Slide 1Criticisms of MarketingHigh PricesDeceptive PracticesHigh-Pressure SellingPlanned ObsolescenceMarketing’s Impact on Society as a WholeTop Lobbying IndustriesConsumerismConsumerism: Buyers’ RightsEnvironmentalismEnlightened MarketingEnlightened MarketingEnlightened Marketing16-1Marketing Ethics and Social ResponsibilityChapter 1616-2Criticisms of MarketingHigh PricesDeceptive PracticesHigh-Pressure SellingShoddy or Unsafe ProductsPlanned ObsolescencePoor Service to Disadvantaged Consumers16-3High PricesCaused by:High Costs of DistributionHigh Advertising and Promotion CostsExcessive Markups16-4Deceptive PracticesDeceptive Pricing:Falsely advertising “factory” or “wholesale” prices or large reductions from phony high retail list prices.Deceptive Promotion:Overstating a product’s features or performance, running rigged contests.Deceptive Packaging:Exaggerating package contents through subtle design, using misleading labeling, etc.Disney Princess necklace making kit16-5High-Pressure SellingSome salespeople are trained to deliver smooth, canned talks to entice purchase.Hard sales can occur because of prizes going to top sellers.High-pressure selling not good for long- term relationships.16-6Planned ObsolescenceProducts needing replacement before they should be obsolete.Producers change consumer concepts of acceptable styles.Intentionally holding back attractive functional features, then introducing them later to make old model obsolete.16-7Marketing’s Impact on Society as a WholeFalse Wants & Too Much Materialism (i.e., what you own vs. who you are). Too Much Political PowerProducing Too FewSocial GoodsCultural Pollution16-8Top Lobbying IndustriesSource: www.opensecrets.org16-9ConsumerismConsumerism is an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers.Utilized a combination of legislation and the courts to protect consumer rights.16-10Consumerism: Buyers’ RightsThe 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 influence products and marketing practices in ways that will improve “quality of life.”The right to be protected against questionable products and marketing practices.16-11EnvironmentalismAn organized movement of concerned citizens and government agencies to protect and improve people’s living environment.Again, utilizing both legislation and the courts to influence corporate behavior.16-12Enlightened MarketingA marketing philosophy holding that a company’s marketing should support the best long-run performance of the marketing system.16-13Enlightened MarketingConsumer-Oriented Marketing:The philosophy of enlightened marketing that holds that the company should view and organize its marketing activities from the consumer’s point of view.Innovative Marketing:A principle of enlightened marketing that requires that a company seek real product and marketing improvements.16-14Enlightened MarketingValue Marketing:A principle of enlightened marketing that holds that a company should put most of its resources into value-building marketing investments.Sense-of-Mission Marketing:A principle of enlightened marketing that holds that a company should define its mission in broad social terms rather than narrow product
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