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Chapter 20 - slide 1Copyright 2009 Pearson Education, Inc.
Publishing as Prentice Hall
it s good and
good for you
Chapter Twenty
Sustainable Marketing
Social Responsibility and Ethics
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20 - 2Copyright 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Sustainable MarketingSocial Responsibility and Ethics
Sustainable Marketing
Social Criticisms of Marketing
Consumer Actions to Promote Sustainable
Marketing
Business Actions Toward Sustainable
Marketing Marketing Ethics
The Sustainable Company
Topic Outline
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20 - 3Copyright 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Meeting needs of consumers while preserving the
ability of future generations to meet their needs
Figure 20.1
Sustainable Marketing
http://www.sustainablemarketing.com/ -
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20 - 4Copyright 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Social Criticisms of Marketing
Marketings Impact on Individual Consumers
High Prices
Deceptive PracticesHigh-Pressure Selling
Shoddy, Harmful or UnsafeProducts
Planned Obsolescence
Poor Service to DisadvantagedConsumers
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20 - 5Copyright 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Social Criticisms of Marketing
Complaint:
Prices are too high dueto high costs of:
Distribution
Advertising andpromotion
Excessive mark-ups
Response:
Intermediaries areimportant and offer value
Advertising informsbuyers of availability andmerits of a brand
Consumers dontunderstand the cost ofdoing business
Marketings Impact on IndividualConsumersHigh Cost of Distribution
http://www.marketingcharts.com/television/us-ad-expenditures-down-16-in-first-half-6170/tns-top-10-advertisers-1h08-vs-1h07jpg/ -
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20 - 6Copyright 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Social Criticisms of Marketing
Complaint: Companies use deceptive practices
that lead customers to believe they will getmore value than they actually do. These
practices fall into three categories:
Deceptive pricing
Deceptive promotion
Deceptive packaging
Marketings Impact on Individual ConsumersDeceptive Practices
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Copyright 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Social Criticisms of Marketing
Response:
Support Legislation to protect consumers fromdeceptive practices
Make lines clearIs it deception, alluring, or pufferythat is just an exaggeration for effect?
Products that are harmful Products that provide little benefit
Products that are not made well
Marketings Impact on Individual ConsumersDeceptive Practices
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Copyright 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Social Criticisms of Marketing
High-Pressure Selling
Marketings Impact on Individual Consumers
Complaint:
Salespeople use high-pressure selling thatpersuade people tobuy goods they had nointention of buying.
Response:
Most selling involvesbuilding long-termrelationships andvalued customers.High-pressure ordeceptive selling can
damage theserelationships.
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Copyright 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Social Criticisms of Marketing
Shoddy, Harmful, or Unsafe Products
Marketings Impact on Individual Consumers
Deceptive Practices
Complaint:
Products havepoor quality,provide littlebenefit, and canbe harmful.
Response:
Good marketersrealize there isno value inmarketingshoddy, harmful,or unsafeproducts.
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20 - 10Copyright 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Social Criticisms of Marketing
Planned Obsolescence
Marketings Impact on Individual Consumers
Complaint:
Producers cause theirproducts to becomeobsolete and changeconsumers conceptsof acceptable styles toencourage more and
earlier buying.
Response:
Planned obsolescenceis really the result ofcompetitive marketforces leading to ever-improving goods andservices.
Customer customerslike style changes andwant the latestinnovations
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20 - 11Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
Social Criticisms of Marketing
Poor Service to Disadvantaged Consumers
Marketings Impact on Individual Consumers
Complaint:
American marketers servedisadvantaged customerspoorly. Some retailcompanies redline poorneighborhoods and avoid
placing stores there.
Response:
Some marketers profitablytarget these customersand the FTC has takenaction against marketersthat do advertise false
values, wrongfully denyservice, or chargedisadvantaged customerstoo much.
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20 - 12Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
Social Criticisms of Marketing
Marketings Impact on Society as a Whole
False wants and too mu chmaterial ism
Too few socia l goods
Cultural po l lut ion
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20 - 13Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
Social Criticisms of Marketing
False Wants and Too Much Materialism
Marketings Impact on Society as a Whole
Complaint:
The marketing system
urges too much interestin material possessions.People are judged bywhat they own ratherthan who they are,creating false wants that
benefit industry morethan they benefitconsumers.
Response:
People do have strong
defenses againstadvertising and othermarketing tools.Marketers are mosteffective when theyappeal to existing wants
rather than creating newones. The high failurerate of new productsshows that companiescannot control demand.
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20 - 14Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
Social Criticisms of Marketing
Too Few Social Goods
Marketings Impact on Society as a Whole
Complaint:
Businesses oversell
private goods at theexpense of publicgoods and requiremore public goods tosupport them
Response:
There needs to be a
balance betweenprivate and publicgoods
Producers should bearfull social costs of their
operations Consumers should pay
the social costs of theirpurchases
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20 - 15Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
Social Criticisms of Marketing
Cultural Pollution
Marketings Impact on Society as a Whole
Complaint:
Marketing andadvertising createcultural pollution
Response:
Marketing and advertisingare planned to reach only atarget audience, andadvertising makes radio andtelevision free to users andhelps to keep down the costs
of newspapers andmagazines. Todaysconsumers have alternativesto avoid marketing andadvertising from technology.
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20 - 16Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
Social Criticisms of Marketing
Acquisition of competitors
Unfair competitive marketing practices
Marketings Impact on Other Businesses
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20 - 17Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
Consumer Actions to PromoteSustainable Marketing
Consumerism is the organized movement of
citizens and government agencies toimprove the rights and power of buyers in
relation to sellers
http://www.complaints.com/ -
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20 - 18Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
Consumer Actions to PromoteSustainable Marketing
Traditional buyers rights include:
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
Comparing these rights, many believe that the
balance of power lies on the sellers side
Consumerism
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20 - 19Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
Consumer Actions to PromoteSustainable Marketing
Advocates call for: The right to be well informed about important
aspects of the product
The right to be protected against questionable
products and marketing practices
The right to influence products and marketing
practices in ways that will improve the quality of
life
The right to consume now in a way that will
preserve the world for future generations of
consumers
Consumerism
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20 - 21Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
Consumer Actions to PromoteSustainable Marketing
Environmental sustainability is getting
profits while helping to save the planet
Environmentalism
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20 - 22Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
Consumer Actions to PromoteSustainable Marketing
Pollution prevention
Product stewardship Design for environment (DFE)
New clean technologies
Sustainability vision
EnvironmentalismEnvironmental Sustainability
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20 - 23Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
Consumer Actions to PromoteSustainable Marketing
Pollution prevention involves not just cleaningup waste but also eliminating or minimizing
waste before it is created
Product stewardship involves minimizing thepollution from production and allenvironmental impact throughout the full
product life cycle
Design for environment (DFE) involves thinkingahead to design products that are easier torecover, reuse, or recycle
EnvironmentalismEnvironmental Sustainability
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20 - 24Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
Consumer Actions to PromoteSustainable Marketing
New clean technologies involve looking
ahead and planning new technologiesfor competitive advantage
Sustainability vision is a guide to the
future that shows the company that thecompanys products, process, and
policies must evolve and what is needed
to get there
EnvironmentalismEnvironmental Sustainability
C A ti t P t
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20 - 25Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
ConsumerActions to PromoteSustainable Marketing
Public Actions to Regulate marketing
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20 - 26Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
Consumer-OrientedMarketing
Customer-Value
MarketingInnovativeMarketing
Sense-of-missionMarketing
SocietalMarketing
Business Actions Toward Sustainable
Marketing
Sustainable Marketing Principles
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20 - 27Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
Business Actions TowardSustainable Marketing
View marketing activities from the
consumer's point of view Deliver superior value
Consumer-Oriented Marketing
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20 - 28Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
Business Actions TowardSustainable Marketing
Invest in customer-value building
marketing Create value FOR customers
Customer-Value Marketing
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20 - 29Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
Business Actions TowardSustainable Marketing
Company seeks real product and marketing
improvements
Innovative Marketing
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20 - 30Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
Business Actions TowardSustainable Marketing
Define mission in broad social terms rather
than narrow product terms
Sense-of-Mission Marketing
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20 - 31Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
Business Actions TowardSustainable Marketing
Societal Marketing
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20 - 32Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
Business Actions TowardSocially Responsible Marketing
Corporate marketing ethics are broad
guidelines that everyone in theorganization must follow that cover
distributor relations, advertising
standards, customer service, pricing,
product development, and general ethical
standards
Marketing Ethics
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20 - 33Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
Business Actions TowardSocially Responsible Marketing
Who should guide companies?
The free market and the legal system? Individual companies and managers?
Marketing Ethics
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20 - 34Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
Business Actions TowardSocially Responsible Marketing
Goes beyond caring for the needs of
todays customers and has concern fortomorrows customers and the broader
world
The Sustainable Company
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20 35Copyright 2012 Pearson Education Inc
All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
Copyright 2012 Pearson Education, Inc.
Publishing as Prentice Hall