Marketing and Society: Social Responsibility and Marketing Ethics

MKT511
Marketing and Society:

Social Responsibility
and
Marketing Ethics
1
Marketing
Ethics
Ethics
Is the art and science of

determining good and bad
or right or wrong moral
behavior.
Marketing
• Is the process of
communicating the
value of a product or
service to customers,
for the purpose of
selling the product or
service.
Marketing Ethics
• is the area of applied

ethics which deals with
the moral principles
behind the operation
and regulation
of marketing.
why
• When an organization behaves

ethically, customers develop more
positive attitudes about the firm, its
products, and its services.
why
• To create values or trust with the
company.
why
• To build good
image about the
organization in
the minds of
costumer,
employee,
companies and
the society .
Learning Objectives
• Define sustainable marketing and discuss its importance.

• Identify the major social criticisms of marketing.
• Define consumerism and environmentalism and explain
how they affect marketing strategies.
• Describe the principles of sustainable marketing.
• Explain the role of ethics in marketing.
Copyright © 2018 Pearson Education Ltd. All Rights

Reserved.
Learning Objective 1
Define sustainable marketing and discuss its importance.

Reserved.
Sustainable Marketing
Sustainable marketing is socially and environmentally

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

Reserved.

Reserved.
Identify the major social criticisms of

marketing.

Reserved.
Social Criticisms of Marketing
Marketing’s Impact on Individual Consumers

Reserved.
Marketing’s Impact on Individual
Consumers
High Prices:

Reserved.
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

Reserved.
Marketing’s Impact on Individual
Consumers: Deceptive Practices
Deceptive Falsely Advertising “Factory” or

“Wholesale” Prices, Large Reduction
Pricing From Phony High List Price
Deceptive Overstating the Product’s Features,

Luring Customers to the Store for Out-of-
Promotion Stock Bargains, etc.
Deceptive Exaggerating Package Contents, Not

Filling Package to the Top, Using
Packaging Misleading Labeling
18
Deceptive practices:
Response: Support legislation to protect consumers from
deceptive practices
Make lines clear—is it deception, alluring imagery, or puffery
(exaggeration for effect)?
Products that are harmful
Products that provide little benefit
Products that are not made well

Reserved.
High pressure selling:

Reserved.
Social Criticisms of
Marketing
Shoddy, harmful, and unsafe products

Reserved.
Marketing
Planned obsolescence

Reserved.
Marketing
Poor service to disadvantaged consumers

Reserved.
Marketing
False wants and too much materialism

Reserved.
Marketing
Too few social goods

Reserved.
Marketing
Cultural pollution

Reserved.
Marketing
Marketing’s Impact on Other Businesses
Acquisition of competitors
Barriers to entry
Unfair competitive marketing practices

Reserved.
Define consumerism and environmentalism and explain

how they affect marketing strategies.

Reserved.
Consumer Actions to Promote
Consumerism is the organized movement of citizens and

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

Reserved.
Consumerism
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 seller’s side.

Reserved.
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

Reserved.
Environmentalism
Environmentalism is an organized movement of

concerned citizens, businesses, and government agencies to
protect and improve people’s living environment.
Environmental sustainability involves earning profits
while helping to save the planet.

Reserved.
Environmentalism
Environmental sustainability includes:
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.

Reserved.
Environmentalism
Environmental sustainability includes:
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, processes,
and policies must evolve and what is needed to get there.

Reserved.

Reserved.

Reserved.
Describe the principles of sustainable

marketing.

Reserved.
Business Actions Toward
Sustainable Marketing Principles

Reserved.
Consumer-Oriented Marketing
View marketing activities from the
consumer's point of view
Deliver superior value

Reserved.
Consumer-Value Marketing
Invest in customer-value-building
marketing
Create value FOR customers

Reserved.
Innovative Marketing
Company seeks real product and
marketing improvements

Reserved.
Sense-of-Mission Marketing
Define mission in broad social terms rather than narrow

product terms.

Reserved.
Societal Marketing

Reserved.
Explain the role of ethics in marketing.

Reserved.
Marketing Ethics and the
Sustainable Company
Marketing Ethics
Corporate marketing ethics policies 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.

Reserved.
Sustainable Company
Marketing Ethics
Who should guide companies?

 The free market and the legal system?
 Individual companies and managers?

Reserved.
Sustainable Company
The Sustainable Company

At the foundation of marketing is the belief that companies
that fulfill the needs and wants of customers will thrive.
Companies that fail to meet customer needs, or that
intentionally or unintentionally harm customers, others in
society, or future generations will decline.

Reserved.
Sustainable Company
The Sustainable Company
A sustainable company goes beyond caring for

the needs of today’s customers and has concern
for tomorrow’s customers and the broader world.

Reserved.

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MKT511

Marketing and Society:

Is the art and science of

• is the area of applied

• When an organization behaves

• Define sustainable marketing and discuss its importance.

Copyright © 2018 Pearson Education Ltd. All Rights

Copyright © 2018 Pearson Education Ltd. All Rights

Sustainable marketing is socially and environmentally

Copyright © 2018 Pearson Education Ltd. All Rights

Copyright © 2018 Pearson Education Ltd. All Rights

Identify the major social criticisms of

Copyright © 2018 Pearson Education Ltd. All Rights

Marketing’s Impact on Individual Consumers

Copyright © 2018 Pearson Education Ltd. All Rights

Copyright © 2018 Pearson Education Ltd. All Rights

Copyright © 2018 Pearson Education Ltd. All Rights

Deceptive Falsely Advertising “Factory” or

Deceptive Overstating the Product’s Features,

Deceptive Exaggerating Package Contents, Not

Marketing’s Impact on Individual Consumers

Copyright © 2018 Pearson Education Ltd. All Rights

High pressure selling:

Copyright © 2018 Pearson Education Ltd. All Rights

Copyright © 2018 Pearson Education Ltd. All Rights

Copyright © 2018 Pearson Education Ltd. All Rights

Copyright © 2018 Pearson Education Ltd. All Rights

False wants and too much materialism

Copyright © 2018 Pearson Education Ltd. All Rights

Copyright © 2018 Pearson Education Ltd. All Rights

Copyright © 2018 Pearson Education Ltd. All Rights

Marketing’s Impact on Other Businesses

Copyright © 2018 Pearson Education Ltd. All Rights

Define consumerism and environmentalism and explain

Copyright © 2018 Pearson Education Ltd. All Rights

Consumerism is the organized movement of citizens and

Copyright © 2018 Pearson Education Ltd. All Rights

 The right not to buy a product that is offered for

Comparing these rights, many believe that the balance of

Copyright © 2018 Pearson Education Ltd. All Rights

Copyright © 2018 Pearson Education Ltd. All Rights

Environmentalism is an organized movement of

Copyright © 2018 Pearson Education Ltd. All Rights

Pollution prevention involves not just cleaning up waste but also

Product stewardship involves minimizing the pollution from

Copyright © 2018 Pearson Education Ltd. All Rights

New clean technologies involve looking ahead and

Sustainability vision is a guide to the future that shows

Copyright © 2018 Pearson Education Ltd. All Rights

Copyright © 2018 Pearson Education Ltd. All Rights

Copyright © 2018 Pearson Education Ltd. All Rights

Describe the principles of sustainable

Copyright © 2018 Pearson Education Ltd. All Rights

Copyright © 2018 Pearson Education Ltd. All Rights

Deliver superior value

Copyright © 2018 Pearson Education Ltd. All Rights

Copyright © 2018 Pearson Education Ltd. All Rights

Copyright © 2018 Pearson Education Ltd. All Rights

Define mission in broad social terms rather than narrow