marketing chapter 20

marketing chapter 20 - Chapter 16 Marketing Ethics and...

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Chapter 16 Marketing Ethics and Social Responsibility Previewing the Concepts: Chapter Objectives 1. Identify the major social 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. J UST THE B ASICS Chapter Overview There have been many criticisms of marketing as it impacts individual consumers, other businesses, and society as a whole. This chapter discusses them in detail and provides some responses to critics. Surveys usually show that consumers hold mixed or even slightly unfavorable attitudes toward marketing practices. Consumers, consumer advocates, government agencies, and other critics have accused marketing of harming consumers through high prices, deceptive practices, high-pressure selling, shoddy or unsafe products, planned obsolescence, and poor service to disadvantaged consumers. Companies respond in many ways, noting that the practices that cause so-called high prices—advertising, using intermediaries, decorative packaging, and the like—are necessary and well liked by consumers. Companies also note that those who use deceptive practices and high- pressure selling, or produce shoddy products, will not remain in business long. Critics also charge that the American marketing system has added to several “evils” in society at large. Advertising has been a special target; it is charged that it urges too much interest in material possessions. However, our wants and values are influenced not only by marketers, but also by family, peer groups, religion, ethnic background, and education. If Americans are materialistic, these values arose out of basic socialization processes that go much deeper than business and mass media could produce alone. Consumerism is an organized movement of citizens and government agencies to improve the rights and powers of buyers in relation to sellers. Consumers not only have the right but also the responsibility to protect themselves instead of leaving this function to someone else. Environmentalism is an organized movement of concerned citizens, businesses, and government agencies to protect and improve people’s living environments. 113
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Environmentalists are not against marketing and consumption; they simply want people and organizations to operate with more care for the environment. Companies have responded. At the most basic level, a company can practice pollution prevention, which means eliminating or minimizing waste before it is created. At the next level, companies can practice product stewardship, which is minimizing not just pollution from production but all environmental impacts through the full product life cycle. At the third level, environmental sustainability, companies look to the future and plan for new environ- mental technologies. Finally, companies can develop a sustainability vision, which serves as a guide to the future. The philosophy of enlightened marketing holds that a company’s marketing should
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This note was uploaded on 03/24/2012 for the course ECON 201 taught by Professor Kovak during the Winter '09 term at Air Force Academy.

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marketing chapter 20 - Chapter 16 Marketing Ethics and...

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