The document discusses marketing ethics through the lens of the Apple-Samsung legal dispute over intellectual property, exploring the moral implications of copying and the responsibilities of marketers. It outlines the importance of ethical standards in marketing practices, consumer rights, and the effects of marketing on society, including criticisms regarding deception and its impact on competition and the environment. Additionally, it highlights the concept of enlightened marketing, which emphasizes long-term customer value and sustainable practices.

1. GROUP -8
MARKETING
ETHICS

2. CASE TO UDERSTAND CONCEPT…..
Apple’s case that Samsung copied the iPhone
and iPad

3. Samsung Phones Before Iphone…

4. Samsung Phones After Apple

5. CASE against Samsung
So Apple claimed a case against Samsung that it
became prominent in the smart phone industry, just
by copying Apple….

6. Question……..
What do you say…?
Is the copying right…?

7. YES…….!!!!!!!
If YES…..
What moral principles It has….
Copying does spoils the reputation of the company….

8. NO………!!!!!
If your Answer was No…..
What will Samsung do to
SATISFY CUSTOMERS…….????

9. DECISION………..???
What would you do as a Marketing head of
Samsung…….??
Will you copy….. Or
Will you follow the same traditional methods…

10. SO THIS DEPICTS THE SUTUATION WHERE
IS NEEDED

11. WHAT IS MARKETING…?
It is the process of communicating the value of a
product or service to customers, for the purpose of
selling the product or service.

12. WHAT IS ETHICS…?
Ethics Is the art and science of determining good and
bad or right or wrong moral behavior.

13. MARKETING ETHICS DEFINED..!
Marketing ethics is the systematic study of how moral
standards are applied to marketing decisions,
behaviors, and institutions.

14. WHY WE NEED MARKETING ETHICS…?
Marketers face many moral dilemmas.
The best things to do is often unclear.
Because not all managers have fine moral sensitivity….

15. EXAMPLES OF DIFFICULT SITUATIONS…

16. EXAMPLES Contd…..
2.
- Who has just left the competitor’s company.
- She would be more than happy to tell you all the
competitor’s plan for the coming year….
WHAT WOULD YOU DO….??

17. An Overview of American Marketing Code of
Ethics
Preamble
The American Marketing Association commits itself to
promoting the highest standards of professional
ethical norms and values for this members.
General Norms
1.Marketers must do not harm.
2.Marketers must foster trust in the marketing system.

18. Ethical Values….
1. Honesty
2. Responsibility
3. Fairness
4. Respect
5. Openness
6. Citizenship
7. Implementation

19. Social Criticism Of Marketing…
Marketing receives much criticism. Some of this is
justified; much is not.

20. Marketing Impacts on Individual Custmers
High Prices
high costs of distribution,
high advertising and promotional cost,
Excessive Markups.
Example: Café coffee day charges high price for coffee
when compared with other coffee shops. Critics charge
that promotion adds only psychological value to the
product rather than
functional value

21. Deceptive Practices
Marketers are sometimes accused to deceptive
practices that lead consumers to believe they will get
more value that they actually do.
3 groups:
-pricing
-promotion
-packaging

22. Contd….
Deceptive pricing
-”flat 70 % discount” , “ factory sale”.
Deceptive promotion
-”Fair and Lovely”, “Complan”
Deceptive Packaging
-”Lays”, “BB creams”

23. High Pressure Selling
Salespeople are sometimes accused of high pressure
selling that persuades people to buy goods they had
no thought of buying.
It is often insurance, real estates and cars are sold, not
bought

24. Shoddy or Unsafe Products
 I. Many products are not made well and not services
well
eg. Kure kure chips –wax, MSG, Bricks, Rods
 II.The products deliver little benefit or the product
might be harmful
eg. Coca Cola, mosquito coil, Bikes CC

25. Contd
 III. Product safety
- electronic goods
For years Consumer Reports magazine and
Websites- have reported various hazards in tested
products: electrical dangers, carbon monoxide
poisoning( refrigerators, air conditioners).

26. Marketing impacts on society on a whole
Marketing systems have been blamed for adding
several “Evils” in the society as a large.

27. False Wants and too much materialism
Marketers urges consumers to think that “ People are
judged by what they own rather than by who they
are”.
Phrases such as
“greed is god”
“I feel like God”
Creates false wants….

28. Too few social goods
 Business has been accused of overselling private
goods at the expense of public goods.
 Example: increase in automobile ownership(private
goods)
requires more highways, traffic control,
and police services(public goods)

29. Cultural Pollution
 Our senses are being constantly assaulted by
advertising.
Pages of ads obscure magazines.
These interruptions continually pollutes people’s
mind with messages of materialism.

30. Marketing impacts on other businesses
Critics also charge that a company’s marketing
practices can harm other companies and reduce
competition.
I .acquistation of competitors.
II .marketing practices creates barrier to entry.
III.Unfair competitive marketing prices.

31. Example
Microsoft:
The operating systems installed on more than
90 % of desktop computers.
Customers are essentially locked into windows
OS.
It was nearly a “Monopoly”.

32. CITIZEN AND PUBLIC ACTIONS TO
REGULATE MARKETING

33. AN ORGANIZED MOVEMENT OF
CITIZEN AND GOVERNMENT AGENCIES
TO IMPROVE THE RIGHTS AND POWER
OF BUYER IN RELATION TO SELLERS .
IT IS A SOCIAL PHENOMENON THAT
EMPOWERS THE BUYERS AND
CONSUMERS. ITS EFFECTS ARE VISIBLE
IN THE LAWS, REGULATIONS AND ALSO
THE MARKETING PRACTICES.
Consumerism

34. CONSUMER MOVEMENTS :
AMERICAN BUSINESS FIRMS HAVE TARGETED
ORGANIZED CONSUMER MOVEMENTS ON
THREE OCCASIONS.
FIRST CONSUMER MOVEMENTS TOOK
PLACE IN THE EARLY 1900S UPTON
SINCLAIR’S WRITINGS ON CONDITION IN
THE MEAT INDUSTRY AND SCANDALS IN DRUG
INDUSTRY.
SECOND CONSUMER MOVEMENT IN THE MID
1930S WAS
SPARKED BY AN UPTURN IN CONSUMER
PRICES DURING GREAT DEPRESSION AND
ANOTHER DRUG SCANDAL.
THIRD MOVEMENTS BEGAN IN 1960.

35. THE RIGHTS TO INTRODUCE ANY PRODUCT IN
ANY SIZE AND STYLE PROVIDE IT IS NOT
HAZARDOUS TO PERSONAL HEALTH OR SAFETY
OR IF IT IS TO INCLUDE PROPER WARNING
AND CONTROLS.
THE RIGHTS 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 DEFINED MISLEADING OR
DISHONEST IN CONTENT OR EXECUTION.
THE RIGHT TO INFLUENCE PRODUCTS AND
MARKETING PRACTICE IN WAYS THAT WILL
IMPROVE THE QUALITY OF LIFE.
Traditional Sellers Rights Include

36. THE RIGHT TO EXPECT THE PRODUCT
TO BE SAFE.
THE RIGHT TO EXPECT THE PRODUCT
TO PERFORM AS CLAIMED.
THE RIGHT TO BE WELL INFORMED
ABOUT IMPORTANT ASPECTS OF THE
PRODUCT.
CONSUMERS WHO BELIEVE THEY GOT A
BAD DEAL HAVE SEVERAL REMEDIES .
Traditional Buyer Rights Include

37. Basic Consumer Rights
The Right to
be Safe
The Right to
be informed
Right to
choose
CONSUMERISM

39. CONSUMERISM IS THE FAST
EMERGING AS AN ENVIRONMENTAL
FORCE AFFECTING MAJOR
BUSINESS DECISIONS AS
CONSUMER AS BECOME MORE
AWARE ABOUT THEIR RIGHTS.
Conclusion :

40. A N O R G A N I ZE D M O V E M E NT S O F C O N C E R NE D C I T I ZE N
A N D G O V E R N M E NT A G E N C I E S TO P R O T E CT AN D
I M P R O V E P E O P L E ’ S L I V I N G E N V I R O N M E N T .
ENVIRONMENTALISM

41. THE FIRST WAVE OF MODERN
ENVIRONMENTALISM IN THE U.S WAS DRIVEN
BY ENVIRONMENTAL GROUP AND CONCERNS
CONSUMERS IN THE 1960S AND 1970S .
THE SECOND ENVIRONMENTALISM WAVE WAS
DRIVEN BY GOVERNMENT WHICH PASSED
LAWS AND REGULATION DURING 1970S AND
1980S GOVERNING INDUSTRIAL PRACTICES
IMPACTING THE ENVIRONMENT.
THIRD WAVE IS STRONGER WAVE IN WHICH
COMPANIES WHERE ACCEPTING
RESPONSIBILITY FOR DOING NO HARM TO THE
ENVIRONMENT.
Waves of Environmentalism

42. ENVIRONMENTAL SUSTAINABILITY AT MOST
BASIC LEVEL A COMPANY CAN PRACTICE
POLLUTION PREVENTION MEANS
ELIMINATING OR MINIMIZING WASTE
BEFORE IT IS CREATED.
COMPANIES EMPHASIZING PREVENTION
HAVE RESPOND WITH “GREEN MARKETING”
PROGRAMS -DEVELOPING ECOLOGICALLY
SAFER PRODUCTS, RECYCLE PRODUCTS .
EXAMPLE : WALMART HAS OPENED “ECO -
FRIENDLY “ STORES IN WHICH
AIR CONDITIONING SYSTEM USE NON -OZONE
DEPLETING REFRIDGENT.
Environmental sustainability

43. ENVIRONMENTAL POLICIES STILL VARY WIDELY
FROM COUNTRY TO COUNTRY .
COUNTRIES SUCH A S DENMARK, GERMANY,
JAPAN, AND UNITED STATES HAVE FULLY
DEVELOPED ENVIRONMENTAL POLICIES AND HIGH
PUBLIC EXPECTATIONS .
BUT MAJOR COUNTRIES SUCH A S CHINA, IND IA
,BRAZIL AND RUSSIA AR E IN ONLY THE EARLY
STAGES OF DEVELOPING SUCH POLICIES .
EXAMPLE : PVC SOFT DR IN K BOTTLES CANNOT BE
USED IN SWITZERLAND OR GERMANY . HOWEVER
THEY ARE PREFERRED IN FRANCE , WHICH HAS
AN EXTENSIVE RECYCLING PROCESS FOR THEM .
A S INTERNATIONAL C OMPAN IES HAV E FOUND IT
DIFFICULT TO DEVELOP STANDARD
ENVIRONMENTAL PRACTIES .
Which all countries have environmental policy

44. G O G R E E N O R G R E E N WA S H I N G
WA L - M A RT, T H E W O R L D ' S L A R G E S T R E TA I L E R , H E A D Q U A RT E R E D AT
B E N T O N V I L L E , A R K A N S A S , U S A , H A D B E G U N T O F O C U S O N
E N V I R O N M E N TA L S U S TA I N A B I L I T Y I S S U E S I N 2 0 0 5 .
I N T R O D U C T I O N : WA L - M A RT H A S P U B L I C LY A N N O U N C E D G O A L S
T O M A K E T H E M E G A S T O R E P O L I C I E S M O R E
E N V I R O N M E N T A L L Y F R I E N D L Y . T H E Y P L E D G E D T O H AV E A L L
S T O R E S R U N N I N G O F F O F 1 0 0 P E R C E N T R E N E WA B L E E N E R G Y,
C R E AT E Z E R O WA S T E A N D T O M A K E M O R E E N V I R O N M E N TA L LY
F R I E N D LY P R O D U C T S . I N 2 0 0 7 WA L - M A RT R E L E A S E D T H E I R
“ S U S TA I N A B I L I T Y 3 6 0 ″ S T O R E W I D E P O L I C I E S .
WA L - M A RT ’ S E N V I R O N M E N TA L G O A L S C E N T E R A R O U N D R E D U C I N G
WA S T E , E N V I R O N M E N TA L LY F R I E N D LY PA C K A G I N G , O F F E R I N G
E N V I R O N M E N TA L LY F R I E N D LY P R O D U C T S , R U N N I N G S T O R E S O F F O F
R E N E WA B L E E N E R G Y A N D G E N E R A L LY B E C O M I N G M O R E E N E R G Y
E F F I C I E N T.
A C T I O N T O WA R D S E N V I R O N M E N TA L LY F R I E N D LY S T O R E S :
C U R R E N T LY, T H E R E A R E 2 0 U S WA L - M A RT S T O R E S I N C A L I F O R N I A A N D
H AWA I I T H AT R U N P R E D O M I N A N T LY O F F O F S O L A R P O W E R W I T H
A N O T H E R 2 0 - 3 0 P L A N N E D F O R 2 0 1 0 I N A R I Z O N A A N D C A L I F O R N I A .
T H E S E T H I N - F I L M S O L A R PA N E L S A R E E X P E C T E D T O P R O V I D E 2 0 - 3 0
P E R C E N T O F T H E S T O R E ’ S P O W E R N E E D S ( R O U G H LY 2 2 . 5 K W H ) A N D
W I L L B E D E S I G N E D , I N S TA L L E D , M A I N TA I N E D A N D O W N E D B Y
S O L A R C I T Y. WA L - M A RT I S U S I N G B O T H C O P P E R I N D I U M G A L L I U M
S E L E N I D E ( C I G S ) A N D C A D M I U M T E L L U R I D E T H I N F I L M A S I T U S E S
L E S S R AW M AT E R I A L S T H A N T R A D I T I O N A L PA N E L S , M A K I N G L E S S O F
A N E N V I R O N M E N TA L I M PA C T.
Case study on Wal-mart Environmental sustainability

45. SU STA INABLE VA LU E N ETWOR KS :
WA L-MART STARTED SEEKING IDEAS FROM ITS
EMPLOY EES , C ON SU LTANTS, N GOS, A N D SU PPLIERS ON
ITS SU STAINABILITY IN ITIATIVES. IT A LSO IN V ITED
EX PERTS FR OM
THE WOR LD WILD LIFE FED ERATION , N ATURAL
RESOURCES DEFENSE COUNCIL ,ENVIRONMENTAL
D EFENSE, A N D GR EEN PEACE FOR D ISC U SSIONS A N D
SU GGESTION S ON ITS GR EEN IN ITIATIVES.
OPER ATIONAL / SU PPLIER IN ITIATIVES :
EX PERTS FELT THAT WA L -MART HA D A HU GE
OPPORTUNITY TO MA KE A D IFFERENCE IN THE
SUSTAINABILITY AREA BY REVAMPING ITS SUPPLY CHAIN.
FOR EX AMPLE, IT TA R GETED TO R ED UCE 5%
PA C KAGING IN A LL ITS PR OD UCTS BY 2013 OV ER 2006
LEV ELS. IT WA S ESTIMATED THAT THE IN ITIATIVE
C OU LD SAV E U S$ 11 BILLION IN THE C OMPANY'S GLOBA L
SU PPLY C HA IN . FR OM FEBR U ARY 1, 2008, THE C OMPANY
WA S A LSO TO BEGIN U SIN G A PA C KAGING SC OR ECARD
TO MEASURE AND EVALUATE ITS ENTIRE SUPPLY
C HA IN . THE SC OR EC ARD HA D ATTRIBUTES C A LLED
THE '7 R 'S OF PA C KAGING' – REMOVE, REDUCE, REUSE ,
R EC YCLE , R EN EW , R EV ENUE , A N D R EA D. U SIN G THE
SC OR EC ARD , EA C H SU PPLIER WA S TO BE EVALUATED
R ELATIVE TO OTHER SU PPLIERS.

47. ORGANIC PRODUCTS IN THE STORES
APART FROM CONSERVING ENERGY AND
REDUCING POLLUTION THROUGH ITS SUSTAINABILITY
INITIATIVES, WAL-MART ALSO STARTED SELLING
MORE AND MORE ORGANIC FOOD AT PRICES THAT
WERE LOWER THAN THOSE OFFERED BY THE
COMPETITION. THE ORGANIC FOOD ITEMS OFFERED BY
WAL-MART INCLUDED ORANGES, TOMATOES, LETTUCE,
APPLES, FRESH HERBS, PACKAGED SALADS, PASTA,
OLIVE OIL, COFFEE, TEA, PEANUT BUTTER, BREAD,
BABY FOODS, MILK, CHEESE, SOUR CREAM, ICE CREAM,
SAUCES, AND SEAFOOD. THE ASSORTMENT OF
ORGANIC FOODS IN ANY OF ITS STORES WAS
TAILORED ACCORDING TO THE CUSTOMER BASE OF
THAT STORE. THE ORGANIC OFFERINGS WERE LABELED
SEPARATELY FOR THE CONVENIENCE OF THE
CUSTOMERS AND WERE PRICED NOT MORE THAN 10
PERCENT HIGHER THAN NORMAL PRODUCTS.

48. FINALLY THE COMPANY PLANNED TO CONSERVE
ENERGY, USE MORE RENEWABLE SOURCES OF
ENERGY, RECYCLE WASTE, AND SELL MORE
ORGANIC PRODUCTS AT ITS STORES . MANY
ENVIRONMENTALISTS WERE, HOWEVER, HAPPY
THAT A BIG COMPANY LIKE WAL-MART HAD
DECIDED TO TAKE UP THE SUSTAINABILITY
PLANK. THEY FELT THAT EVEN IF WAL-MART'S
SUSTAINABILITY INITIATIVES WERE MEANT TO
IMPROVE ITS REPUTATION, IT WOULD MAKE A
HUGE DIFFERENCE TO THE ENVIRONMENT
BECAUSE OF ITS SHEER SCALE OF OPERATIONS
AND INFLUENCE OVER A LARGE NUMBER OF
SUPPLIERS, CUSTOMERS, AND EMPLOYEES. BUT
ANALYSTS SAID THAT WAL-MART STILL HAD A
LONG WAY TO GO IN ITS SUSTAINABILITY
EFFORTS.
Conclusion :

49. Business Actions Toward Socially Responsible
Marketing
 Initially many companies opposed consumerism and
environmentalism.
 They thought the criticisms were either unfair or
unimportant.
 But now, most companies have grown to accept the new
consumer rights, at least in principle.
 They might oppose certain pieces of legislation as
inappropriate ways to solve certain consumer problems,
but they recognize the consumer’s right to information
and protection.
 Many of these companies have responded positively to
consumerism and environmentalism in order to serve
consumer needs better.

50. Business Actions Toward Socially
Responsible Marketing
Enlightened Marketing
 Enlightened marketing refers to a company’s marketing
effort supporting the best long-run performance of the
marketing system and consists of five principles:
I. Consumer-oriented marketing
II. Customer-value marketing
III. Innovative marketing
IV. Sense-of-mission marketing
V. Societal marketing

51. Business Actions Toward Socially Responsible
Marketing
Enlightened Marketing
Consumer-oriented marketing:
 Consumer-oriented marketing means that a
company should view and organize its marketing
activities from the consumer’s perspective.
 It should work hard to sense, serve, and satisfy the
needs of a defined group of customers.

52. Business Actions Toward Socially
Responsible Marketing
Enlightened Marketing
Customer-value marketing
 Customer-value marketing means that the company
should put most of its resources into customer-value-
building marketing investments.
 Many things marketers do-one-shot sales promotions,
minor packaging changes, advertising puffery- may raise
sales in the short run but add less value than would actual
improvements in the product’s quality, features, or
convenience.
 Enlightened marketing calls for building long-term
customer loyalty and relationships—by continually
improving the value consumers receive from the firm’s
market offerings.

53. Business Actions Toward Socially Responsible
Marketing
Enlightened Marketing
Innovative marketing:
Innovative marketing requires the company to
continuously seek real product and marketing
improvements.
The company that overlooks new and better ways to
do things will eventually lode customers to another
company that has found a better way.

54. Business Actions Toward Socially
Responsible Marketing
Enlightened Marketing
 Sense-of-mission marketing means the company
should define its mission in broad social terms rather than
narrow product terms.
 When a company defines a social mission, employees
feel better about their work and have a clearer sense
of direction.

55. Business Actions Toward Socially
Responsible Marketing
Enlightened Marketing
Societal marketing:
 Societal marketing means the company makes
marketing decisions by considering consumers’
wants and interests, the company’s requirements,
and society’s long-run interests
• Views societal problems as opportunities
• Designs pleasing and beneficial products

56. Business Actions Toward Socially
Responsible Marketing
Enlightened Marketing
 Deficient products have neither immediate appeal nor
long-term benefits
• Bad-tasting and ineffective medicine
 Pleasing products have high immediate satisfaction but
may hurt consumers in the long run
• Cigarettes and junk food

57. Business Actions Toward Socially
Responsible Marketing
Enlightened Marketing
 Salutary products have low appeal but may benefit
consumers in the long run
• Seat belts and air bags
 Desirable products give both immediate satisfaction
and high long-term benefits
• Tasty and nutritious breakfast food

58. Business Actions Toward Socially
Responsible Marketing
Marketing Ethics
 Corporate marketing ethics are broad guidelines that
everyone in the organization must follow that cover
distributor relations, advertising standards, customer
service, pricing, product development, and general ethical
standards

59. Business Actions Toward Socially
Responsible Marketing
Marketing Ethics
Philosophies
 Issues are decided by the free market and legal
system.
 Responsibility is not on the system but in the hands
of the individual company and managers

60. CASE STUDY ON CORPORATE SOCIAL
RESPONSIBILITY
Corporate Social Responsibility: A Case
Study Of TATA Group
OBJECTIVES:
 To understand the concept of CSR
To find out the scope of CSR
To know how the Tata group has fulfilled its
responsibility towards all stakeholders; what
specific activities, programs and strategies it has
set, devised and implemented for the same.

61. Tata Steel:
Tata Steel has adopted the Corporate Citizenship Index, Tata
Business Excellence Model and the Tata Index for Sustainable
Development. Tata Steel spends 5-7 per cent of its profit after tax on
several CSR initiatives.
1.Self-Help Groups (SHG’s)
 500 self-help groups under various poverty alleviation programs.
 200 are in activities of income generation thorough micro
enterprises.
 Women empowerment programs through Self-Help Groups have
been extended to 700 villages.
2.Supports Social Welfare Organizations:
 Tata Steel Rural Development Society
 Tribal Cultural Society
 Tata Steel Foundation for Family Initiatives
 National Association for the Blind
 Shishu Niketan School of Hope
 Centre for Hearing Impaired Children
 Indian Red Cross Society, East Singhbhum

62. 3. Healthcare Projects
In its 100th year, the healthcare projects includes
 child education
 immunization and childcare
 plantation activities
 creation of awareness of AIDS and other healthcare
projects.
4. Economic Empowerment:
 A program aiming at economic empowerment through
improvised agriculture has been taken up in three
backward tribal blocks in Jharkhand, Orissa and
Chhattisgarh.
 An expenditure of Rs 100 crore has been estimated for
the purpose and this program is expected to benefit
40,000 tribal living in over 400 villages in these three
States.

63. 5.Assistance to government
• 12 Lifeline Expresses in association with the Ministry
of Railways, Impact India Foundation and the
Government of Jharkhand.
• 5000 people have got surgical facilities and over
1,000 people received aids and appliances.
 The National Horticulture Mission program that has
been taken up in collaboration with the Government
of Jharkhand has benefited more than a thousand
households.
 In collaboration with the Ministry of Non
Conventional Energy and the Confederation of
Indian Industry, focus is laid on renewable energy
aiming at enhancing rural livelihood.

64. Titan In its corporate philosophy CSR is defined as
doing less harm and more good by adopting the
following practices :
Respecting and supporting local communities
Caring for the employees
Being an active member of society
Committed to sustainable development
Putting safety(at work) first Titan has employed
169 disabled people in blue collar workforce at
Hosur.

65. Significance of the study
A. To the Policy Makers
• This study encourages Private Public Partnership (PPP) for CSR
promotion encompassing infrastructure, pollution, child labor, labor
productivity & morale.
• It may become helpful to make the policy makers at political and
corporate level as well consider CSR an investment and not an expense
as it can become instrumental in increasing goodwill and corporate
image.
B. To the Society
 Development of infrastructure i.e. parks, water purification, education
etc.
 Environment protection
 Uplifting of the rural populace
 Bringing the tribes into the mainstream of the country
C. To the Economy as a whole
 Increase in the growth rate
 Strategic CSR at political and corporate level can make the country a
better investment destination .
 Cumulative results may improve Human Development Index (H.D.I.)
of the country.

66. PRINCIPLES FOR PUBLIC POLICY TOWARDS
MARKETING
1. The principle of consumer and producer freedom.
2. The principle of curbing potential harm.
3. The principle of meeting basic needs.
4. The principle of economic efficiency.
5. The principle of innovation.
6. The principle of consumer education and
information.
7. The principle of consumer protection.

67. The principle of consumer and producer
freedom
 Marketing decisions should be made by consumers
and producers under relative freedom.
 Marketing freedom is important if a marketing
system is to deliver a high standard of living.
 People can achieve satisfaction in their own terms
rather than in terms defined by someone else.
 Freedom of producer and consumer is the
cornerstone of dynamic marketing system.

68. The principle of curbing potential harm
 As much as possible, transactions freely entered
into by producers and consumers are their private
business.
 The political system curbs producer or consumer
freedom only to prevent transactions that harm or
threaten to harm the producer, consumer, or third
parties.
 Transactional harm is a widely recognized grounds
for government intervention.
 The major issue is whether there is sufficient actual
or potential harm to justify the intervention.

69. The principle of meeting basic needs
 The marketing system should serve disadvantaged consumers as well
as affluent ones.
 In a free enterprise system, producers make goods for markets that
are willing and able to buy.
 Certain groups who lack purchasing power may go without needed
goods and services, causing harm to their physical or psychological
well being.
 The marketing system should support economic and political actions
to solve this problem.
 It should strive to meet the basic needs of all people, and all people
should share to some extent in the standard of living it creates.

70. The principle of economic efficiency
 To supply goods and services efficiently and at low
prices.
 Society’s needs and wants can be satisfied depends
on how efficiently its scarce resources are used.
 To make profit, competitors must watch their costs
carefully while developing products, prices and
marketing programs that serve buyer needs.
 The presence of active competition and well-
informed buyers keeps quality high and prices low.

71. The principle of innovation
 The marketing system encourages authentic
innovation to bring down production and
distribution costs and to develop new products to
meet changing consumer needs.
 The consumer may face ten very similar brands in
a product class.
 But an effective marketing system encourages real
product innovation and differentiation to meet the
wants of different market segments.

72. The principle of consumer education and
information
 An effective marketing system invests heavily in
consumer education and information to increase
long-run consumer satisfaction and welfare.
 Companies will provide enough information about
their products.
 But consumers groups and government can also
give out information and ratings.

73. The principle of consumer protection
 Consumer education and information cannot do
the whole job of protecting consumers.
 Modern products are so complex that even trained
consumers cannot evaluate them with confidence.
 A government agency has to review and judge the
safety levels.
 Consumer may buy products but fail to understand
the environment consequences.

74. ARE COCA-COLA GETTING HEALTH
CONSCIOUS?
 It’s scientifically proven that eating refined sugars is a
leading cause of obesity and it’s certainly no secret that most
fizzy drinks have an abundance of sugars in them. So it was
refreshing to see that Coca-Cola have launched a 2 minute
long commercial in the USA battling obesity.
 In the commercial they talk about the Obesity problem in
America and what they are doing to create a solution. A few of
the ways Coca-Cola are battling it are:
 Lowering calories in some of their drinks
 Distributing smaller bottles and cans across the country
 Removing high calorie products from schools
 Get active schemes for children
 Continued R&D

75.  To Coca-Cola’s credit they indirectly partly blame themselves for
obesity by saying “All calories count no matter where they come
from, including Coca-Cola and everything else with calories. If
you eat and drink more calories than you burn off, you’ll gain
weight”. They even add a small piece on educating the consumer
about calorie in take.
 This is the beginning of a solution however I think the biggest
stimulator for sugary drink consumption is the supermarkets.
Supermarkets always have offers on these types of
products prominently displayed on the end of isles, or eye level on
the rack. The placement in supermarkets of these products and
bulk discounting will need to change if we want peoples calorie
and sugar in take to stabilise. It doesn’t help that Coca-Cola also
promote their benchmark soft drink with the tagline “Open
Happiness“.
 I think this is a great start, and whether Coca-Cola have done this
as a PR exercise or are generally concerned it’s a step in the right
direction.
 To your (ethical) marketing success