1. Marketing and Society:
Social Responsibility and
Marketing Ethics
Chapter 20Chapter 20

2. 16 - 2
Road Map: Previewing the
Concepts
• Identify the major social criticisms ofIdentify the major social criticisms of
marketing.marketing.
• DefineDefine co nsum e rismco nsum e rism andand
e nviro nm e ntalisme nviro nm e ntalism and explain how theyand explain how they
affect marketing strategies.affect marketing strategies.
• Describe the principles of sociallyDescribe the principles of socially
responsible marketing.responsible marketing.
• Explain the role of ethics in marketing.Explain the role of ethics in marketing.

3. 16 - 3
Criticisms of Marketing
• High pricesHigh prices
• Deceptive practicesDeceptive practices
• High-pressure sellingHigh-pressure selling
• Shoddy or unsafe productsShoddy or unsafe products
• Planned obsolescencePlanned obsolescence
• Poor service to disadvantagedPoor service to disadvantaged
consumersconsumers

4. 16 - 4
High Prices
• Caused by:Caused by:
 High costs of distributionHigh costs of distribution
 High advertising and promotionHigh advertising and promotion
costscosts
 Excessive markupsExcessive markups

5. 16 - 5
Deceptive Practices
• Deceptive Pricing:Deceptive Pricing:
 Falsely advertising “factory” or “wholesale”Falsely advertising “factory” or “wholesale”
prices or large reductions from phony highprices or large reductions from phony high
retail list prices.retail list prices.
• Deceptive Promotion:Deceptive Promotion:
 Overstating a product’s features orOverstating a product’s features or
performance, running rigged contests.performance, running rigged contests.
• Deceptive Packaging:Deceptive Packaging:
 Exaggerating package contents through subtleExaggerating package contents through subtle
design, using misleading labeling, etc.design, using misleading labeling, etc.

6. 16 - 6
High-Pressure Selling
• Salespeople are trained toSalespeople are trained to
deliver smooth, canned talks todeliver smooth, canned talks to
entice purchase.entice purchase.
• Hard sales can occur because ofHard sales can occur because of
prizes going to top sellers.prizes going to top sellers.
• High-pressure selling not goodHigh-pressure selling not good
for long-term relationships.for long-term relationships.

7. 16 - 7
Shoddy or Unsafe Products
• Products not made well or serviceProducts not made well or service
not performed well.not performed well.
• Products deliver little benefit or canProducts deliver little benefit or can
be harmful.be harmful.
• Unsafe products due to manufacturerUnsafe products due to manufacturer
indifference, increased productionindifference, increased production
complexity, poorly trained labor, andcomplexity, poorly trained labor, and
poor quality control.poor quality control.

8. 16 - 8
Planned Obsolescence
• Products needing replacementProducts needing replacement
before they should be obsolete.before they should be obsolete.
• Producers change consumerProducers change consumer
concepts of acceptable styles.concepts of acceptable styles.
• Intentionally holding backIntentionally holding back
attractive functional features,attractive functional features,
then introducing them later tothen introducing them later to
make old model obsolete.make old model obsolete.

9. 16 - 9
Poor Service to
Disadvantaged Consumers
• Poor may pay more for inferiorPoor may pay more for inferior
goods.goods.
• ““Redlining” may occur inRedlining” may occur in
disadvantaged neighborhoods.disadvantaged neighborhoods.
• Higher insurance premiums toHigher insurance premiums to
people with poor credit ratings.people with poor credit ratings.
• ““Weblining” can occur.Weblining” can occur.

10. 16 - 10
Marketing’s Impact on
Society as a Whole
• False wants and too muchFalse wants and too much
materialism.materialism.
• Producing too few social goods.Producing too few social goods.
• Cultural pollution.Cultural pollution.
• Too much political power.Too much political power.

11. 16 - 11
Marketing’s Impact on
Other Businesses
• Acquisitions of competitors.Acquisitions of competitors.
• Marketing practices that createMarketing practices that create
barriers to entry.barriers to entry.
• Unfair competitive marketingUnfair competitive marketing
practices.practices.

12. 16 - 12
Consumerism
• Consumerism is an organizedConsumerism is an organized
movement of citizens andmovement of citizens and
government agencies to improvegovernment agencies to improve
the rights and power of buyers inthe rights and power of buyers in
relation to sellers.relation to sellers.

13. 16 - 13
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 for 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 misleading or dishonest in content or
execution.
• The right to use any buying incentive schemes,
provided they are not unfair or misleading.

14. 16 - 14
Buyers’ Rights
• 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.
• The right to be protected against
questionable products and marketing
practices.
• The right to influence products and
marketing practices in ways that will
improve “quality of life.”

15. 16 - 15
Environmentalism
• An organized movement ofAn organized movement of
concerned citizens andconcerned citizens and
government agencies togovernment agencies to
protect and improve people’sprotect and improve people’s
living environment.living environment.

16. 16 - 16
Environmental
Sustainability
• A management approach thatA management approach that
involves developing strategiesinvolves developing strategies
that both sustain thethat both sustain the
environment and produce profitsenvironment and produce profits
for the company.for the company.

17. 16 - 17
Enlightened Marketing
• A marketing philosophy holdingA marketing philosophy holding
that a company’s marketingthat a company’s marketing
should support the best long-runshould support the best long-run
performance of the marketingperformance of the marketing
system.system.

18. 16 - 18
Enlightened Marketing
• Consumer-Oriented Marketing:Consumer-Oriented Marketing:
 The philosophy of enlightenedThe philosophy of enlightened
marketing that holds that themarketing that holds that the
company should view and organizecompany should view and organize
its marketing activities from theits marketing activities from the
consumer’s point of view.consumer’s point of view.

19. 16 - 19
Enlightened Marketing
• Innovative Marketing:Innovative Marketing:
 A principle of enlightenedA principle of enlightened
marketing that requires that amarketing that requires that a
company seek real product andcompany seek real product and
marketing improvements.marketing improvements.

20. 16 - 20
Enlightened Marketing
• Value Marketing:Value Marketing:
 A principle of enlightenedA principle of enlightened
marketing that holds that amarketing that holds that a
company should put most of itscompany should put most of its
resources into value-buildingresources into value-building
marketing investments.marketing investments.

21. 16 - 21
Enlightened Marketing
• Sense-of-Mission Marketing:Sense-of-Mission Marketing:
 A principle of enlightenedA principle of enlightened
marketing that holds that amarketing that holds that a
company should define its missioncompany should define its mission
in broad social terms rather thanin broad social terms rather than
narrow product terms.narrow product terms.

22. 16 - 22
Marketing Ethics
• Corporate Marketing Ethics Policies:Corporate Marketing Ethics Policies:
 Broad guidelines that everyone in theBroad guidelines that everyone in the
organization must follow.organization must follow.
• These should cover:These should cover:
 Distributor relationsDistributor relations
 Advertising standardsAdvertising standards
 Customer serviceCustomer service
 PricingPricing
 Product developmentProduct development
 General ethical standardsGeneral ethical standards

23. 16 - 23
Marketing Ethics
• What principle should guideWhat principle should guide
companies and marketingcompanies and marketing
managers on issues of ethicsmanagers on issues of ethics
and social responsibility?and social responsibility?
 Free market and legal systemFree market and legal system
 Responsibility falls to individualResponsibility falls to individual
companies and managerscompanies and managers

24. 16 - 24
Rest Stop: Reviewing the Concepts
1.1. Identify the major social criticisms ofIdentify the major social criticisms of
marketing.marketing.
2.2. DefineDefine co nsum e rismco nsum e rism andand
e nviro nm e ntalisme nviro nm e ntalism and explain how theyand explain how they
affect marketing strategies.affect marketing strategies.
3.3. Describe the principles of sociallyDescribe the principles of socially
responsible marketing.responsible marketing.
4.4. Explain the role of ethics in marketing.Explain the role of ethics in marketing.