9/1/2015

Sustainable Marketing
Social Responsibility and Ethics
Topic Outline

• Sustainable Marketing
• Social Criticisms of Marketing
Chapter Twenty • Consumer Actions to Promote Sustainable 
Marketing
Sustainable Marketing • Business Actions Toward Sustainable 
Marketing
Social Responsibility and Ethics

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Social Criticisms of Marketing

Sustainable Marketing
Marketing’s Impact on Individual Consumers
Meeting needs of consumers while preserving the 
ability of future generations to meet their needs High Prices

Deceptive Practices

High-Pressure Selling

•Figure 20.1 Shoddy, Harmful or Unsafe Products

Planned Obsolescence

Poor Service to Disadvantaged

Consumers
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Marketing’s Impact on Marketing’s Impact on Individual Consumers

Individual Consumers Deceptive Practices
High Cost of Distribution High‐Pressure Selling
Complaint: Response:

• Salespeople use high-pressure • Most selling involves building

Complaint: Response: selling that persuade people to long-term relationships and
buy goods they had no intention valued customers. High-pressure
• Intermediaries are of buying.
buying or deceptive selling can damage
• P
Prices
i are ttoo hi
high
h these relationships.
due to high costs of: important and offer
• Distribution value
• Advertising informs Shoddy, Harmful, or Unsafe Products
• Advertising and
buyers of availability
promotion and merits of a brand Complaint: Response:
• Excessive mark-ups • Consumer’s don’t • Products have poor quality, • Good marketers realize there is
understand the cost of provide little benefit, and can no value in marketing shoddy,
doing business be harmful. harmful, or unsafe products.
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Planned Obsolescence Social Criticisms of Marketing

Complaint: Response:
Marketing’s Impact on Society as a Whole
• Producers cause their products to • Planned obsolescence is really the
become obsolete and change result of competitive market forces
consumers’ concepts of acceptable leading to ever-improving goods and
services.
False Wants and Too Much Materialism
styles to encourage more and
earlier buying. • Customer customers like style
changes and want the latest Complaint: Response:
innovations
• The marketing g system
y • People
p do have strong g
Poor Service to Disadvantaged Consumers urges too much interest in defenses against
material possessions. advertising and other
Complaint: Response:
People are judged by what marketing tools. Marketers
they own rather than who are most effective when
• American marketers serve • Some marketers profitably target they are, creating false they appeal to existing
disadvantaged customers poorly. these customers and the FTC has wants that benefit industry wants rather than creating
Some retail companies “redline” taken action against marketers that more than they benefit new ones. The high failure
poor neighborhoods and avoid do advertise false values, consumers. rate of new products shows
placing stores there. wrongfully deny service, or charge that companies cannot
disadvantaged customers too control demand.
much.
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Too Few Social Goods Consumer Actions to Promote

Complaint: Response:
Sustainable Marketing
• Businesses oversell private goods • There needs to be a balance
at the expense of public goods between private and public goods Consumerism
and require more public goods to • Producers should bear full social
support them costs of their operations Consumerism is the organized movement of citizens 
• Consumers should pay the social
costs of their purchases and government agencies to improve the rights and 
power of buyers in relation to sellers
Cultural Pollution
Cu tu a o ut o
Traditional buyers’ rights include:
Complaint: Response:
• The right not to buy a product that is offered for sale
• Marketing and advertising • Marketing and advertising are
create cultural pollution planned to reach only a target • The right to expect the product to be safe
audience, and advertising makes
radio and television free to users • The right to expect the product to perform as claimed
and helps to keep down the costs of
newspapers and magazines. Today’s
consumers have alternatives to
• Comparing these rights, many believe that the 
avoid marketing and advertising balance of power lies on the seller’s side 
from technology.
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Consumer Actions to Promote Consumer Actions to Promote

Sustainable Marketing Sustainable Marketing
Environmentalism Environmentalism
Environmental Sustainability
• Environmentalism is an organized  Pollution prevention involves not just cleaning up 
movement of concerned citizens,  waste but also eliminating or minimizing waste 
b i
businesses, and government agencies to 
d i before it is created
before it is created
protect and improve people’s living  Product stewardship involves minimizing the 
environment pollution from production and all environmental 
impact throughout the full product life cycle
• Environmental sustainability is getting 
Design for environment (DFE) involves thinking 
profits while helping to save the planet
ahead to design products that are easier to 
recover, reuse, or recycle
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Consumer Actions to Promote Public Actions to Regulate marketing

Sustainable Marketing
Environmentalism
Environmental Sustainability
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
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Business Actions Toward Sustainable Marketing

Sustainable Marketing Principles Societal Marketing

Consumer-Oriented Marketing
• View marketing activities from the consumer's point of view
• Deliver superior value
Customer-Value Marketing
• Invest in customer‐value building marketing
i l b ildi k i
• Create value FOR customers
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
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Business Actions Toward Business Actions Toward

Socially Responsible Marketing Socially Responsible Marketing
Marketing Ethics The Sustainable Company
Corporate marketing ethics are broad  • Goes beyond caring for the needs of 
guidelines that everyone in the  today’s customers and has concern for 
organization must follow that cover  tomorrow’s customers and the broader 
di ib
distributor relations, advertising 
l i d ii
standards, customer service, pricing, 
world
product development, and general ethical 
standards
• Who should guide companies?
• The free market and the legal system?
• Individual companies and managers?
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Corporate Social Responsibility

Pertamina

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Copyright © 2010 Pearson Education, Inc.

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