Download High Prices

16
Marketing and Society: Social
Responsibility and Marketing
Ethics
Criticisms of Marketing
High Prices
Criticisms Leveled
at the Marketing
Function by
Consumers, and
Others
Deceptive Practices
High-Pressure Selling
Shoddy, Unsafe Products
Planned Obsolescence
Poor Service to Some
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High Prices
High Prices Caused by the Following Factors
High
Advertising
and
Promotion
Costs
Excessive
Markups
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Deceptive Practices
Deceptive
Promotion
Falsely Advertising “Factory” or
“Wholesale” Prices, Large Reduction
From Phony High List Price
Overstating the Product’s Features,
Luring Customers to the Store for
Out-of-Stock Bargains, etc.
Exaggerating Package Contents, Not
Filling Package to the Top, Using
Misleading Labeling
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High-Pressure Selling
• Salespeople are trained to deliver smooth,
canned talks to entice purchase.
• Hard sales can occur because of prizes
going to top sellers.
• High-pressure selling
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Shoddy or Unsafe Products
• Products not made well or service not
performed well.
• Products deliver little benefit or can be
harmful.
• Unsafe products due to manufacturer
indifference, increased production
complexity, poorly trained labor, and poor
quality control.
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Planned Obsolescence
• Products needing replacement before they
should be obsolete.
• Producers change consumer concepts of
acceptable styles.
• Intentionally holding back attractive
functional features, then introducing them
later to make old model obsolete.
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Criticisms of Marketing
High Prices
Criticisms Leveled
at the Marketing
Function by
Consumers, and
Others
Deceptive Practices
High-Pressure Selling
Shoddy, Unsafe Products
Planned Obsolescence
Poor Service to Some
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Poor Service to Disadvantaged
Consumers
• Poor may pay more for inferior goods.
• “Redlining” may occur in disadvantaged
neighborhoods.
• Higher insurance premiums to people with
poor credit ratings.
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Marketing’s Impact on Society as
a Whole
False Wants & Too
Much Materialism
Too Much Political
Power
Producing Too Few
Social Goods
Cultural Pollution
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Marketing’s Impact on Other
Businesses
Marketing Practices That Create
Barriers to Entry
Unfair Competitive Marketing Practices
16-11
Consumerism
• Consumerism is an
organized movement
of citizens and
government agencies
to improve the rights
and power of buyers
in relation to sellers.
16-12
Consumerism: Sellers’ Rights
The right to introduce any product in any size and style, provided it is
not hazardous to personal health or safety; or, if it is, to include proper
warnings and controls.
The right to charge any price for the product, provided no discrimination
exists among similar kinds of buyers.
The right to spend any amount to promote the product, provided it is
not defined as unfair competition.
The right to use any product message, provided it is not misleading or
dishonest in content or execution.
The right to use any buying incentive schemes, provided they are not
unfair or misleading.
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Consumerism: Buyers’ Rights
The right not to buy a product that is offered for sale.
The right to expect the product to perform as claimed.
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 “quality of life.”
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Environmentalism
• An organized
movement of
concerned citizens
and government
agencies to protect
and improve
people’s living
environment.
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Environmental Sustainability
• A management
approach that
involves developing
strategies that both
sustain the
environment and
produce profits for
the company.
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Environmentalism
Have a
Sustainability
Vision
Plan for New
Environmental
Technologies
Practice
Pollution
Prevention
Adopt Design
for the
Environment
Practices
Practice
Product
Stewardship
16-17
Environmental Sustainability Grid
16-18
Legal Issues Facing Marketing Mgmt.
16-19
Enlightened Marketing
• A marketing philosophy holding that a
company’s marketing should support the
best long-run performance of the
marketing system.
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Enlightened Marketing
Holds That a Company’s Marketing Should Support the
Best Long-Run Performance of the Marketing System.
Innovative Marketing
Sense-of-Mission Marketing
Societal Marketing
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Enlightened Marketing
• Consumer-Oriented Marketing:
– The philosophy of enlightened marketing that
holds that the company should view and
organize its marketing activities from the
consumer’s point of view.
• Innovative Marketing:
– A principle of enlightened marketing that
requires that a company seek real product
and marketing improvements.
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Innovative Marketing
Colgate’s Total toothpaste is perhaps the best example of Colgate's
passion for innovation. The breakout brand provides a combination
of benefits, including cavity prevention, tartar control, fresh breath,
and long-lasting effects.
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Enlightened Marketing
• Value Marketing:
– A principle of enlightened marketing that
holds that a company should put most of its
resources into value-building marketing
investments.
• Sense-of-Mission Marketing:
– A principle of enlightened marketing that
holds that a company should define its
mission in broad social terms rather than
narrow product terms.
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Societal Classification of Products
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Marketing Ethics
Companies Need to Develop Corporate Marketing
Ethics Policies – Broad Guidelines That Everyone in
the Organization Must Follow and Should Address:
 Distributor Relations
 Advertising
 Pricing
 Product


Standards
Customer Service
Development
General Ethical
Standards
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Marketing Ethics
• What principle should guide companies
and marketing managers on issues of
ethics and social responsibility?
Free market and
legal system
Responsibility
falls to individual
companies and
managers
16-27
Final and Grading
• Final exam is on Friday June 10th, in the same room, at
9:50. Please remember your student ID card.
• Final exam will include the following chapters: 5, 9, 14,
12, 13, 15 and 16.
• 50 questions will be extracted from chapters 12, 13, 15
and 16. The other 25 questions will be from the
remaining chapters.
• As mentioned in the syllabus, you have the right to drop
your lowest exam score (Final not included), and one inclass assignment score. Your lowest scores will be
automatically dropped for you.
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