Sustainable Marketing Social Responsibility and Ethics Chapter 3
Previewing the Concepts • Define sustainable marketing and discuss its importance • Identify the major social criticisms of marketing • Define consumerism and environmentalism and explain how they affect marketing strategies • Describe the principles of sustainable marketing • Explain the role of ethics in marketing
Sustainable Marketing • Sustainable Marketing: • Socially and environmentally responsible marketing that meets the present needs of consumers and businesses while preserving or enhancing the ability of future generations to meet their needs.
Sustainable Marketing Sustainable marketing: McDonald’s Plan to Win strategy
Social Criticisms of Marketing • Marketing’s impact on individuals: • High prices • Deceptive practices • High-pressure selling • Shoddy, or unsafe products • Planned obsolescence • Poor service to disadvantaged consumers
Impact on Society • Marketing’s impact on society has been criticized as: • Creating false wants and encouraging materialism that benefits industry more than consumers • Overselling private goods at the expense of public (social) goods • Creating cultural pollution, stemming from constant exposure to marketing messages
Impact on Society Adbusters Media Foundation Buy Nothing Day campaign:
Impact on Other Businesses • Critics believe marketing practices can harm companies and reduce competition by: 1.Acquisition and shrinking of competitors 2.Creating barriers to entry 3.Unfair competitive marketing practices
Consumer Actions • Two major movements include: • Consumerism • Environmentalism • Consumerism: • An organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers
Consumer Actions • Seller’s rights include the right to: • Introduce any product in any size and style • Charge any price for the product • Spend any amount to promote the product • Use any product message • Use any buying incentive schemes
Consumer Actions • Buyers’ rights include the right to: • Not buy a product that is offered for sale • Expect the product to be safe • Expect the product to perform as claimed
Consumer Actions • Consumer advocates call for more rights to: • Be well informed about aspects of the product • Be protected against questionable products and marketing practices • Influence products and marketing practices in ways that will improve “quality of life” • Consume now in a way that will preserve the world for future generations of consumers
Consumer Actions • Environmentalism: • An organized movement of concerned citizens and government agencies to protect and improve people’s living environment • Those who subscribe to environmentalism believe that a marketing system’s goal should be to maximize quality of life
Consumer Actions • Environmental sustainability: • Involves developing strategies that both sustain the environment and produce profits for the company • Environmental sustainability portfolio: • Pollution prevention • Product stewardship • New clean technologies • Sustainability vision
Consumer Actions • Marketing decision areas that may be called into question under the law include: • Selling • Advertising • Distribution channels • Product • Packaging • Pricing • Competitive relations
Business Actions Consumer-Oriented Marketing Customer-Value Marketing Innovative Marketing Sense-of-Mission Marketing Societal Marketing
Business Actions Societal classification of products:
Marketing Ethics • Firms must develop corporate marketing ethics policies as broad guidelines for staff • Ethics policies should cover: • Distributor relations • Advertising standards • Customer service • Pricing • Product development • General ethical standards
Marketing Ethics What principle should guide firms and marketing managers on issues of ethics and social responsibility?
Reviewing the Concepts • Define sustainable marketing and discuss its importance • Identify the major social criticisms of marketing • Define consumerism and environmentalism and explain how they affect marketing strategies • Describe the principles of sustainable marketing • Explain the role of ethics in marketing
Think 1. What other businesses could benefit from using this sort of electronic device? 2.What sort of resistance do you think consumers may have? How could such resistance be overcome? 3. What other typical paper products could be replaced? 4. List all the environmental benefits.