Unit Outcomes • 1. Understand marketing’s multiple responsibilities, and identify the major social and ethical criticisms of marketing. • 2. Define consumerism and environmentalism and explain how they affect marketing strategies. • 3. Describe the principles of socially responsible marketing. • 4. Explain the role of ethics in marketing.
Ethical Bean Coffee Read the handout on Ethical Bean Coffee. With a partner discuss the following: Socially responsible marketers strive to deal fairly with all customers, even disadvantaged consumers. The Ethical Bean Company has a different take on this issue, feeling that it is equally important to deal fairly with who? The survival of fair trade companies like EB depends largely on support from who? Why does EB go to such lengths to provide educational information on its website, particularly information that is not directly related to its coffee products?
Social Criticisms of Marketing • Marketing is often criticized in the press and by the general public. Marketers must understand the ethical and social issues associated with their profession and work to resolves these issues. There are ethical issues associated with each and every aspect of marketing practice.
Consumer Concerns • Consumers are concerned about high prices, high-pressure selling, deceptive practices, unsafe products, planned obsolescence, and discriminatory pricing.
High Prices • Consumers complain that unreasonably high prices result from expensive marketing campaigns. Also, many consumers feel high retail prices are a result of too many intermediaries who add no value to the product. • Marketers say that the intermediaries provide work that would otherwise have to be done by the manufacturer or retailer; retail markups reflect services consumers want – more convenience, more variety, etc.
Air Canada http://www.youtube.com/watch?v=bMnmvnrMWJE -
Brand Name v. No Name • Tylenol • Coca-Cola • Brainstorm 3 examples of Brand Name products and their No Name counterparts. • Why do you think Brand Names cost more? • Acetaminophen • Safeway Select
Assignment • Looking at online ads for Safeway, Thrifty’s, etc. identify three similar products, their prices, and account for the difference in pricing.
High Pressure Selling • Stereotype of cars salesmen, and other commissioned sales people. • Try to get the highest possible price for the product • http://www.youtube.com/watch?v=7noCnQfqW3I • Many companies have moved to non-commissioned sales: e.g. Home Depot, Best Buy • Also used in sales seminars, street promotions, religious groups • http://www.youtube.com/watch?v=7jukQX2pl2Q
Consumer Protection Act (2005) • Protects consumers and promotes a fair market place. • Negative Option Billing made illegal • Home Renovations/Repairs cannot exceed more than 10% original estimate • 10 day ‘Cooling Off’ Period for car sales, home sales, even gym memberships.
Assignment • Pick one of the following vehicles: 2005 Chevrolet Cobalt, 2008 Jeep Liberty, or 2006 Honda Civic. • Look up the Kelly Blue Book value for the vehicle. • Research 5 local auto dealers with that vehicle on the lot. What are the asking prices. • How do you think knowing both the blue book value as well as competitors prices would help you deal with high pressure sales tactics?