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Chapter 2 1
MARKETING - SOCIALLYRESPONSIBLE
1 The Impact of Marketing2 Criticisms of Marketing3 Increasing Social Responsibility
Chapter 2 2
Focus Questions:What message is being
communicated by Waste Management in this advertisement?
Do you think the message is effective?
How does it demonstrate social responsibility?
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MA
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Chapter 2 3
THE IMPACT OF MARKETING
GOALSGOALS Explain how marketing affects
businesses. Describe marketing’s impact on
individuals. Discuss ways marketing benefits
society.
Chapter 2 4
Marketing Affects Businesses
Critical business function Customer satisfaction
Chapter 2 5
Marketing Helps People
Better products at a lower cost Expanded opportunities
Chapter 2 6
Marketing Benefits Society
New and better products Better standards of living Improved international trade
Chapter 2 7
Benefits of Marketing
Businesses meet consumer needs Consumers make better decisions Natural resources are used more
effectively Standard of living is improved International trade increases
Chapter 2 8
CRITICISMS OF MARKETING
GOALSGOALS Discuss three common criticisms of
marketing. Explain how marketing can be used to
solve social problems.
Chapter 2 9
Common Complaints
Marketing causes unneeded purchases
Marketing wastes money Marketing is not always needed
Chapter 2 10
Total product price (100%)
Pro
du
ct P
rice
Average cost of all marketing activities (50%)
Average cost of sales and advertising (2–10%)
The Typical Costs of Marketing
Chapter 2 11
Marketing Solves Problems
Marketing increases public awareness Marketing helps match supply with
demand
Chapter 2 12
INCREASING SOCIAL RESPONSIBILITY
GOALSGOALS Define consumerism. Explain ways by which businesses
improve their own practices. Discuss how ethical issues affect
marketers’ professional responsibilities.
Chapter 2 13
Consumer Protection
The growth of consumerism Consumerism Government regulation
Chapter 2 14
Social Responsibility Must Be Shared
BUSINESSBUSINESS
GOVERNMENTGOVERNMENT
CONSUMER CONSUMER GROUPSGROUPS
Chapter 2 15
Sherman Antitrust Act, 1890
To increase competition among businesses by regulating monopolies
Chapter 2 16
Food and Drug Act, 1906
To control the content and labeling of food and drug products by forming the Food and Drug Administration (FDA)
Chapter 2 17
Federal Trade Commission Act, 1914
To form the Federal Trade Commission (FTC) to protect consumer rights
Chapter 2 18
Robinson-Patman Act, 1936
To protect small businesses from unfair pricing practices between manufacturers and large businesses
Chapter 2 19
Fair Packaging and Labeling Act, 1966
To require packages to be accurately labeled and fairly represent the contents
Chapter 2 20
Consumer Credit Protection Act, 1968
To require disclosure of credit requirements and rates to loan applicants
Chapter 2 21
Consumer Product Safety Act, 1972
To set safety standards and to form the Consumer Product Safety Commission (CPSC)
Chapter 2 22
Americans with Disabilities Act, 1990
To prohibit discrimination and ensure equal opportunity for persons with disabilities
Chapter 2 23
Telemarketing and Consumer Fraud and Abuse Prevention Act, 1994
To prohibit deceptive telemarketing practices and regulate calls made to consumers’ homes
Chapter 2 24
Millennium DigitalCommerce Act, 1999
To regulate the use of electronic contracts and signatures for Internet business transactions
Chapter 2 25
Gramm-Leach-Bliley Financial Modernization Act, 1999
To limit the sharing of consumer information by requiring financial services companies to inform consumers about how private information is handled
Chapter 2 26
Improving Practices
Codes of ethics Self-regulation Social action
Chapter 2 27
Responsibilities of the Marketer
In product development and management
In promotions In distribution In pricing In marketing research
Chapter 2 28
Responsibilities of the Marketer
Product development and management
Disclosing all substantial risks associated with a product or service
Identifying substitutions that change the product or impact buying decisions
Identifying extra cost-added features
Chapter 2 29
Responsibilities of the Marketer
Promotions Avoiding false and misleading
advertising Rejecting high-pressure or misleading
sales tactics and promotions
Chapter 2 30
Responsibilities of the Marketer
Distribution Not exploiting customers by
manipulating the availability of a product
Not using coercion Not exerting undue influence over the
reseller’s choice to handle a product
Chapter 2 31
Responsibilities of the Marketer
Pricing Not engaging in price fixing Not practicing predatory pricing Disclosing the full price associated
with any purchase
Chapter 2 32
Responsibilities of the Marketer
Marketing research Prohibiting selling or fundraising
disguised as conducting research Avoiding misrepresentation and
omission of pertinent research data Treating clients and suppliers fairly
Chapter 2 33
Ethics in Marketing
Responsibility to customers Harm and accountability