Social Criticism of Marketing

Marketing
- is the process of communicating the value of a product or service to
customers, for the purpose of selling that product or service.
From a societal point of view, marketing is the link between a societys
material requirements and its economic patterns of response.
Marketing satisfies these needs and wants through exchange processes and
building long term relationships
Marketing and Its Impact on
Individual Consumers
Society as a whole
Other Businesses

Marketings Impact on Individual Consumers

Consumers have many concerns about how well the American marketing
system serves their interests. Surveys usually show that consumers hold
mixed or even slightly unfavourable attitudes toward marketing practices.
Consumer advocates, government agencies, and other critics have accused
marketing of harming consumers through high prices, deceptive practices;
high-pressure selling, shoddy or unsafe products, planned obsolescence, and
poor service to disadvantaged consumers. Such questionable marketing

practices are not sustainable in terms of long term consumer or business

welfare.
High Prices
Many critics charge that the American marketing system causes prices
to be higher than they would be under more sensible systems. Such high
prices are hard to swallow, especially when the economy takes a downturn.
Critics point three factors--- high costs of distribution, high advertising
and promotion costs, and excessive mark-ups.
1. High Cost of Distribution
Advantages

Too many intermediaries

Disadvantages

More convenience
Larger stores and

2. High Advertising & Promotion Costs

assortments
More service
Longer store hours

Advantages

Disadvantages

much of the packaging and

adds value in informing potential

promotion adds only

buyers of availability and merits of

psychological, not functional value

brand

to the product

3. Excessive Mark-ups

Advantages
Excessive mark-ups
Consumer abuse (e.g.

Disadvantages

To cover costs

Funeral services)
(e.g. Pharmaceutical mark-ups:
R&D etc)

Deceptive Practices
Deceptive Pricing - factory price or wholesale price
Deceptive Promotion- misrepresentation of products features, bargain that
is out of stock
Deceptive Packaging- exaggerated package contents

The government should take charge on regulating such practices. Here in the
Philippines, we have the Department of Trade and Industry, Bureau of Food
and Drugs, Islamic Dawah Counsil of the Philippines (Halal seal) and other
local government units that take responsibility for such regulation.

High Pressure Selling

Salespeople are sometimes accused of high-pressure selling that persuades
people to buy goods they had no thought of buying. Salespeople are trained
to deliver smooth, canned talks to entice purchase. They sell hard because
sales contests promise big prizes to those who sell the most.

But in most cases,

marketers have little gain from high-pressure

selling. Most selling involves building long term relations with valued
customers.
Harmful or Unsafe products
Product safety
Poor quality products
Little benefits or even harmful (ex: Hardees)

Planned Obsolescence
Critics

also

have

charged

that

some

companies

practice

planned

obsolescence, causing their products to become obsolete before they actually

should need replacement. (e.g. Fashion clothes, hi-tech gadgets)
Poor Service to Disadvantaged Consumers
-urban poor often have to shop in smaller stores that carry inferior goods,
charged with higher prices *
Red lining is the drawing of red line around disadvantaged neighbourhoods
and avoiding placing stores there.
Reverse Red lining instead of staying away, they target them.

Marketings Impact on Society as a whole

False wants and Too much Materialism

Aspiration Gap - the gap between what we have and what we want,
between the lifestyles we can afford and those to which we aspire.
Marketers tend to make us believe that what we WANT is what we NEED.
However, our wants and values are influenced not only by marketers but
also by family, peer groups, religion, cultural background & education.
Too Few Social Goods
Business has been accused of overselling private goods at the expense of
public goods (e.g. More cars, less roads)
To balance private and public goods:
To make producers bear full social costs. (higher pricing)

To make consumers pay. (toll gates)

Cultural Pollution
Advantages

Disadvantages

Commercials interrupt serious

programs.

Pages

of

Ads

obscure

Billboards

primarily

reach

audience.

(e.g.

the

target

Vogue

or

Fortune)

magazines

Marketers hope that their Ads

mar

beautiful

Ads make much of TV & radio

scenery

free for users & keep down

Spam fills our inboxes

the cost of newspapers &

magazines.

Marketings Impact on Other Business

Critics charge that a companys marketing practices can harm other

companies and reduce competition.
o Acquisition of competitors (buy out)
o Marketing practices that create barriers to entry (large companies vs
small companies)
o Unfair competitive marketing practices (below cost pricing)

PAMANTASAN NG LUNGSOD NG MAYNILA

PLM - GRADUATE SCHOOL OF MANAGEMENT

MASTER IN BUSINESS ADMINISTRATION

Social Criticism of Marketing

Submitted by:
Lacsamana, Edita Mara

Submitted to:
Professor Porfirio Tizon