Chapter 20: Marketing and Society: Social Responsibility and Marketing Ethics

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.
 
 

 

Please Open The Following Figures In Different Windows and Leave Them Open:

Animated Figure 20-1 , Animated Figure 20-3

 

Case Study

Ben & Jerry’s ... The Body Shop
  • •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
 

 

Case Study

Ben & Jerry’s ... The Body Shop
  • •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: 
  1. §What you sell is important
  2. §Be proud to be in business
  3. §Make a solid commitment to change
  4. §Focus on two bottom lines
  5. §Forget the hype  

 

 

Social Criticisms of Marketing
•Marketing’s Impact on Individual Consumers
  • §High Prices
  • v High costs of distribution
  • v High advertising and promotion costs
  • v Excessive markups
 
 

 

Social Criticisms of Marketing
Marketing’s Impact on Individual Consumers
  • §Deceptive Practices
  1. v Pricing
  2. v Promotion
  3. v Packaging
  • §High-Pressure Selling

 

 

Social Criticisms of Marketing
Marketing’s Impact on Individual Consumers
  • §Shoddy or Unsafe Products
  • §Planned Obsolescence
  • §Poor Service to Disadvantaged Consumers
 

 

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
 
 

 

Social Criticisms of Marketing
•Marketing’s Impact on Other Businesses
  • §Acquisitions of Competitors
  • §Marketing Practices
  • §Creating Barriers to Entry
 

 

Citizen & Public Actions to Regulate Marketing
•Consumerism
  • §Traditional Seller’s Rights
  • §Traditional Buyer’s Rights
  • §Additional Rights Proposed by Consumer Advocates
  1. v Each proposed right has led to more
     specific proposals by consumerists
 
 

 

Citizen & Public Actions to Regulate Marketing
•Environmentalism
  • §Environmental Sustainability
  1. v Pollution prevention
  2. v Product stewardship
  3. v New environmental technology
  4. v Sustainability vision
 
 

 

Citizen & Public Actions to Regulate Marketing
•Public Actions to Regulate Marketing
  • §Major legal issues affect every area of marketing management, including:
  1. v Selling and advertising decisions
  2. v Channel decisions
  3. v Product decisions
  4. v Packaging decisions
  5. v Price decisions
  6. v Competitive reaction decisions
 
 

 

Business Actions Toward Socially Responsible Marketing

Enlightened Marketing
  • •Consumer-Oriented Marketing
  • •Innovative Marketing
 

 
  • •Value Marketing
  • •Societal Marketing
  • •Sense-of-Mission Marketing
 

 

 

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:
  • v Companies seek real product and marketing improvements.
 
 

 

Business Actions Toward Socially Responsible Marketing
Enlightened Marketing
  • §Value Marketing:
  • v 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.
 

 

 

Business Actions Toward Socially Responsible Marketing
Enlightened Marketing
  • §Societal Marketing:
  • v Companies make marketing decisions
     by considering consumers’ wants, the 
     company’s requirements, consumers’
     long-run interests, and society’s long-run interests.
 

 

 

Business Actions Toward Socially Responsible Marketing
Enlightened Marketing
  • §Societal Classification of Products
  1. v Deficient products
  2. v Pleasing products
  3. v Salutary products
  4. v Desirable products
 

 

 

Business Actions Toward Socially Responsible Marketing
•Marketing Ethics
  • §Corporate Marketing Ethics Policies
  • §Guiding Principle in Policy Determination
  1. v Free market and legal system
  2. v Individual companies and managers
  • §International Ethical Policies are a Special Challenge
 
 

Chapter 20: Marketing and Society: Social Responsibility and Marketing Ethics

Study Guide
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Study Guide
  • Concepts Challenge

 

 
  • Chapter Outline

 

 

 
  • Video Case

 

 
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Chapter 20: Marketing and Society: Social Responsibility and Marketing Ethics

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