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Marketing Ethics and
Social Responsibility
Chapter 20
Sustainable Marketing
20- 2
Social Criticisms of Marketing
Marketing’s Impact on Individual Consumers High Prices
High costs of distribution
High advertising & promotion costs
Excessive markups
20- 3
Social Criticisms of Marketing
Marketing’s Impact on Individual Consumers Deceptive Practices
Pricing Promotion Packaging
High-Pressure Selling
20- 4
Social Criticisms of Marketing
Marketing’s Impact on Individual Consumers Inferior, Poor, or Unsafe
Products Planned
Obsolescence Poor Service to
Disadvantaged Consumers
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Planned obsolescence
20- 6
Social Criticisms of Marketing
Marketing’s Impact on Society as a Whole False Wants and
Too Much Materialism
Too Few Social Goods
Cultural Pollution Too Much Political
Power
20- 7
Social Criticisms of Marketing
Marketing’s Impact on Other Businesses Acquisitions of
Competitors Marketing
Practices Creating Barriers
to Entry
20- 8
Slotting fees are charged by retailers for manufacturers to place a new product in their stores or to keep existing products on the shelves.These fees can be as high as $30,000 per brandSlotting fees cause a barrier to entry for smaller manufacturers
Social Criticisms of Marketing
20 - 8
20- 9
Citizen & Public Actions to Regulate Marketing
Public Actions to Regulate Marketing Major legal issues affect every area of
marketing management, including: Selling and advertising decisions Channel decisions Product decisions Packaging decisions Price decisions Competitive reaction decisions
Business actions toward sustainable marketingConsumer oriented marketing
Customer value marketing
Innovative marketing
Sense of mission marketing
Societal marketing
20- 11
Business Actions Toward Socially
Responsible Marketing
Enlightened Marketing Customer-Oriented Marketing:
Companies view and organize their marketing activities from the consumer’s point of view.
Innovative Marketing: Companies seek real product and
marketing improvements.
20- 12
Business Actions Toward Socially
Responsible Marketing
Enlightened Marketing Value Marketing:
Companies put most of their resources into value-building marketing investments.
Sense-of-Mission Marketing: Companies define their mission in
broad social terms.
20- 13
Business Actions Toward Socially
Responsible Marketing
Enlightened Marketing Societal Marketing:
Companies make marketing decisions by considering consumers’ wants, the
company’s requirements, consumers’ long-run interests, and society’s long-run interests.
20- 14
Societal Classifications of Products
20 - 14