Marketing ethics

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Marketing ethics

  1. 1. Marketing and Society: Social Responsibility and Marketing Ethics Chapter 20Chapter 20
  2. 2. 16 - 2 Road Map: Previewing the Concepts • Identify the major social criticisms ofIdentify the major social criticisms of marketing.marketing. • DefineDefine co nsum e rismco nsum e rism andand e nviro nm e ntalisme nviro nm e ntalism and explain how theyand explain how they affect marketing strategies.affect marketing strategies. • Describe the principles of sociallyDescribe the principles of socially responsible marketing.responsible marketing. • Explain the role of ethics in marketing.Explain the role of ethics in marketing.
  3. 3. 16 - 3 Criticisms of Marketing • High pricesHigh prices • Deceptive practicesDeceptive practices • High-pressure sellingHigh-pressure selling • Shoddy or unsafe productsShoddy or unsafe products • Planned obsolescencePlanned obsolescence • Poor service to disadvantagedPoor service to disadvantaged consumersconsumers
  4. 4. 16 - 4 High Prices • Caused by:Caused by:  High costs of distributionHigh costs of distribution  High advertising and promotionHigh advertising and promotion costscosts  Excessive markupsExcessive markups
  5. 5. 16 - 5 Deceptive Practices • Deceptive Pricing:Deceptive Pricing:  Falsely advertising “factory” or “wholesale”Falsely advertising “factory” or “wholesale” prices or large reductions from phony highprices or large reductions from phony high retail list prices.retail list prices. • Deceptive Promotion:Deceptive Promotion:  Overstating a product’s features orOverstating a product’s features or performance, running rigged contests.performance, running rigged contests. • Deceptive Packaging:Deceptive Packaging:  Exaggerating package contents through subtleExaggerating package contents through subtle design, using misleading labeling, etc.design, using misleading labeling, etc.
  6. 6. 16 - 6 High-Pressure Selling • Salespeople are trained toSalespeople are trained to deliver smooth, canned talks todeliver smooth, canned talks to entice purchase.entice purchase. • Hard sales can occur because ofHard sales can occur because of prizes going to top sellers.prizes going to top sellers. • High-pressure selling not goodHigh-pressure selling not good for long-term relationships.for long-term relationships.
  7. 7. 16 - 7 Shoddy or Unsafe Products • Products not made well or serviceProducts not made well or service not performed well.not performed well. • Products deliver little benefit or canProducts deliver little benefit or can be harmful.be harmful. • Unsafe products due to manufacturerUnsafe products due to manufacturer indifference, increased productionindifference, increased production complexity, poorly trained labor, andcomplexity, poorly trained labor, and poor quality control.poor quality control.
  8. 8. 16 - 8 Planned Obsolescence • Products needing replacementProducts needing replacement before they should be obsolete.before they should be obsolete. • Producers change consumerProducers change consumer concepts of acceptable styles.concepts of acceptable styles. • Intentionally holding backIntentionally holding back attractive functional features,attractive functional features, then introducing them later tothen introducing them later to make old model obsolete.make old model obsolete.
  9. 9. 16 - 9 Poor Service to Disadvantaged Consumers • Poor may pay more for inferiorPoor may pay more for inferior goods.goods. • ““Redlining” may occur inRedlining” may occur in disadvantaged neighborhoods.disadvantaged neighborhoods. • Higher insurance premiums toHigher insurance premiums to people with poor credit ratings.people with poor credit ratings. • ““Weblining” can occur.Weblining” can occur.
  10. 10. 16 - 10 Marketing’s Impact on Society as a Whole • False wants and too muchFalse wants and too much materialism.materialism. • Producing too few social goods.Producing too few social goods. • Cultural pollution.Cultural pollution. • Too much political power.Too much political power.
  11. 11. 16 - 11 Marketing’s Impact on Other Businesses • Acquisitions of competitors.Acquisitions of competitors. • Marketing practices that createMarketing practices that create barriers to entry.barriers to entry. • Unfair competitive marketingUnfair competitive marketing practices.practices.
  12. 12. 16 - 12 Consumerism • Consumerism is an organizedConsumerism is an organized movement of citizens andmovement of citizens and government agencies to improvegovernment agencies to improve the rights and power of buyers inthe rights and power of buyers in relation to sellers.relation to sellers.
  13. 13. 16 - 13 Sellers’ Rights • The right to introduce any product in any size and style, provided it is not hazardous to personal health or safety; or, if it is, to include proper warnings and controls. • The right to charge any price for the product, provided no discrimination exists among similar kinds of buyers. • The right to spend any amount to promote the product, provided it is not defined as unfair competition. • The right to use any product message, provided it is not misleading or dishonest in content or execution. • The right to use any buying incentive schemes, provided they are not unfair or misleading.
  14. 14. 16 - 14 Buyers’ Rights • 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. • The right to be protected against questionable products and marketing practices. • The right to influence products and marketing practices in ways that will improve “quality of life.”
  15. 15. 16 - 15 Environmentalism • An organized movement ofAn organized movement of concerned citizens andconcerned citizens and government agencies togovernment agencies to protect and improve people’sprotect and improve people’s living environment.living environment.
  16. 16. 16 - 16 Environmental Sustainability • A management approach thatA management approach that involves developing strategiesinvolves developing strategies that both sustain thethat both sustain the environment and produce profitsenvironment and produce profits for the company.for the company.
  17. 17. 16 - 17 Enlightened Marketing • A marketing philosophy holdingA marketing philosophy holding that a company’s marketingthat a company’s marketing should support the best long-runshould support the best long-run performance of the marketingperformance of the marketing system.system.
  18. 18. 16 - 18 Enlightened Marketing • Consumer-Oriented Marketing:Consumer-Oriented Marketing:  The philosophy of enlightenedThe philosophy of enlightened marketing that holds that themarketing that holds that the company should view and organizecompany should view and organize its marketing activities from theits marketing activities from the consumer’s point of view.consumer’s point of view.
  19. 19. 16 - 19 Enlightened Marketing • Innovative Marketing:Innovative Marketing:  A principle of enlightenedA principle of enlightened marketing that requires that amarketing that requires that a company seek real product andcompany seek real product and marketing improvements.marketing improvements.
  20. 20. 16 - 20 Enlightened Marketing • Value Marketing:Value Marketing:  A principle of enlightenedA principle of enlightened marketing that holds that amarketing that holds that a company should put most of itscompany should put most of its resources into value-buildingresources into value-building marketing investments.marketing investments.
  21. 21. 16 - 21 Enlightened Marketing • Sense-of-Mission Marketing:Sense-of-Mission Marketing:  A principle of enlightenedA principle of enlightened marketing that holds that amarketing that holds that a company should define its missioncompany should define its mission in broad social terms rather thanin broad social terms rather than narrow product terms.narrow product terms.
  22. 22. 16 - 22 Marketing Ethics • Corporate Marketing Ethics Policies:Corporate Marketing Ethics Policies:  Broad guidelines that everyone in theBroad guidelines that everyone in the organization must follow.organization must follow. • These should cover:These should cover:  Distributor relationsDistributor relations  Advertising standardsAdvertising standards  Customer serviceCustomer service  PricingPricing  Product developmentProduct development  General ethical standardsGeneral ethical standards
  23. 23. 16 - 23 Marketing Ethics • What principle should guideWhat principle should guide companies and marketingcompanies and marketing managers on issues of ethicsmanagers on issues of ethics and social responsibility?and social responsibility?  Free market and legal systemFree market and legal system  Responsibility falls to individualResponsibility falls to individual companies and managerscompanies and managers
  24. 24. 16 - 24 Rest Stop: Reviewing the Concepts 1.1. Identify the major social criticisms ofIdentify the major social criticisms of marketing.marketing. 2.2. DefineDefine co nsum e rismco nsum e rism andand e nviro nm e ntalisme nviro nm e ntalism and explain how theyand explain how they affect marketing strategies.affect marketing strategies. 3.3. Describe the principles of sociallyDescribe the principles of socially responsible marketing.responsible marketing. 4.4. Explain the role of ethics in marketing.Explain the role of ethics in marketing.

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