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Copyright 2017 Pearson Education, Ltd.

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Learning Objectives
16-1. Define sustainable marketing and
discuss its importance.
16-2. Identify the major social criticisms
of marketing.
16-3. Define consumerism and
environmentalism and explain how
they affect marketing strategies.

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Learning Objectives
16-4. Describe the principles of
sustainable marketing.
16-5. Explain the role of ethics in
marketing.

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First Stop: Unilevers Knorr
Ways toward a Sustainable Future

Sustainable
methods of
cultivation also
ensure that
Knorr Chefs use
only the
best ingredients
for products.

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Learning Objective 16-1
Define sustainable marketing and
discuss its importance.

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Figure 16.1 - Sustainable
Marketing

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Sustainable Marketing

The McDonalds
Plan to Win
strategy has
created
sustainable
value for both
customers and
the company.
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Learning Objective 16-1
Summary
Sustainable marketing meeting present
needs while preserving the ability of future
generations to meet their needs
Sustainable marketing calls for socially and
environmentally responsible actions.
Sustainable marketing requires consumers,
companies, public policy makers, and others
to work together.

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Learning Objective 16-2
Identify the major social criticisms of
marketing.

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Social Criticisms of
Marketing

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Marketings Impact on
Individual Consumers
High prices
Deceptive practices
High-pressure selling
Shoddy, harmful, or unsafe products
Planned and perceived obsolescence
Poor service to disadvantaged
consumers

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Marketings Impact on
Individual Consumers

Lawsuits against 5-
Hour Energy drink
marketers allege that
the brand's advertising
is deceptive and
misleading.

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Marketings Impact on
Society as a Whole

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Marketings Impact on
Society as a Whole

The Center for a


New American
Dream urges
people to reject
buy more
messages.

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Marketings Impact on
Other Businesses
Acquisitions of competitors
Marketing practices that create
barriers to entry
Unfair competitive marketing practices

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Learning Objective 16-2
Summary
Major social criticisms of marketing
Impact on individual consumer welfare
Impact on society
Impact on other businesses

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Learning Objective 16-3
Define consumerism and
environmentalism and explain how
they affect marketing strategies.

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Traditional Rights
Sellers rights Buyers rights
To introduce any product in To buy a product that is
any size and style with offered for sale
proper warnings and
controls, if necessary
To charge any price for the To expect the product to be
product without any safe
discrimination
To spend any amount to To expect the product to
promote the product if perform as claimed
competing fairly
To use any product message
that is not misleading or
dishonest
To use buying incentive
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programs that areCopyright
not unfair
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Proposed Consumer Rights
To be well informed
To be protected against questionable
products and marketing practices
To influence products and marketing
practices to improve quality of life
To consume in a way to preserve the
world for future generations of
consumers

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Environmentalism
Protects and improves peoples
current and future living environment
Concerned with
Damage to the ecosystem
Loss of recreational areas
Increase in health problems
Environmental sustainability:
Generating profits while helping
protect the environment
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Figure 16.2 - Environmental
Sustainability and Sustainable
Value

Source: Stuart L. Hart, Innovation, Creative Destruction, and Sustainability, Research Technology Management, SeptemberOctober 2005, pp. 2127.

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Major Marketing Decision Areas
That May Be Called into Question
under the Law
Decision areas Legal issues
Selling decisions Bribing
Stealing trade secrets
Disparaging customers
Misrepresenting
Disclosure of customer rights
Unfair discrimination

Advertising False advertising


decisions Deceptive advertising
Bait-and-switch advertising
Promotional allowances and
services

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Major Marketing Decision Areas
That May Be Called into Question
under the Law
Decision areas Legal issues
Channel decisions Exclusive dealing
Exclusive territorial
distributorship
Tying agreements
Dealers rights
Competitive relations Anticompetitive acquisition
decisions Barriers to entry
Predatory competition
Product decisions Product additions and deletions
Patent protection
Product quality and safety
Product warranty

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Major Marketing Decision Areas
That May Be Called into Question
under the Law
Decision areas Legal issues
Packaging decisions Fair packaging and labeling
Excessive cost
Scarce resources
Pollution

Price decisions Price fixing


Predatory pricing
Price discrimination
Minimum pricing
Price increases
Deceptive pricing

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Learning Objective 16-3
Summary
Citizen action movements
Consumerism
Environmentalism
Companies are adopting policies of
environmental sustainability.

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Learning Objective 16-4
Describe the principles of sustainable
marketing.

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Sustainable Marketing
Principles

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Sustainable Marketing
Principles

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Figure 16.4 - Societal
Classification of Products

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Learning Objective 16-4
Summary
Five sustainable marketing principles:
Consumer-oriented marketing
Customer value marketing
Innovative marketing
Sense-of-mission marketing
Societal marketing

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Learning Objective 16-5
Explain the role of ethics in marketing.

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Marketing Ethics
Corporate marketing ethics policies
should be developed by firms as
guidelines for handling various issues
and dilemmas.
Distributor relations
Advertising standards
Customer service
Pricing
Product development
General ethical standards
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Marketing Ethics
Principles are needed to guide
companies and marketing managers
on issues of ethics and social
responsibility.
The free market and the legal system
should decide such issues.
Responsibility is in the hands of
individual companies and managers.
Addressing ethics helps build strong
customer relationships based on
honesty and trust.
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Ethical Norms Suggested by
the
American Marketing
Association
Do no harm
Foster trust in the marketing
system
Embrace ethical values

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The Sustainable Company
Sustainable companies create value
for customers through socially,
environmentally, and ethically
responsible actions.
Sustainable marketing provides the
context in which companies can build
profitable customer relationships.

Copyright 2017 Pearson Education, Ltd.


Learning Objective 16-5
Summary
Company policies and guidelines for
ethics utilize two principles:
The first principle states the free market
and the legal system should decide
such issues.
A more enlightened principle puts
responsibility in the hands of individual
companies and managers.
Sustainable marketing concept standards
personal integrity, corporate conscience,
and long-term consumer welfare
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Copyright 2017 Pearson Education, Ltd. 36
Learning Objectives
16-1. Define sustainable marketing and
discuss its importance.
16-2. Identify the major social
criticisms of marketing.
16-3. Define consumerism and
environmentalism and explain
how they affect marketing
strategies.

16 -
Copyright 2017 Pearson Education, Ltd. 37
Learning Objectives
16-4. Describe the principles of
sustainable marketing.
16-5. Explain the role of ethics in
marketing.

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Copyright 2017 Pearson Education, Ltd. 38