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Marketing and Society: Social Responsibility and Marketing Ethics Marketing's Impact on Individual Consumers
High Prices Deceptive Practices HighPressure Selling Shoddy, Unsafe Products Planned Obsolescence Poor Service to Some
16-2 Criticisms Leveled at the Marketing Function by Consumers, and Others Marketing's Impact on Individual Consumers: High Prices
High Prices Caused by the Following Factors High Costs of Distribution High Advertising and Promotion Costs Excessive Markups 16-3 Marketing's Impact on Individual Consumers: Deceptive Practices
Deceptive Pricing Deceptive Promotion Deceptive Packaging
Falsely Advertising "Factory" or "Wholesale" Prices, Large Reduction From Phony High List Price Overstating the Product's Features, Luring Customers to the Store for OutofStock Bargains, etc. Exaggerating Package Contents, Not Filling Package to the Top, Using Misleading Labeling 16-4 Marketing's Impact on Individual Consumers HighPressure Selling Shoddy or Unsafe Some products such as cars and jewelry are said to be sold, not bought. Such tactics damage marketer's longrun relationship with customers. Products Complaint that many products are not made well. Second, many products deliver little benefit. Third, concerns product safety.
16-5 Marketing's Impact on Individual Consumers Planned Obsolescence Poor Service to Disadvantaged Consumers May pay more for inferior goods. "Redlining" may occur where major chain retailers avoid placing stores in disadvantaged neighborhoods.
16-6 Change consumer concepts of acceptable styles. Hold back attractive functional features. May break, wear, rust, or rot sooner than should. Marketing's Impact on Society as a Whole
False Wants & Too Much Materialism (i.e., what you own vs. who you are). Producing Too Few Social Goods Too Much Political Power Cultural Pollution 16-7 Marketing's Impact on Other Businesses
Acquisitions of Competitors Marketing Practices That Create Barriers to Entry Unfair Competitive Marketing Practices 16-8 Consumerism Consumerism is an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers. 16-9 Consumerism: 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.
16-10 Consumerism: 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 well informed about important aspects of the product. 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."
16-11 Environmental Sustainability Grid 16-12 Enlightened Marketing A marketing philosophy holding that a company's marketing should support the best longrun performance of the marketing system. 16-13 Enlightened Marketing
Holds That a Company's Marketing Should Support the Best LongRun Performance of the Marketing System.
ConsumerOriented Marketing Innovative Marketing Value Marketing SenseofMission Marketing Societal Marketing
16-14 Societal Classification of Products 16-15 Marketing Ethics Corporate Marketing Ethics Policies: These should cover: Broad guidelines that everyone in the organization must follow. Distributor relations Advertising standards Customer service Pricing Product development General ethical standards
16-16 Marketing Ethics What principle should guide companies and marketing managers on issues of ethics and social responsibility? Free market and legal system Responsibility falls to individual companies and managers Click Here to See: "Malden Mills: A Study in Leadership"
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- Spring '07
- Marketing, individual consumers