Societys long-run interests

Societal Marketing


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Business Actions TowardSocially Responsible Marketing

Corporate marketing ethics are broadguidelines that everyone in the organization

must follow that cover distributor relations,

advertising standards, customer service,

pricing, product development, and general

ethical standards

Marketing Ethics


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Who should guide companies?

The free market and the legal system? Individual companies and managers?

Marketing Ethics


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Goes beyond caring for the needs of

todays customers and has concern fortomorrows customers and the broader

world

The Sustainable Company


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Chapter 20 slide 34Copyright 2010 Pearson Education Inc

All rights reserved. No part of this publication may be reproduced, stored in a

retrieval system, or transmitted, in any form or by any means, electronic,

mechanical, photocopying, recording, or otherwise, without the prior written

permission of the publisher. Printed in the United States of America.

Copyright 2010 Pearson Education, Inc.


Kotler POM13e Student 20

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