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Copyright 2005 Pearson Education Inc.

Marketing and Society: Social Responsibility


and Marketing Ethics
Chapter 4
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Principles of Marketing, Sixth Canadian Edition

Learning Objectives

4.2

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After studying this chapter, you should be able to:


Understand marketings multiple responsibilities, and identify
the major social and ethical criticisms of marketing
Define consumerism and environmentalism and explain how
they affect marketing strategies
Describe the principles of socially
responsible marketing
Explain the role of ethics in
marketing

Principles of Marketing, Sixth Canadian

Copyright 2005 Pearson Education Inc.

Lessons for Socially Responsible Companies

4.3

What you sell is important


Be proud to be in business
Make a solid commitment to change
Focus on two bottom lines
Forget the hype

Source: Thea Singer, Can Business Still Save the World?


Inc., April 30, 2001, pp58-71; and MEC website, www.mec.ca

Table 4.1

Principles of Marketing, Sixth Canadian

Marketings Impact on Individual Consumers 4.4

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High prices:
High costs of distribution
High advertising and promotion costs
Excessive markups

Deceptive practices:
Pricing, promotion, packaging, and telephone fraud

High pressure selling


Shoddy or unsafe products
Planned obsolescence
Poor service to disadvantaged consumers

Principles of Marketing, Sixth Canadian

Copyright 2005 Pearson Education Inc.

Marketings Impact on Society as a Whole

4.5

False wants and too much materialism


Too few social goods
Cultural pollution
Too much political power

Principles of Marketing, Sixth Canadian

Marketings Impact on Other Businesses

4.6

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Acquisition of competitors reduces competition


Marketing practices create barriers to entry
High promotional spending
Abuse of patent protection

Unfair competitive marketing


practices
Predatory pricing
Supplier relations

Principles of Marketing, Sixth Canadian

Sellers Versus Consumers Rights


Consumers rights:

Sellers rights:
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4.7

To introduce products of
different styles and sizes,
provided they are not
hazardous
To set its own prices,
provided no
discrimination occurs
To spend to promote the
product
To use any product
message, provided it is
not misleading
To use buying incentives

To choose
To be informed
To safety
To be heard
To redress
To consumer education
To participate in
marketplace decision
making
To have access to basic
services
To a sustainable
environment

Principles of Marketing, Sixth Canadian

Environmentalism

4.8

Copyright 2005 Pearson Education Inc.

Environmentalism:
An organized movement of concerned citizens and government
agencies
To protect and improve peoples living environment

Environmental sustainability:
Management approach
Develop strategies that both
sustain the environment and
Produce profits for the company

Principles of Marketing, Sixth Canadian

Socially Responsible Marketing

4.9

Copyright 2005 Pearson Education Inc.

Enlightened marketing:
Consumer-oriented marketing
Innovative marketing
Value marketing
Sense-of-mission marketing
Societal marketing

Principles of Marketing, Sixth Canadian

Ethical Issues Associated with Marketing Practice

4.
10

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Marketing research:

Invalid or unreliable research studies


Invasion of consumer privacy, not respecting confidentiality
Disguising sales as research
Failure to secure voluntary and informed participation
Competitive intelligence gathering

Segmentation/target marketing:
Redlining: discriminating against poor
or disadvantaged consumers
Targeting inappropriate products to
vulnerable audiences
Table 4.2

Principles of Marketing, Sixth Canadian

Ethical Issues Associated with Marketing Practice

4.
11

Copyright 2005 Pearson Education Inc.

Positioning:
Making socially undesirable products more desirable
Positioning on questionable benefits

Product:
Marketing unsafe products
Product testing: on animals or insufficient testing to
reveal safety concerns
Marketing socially controversial products

Packaging and labelling:


Actual versus apparent size
Misleading or inadequate information
Excessive or environmentally-unfriendly packaging

Table 4.2

Principles of Marketing, Sixth Canadian

Ethical Issues Associated with Marketing Practice

4.
12

Copyright 2005 Pearson Education Inc.

Pricing:

Collusion with competitors


Negative option billing
Prejudice in negotiated prices
Price discrimination

Advertising:
Sex role stereotyping
Dehumanizing images and portraying people
as products
Bait-and-switch advertising
Table 4.2

Principles of Marketing, Sixth Canadian

Ethical Issues Associated with Marketing Practice

4.
13

Copyright 2005 Pearson Education Inc.

Sales and channel management:


High pressure sales tactics
Unfairly disparaging competitors goods
Channel loading

Table 4.2

Principles of Marketing, Sixth Canadian

4.
14

Some Morally Difficult Situations in Marketing

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You are considering hiring a product manager who just left a competitors
company. She would be more than happy to tell you all the competitors
plans for the coming year. What do you do?
You have a chance to win a big account that will mean a lot to you and your
company. The purchasing agent hints that a gift would influence the
decision. Your assistant recommends sending a fine colour television set to
the buyers home. What do you do?
You are interviewing a capable woman applicant for a job as a salesperson.
She is better qualified than the men just interviewed. Nevertheless, you
know that some of your important customers prefer dealing with men, and
you will lose some sales if you hire her. What do you do?
You are a sales manager in an encyclopedia company. Your competitors
salespeople are getting into homes by pretending to take a research survey.
After they finish the survey, they switch to their sales pitch. This technique
seems to be very effective. What do you do?
Table 4.3

Principles of Marketing, Sixth Canadian

In Conclusion

4.
15

Copyright 2005 Pearson Education Inc.

The learning objectives for this chapter were:


Understand marketings multiple responsibilities and identify
the major social and ethical criticisms of marketing
Define consumerism and environmentalism and explain how
they affect marketing strategies
Describe the principles of socially
responsible marketing
Explain the role of ethics in
marketing

Principles of Marketing, Sixth Canadian