Marketing Ethics andSocial Responsibility

Presented by:-

SWATI BATRA-176 SHILPI GARG-158 SHILPA SHARMA-157 VARHSA SAPRA-183 TISHA MAKKAR-179 VARUN MALHOTRA-184

Marketing Ethics
Marketing Ethics Marketing ethics is the area or applied ethics which deals with the moral principles behind the operation and regulation of marketing. Some area of marketing ethics cover a part of media ethics.

Two principles which guide companies and marketing managers on issues of ethics: (1) Free market (2) Legal system Social Conscience

(1) Free market and legal systemUnder this principle, companies and their managers are not responsible for making moral judgments.

(2) Social ConscienceUnder this principle, companies and their managers should apply high standard of ethics and morality when making corporate decisions.

SOCIAL CRITICISM OF MARKETING Social Criticisms of Marketing Social critics claim that marketing practices hurt individual consumers, Society as a whole and other business firms. Impact of Marketing:
Marketing impact on Individual consumers Marketing impact on Society as a whole Marketing impact on Other businesses

Marketing impact on Individual Consumers :

Marketing impact on Individual Consumers High Prices due to: High cost of distribution High advertising and promotion cost Excessive markups Misleading Practices High Pressure selling Harmful or Unsafe product Poor service to disadvantaged consumers

Marketing impact on Society as a whole: False wants and too much materialism
Too few social goods Cultural pollution Too much political power

Marketing impact on Other businesses :

Acquisition of competitors Creates barriers to entry Unfair competitive marketing practices

Citizen and public actions to regulate Marketing

Citizen and public actions to regulate Marketing Some movements have risen from time to time to keep business in line because some people view business as the cause of many economic and social ills. The two major movements have been:

Consumerism Environmentalism

1.

Consumerism-Consumerism Consumerism is an organized movement of citizens and government agencies to improve the rights and powers of buyers in relation to sellers. Traditional buyers rights:

The right to not to buy a product offered for sale. The right to expect product to be safe. The right to expect the product to perform as claimed.

Additional buyers rights:

The right to be well informed about the important aspect of product.
The right to be protected against questionable products and marketing practices.

Consumers have not only the right but also the responsibility to protect themselves instead of leaving this function to someone else. Consumers who believe they got a bad deal can contact company, media or consumer forums.

Traditional 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 of 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 dishonest and misleading in content or execution. The right to use any buying incentive programs, provided they are not unfair or misleading

2. EnvironmentalismEnvironmentalism is an organized movement of concerned citizens, businesses and government agencies to protect and improve peoples living environment. Most of the companies have responded with Green Marketing programs.

Companies are developing ecologically safer products, recyclable and biodegradable packaging, better pollution controls and more energy efficient operations.

Customer Value for Products with Environmental Benefit:

Over the next decade customers believe that the value for products with environmental benefits will go up, further proof of the long-term need for environmental benefits in products.

Business Actions toward Socially Responsible Marketing : At first many companies opposed

consumerism and environmentalism. They thought that the criticism were either unfair or unimportant. But by now, many of the companies have responded positively to them as a way to create greater customer value and strengthen customer relationships. Enlightened Marketing: A marketing philosophy holding that a companys marketing should support the best long run performance of the marketing system.

Five principles of Enlightened Marketing Continued..

Consumer-oriented Marketing: The philosophy of enlightened marketing that holds that the company should view and organize its marketing activities from the consumers point of view.

Customer-value Marketing: The principle holds that a company should put most of its resources into customer value building marketing investment.

Innovative Marketing: This principle requires that a

company seek real product and marketing improvements. Sense-of-mission Marketing: This principle holds that a company should define its mission in broad social terms rather than narrow product terms. Societal Marketing: This principle holds that a company should make marketing decisions by considering consumers wants, the companys requirements, consumers long run interests and societys long run interests.