16-1 visit umt online at © umt 2004 mkt100version: 11-10-04 visit umt online at principles of...

16-1Visit UMT online at www.umtweb.edu© UMT 2004 MKT100Version: 11-10-04

Visit UMT online at www.umtweb.edu

PRINCIPLES OF PRINCIPLES OF MARKETINGMARKETING

University of Management and Technology1901 N. Fort Myer Drive

Arlington, VA 22209 USAPhone: (703) 516-0035

Fax: (703) 516-0985Website: www.umtweb.edu

16-2Visit UMT online at www.umtweb.edu© UMT 2004 MKT100Version: 11-10-04


CHAPTER 16:CHAPTER 16:Marketing and Society: Marketing and Society: Social Responsibility and Social Responsibility and Marketing EthicsMarketing Ethics

Armstrong, G. & Kotler, P. Marketing: An Armstrong, G. & Kotler, P. Marketing: An IntroductionIntroduction

(6th ed.) Prentice Hall © 2003.(6th ed.) Prentice Hall © 2003.

16-3Visit UMT online at www.umtweb.edu© UMT 2004MKT100

Visit UMT online at www.umtweb.eduVersion: 11-10-04


Road Map: Previewing the ConceptsRoad Map: Previewing the Concepts

Identify the major social 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.




Deceptive PracticesDeceptive Practices

High-Pressure SellingHigh-Pressure Selling

Shoddy, Unsafe ProductsShoddy, Unsafe Products

Planned ObsolescencePlanned Obsolescence

Poor Service to SomePoor Service to Some

Marketing’s Impact on Individual Marketing’s Impact on Individual ConsumersConsumers

Criticisms Leveled at the

Marketing Function by

Consumers, and Others

High PricesHigh Prices




High Costs of

Distribution

High Costs of

Distribution

High Advertising

and Promotion

Costs

High Advertising

and Promotion

Costs

High Prices Caused by the Following FactorsHigh Prices Caused by the Following Factors

ExcessiveMarkups

ExcessiveMarkups

Marketing’s Impact on Individual Marketing’s Impact on Individual Consumers: High PricesConsumers: High Prices




DeceptivePricing

DeceptivePricing

Falsely Advertising “Factory” or “Wholesale” Prices, Large

ReductionFrom Phony High List Price

Falsely Advertising “Factory” or “Wholesale” Prices, Large

ReductionFrom Phony High List Price

DeceptivePackagingDeceptivePackaging

Exaggerating Package Contents, Not Filling Package to the Top,

Using Misleading Labeling

Exaggerating Package Contents, Not Filling Package to the Top,

Using Misleading Labeling

Deceptive PromotionDeceptive Promotion

Overstating the Product’s Features, Luring Customers to

the Store for Out-of-Stock Bargains, etc.

Overstating the Product’s Features, Luring Customers to

the Store for Out-of-Stock Bargains, etc.

Marketing’s Impact on Individual Marketing’s Impact on Individual Consumers: Deceptive PracticesConsumers: Deceptive Practices





High-Pressure SellingSome products – such as cars and jewelry – are said to be sold, not bought.

Such tactics damage marketer’s long-run relationship with customers.

Shoddy or Unsafe ProductsComplaint that many products are not made well.

Second, many products deliver little benefit.

Third, concerns product safety.




American Association of Advertising American Association of Advertising AgenciesAgencies

This ad demonstrates that advertising can’t make consumers buy things that they don’t need despite high-pressure selling.





Planned ObsolescenceChange consumer concepts of acceptable styles.

Hold back attractive functional features.

May break, wear, rust, or rot sooner than should.

Poor Service to Disadvantaged Consumers

May pay more for inferior goods.

“Redlining” may occur where major chain retailers avoid placing stores in disadvantaged neighborhoods.




False Wants & Too Much Materialism

Too Much Political Power

Producing Too FewSocial Goods

Cultural Pollution

Marketing’s PerceivedNegative Impact on

Society as aWhole

Marketing’s Impact on Society as a Marketing’s Impact on Society as a WholeWhole




Unfair Competiti

ve Marketing Practices

Marketing’s Impact on Other Marketing’s Impact on Other Businesses Businesses

Marketing Practices Create

Barriers to Entry

Acquisitions of

Competitors




Buyers’

Rights

Sellers’

Rights

Consumerism is an Organized Movement of Citizens and Government Agencies to Improve the Rights and

Power of Buyers in Relation to Sellers.

ConsumerismConsumerism




The Right Not to Buy a Product Offered for SaleThe Right Not to Buy a Product Offered for Sale

The Right to Expect the Product to be SafeThe Right to Expect the Product to be Safe

The Right to Expect the Product to Perform as ClaimedThe Right to Expect the Product to Perform as Claimed

The Right to Be Protected Against Questionable ProductsThe Right to Be Protected Against Questionable Products

The Right to Be Heard About “Quality of Life” IssuesThe Right to Be Heard About “Quality of Life” Issues

The Right to Be Well Informed About the ProductThe Right to Be Well Informed About the Product

Consumerism – Buyers’ RightsConsumerism – Buyers’ Rights




Plan for New EnvironmentalTechnologies

Adopt Designfor the

Environment Practices

Have a Sustainability

Vision

PracticeProduct

Stewardship

PracticePollution

Prevention

EnvironmentalismEnvironmentalism




Major Legal Issues Facing Marketing Major Legal Issues Facing Marketing Management (Fig. 16-2)Management (Fig. 16-2)




Consumer-Oriented MarketingConsumer-Oriented Marketing

Innovative MarketingInnovative Marketing

Value MarketingValue Marketing

Sense-of-Mission MarketingSense-of-Mission Marketing

Societal MarketingSocietal Marketing

Holds That a Company’s Marketing Should Support the Best Long-Run Performance of the Marketing System.

Enlightened MarketingEnlightened Marketing




Societal Classification of Products (Fig. Societal Classification of Products (Fig. 16-3)16-3)




Marketing EthicsMarketing Ethics

Distributor Relations Advertising Standards Customer Service

Pricing Product Development General Ethical Standards

Companies Need to Develop Corporate Marketing Ethics Policies – Broad Guidelines That Everyone in the

Organization Must Follow and Should Address:




Decided by the Free Market and

Legal System

Decided by the Free Market and

Legal System

Responsibility of Individual Companies

And Managers

Responsibility of Individual Companies

And Managers

Marketing EthicsMarketing Ethics

Principles That Should Guide Companies and Marketing Managers On Issues of Ethics and Social

Responsibility:




Rest Stop: Reviewing the ConceptsRest Stop: Reviewing the Concepts

Identify the major social 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.

16-1 visit umt online at © umt 2004 mkt100version: 11-10-04 visit umt online at principles of...

Documents

mkt100 visit umt

promotion costs high

deceptive practices

marketing function

responsible marketing

marketing strategies

marketing ethics armstrong

wholesale prices