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CONSUMERISM
Consumerism- Definition
โ€ข Consumerism, the "social movement seeking
to augment the rights and power of buyers in
relation to sellers," (Kotler, 1972)
โ€ข It is manifest in new laws, regulations, and
marketing practices, as well as in new public
attitudes toward government and business.
Consumerism- Definition
โ€ข Marketing concept
โ€ข Consumerism is a social and economic order
that is based on the systematic creation and
fostering of a desire to purchase goods or
services in ever greater amounts.
โ€ข In economics, consumerism refers to economic
policies placing emphasis on consumption.
โ€ข In an abstract sense, it is the belief that the free
choice of consumers should dictate the
economic structure of a society
Consumerism
โ€ข The movement seeking to protect and
inform consumers by requiring such
practices as honest packaging and
advertising, product guarantees, and
improved safety standards"
โ€ข or alternatively: "The theory that a
progressively greater consumption of
goods is economically beneficial".
Consumerism
โ€ข Consumers are disenchanted with the
marketing system.
โ€ข Symptomatic of consumers' malaise are
complaints about rising prices, demands for
improved products and services, suggestions
for improving the adequacy of product
information, and concern for the physical
environment
Consumerism
โ€ข Consumerism and Public Policy-when is
Governmental intervention necessary?
โ€ข What form does Governmental intervention
take?
โ€ข Consumer movement had its conspicuous
beginning and took up momentum in the US
โ€ข 1962- JFK and consumer rights
โ€ข Ralph Nader- โ€œUnsafe et any speedโ€
Consumerism in India
โ€ข โ€œ Consumerism actually should be, must
be and I hope will be the opportunity of
marketing. This is what we in marketing
have been waiting forโ€ Peter
Drucker
Consumerism in India
โ€ข India is a developing economy.
โ€ข Not all Indian consumers are well educated.
โ€ข Consumers are often exploited, misled by
deceptive advertisements, packaging poor
after sales service, adulteration, price
collusion and so on.
โ€ข Liberalization and competition
โ€ข Survival of the fittest
Situational Factors
โ€ข Situational Factors that aided unethical
marketing-
โ€ข Vastness of the country
โ€ข Imbalance in income distribution
โ€ข Backwardness, illiteracy , ignorance
โ€ข Lack of education and information
โ€ข Indian consumers get carried away by clever
advertising
Reasons behind the rise
โ€ข Reasons behind the rise of consumerism in
India-
โ€ข Imbalance in demand and supply of
commodities----- leading to hoarding, black
marketing, profiteering
โ€ข Low literacy levels and lack of awareness of
rights encourages businessmen to be
indifferent to consumers
Reasons behind the rise
โ€ข Reasons behind the rise of consumerism in
India-
โ€ข Lack of effective competition
โ€ข Consumerism is still in its infancy
โ€ข Legal framework is time consuming and
tiresome
โ€ข Lamentable state of public sector monopolies
Remedies
โ€ข Active participation from the business,
Government and consumers.
โ€ข Business must ensure efficiency in production
and quality of output and must refrain from
Unfair Trade Practices
โ€ข Government through legislations, statutory
bodies etc prevent exploitation of consumers.
โ€ข Consumers should assert their rights and protect
themselves from business malpractices
Consumer protection in India
โ€ข Marketing concept has to be broadened to
include the societal marketing concept.
โ€ข TATA Steel
โ€ข Lifebuoy's โ€œSwasthya Chetnaโ€
โ€ข Tata Tea's Jaago Re! campaign
Changes in the attitude of Indian consumers
โ€ข The attitude of Indian consumers has undergone
a major transformation over the last few years.
โ€ข He wants to lead a life full of luxury and
comfort.
โ€ข He wants to live in present and does not believe
in savings for the future.
โ€ข He is open to the idea of consumption and a
better lifestyle.
โ€ข An increase in their income level due to high
rate of industrialization, growth of services
sector and better employment opportunities
Questions
โ€ข Why social cause marketing? What is the intended
objective? Why should companies commit their
shareholders' money for social issues? Or is it to do with
the company's values?
โ€ข What is the difference between a Social Cause Marketing
initiative and a Corporate Social Responsibility Initiative?
โ€ข At what stage of brand life cycle, would it be meaningful
for any brand to get out of its comfort zone and start
embracing social causes?
โ€ข Are the social cause marketing initiatives truly sustainable
Consumer Awareness
Consumer Awareness
Consumer Awareness
ADBUSTERS
Consumerism 1

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Consumerism 1

  • 2. Consumerism- Definition โ€ข Consumerism, the "social movement seeking to augment the rights and power of buyers in relation to sellers," (Kotler, 1972) โ€ข It is manifest in new laws, regulations, and marketing practices, as well as in new public attitudes toward government and business.
  • 3. Consumerism- Definition โ€ข Marketing concept โ€ข Consumerism is a social and economic order that is based on the systematic creation and fostering of a desire to purchase goods or services in ever greater amounts. โ€ข In economics, consumerism refers to economic policies placing emphasis on consumption. โ€ข In an abstract sense, it is the belief that the free choice of consumers should dictate the economic structure of a society
  • 4. Consumerism โ€ข The movement seeking to protect and inform consumers by requiring such practices as honest packaging and advertising, product guarantees, and improved safety standards" โ€ข or alternatively: "The theory that a progressively greater consumption of goods is economically beneficial".
  • 5. Consumerism โ€ข Consumers are disenchanted with the marketing system. โ€ข Symptomatic of consumers' malaise are complaints about rising prices, demands for improved products and services, suggestions for improving the adequacy of product information, and concern for the physical environment
  • 6. Consumerism โ€ข Consumerism and Public Policy-when is Governmental intervention necessary? โ€ข What form does Governmental intervention take? โ€ข Consumer movement had its conspicuous beginning and took up momentum in the US โ€ข 1962- JFK and consumer rights โ€ข Ralph Nader- โ€œUnsafe et any speedโ€
  • 7. Consumerism in India โ€ข โ€œ Consumerism actually should be, must be and I hope will be the opportunity of marketing. This is what we in marketing have been waiting forโ€ Peter Drucker
  • 8. Consumerism in India โ€ข India is a developing economy. โ€ข Not all Indian consumers are well educated. โ€ข Consumers are often exploited, misled by deceptive advertisements, packaging poor after sales service, adulteration, price collusion and so on. โ€ข Liberalization and competition โ€ข Survival of the fittest
  • 9. Situational Factors โ€ข Situational Factors that aided unethical marketing- โ€ข Vastness of the country โ€ข Imbalance in income distribution โ€ข Backwardness, illiteracy , ignorance โ€ข Lack of education and information โ€ข Indian consumers get carried away by clever advertising
  • 10. Reasons behind the rise โ€ข Reasons behind the rise of consumerism in India- โ€ข Imbalance in demand and supply of commodities----- leading to hoarding, black marketing, profiteering โ€ข Low literacy levels and lack of awareness of rights encourages businessmen to be indifferent to consumers
  • 11. Reasons behind the rise โ€ข Reasons behind the rise of consumerism in India- โ€ข Lack of effective competition โ€ข Consumerism is still in its infancy โ€ข Legal framework is time consuming and tiresome โ€ข Lamentable state of public sector monopolies
  • 12. Remedies โ€ข Active participation from the business, Government and consumers. โ€ข Business must ensure efficiency in production and quality of output and must refrain from Unfair Trade Practices โ€ข Government through legislations, statutory bodies etc prevent exploitation of consumers. โ€ข Consumers should assert their rights and protect themselves from business malpractices
  • 13. Consumer protection in India โ€ข Marketing concept has to be broadened to include the societal marketing concept. โ€ข TATA Steel โ€ข Lifebuoy's โ€œSwasthya Chetnaโ€ โ€ข Tata Tea's Jaago Re! campaign
  • 14.
  • 15. Changes in the attitude of Indian consumers โ€ข The attitude of Indian consumers has undergone a major transformation over the last few years. โ€ข He wants to lead a life full of luxury and comfort. โ€ข He wants to live in present and does not believe in savings for the future. โ€ข He is open to the idea of consumption and a better lifestyle. โ€ข An increase in their income level due to high rate of industrialization, growth of services sector and better employment opportunities
  • 16. Questions โ€ข Why social cause marketing? What is the intended objective? Why should companies commit their shareholders' money for social issues? Or is it to do with the company's values? โ€ข What is the difference between a Social Cause Marketing initiative and a Corporate Social Responsibility Initiative? โ€ข At what stage of brand life cycle, would it be meaningful for any brand to get out of its comfort zone and start embracing social causes? โ€ข Are the social cause marketing initiatives truly sustainable