Chapter 3: Sustainable Marketing, Social Responsibility and Ethics – Flashcards
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Sustainable Marketing
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Socially and environmentally responsible marketing that meets the needs of customers while preserving the ability of future generations to meet their needs
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Social Criticisms of Marketing
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1. High prices 2. Deceptive Practices 3. High-Pressure Selling 4. Low quality / unsafe products 5. Planned obsolescence 6. Poor service 7. "Green" or "pink" washing
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1. High Prices - Factors (Social Criticisms)
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- Materials (Product) - Mark ups (Price) - Distribution (Place) - Advertising (Promotion)
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2. Deceptive Practices - Accusations and Consequences (Social Criticisms)
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Accusations: - Pricing: false claims or exaggerated discounts - Promotion: misrepresenting benefits - Packaging: exaggerated or mislabeled Consequences: - Legislative penalty from Competition Bureau - Harmful to consumer trust - Not sustainable as brand reputation erodes
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3. High-Pressure Selling (Social Criticisms)
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-People buy products that don't meet a need - Damage customer relationships
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4. Low Quality / Unsafe Products (Social Criticisms)
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- Products deliver little benefit or are harmful - Results from manufacturer weakness
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5. Planned Obsolescence (Social Criticisms)
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- Using inferior materials and components - Continuous changing of acceptable styles - Delaying features until follow-up version
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6. Poor Service (Social Criticisms)
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- Smaller stores, inferior goods - Refusal to open in poor neighbourhoods - Irresponsible lending
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7. Green or Pink Washing (Social Criticisms)
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- Faking green (environment) or pink (cancer) can damage a company's image - Honesty and transparency are important
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Marketing decision areas that may be called into questions under the law include
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Selling Advertising Distribution Channels Product Packaging Pricing Competitive Relations
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Consumer Actions to Promote Sustainable Marketing
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1. Consumerism 2. Environmentalism
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1. Consumerism (Consumer Actions to Promote Sustainable Marketing)
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Organized movement to improve the rights and power of buyers in relation to sellers
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Consumerism - Buyers' and Seller's Rights
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Sellers': - Introduce any product in any size and style - Charge any price for the product - Spend any amount to promote the product - Use any product message - Use any buying incentive schemes Buyers': - Not buy a product that is offered for sale - Expect the product to be safe - Expect the product to perform as claimed
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2. Environmentalism (Consumer Actions to Promote Sustainable Marketing)
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Organized movement to protect and improve people's living environment
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Evolution of Environmentalism
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- 1960-1970: Concerned consumers and environmental groups - 1970-1980: Driven by government, resulting in environmental laws - Firms accepting more responsibility and are adopting environmental sustainability
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Sustainable Marketing Principles
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1. Consumer-Oriented Marketing 2. Customer-Value Marketing 3. Innovative Marketing 4. Sense-of-Mission Marketing 5. Societal Marketing
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1. Consumer-Oriented Marketing (Sustainable Marketing Principles)
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Company should view and organize its marketing activities from the consumer's point of view
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2. Customer-Value Marketing (Sustainable Marketing Principles)
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Company should put most of its resources into customer-value-building marketing investments
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3. Innovative Marketing (Sustainable Marketing Principles)
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Company should seek real product and marketing improvements
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4. Sense-of-Mission Marketing (Sustainable Marketing Principles)
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Company should define its mission in broad social terms rather than narrow product terms
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5. Societal Marketing (Sustainable Marketing Principles)
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Company should make marketing decisions by considering consumers' wants, the company's requirements, consumers' long-run interests and society's long-run interests
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Ethics in Marketing
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To guide their staff, firms develop ethics policies which cover: - Distributor relations - Advertising standards - Customer service - Pricing - Product development - General ethical standards
