Marketing Ethics and

Social Responsibility

Chapter 20

Sustainable Marketing

20- 2

Social Criticisms of Marketing

Marketing’s Impact on Individual Consumers High Prices

High costs of distribution

High advertising & promotion costs

Excessive markups

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Social Criticisms of Marketing

Marketing’s Impact on Individual Consumers Deceptive Practices

Pricing Promotion Packaging

High-Pressure Selling

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Social Criticisms of Marketing

Marketing’s Impact on Individual Consumers Inferior, Poor, or Unsafe

Products Planned

Obsolescence Poor Service to

Disadvantaged Consumers

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Planned obsolescence

20- 6

Social Criticisms of Marketing

Marketing’s Impact on Society as a Whole False Wants and

Too Much Materialism

Too Few Social Goods

Cultural Pollution Too Much Political

Power

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Social Criticisms of Marketing

Marketing’s Impact on Other Businesses Acquisitions of

Competitors Marketing

Practices Creating Barriers

to Entry

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Slotting fees are charged by retailers for manufacturers to place a new product in their stores or to keep existing products on the shelves.These fees can be as high as $30,000 per brandSlotting fees cause a barrier to entry for smaller manufacturers

Social Criticisms of Marketing

20 - 8

20- 9

Citizen & Public Actions to Regulate Marketing

Public Actions to Regulate Marketing Major legal issues affect every area of

marketing management, including: Selling and advertising decisions Channel decisions Product decisions Packaging decisions Price decisions Competitive reaction decisions

Business actions toward sustainable marketingConsumer oriented marketing

Customer value marketing

Innovative marketing

Sense of mission marketing

Societal marketing

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Business Actions Toward Socially

Responsible Marketing

Enlightened Marketing Customer-Oriented Marketing:

Companies view and organize their marketing activities from the consumer’s point of view.

Innovative Marketing: Companies seek real product and

marketing improvements.

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Business Actions Toward Socially

Responsible Marketing

Enlightened Marketing Value Marketing:

Companies put most of their resources into value-building marketing investments.

Sense-of-Mission Marketing: Companies define their mission in

broad social terms.

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Business Actions Toward Socially

Responsible Marketing

Enlightened Marketing Societal Marketing:

Companies make marketing decisions by considering consumers’ wants, the

company’s requirements, consumers’ long-run interests, and society’s long-run interests.

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Societal Classifications of Products

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