Sustainable Marketing

Social Responsibility and

Ethics
CHAPTER :7
Sustainable Marketing

Meeting present needs of

consumers and businesses
while also preserving or
enhancing the ability of
future generations to meet
their needs
Sustainable Marketing

Figure 20.1
Social Criticisms of Marketing
Marketing’s Impact on Individual Consumers

High Prices

Deceptive Practices

High-Pressure Selling

Shoddy, Harmful or Unsafe Products

Planned Obsolescence
Poor Service to Disadvantaged
Consumers
Social Criticisms of Marketing
Marketing’s Impact on Individual
Consumers
High Cost of Distribution

Complaint: Response:

• Prices are too high due to • Intermediaries are

high costs of: important and offer value
• Distribution • Advertising informs buyers
• Advertising and of availability and merits of
promotion a brand
• Excessive mark-ups • Consumer’s don’t
understand the cost of
doing business
Social Criticisms of Marketing
Marketing’s Impact on Individual Consumers
Deceptive Practices

Complaint: Companies use deceptive

practices that lead customers to believe
they will get more value than they
actually do. These practices fall into
three categories:
 Deceptive pricing
 Deceptive promotion
 Deceptive packaging
Social Criticisms of Marketing

Marketing’s Impact on Individual Consumers

Deceptive Practices
Response:
Support Legislation to protect consumers
from deceptive practices
Make lines clear—Is it deception, alluring, or
puffery that is just an exaggeration for
effect?
 Products that are harmful
 Products that provide little benefit
 Products that are not made well
Social Criticisms of Marketing
Marketing’s Impact on Individual
Consumers
Deceptive Practices

High-Pressure Selling

Complaint: Response:

• Salespeople use high- • Most selling involves

pressure selling that building long-term
persuade people to buy relationships and valued
goods they had no customers.
intention of buying. • High-pressure or deceptive
selling can damage these
relationships.
Social Criticisms of Marketing
Marketing’s Impact on Individual
Consumers
Deceptive Practices
Shoddy, Harmful, or Unsafe Products

Complaint: Response:

• Products have poor • Good marketers realize

quality, provide little there is no value in
benefit, and can be marketing shoddy,
harmful harmful, or unsafe
products.
Social Criticisms of Marketing
Marketing’s Impact on Individual Consumers
Deceptive Practices

Planned Obsolescence

Complaint: Response:

• Producers cause their • Planned obsolescence is

products to become really the result of
obsolete and change competitive market forces
consumers’ concepts of leading to ever-improving
acceptable styles to goods and services.
encourage more and • Customer customers like
earlier buying. style changes and want
the latest innovations
Social Criticisms of Marketing
Marketing’s Impact on Society as a Whole

False wants and too much materialism

Too few social goods

Cultural pollution
Social Criticisms of Marketing

Marketing’s Impact on Society as a Whole

False Wants and Too Much Materialism

Complaint: Response:

• The marketing system urges too • People do have strong defenses

much interest in material against advertising and other
possessions. People are judged marketing tools. Marketers are
by what they own rather than most effective when they
who they are, creating false appeal to existing wants rather
wants that benefit industry more than creating new ones. The
than they benefit consumers. high failure rate of new
products shows that companies
cannot control demand.
Social Criticisms of Marketing

Marketing’s Impact on Society as a Whole

Too Few Social Goods

Complaint: Response:

• Businesses oversell private • There needs to be a balance

goods at the expense of public between private and public
goods and require more public goods.
goods to support them. • Producers should bear full
social costs of their operations.
• Consumers should pay the
social costs of their purchases.
Social Criticisms of Marketing

Marketing’s Impact on Society as a Whole

Cultural Pollution

Complaint: Response:

• Marketing and advertising • Marketing and advertising are

create cultural pollution planned to reach only a target
audience, and advertising
makes radio and television free
to users and helps to keep
down the costs of newspapers
and magazines. Today’s
consumers have alternatives to
avoid marketing and
advertising from technology.
Social Criticisms of Marketing

Marketing’s Impact on Other Businesses

Marketing practices can haram other companies and reduce competition. Two problem are
involved

 Acquisition of competitors
 Unfair competitive marketing practices
Response
 Firm are harm and competition reduced when companies expand by
acquiring competitors rather than by developing their own new product.
 For Unfair marketing practices there are various laws work to prevent such
predatory competitions .
Consumer Actions to Promote Sustainable
Marketing

Consumerism is the organized movement of citizens and

government agencies to improve the rights and power of
buyers in relation to sellers
Traditional seller rights include
 The right to introduce any product in any size and style .
 The right to charge any price for the product provided no
discrimination exist among similar kind of buyer.
 Right to spend any amount on the product provided it not
defined as unfair competition
 The right to use any product message provided it not
misleading or dishonest in content .
Consumer Actions to Promote Sustainable
Marketing
Consumerism

Traditional buyers’ rights include:

 The right 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 seller’s side. Buyer has
to little information ,education and protection to
make wise decision when facing sophisticated.
Consumer Actions to Promote Sustainable
Marketing
Consumerism

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
Consumer Actions to Promote
Sustainable Marketing

Environmentalism is an organized movement of

concerned citizens, businesses, and
government agencies to protect and improve
people’s living environment
Consumer Actions to Promote Sustainable
Marketing
Environmentalism

 Environmental sustainability is getting profits while helping

to save the planet
Consumer Actions to Promote Sustainable
Marketing
Environmentalism
Environmental Sustainability
 Pollution prevention
 Product stewardship
 Design for environment (DFE)
 New clean technologies
 Sustainability vision
Consumer Actions to Promote Sustainable
Marketing
Environmentalism
Environmental Sustainability

Pollution prevention involves not just cleaning up waste but

also eliminating or minimizing waste before it is created

Product stewardship involves minimizing the pollution from

production and all environmental impact throughout the
full product life cycle

Design for environment (DFE) involves thinking ahead to

design products that are easier to recover, reuse, or
recycle
Consumer Actions to Promote Sustainable
Marketing
Environmentalism
Environmental Sustainability
New clean technologies involve looking ahead and planning
new technologies for competitive advantage

Sustainability vision is a guide to the future that shows the

company that the company’s products, process, and
policies must evolve and what is needed to get there