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

Publishing as Prentice Hall

it s good and

good for you

Chapter Twenty

Sustainable Marketing

Social Responsibility and Ethics

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20 - 2Copyright 2012 Pearson Education, Inc.


Sustainable MarketingSocial Responsibility and Ethics


Social Criticisms of Marketing

Consumer Actions to Promote Sustainable

Marketing

Business Actions Toward Sustainable

Marketing 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

Figure 20.1

http://www.sustainablemarketing.com/

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Marketings Impact on Individual Consumers

High Prices

Deceptive PracticesHigh-Pressure Selling

Shoddy, Harmful or UnsafeProducts

Planned Obsolescence

Poor Service to DisadvantagedConsumers

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Complaint:

Prices are too high dueto high costs of:

Distribution

Advertising andpromotion

Excessive mark-ups

Response:

Intermediaries areimportant and offer value

Advertising informsbuyers of availability andmerits of a brand

Consumers dontunderstand the cost ofdoing business

Marketings Impact on IndividualConsumersHigh Cost of Distribution
http://www.marketingcharts.com/television/us-ad-expenditures-down-16-in-first-half-6170/tns-top-10-advertisers-1h08-vs-1h07jpg/

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Complaint: Companies use deceptive practices

that lead customers to believe they will getmore value than they actually do. These

practices fall into three categories:

Deceptive pricing

Deceptive promotion

Deceptive packaging

Marketings Impact on Individual ConsumersDeceptive Practices

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Copyright 2012 Pearson Education, Inc.



Response:

Support Legislation to protect consumers fromdeceptive practices

Make lines clearIs it deception, alluring, or pufferythat is just an exaggeration for effect?

Products that are harmful Products that provide little benefit

Products that are not made well

Marketings Impact on Individual ConsumersDeceptive Practices

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High-Pressure Selling


Complaint:

Salespeople use high-pressure selling thatpersuade people tobuy goods they had nointention of buying.

Response:

Most selling involvesbuilding long-termrelationships andvalued customers.High-pressure ordeceptive selling can

damage theserelationships.

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Shoddy, Harmful, or Unsafe Products


Deceptive Practices

Complaint:

Products havepoor quality,provide littlebenefit, and canbe harmful.

Response:

Good marketersrealize there isno value inmarketingshoddy, harmful,or unsafeproducts.

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Planned Obsolescence


Complaint:

Producers cause theirproducts to becomeobsolete and changeconsumers conceptsof acceptable styles toencourage more and

earlier buying.

Response:

Planned obsolescenceis really the result ofcompetitive marketforces leading to ever-improving goods andservices.

Customer customerslike style changes andwant the latestinnovations

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20 - 11Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall


Poor Service to Disadvantaged Consumers


Complaint:

American marketers servedisadvantaged customerspoorly. Some retailcompanies redline poorneighborhoods and avoid

placing stores there.

Response:

Some marketers profitablytarget these customersand the FTC has takenaction against marketersthat do advertise false

values, wrongfully denyservice, or chargedisadvantaged customerstoo much.

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Marketings Impact on Society as a Whole

False wants and too mu chmaterial ism

Too few socia l goods

Cultural po l lut ion

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False Wants and Too Much Materialism


Complaint:

The marketing system

urges too much interestin material possessions.People are judged bywhat they own ratherthan who they are,creating false wants that

benefit industry morethan they benefitconsumers.

Response:

People do have strong

defenses againstadvertising and othermarketing tools.Marketers are mosteffective when theyappeal to existing wants

rather than creating newones. The high failurerate of new productsshows that companiescannot control demand.

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Too Few Social Goods


Complaint:

Businesses oversell

private goods at theexpense of publicgoods and requiremore public goods tosupport them

Response:

There needs to be a

balance betweenprivate and publicgoods

Producers should bearfull social costs of their

operations Consumers should pay

the social costs of theirpurchases

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Cultural Pollution


Complaint:

Marketing andadvertising createcultural pollution

Response:

Marketing and advertisingare planned to reach only atarget audience, andadvertising makes radio andtelevision free to users andhelps to keep down the costs

of newspapers andmagazines. Todaysconsumers have alternativesto avoid marketing andadvertising from 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 of

citizens and government agencies toimprove the rights and power of buyers in

relation to sellers
http://www.complaints.com/

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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 of

life

The right to consume now in a way that will

preserve the world for future generations of

consumers

Consumerism

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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
http://www.greenhome.com/

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Pollution prevention involves not just cleaningup waste but also eliminating or minimizing

waste before it is created

Product stewardship involves minimizing thepollution from production and allenvironmental impact throughout the full

product life cycle

Design for environment (DFE) involves thinkingahead to design products that are easier torecover, reuse, or recycle


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New clean technologies involve looking

ahead and planning new technologiesfor competitive advantage

Sustainability vision is a guide to the

future that shows the company that thecompanys products, process, and

policies must evolve and what is needed

to get there


C A ti t P t

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ConsumerActions to PromoteSustainable Marketing

Public Actions to Regulate marketing

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Consumer-OrientedMarketing

Customer-Value

MarketingInnovativeMarketing

Sense-of-missionMarketing

SocietalMarketing

Business Actions Toward Sustainable

Marketing

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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Societal Marketing

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Business Actions TowardSocially Responsible Marketing

Corporate marketing ethics are broad

guidelines that everyone in theorganization 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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20 35Copyright 2012 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.



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