Chapter 3: Sustainable Marketing, Social Responsibility, & Ethics – Flashcards
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MAJOR CONCEPT 1
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Define sustainable marketing and discuss its importance.
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Sustainable Marketing
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Socially and environmentally responsible marketing (business) that meets the needs of customers while preserving the ability of future generations to meet their needs.
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MAJOR CONCEPT 2
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Identify the major social criticisms of marketing.
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Social Criticism of Marketing
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(1) High Prices (2) Deceptive Practices (3) Impact on Society (4) Impact on Companies middle
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(1) High Prices
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a) High Costs of Distribution "middleman" b) High Advertisement & Promotion Costs c) Excessive Markups
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(2) Deceptive Practices
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a) Pricing b) Promotion c) Packaging d) Greenwashing: companies that claim that they are environmentally friendly but in reality they are not
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(A) Planned Obsolescence
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a) Planned: Using inferior materials & components b) Precieved: Continuously changing of acceptable styles c) Delaying features until follow-up version
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(B)
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High-Pressure Selling
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(C)
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Unsafe Products
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Consequences of Deceptive Practices
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a) Legislative penalty from Competition Bureau b) Ontario's Consumer Protection Act c) Canada Consumer Product Safety Act (CCPSA)
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(3) Impacts of Society
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(1) Encouraging Materialism (2) Overselling private goods (to few social goods) (3) Creating cultural pollution: sense of constantly being targeted by advertisment
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(4) Reduce Competition among companies
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a) Acquisition and shrinking of competitors b)Creating barriers to entry c) Unfair practices such as predatory pricing
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MAJOR CONCEPT 3
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Define consumer activism and environmentalism, and explain how they affect marketing strategies.
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CONSUMER ACTION TO PROMOTE SUSTAINABLE MARKETING
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1. CONSUMERISM 2. ENVIRONMENTALISM
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1. Consumerism: (Consumer Activism)
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Organized movement to improve the rights and power of buyers in relation to sellers
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Purpose of Consumer Advocates call for more rights to
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(1) be well informed about product (2) be protected from bad practices ; products (3) Influence products to improve quality of lie (4) Preserve the world for future generations
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2. Environmentalism:
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Organized movement to protect and improve people's living environment
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Environmental Sustainability
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management approach involving developing strategies: (1) sustain the environment (2) produce profit for company
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Evolution of Environmentalism:
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-1960s-1970s: Concerned consumers and environmental groups 1970s-1980s: Driven by government, resulting in -environmental laws -Firms accepting more responsibility and are adopting environmental sustainability
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MAJOR CONCEPT 4
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Describe the principles of sustainable marketing.
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Sustainable Marketing Principles
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(1) Consumer-Oriented Marketing: Marketing activities are viewed and organized from the consumer's point of view (2) Customer-Value Marketing: Company resources go toward customer-value-building marketing investments (3) Innovation Marketing: a principle of sustainable marketing that require the company seek real product and marketing improvements (4) Sense-of-mission-marketing: a principle of sustainable marketing that holds that a company should define its mission in broad social terms rather than narrow product terms.
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MAJOR CONCEPT 5
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Explain the role of ethics in marketing.
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(5) Social Marketing
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Consideration: I Consumer wants ; interests II The company's requirements III Social Long Term Interest
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Principles of Sustainable Marketing
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(1) Deficient Products: products that have neither immediate appeal or long-run benefits (2) Pleasuring Products: products that give immediate satisfaction but may hurt consumer in the long run (3) Salutary Products: products that have low appeal but may benefit consumer in the long run (4) Desirable Products: products that give both immediate satisfaction and long-term benefits
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Marketing Ethics (Good ethics corresponds with sustainable marketing)
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To guide their staff, firms develop corporate marketing ethics policies which cover: (1) Distributor relations (2) Advertising standards (3) Customer service (4) Pricing (5) Product development (6) General ethical standards
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Corporate Marketing Ethics Policies
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: broad guideline in the organizations that everybody must follow
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2 Principles of Marketing Ethics Formation
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(1) Free market and legal system (do not contact list) (2) Individual companies and managers to develop a "social conscience
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Triple Bottom Line (3p's)
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People, Planet, Profit Sustainable companies create value through social, environmental, and ethical responsible actions
