Chapter 20
Principles of Marketing
Submitted by: Hamza Salam
Sustainable Marketing
Social Responsibility and Ethics
• Sustainable Marketing
• Social Criticisms of Marketing
• Business Actions Toward Sustainable Marketing
• Consumer Actions to Promote Sustainable Marketing
• Marketing Ethics
• The Sustainable Company
Sustainable Marketing
• Meeting needs of consumers while preserving the ability of future
generations to meet their needs
Social Criticism of Marketing
Marketing’s Impact on Individual Consumers
High Prices
Deceptive Practices
High-Pressure Selling
Shoddy, Harmful or Unsafe Products
Planned Obsolescence
Poor Service to Disadvantaged
Consumers
Marketing’s Impact on Individual Consumers
High Cost of Distribution
Complaint: Response:
• Prices are too high due to • Intermediaries are
high costs of: important and offer value
• Distribution • Advertising informs
• Advertising and buyers of availability and
promotion merits of a brand
• Excessive mark-ups • Consumer’s don’t
understand the cost of
doing business
Complaint: Companies use deceptive practices that lead customers to
believe they will get more value than they actually do. These
practices fall into three categories:
• Deceptive pricing
• Deceptive promotion
• Deceptive packaging
Response:
Support Legislation to protect consumers from deceptive practices
Make lines clear—Is it deception, alluring, or puffery that is just an
exaggeration for effect?
• Products that are harmful
• Products that provide little benefit
• Products that are not made well
High-Pressure Selling
Complaint: Response:
• Salespeople use high- • Most selling involves
pressure selling that building long-term
persuade people to buy relationships and valued
goods they had no customers. High-
intention of buying. pressure or deceptive
selling can damage these
relationships.
Shoddy, Harmful, or Unsafe Products
Complaint: Response:
• Products have poor • Good marketers
quality, provide realize there is no
little benefit, and value in marketing
can be harmful shoddy, harmful, or
unsafe products.
Planned Obsolescence
Complaint: Response:
• Producers cause their • Planned obsolescence is
products to become really the result of
obsolete and change competitive market forces
consumers’ concepts of leading to ever-improving
acceptable styles to goods and services.
encourage more and • Customer customers like
earlier buying. style changes and want
the latest innovations
Poor Service to Disadvantaged Consumers
Complaint: Response:
• American marketers serve • Some marketers profitably
disadvantaged customers target these customers and
poorly. Some retail the FTC has taken action
companies “redline” poor against marketers that do
neighborhoods and avoid advertise false values,
placing stores there. wrongfully deny service, or
charge disadvantaged
customers too much.
Marketing’s Impact on Society as a Whole
False wants and too much
materialism
Too few social goods
Cultural pollution
False Wants and Too Much Materialism
Complaint: Response:
• The marketing system urges • People do have strong
too much interest in defenses against advertising
material possessions. and other marketing tools.
People are judged by what Marketers are most effective
they own rather than who when they appeal to existing
they are, creating false wants rather than creating
wants that benefit industry new ones. The high failure
more than they benefit rate of new products shows
consumers. that companies cannot
control demand.
Too Few Social Goods
Complaint: Response:
• Businesses oversell private • There needs to be a balance
goods at the expense of between private and public
public goods and require goods.
more public goods to support • Producers should bear full
them. social costs of their
operations.
• Consumers should pay the
social costs of their
purchases.
Cultural Pollution
Complaint: Response:
• Marketing and advertising • Marketing and advertising are
create cultural pollution planned to reach only a target
audience, and advertising
makes radio and television
free to users and helps to keep
down the costs of newspapers
and magazines. Today’s
consumers have alternatives
to avoid marketing and
advertising from technology.
Marketing’s Impact on Other Businesses
• Acquisition of competitors
• Unfair competitive marketing practices
Business Actions Toward Sustainable
Marketing
Sustainable Marketing Principles
Consumer-
Customer-Value Innovative
Oriented
Marketing Marketing
Marketing
Sense-of-
Societal
mission
Marketing
Marketing
Consumer-Oriented Marketing
• View marketing activities from the consumer's point of view
• Deliver superior value
Innovative Marketing
• Company seeks real product and marketing improvements
Sense-of-Mission Marketing
• Define mission in broad social terms rather than narrow product
terms
Societal Marketing
• Company considers:
▫ Customer’s wants and interests
▫ Company’s own requirements
▫ Society’s long-run interests
Consumer Actions to Promote
Sustainable Marketing
Consumerism is the organized movement of citizens and government
agencies to improve the rights and power of buyers in relation to
sellers
Consumerism
Traditional buyers’ rights include:
• 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
• Comparing these rights, many believe that the balance of power
lies on the seller’s side
Advocates call for:
• 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 the “quality of life”
• The right to consume now in a way that will preserve the world for
future generations of consumers
Environmentalism is an organized movement of concerned citizens,
businesses, and government agencies to protect and improve
people’s living environment
• Environmental sustainability is getting profits while helping to
save the planet
• Pollution prevention
• Product stewardship
• Design for environment (DFE)
• New clean technologies
• Sustainability vision
Pollution prevention involves not just cleaning up waste but also
eliminating or minimizing waste before it is created
Product stewardship involves minimizing the pollution from
production and all environmental impact throughout the full
product life cycle
Design for environment (DFE) involves thinking ahead to design
products that are easier to recover, reuse, or recycle
New clean technologies involve looking ahead and planning new
technologies for competitive advantage
Sustainability vision is a guide to the future that shows the company
that the company’s products, process, and policies must evolve and
what is needed to get there
Marketing Ethics
Corporate marketing ethics are broad guidelines that everyone in the
organization must follow that cover distributor relations,
advertising standards, customer service, pricing, product
development, and general ethical standards
• Who should guide companies?
• The free market and the legal system?
• Individual companies and managers?
The Sustainable Company
• Goes beyond caring for the needs of today’s customers and has
concern for tomorrow’s customers and the broader world
