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CHAPTER
SIXTEEN
Marketing Ethics
and Social
Responsibility
Learning Objectives
1. Overall: To Understand the Meaning of Marketing
Ethics and Social Responsibility.
2. To Learn About Potential Unethical Marketing
Practices Involving Targeting Especially Vulnerable
or Unaware Consumers.
3. To Learn How Marketers Can Ambush Consumers
with Unexpected Ads, Tinker with Their
Perceptions, and Mislead Them.
4. To Understand How Marketers Can Advance
Society’s Interests via Such Practices as Advocating
Social Benefits.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Sixteen Slide 2
Why Is the Sponsor of This Ad Criticizing McDonald’s,
and What Business Concept Did McDonald’s Ignore by
Using Trans Fats?
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Sixteen Slide
3
McDonald’s Ignored Consumer’s Interests
and the Societal Marketing Concept.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Sixteen Slide
4
Societal Marketing Concept
“Marketers should endeavor to satisfy the needs
and wants of their target markets in ways that
preserve and enhance the well-being of
consumers and society as a whole, while
fulfilling the objectives of the organization”
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Sixteen Slide 5
Exploitive Targeting
•
•
•
•
Marketing to Children
Overaggressive Promotion
Selling Pharmaceuticals directly to consumers
The perils of precision targeting
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Sixteen Slide 6
Marketing to Children
• Guidelines by Children’s Advertising Review
Unit (CARU)
• Guidelines include:
– No misleading claims about product’s
performance or benefits
– Must not exploit children’s imagination
– Can not create unrealistic expectations
– Products must be shown in safe situation
– No encouragement of inappropriate behavior
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Sixteen Slide 7
Annual Exposure by Category and
Program Type - Figure 16.2
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Sixteen Slide 8
Discussion Questions
• Think back to when you were a kid.
– What products seemed more appealing in their ad
than in actuality. Why?
• As a student:
– What marketers try to sell you products that
might not be in your best interest?
– What marketing tactics do they use?
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Sixteen Slide 9
Overaggressive Promotion
• Recession due in
part to Americans’
rising credit and
easy credit to risky
groups
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Sixteen Slide 10
Selling Pharmaceuticals
Directly to Consumers
• Began in 1997
• Television, print, and
the Internet
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Sixteen Slide 11
The Perils Of Precision Targeting
• Narrowcasting
– Directed messages to small audiences
– Data providers support the marketers with
information
• GPS
– Cell phones and cars
– Gives marketers your location
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Sixteen Slide 12
Data Collection by Web Companies
Figure 16.3 – Part A
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Sixteen Slide 13
Data Collection by Web Companies
Figure 16.3 – Part B
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Sixteen Slide 14
Manipulating Consumers
•
•
•
•
•
Forced exposure to advertising
Tinkering with consumers’ perceptions
Covert marketing
Socially undesirable representations
False or misleading advertising
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Sixteen Slide 15
Forced Exposure To Advertising
• Product placement
• Advertorials
• Infomercials
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Sixteen Slide 16
Tinkering With Consumers’ Perceptions
• Increased consumption from:
– Organization of merchandise
– Size of package
– Symmetry of display
– Perceived variety of display
• Store Environments
• Relative Pricing
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Sixteen Slide 17
Covert Marketing
• Also called masked or stealth marketing
• Messages appear to be from independent
parties but are company driven.
• Disagreement as to whether they violate FTC
guidelines
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Sixteen Slide 18
A Typology of Masked Marketing Practices
Table 16.3
Practice
Description
Posers (disguised
communicator)
Actors or salespeople who pretend to be ordinary people or
researchers conducting a survey to explain product benefits
and give potential consumers the chance to examine,
sample, or use a product.
Buzz and viral
marketing (disguised
communicator)
Recruitment of people to talk about products through free
samples or discounts before the product is available to the
general public and suggestions on what to say and how to
approach people about the product. Some refer to this as
viral marketing when the contact with potential consumers
is done electronically.
Advertorials (disguised
format)
Advertisements that appear to be information from an
independent source, such as prepared television news
stories: infomercials that appear to be consumer television
shows; and print advertisements that appear to be editorial
content.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Sixteen Slide 19
A Typology Of Masked Marketing Practices
Table 16.3 (continued)
Practice
Description
Disguised monitoring of Use of invisible metatags by a marketer or the sale of
queries via search
priority by a search engine of the results from a particular
engines
query when the results are not identified as biased.
Urgent ad-formation
(disguised format)
Advertisements that appear in the form of important
account information from firms with an existing business
relationship, government notices, sweepstakes prize
notices, or checks that are simply discount coupons.
Advertainment
(disguised format)
Product and advertising placement in television shows, at
sporting events, and in video games.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Sixteen Slide 20
Discussion Questions
• Do you think covert marketing is wrong?
• Why might others have a different opinion
from you?
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Sixteen Slide 21
Socially Undesirable Representations
• Children’s Toys
– Barbie and G.I. Joe
• Thin models in the media
• Brands that promote violence
• Stereotypes
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Sixteen Slide 22
False or Misleading Advertising
•
•
•
•
Puffery
Truth-in-advertising laws
Deceptive advertising
Corrective advertising
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Sixteen Slide 23
Social Responsibility
•
•
•
•
Advocating socially beneficial causes
Cause-related marketing
Green marketing
Consumer ethics
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Sixteen Slide 24
Advocating Socially Beneficial Causes
• Not-for-profits
• Government agencies
• Consumer advocacy groups
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Sixteen Slide 25
What Is the Name and Meaning of the
Marketing Approach Featured in this Ad?
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Sixteen Slide 26
Advocating Socially Beneficial Causes or
To Promote Socially Desirable Behaviors
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Sixteen Slide 27
What Is the Ad’s Objective, and Why
Is the CSPI Sponsoring It?
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Sixteen Slide 28
It is Aimed at Educating Consumers About Unhealthy
Products at School –
The CSPI is a Consumer Advocacy Group
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Sixteen Slide 29
Cause-Related Marketing
• Contribute a portion of
revenues
• Good fit between cause
and company’s
positioning is important
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Chapter Sixteen Slide 30
Green Marketing
• Promoting of healthy, reusable, and
ecofriendly products
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Sixteen Slide 31
What Is the Name and Purpose of the Marketing
Practice Depicted in the Three Ads and How Did Each
of the Three Carmakers Featured Adopt This Practice?
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Sixteen Slide 32
Green Marketing
Better Mileage
Social Conscience
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Responsibility and Luxury
Chapter Sixteen Slide 33
Discussion Questions
• Do you make an effort to purchase green
products?
• If a product is better for the environment than
the alternative, are you more likely to
purchase the green product? Would you pay
more for the green product?
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Sixteen Slide 34
Measuring Consumers’ Attitudes Toward
Green Products – Table 16.4 (excerpt)
A Scale Measuring Consumers’ Attitudes Toward Green Products
I believe there are a lot of exaggerations about companies taking
environmental risks nowadays.
I believe the government is doing all that is possible to safeguard the
environment.
I believe that we should not slow down industry progress because of
concern for the environment.
I believe environmental safety is the responsibility of the government, not
individual citizens.
I believe that government legislation adequately regulates environmental
protection.
I believe a well-known brand is always a safe product to buy.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Sixteen Slide 35
Consumer Ethics
• Returning used product
• Software privacy
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Sixteen Slide 36
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 © 2010 Pearson Education, Inc. Publishing as
Prentice Hall
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Sixteen Slide 37