copyright © 2012 pearson canada inc.3 - 1 sustainable marketing social responsibility and ethics...

Copyright © 2012 Pearson Canada Inc.3 - 1

Sustainable Marketing

Social Responsibility and EthicsMay 7, 2014

Chapter 3 - Jennifer Ford


Sustainable Marketing

• Sustainable Marketing:– Socially and environmentally responsible

marketing that meets the present needs of consumers and businesses while preserving or enhancing the ability of future generations to meet their needs.


Take a minute…

….and write down on a piece of paper one example of a time you purchased something that you felt was unfairly marketed or promoted to you…

i.e. the product broke down, quality was poor, was found cheaper elsewhere, “over-sold” on the product, etc.


Social Criticisms of Marketing

• Marketing’s impact on individual consumers has been criticized in terms of three factors that are cited as leading to high prices:– High costs of distribution– High advertising and promotion costs– Excessive markups



• Marketers may be accused of deceptive practices including:– Pricing: falsely advertising “wholesale” or

“factory” prices or large reductions from phony high retail list prices

– Promotion: misrepresenting a product’s features or performance, or luring consumers to store for out-of-stock items

– Packaging: exaggerating package contents through design, misleading labeling, or size



• Deceptive practices have led to legislation and other protective consumer actions:– Competition Bureau acts as a watchdog to

prevent deceptive practices– Use of puffery is legal, but may harm

consumers in subtle ways



• Salespeople can be accused of using high-pressure selling tactics



• Criticisms of shoddy or unsafe products:– Poor product quality or function – Products deliver little benefit or are harmful



• Planned obsolescence causes products to become obsolete before replacement by:– Using materials and components that break,

wear, rust, or rot before they should– Continually changing acceptable styles– Intentionally holding back functional features,

then introducing them later to make older models obsolete



• Marketers are accused of poorly serving disadvantaged consumers:– Forced to shop in smaller stores, paying more

for inferior goods– National chain stores, insurers, and health

care providers practice “redlining” and refuse to open businesses in poor neighborhoods


In small groups…

….discuss and share your original examples you came up with. Can you think of other examples? Are social criticisms of marketing common – if so, which ones are most common?


Impact on Society

• Marketing’s impact on society has been criticized as:– Creating false wants and encouraging

materialism that benefits industry more than consumers

– Creating cultural pollution, stemming from constant exposure to marketing messages


Consumer Actions

1: Consumerism:– An organized movement of citizens and

government agencies to improve the rights and power of buyers in relation to sellers

– Seller’s rights include the right to:• Introduce any product in any size and style

• Charge any price for the product

• Spend any amount to promote the product

• Use any product message

• Use any buying incentive schemes


Consumer Actions

• Buyers’ rights include the right to:– Not buy a product that is offered for sale– Expect the product to be safe– Expect the product to perform as claimed


Consumer Actions

• Consumer advocates call for more rights to:– Be well informed about aspects of the product– Be protected against questionable products

and marketing practices– Influence products and marketing practices in

ways that will improve “quality of life”– Consume now in a way that will preserve the

world for future generations of consumers


Consumer Actions

• Environmentalism:– An organized movement of concerned

citizens and government agencies to protect and improve people’s living environment


Consumer Actions

• Environmental sustainability:– Involves developing strategies that both

sustain the environment and produce profits for the company

• Environmental sustainability portfolio:– Pollution prevention– Product stewardship– New clean technologies– Sustainability vision


Business Actions• Consumer-Oriented Marketing:

– A company’s marketing activities are viewed and organized from the consumer’s point of view

• Customer-Value Marketing:– A company puts most of its resources into customer-value-building marketing

investments

• Innovative Marketing:– A company seeks real product and marketing improvements

• Sense-of-Mission Marketing:– A company’s mission is defined in broad social terms rather than narrow product

terms

• Societal Marketing:

- Marketing decisions are made by considering consumers’ wants and interests, the company’s requirements, and consumers’ and society’s long-run interests


Marketing Ethics

• Firms must develop corporate marketing ethics policies as broad guidelines for staff

• Ethics policies should cover:– Distributor relations– Advertising standards– Customer service– Pricing– Product development– General ethical standards


Break time!

Take 15 minutes and have a break! When we come back we will apply what we have discussed in the Pink Ribbon debate.

copyright © 2012 pearson canada inc.3 - 1 sustainable marketing social responsibility and ethics...

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