Lecture fundamentals of marketing - Lecture 31: Sustainable marketing social responsibility and ethics

After studying this chapter you will be able to understand: Sustainable marketing, social criticisms of marketing, consumer actions to promote sustainable marketing, business actions toward sustainable marketing, marketing ethics, the sustainable company.

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Publishing as Prentice Hall

Sustainable Marketing Social Responsibility and

Ethics

LECTURE31

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§ Sustainable Marketing

§ Social Criticisms of Marketing

§ Consumer Actions to Promote Sustainable Marketing

§ Business Actions Toward Sustainable

Marketing

§ Marketing Ethics

§ The Sustainable Company

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Meeting needs of consumers while

preserving the ability of future generations to meet their needs

Sustainable Marketing

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Social Criticisms of Marketing

• Marketing’s Impact on Individual Consumers

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Social Criticisms of Marketing

Marketing’s Impact on Individual Consumers High Cost of Distribution

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Social Criticisms of Marketing

§ 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

• Marketing’s Impact on Individual

Consumers Deceptive Practices

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§ 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

Consumers Deceptive Practices

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High-Pressure Selling

Consumers

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Shoddy, Harmful, or Unsafe Products

Consumers - Deceptive Practices

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Planned Obsolescence

• Marketing’s Impact on Individual Consumers

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Poor Service to Disadvantaged Consumers

Consumers

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False Wants and Too Much Materialism

• Marketing’s Impact on Society as a Whole

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Too Few Social Goods

• Marketing’s Impact on Society as a Whole

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Cultural Pollution

• Marketing’s Impact on Society as a

Whole

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§ Acquisition of competitors

§ Unfair competitive marketing practices

• Marketing’s Impact on Other Businesses

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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

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§ 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

• Consumerism

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§ 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

• Consumerism

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Environmentalism is an organized

movement of concerned citizens, businesses, and government agencies to protect and improve people’s living

environment

Environmental sustainability is getting

profits while helping to save the planet

Environmentalism

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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

• Environmentalism

• Environmental Sustainability

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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

• Environmentalism

• Environmental Sustainability

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• Public Actions to Regulate marketing

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Business Actions Toward Sustainable

Marketing

• Sustainable Marketing Principles

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Business Actions Toward Sustainable Marketing

§ View marketing activities from the

consumer's point of view

§ Deliver superior value

• Consumer-Oriented Marketing

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§ Invest in customer-value building

marketing

§ Create value FOR customers

• Customer-Value Marketing

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§ Company seeks real product and marketing improvements

• Innovative Marketing

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§ Define mission in broad social terms rather than narrow product terms

• Sense-of-Mission Marketing

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• Societal Marketing

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Business Actions Toward Socially Responsible Marketing

Corporate marketing ethics 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

• Marketing Ethics

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§ Who should guide companies?

§ The free market and the legal system?

§ Individual companies and managers?

• Marketing Ethics

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§ Goes beyond caring for the needs of

today’s customers and has concern for tomorrow’s customers and the broader

world

• The Sustainable Company

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Bibliography

Fifteenth Edition, Published by Prentice Hall

by Philip Kotler, Kevin Lane Keller, Abraham Koshy &

Mithileshwar Jha, 13th Edition, Published by Pearson

Education, Inc.

edition, McGraw Hill International.

Edition, Published by McGraw-Hill Irwin.

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The End

“Take care of your reputation It’s your most valuable asset”

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