This document discusses socially responsible marketing and ethics. It begins by outlining criticisms of traditional marketing practices, such as their impacts on individuals through high prices, deception, and creating false wants. It then describes actions by citizens and governments to regulate marketing through consumerism and environmentalism. The document proposes principles of enlightened marketing focused on customers, innovation, values, and considering social impacts. It concludes by discussing the role of corporate ethics policies and challenges of international ethics.

1. Chapter 20
Marketing and Society:
Social Responsibility and Marketing Ethics
Principles of Marketing
Kotler & Armstrong

2. 20 - 1
Objectives
• Know the major social criticisms of
marketing.
• Be able to define consumerism and
environmentalism and know how they
affect marketing strategies.
• Learn the principles of socially
responsible marketing.
• Learn the role of ethics in marketing.

3. 20 - 2
• Only used organic
fruits and hormone-
free milk
• Bought from socially
disadvantaged and
minority suppliers
• Donated 7.5% of
pretax profits to good
causes
• Natural-ingredient
based cosmetics
formulated without
animal testing
• Donated a percentage of
profits to animal-rights
groups and homeless
shelters
Ben & Jerry’s ... The Body Shop
Case Study

4. 20 - 3
• Growth and profits
flattened for both firms
in the 1990’s
• 2000: Ben & Jerry’s
was acquired by
Unilever; profit driven
management is now in
charge of the Body
Shop.
• Lessons learned:
 What you sell is important
 Be proud to be in business
 Make a solid commitment
to change
 Focus on two bottom lines
 Forget the hype
Ben & Jerry’s ... The Body Shop
Case Study

5. 20 - 4
Social Criticisms of Marketing
• Marketing’s Impact on Individual
Consumers
 High Prices
 High costs of distribution
 High advertising and promotion costs
 Excessive markups

6. 20 - 5
Social Criticisms of Marketing
• Marketing’s Impact on Individual
Consumers
 Deceptive Practices
 Pricing
 Promotion
 Packaging
 High-Pressure Selling

7. 20 - 6
Social Criticisms of Marketing
• Marketing’s Impact on Individual
Consumers
 Shoddy or Unsafe Products
 Planned Obsolescence
 Poor Service to Disadvantaged
Consumers

8. 20 - 7
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

9. 20 - 8
Social Criticisms of Marketing
• Marketing’s Impact on Other
Businesses
 Acquisitions of Competitors
 Marketing Practices
 Creating Barriers to Entry

10. 20 - 9
Citizen & Public Actions to
Regulate Marketing
• Consumerism
 Traditional Seller’s Rights
 Traditional Buyer’s Rights
 Additional Rights Proposed by
Consumer Advocates
 Each proposed right has led to more
specific proposals by consumerists

11. 20 - 10
Citizen & Public Actions to
Regulate Marketing
• Environmentalism
 Environmental Sustainability
 Pollution prevention
 Product stewardship
 New environmental technology
 Sustainability vision

12. 20 - 11
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

13. 20 - 12
Enlightened Marketing
Business Actions Toward
Socially Responsible Marketing
Consumer-Oriented Marketing
Innovative Marketing
Value Marketing
Societal Marketing
Sense-of-Mission Marketing

14. 20 - 13
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.

15. 20 - 14
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 rather than in narrow product
terms.

16. 20 - 15
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.

17. 20 - 16
Business Actions Toward
Socially Responsible Marketing
• Enlightened Marketing
 Societal Classification of Products
Deficient products Pleasing products
Salutary products Desirable products
Immediate satisfaction
Low High
High
Low
Long-run
consumer
benefit

18. 20 - 17
Business Actions Toward
Socially Responsible Marketing
• Marketing Ethics
 Corporate Marketing Ethics Policies
 Guiding Principle in Policy Determination
 Free market and legal system
 Individual companies and managers
 International Ethical Policies are a Special
Challenge