Sustainable Marketing and Csr in Egypt Essay Example
Sustainable Marketing and Csr in Egypt Essay Example

Sustainable Marketing and Csr in Egypt Essay Example

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  • Pages: 10 (2655 words)
  • Published: February 3, 2018
  • Type: Research Paper
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Sustainable Marketing involves meeting current consumer needs while also considering the ability of future generations to meet their own needs. This philosophy is crucial in today's global market and emphasizes long-term societal welfare. Marketing and Corporate Social Responsibility (CARS) are closely connected.

By practicing sustainable marketing, companies can achieve better communication, stronger relationships, and a more sustainable business model. This ultimately leads to a better world. The marketing concept focuses on customer value and mutual gain, driving the economy to fulfill ever-changing consumer needs.

This paper will explore the concept of sustainable marketing and address social criticisms of marketing practices. It will also discuss perspectives from relevant marketers and highlight the importance of corporate social responsibility, particularly in the Egyptian market.

To fully grasp the concept of sustainable marketing, it is importan

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t to consider related concepts such as societal marketing and strategic planning. The figure below illustrates how these four concepts are interconnected. The marketing concept recognizes that organizations succeed by understanding and satisfying current target customers' needs more effectively than competitors. The text highlights the significance of meeting the company's immediate sales, growth, and profit goals by fulfilling customers' current desires.

However, focusing solely on immediate consumer needs may not always benefit both customers and the business in the long term. The societal marketing concept takes into account the future well-being of consumers, while strategic planning considers the future requirements of the company. Conversely, sustainable marketing advocates for socially and environmentally responsible actions to meet both present and future customer and company needs. Strategic planning aims to ensure long-term survival and growth based on specific circumstances, opportunities, objectives, and resources of the company. O

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the other hand, sustainable marketing involves responsibly addressing current consumer and business needs while also preserving or enhancing the capacity of future generations to meet their own needs.

It is important to note that not all marketers adhere to the marketing concept as some companies prioritize their own interests over those of consumers through questionable marketing practices. Furthermore, satisfying certain consumers' needs through marketing actions might harm other consumers or society at large. Responsible marketers must consider the long-term sustainability of their actions. Achieving sustainable marketing requires collaboration among consumers, companies, policymakers, and other stakeholders to ensure socially and environmentally responsible practices are implemented. Despite facing widespread social criticism, it is crucial for the marketing system to operate smoothly in order to address these concerns effectively.The criticism of the marketing system is both justified and unjustified. Consumers have expressed concerns about how well the marketing system serves their interests, as surveys show mixed or slightly unfavorable attitudes towards marketing practices. Critics argue that marketing harms consumers through practices like high prices, deceptive tactics, high-pressure selling, unsafe products, planned obsolescence, and poor service for disadvantaged consumers. These questionable practices are unsustainable and do not promote long-term consumer or business welfare.

In particular, critics point out high distribution costs, advertising and promotion expenses, and excessive markups as factors contributing to inflated prices. The increase in distribution costs can be attributed to greedy channel intermediaries who mark up prices beyond the value of their services. Detractors claim that there are too many inefficient intermediaries providing unnecessary or duplicate services which leads to excessive distribution costs passed on to consumers in higher prices.

On the other hand, resellers defend intermediaries by stating

that they perform tasks that would otherwise fall upon manufacturers or consumers themselves. The markups imposed reflect services desired by consumers such as convenience, larger stores with a variety of products available for purchase at any given time; more attentive customer service; extended store hours;The costs of advertising and promotion in modern marketing contribute to higher prices, resulting in increased expenses for consumers. Heavy promotion can lead to inflated prices compared to less-promoted alternatives. Marketers argue that advertising plays a crucial role by informing potential buyers about a brand's availability and merits, thereby adding value to the product. While brand name products may be more expensive, they offer buyers the assurance of consistent quality. Moreover, heavy advertising and promotion are necessary for companies to compete effectively with their rivals. Critics argue that some companies excessively mark up goods as seen in the drug industry, where a pill costing five cents to make is sold for $2 to consumers. Marketers acknowledge that consumers often struggle to understand the reasons behind these high markups, particularly evident in the pharmaceutical sector where markups need to cover various expenses such as purchasing, promoting, distributing existing medicines, as well as research and development costs for new medicines. Occasionally, deceptive practices by marketers create false expectations of value among consumers. These practices encompass pricing strategies, promotional techniques, and packaging methods.Deceptive pricing involves dishonestly advertising "factory" or "wholesale" prices or presenting a fake high retail list price with a significant price reduction. Deceptive promotion includes misrepresenting product features or performance and enticing customers with an unavailable bargain. Deceptive packaging involves exaggerating package contents through subtle design, misleading labeling, or incorrect size descriptions.

However, marketers argue that deceptive practices are avoided by most companies because they harm long-term business sustainability. Creating profitable customer relationships depends on providing value and establishing trust. If consumers do not receive what they expect, they are likely to switch to more reliable products.

Salespeople are sometimes accused of using high-pressure tactics to persuade individuals into buying goods they hadn't considered before. Insurance, real estate, and used cars are often described as being sold instead of bought. Nonetheless, high-pressure selling tactics have little benefit for most marketers. These tactics may be effective in one-time selling situations or for short-term gains. Nevertheless, the primary focus in most sales efforts is building long-term relationships with valued customers.

Another criticism pertains to the low quality or functionality of products and services. Many products and services are frequently poorly made or performed.There are concerns about the safety of some products due to company indifference, increased complexity, and inadequate quality control. Some products may provide minimal benefits or even be harmful. Manufacturers prioritize producing high-quality goods to maintain a positive reputation. Contemporary marketers understand that good quality leads to customer satisfaction and value, which helps build long-lasting relationships with customers.

Some companies intentionally make their products obsolete before they need replacement, a practice known as planned obsolescence. There have been accusations of producers using materials and components that deteriorate prematurely through breakage, wear, rusting, or rotting. The marketing system is criticized for perpetuating perceived product obsolescence driven by ever-changing consumer preferences in style or features. This encourages consumers to make more frequent purchases.

This trend can be seen in constant changes in clothing fashion and consumer electronics. Marketers argue that consumers desire style

updates or the latest technological innovations, even if older models are still functional.

Furthermore, the current marketing system has faced backlash for providing inadequate service to disadvantaged consumers who often have no choice but to shop at stores with higher prices and inferior products.A proposed solution is to establish large chain stores in low-income neighborhoods, ensuring that prices remain affordable. Accusations have been made against various industries like insurance, consumer lending, banking, and others for disadvantaging consumers. However, it is important to recognize that many marketers effectively target these consumers by offering legitimate goods and services that provide actual value. Moreover, the marketing system has faced criticism for its contribution to societal issues such as excessive materialism, inadequate social goods, and cultural pollution. Critics argue that the marketing system promotes excessive materialism by prioritizing possessions over individuals' true selves. They believe marketers create artificial desires for a materialistic lifestyle. Marketers defend themselves by stating that their success lies in catering to existing wants rather than creating new ones. Additionally, our wants and values are influenced not just by marketers but also by family, peers, religion culture ,and education. Another concern involves businesses giving priority to selling private goods instead of public goods which results in a shortage of necessary public services.The ownership of private goods has led to an increased demand for public goods, including highways, traffic control systems, parking spaces, and police services. However, the provision of public services is often inadequate. One possible solution is to hold producers responsible for the social costs associated with their operations. To address environmental concerns, the government now requires automobile manufacturers to produce cars with more efficient engines

and better pollution-control systems.

Another approach involves having consumers bear the social costs by implementing congestion tolls on congested roads or increasing cigarette prices to fund health services provided to smokers. Critics argue that the marketing system contributes to cultural pollution by bombarding our senses with constant advertising and disrupting serious programs. In response, marketers aim for their ads to reach their target audience while also helping keep television and radio free for the public.

Corporate Social Responsibility (CARS) refers to businesses' obligation to maximize profits while adhering to fair competition rules and avoiding deception or fraud. CARS has become increasingly significant in the global business community as it impacts relationships between companies and stakeholders such as investors, customers, suppliers, employees, communities, and governments.Responsible business practices involve making decisions that benefit both society and the organization, often at short-term costs but with long-term positive social and environmental effects. While some companies may falsely claim social responsibility, many large corporations genuinely invest time and money into sustainability programs, alternative energy/cleanliness initiatives, and social welfare projects for employees, customers, and the community as a whole. Social responsibility holds significance for society, organizations, and individuals.

The responsibility of businesses is not fixed and can vary depending on current pressures. There are four groups of beneficiaries that companies have a responsibility towards. Firstly, there is a responsibility to owners/shareholders to utilize resources for their benefit and ensure stability and growth of the company. Secondly, there is a responsibility to employees which involves providing rewards, job security, fair selection processes educational opportunities ,and safe working conditions.Thirdly ,there is aresponsibility to consumers/customers provide quality products reasonable prices.Finally ,there is aresponsibility tothe

community contribute its welfare beyond just maximizing profits supporting the arts funding scholarships promoting community-building initiatives,and taking steps reduce pollution refrain from building weapons.Businesses have multiple incentives engaging in responsible business practicesSome of the benefits of engaging in Corporate Social Responsibility (CSR) include increased leverage and influence in serving leadership positions to change government policies. Companies involved in CSR also tend to take the lead in regulatory and financial reform. Additionally, participating in CSR can result in market and product expansion as it allows businesses to discover and enter new markets by changing their approach and target audience. Another incentive for companies to engage in CSR activities is the potential to improve access to finance and attract and retain employees.

By participating in CSR initiatives, companies can enhance their reputation and protect their brand identity, which appeals to consumers who prefer to support sustainable development efforts. This increased consumer trust can ultimately lead to higher profits. Furthermore, engaging in CSR can also enhance operational effectiveness by reducing risks and costs. For instance, implementing environmentally-friendly practices can lower production and transportation costs while also improving the company's risk profile associated with both production processes and its local/global reputation.

Additionally, being involved in CSR activities can foster better government relations, develop a local skills base, and increase local expertise through access to local networks. A notable example of a successful CSR initiative in Egypt is demonstrated by Avoidance Egypt.In 2004, Avoidance Egypt became one of the first corporate companies in the country to establish a dedicated department for CSR activities. This department focuses on supporting various social programs, with a particular emphasis on environmental issues such as recycling and

waste management. The company has prioritized addressing environmental concerns and has been a leader in this area.

Moreover, they actively contribute to education development through their foundation, which distributes school bags to students living in remote and underprivileged areas. Distillates Egypt, a leading company in Corporate Social Responsibility (CSR), demonstrates their commitment to the community by supporting various programs.

They donate medical equipment to the Laser Unit and provide PC donations to help individuals adapt to new technologies. In partnership with Rotary Kara El-Nile, they fundraise for optical caravan projects. Additionally, Distillates Egypt supported a fundraising event for Anamosa Asker School for blind children organized by Retract Lee Care Champion.

The company's priorities also include health support programs and placing emphasis on health and safety. They aim to show their care for the community and address health issues. Furthermore, they promote responsible driving behavior and safe mobile usage as part of their commitment to safety.

To ensure student well-being, Avoidance completed a campaign aimed at constructing 2000 clinics in schools throughout Egypt.Distillates Egypt considers CSR to be of utmost importance and works towards making a positive impact on the social and economic development of society.Distillates Miss actively participates in the United Nations Global Compact, viewing corporate social responsibility (CSR) as an ongoing commitment. They have introduced innovative ideas in the field of CSR, such as "Cause based CARS," and take a leading role in various areas including environment, special needs, humanitarian aid, and sustainable development.

While Distillates Miser primarily focuses on their water-related "origin" initiative, they have also launched other projects like sponsoring the Egyptian Paralytics committee and creating "Roy", a special tariff for sign language users. These initiatives utilize

Distillate's technological advancements and widespread coverage across 36 areas.

The "origin" initiative is a nationwide project developed by Distillates to address Egypt's water crisis. Recognizing clean water provision and sanitation as essential millennium development goals, the United Nations supports this effort. Water stress is a significant issue faced by many countries including Egypt due to improper usage habits and misconduct resulting in thousands of people lacking access to clean drinking water. Land drying up and conflicts among farmers are consequences of traditional irrigation practices and mismanagement. Additionally, unclean water has led to a high prevalence of kidney failure in affected regions.

In addition to kidney failure, diseases related to contaminated water include liver problems and dehydration. The "origin" initiative involves collaboration between international organization "Care," reputable Egyptian non-governmental organizations like "Resale," and the "Egyptian Society for Integrated Development." Numerous community development agencies are engaged in this partnership.
In its first year, this collaboration aims to provide estimated direct aid to hundreds of thousands of beneficiaries in 7 governesses. The availability of reduced-price video calls for individuals with impairments and special needs is also emphasized, enabling them to use mobile phones with sign language thanks to Distillate's advanced technology and extensive coverage. Additionally, Coca-Cola collaborates with the Egypt Food Bank to improve infrastructure and connect families with clean water sources. They also partner with micro-finance institutions to offer micro-loans for establishing small businesses and ensuring sustainable family income.

Furthermore, Coca-Cola works with other partners to provide scholarships, support university students in entrepreneurship, and establish learning centers in 100 schools through a partnership with the Discovery Channel. These initiatives help dispel claims regarding the detrimental effects of Coca-Cola's carbonated beverages on

health according to observers. Mikado states that Coca-Cola recognizes the importance of investing in the community year-round as it aligns with their sustainable strategy in Egypt. Thus, Coca-Cola's CARS initiatives are not merely a response but rather a commitment to community sustainability.

For over 30 years, Chips for Food Industries has been producing high-quality snacks in Egypt while focusing on fun and caring for the community

They strive to constantly innovate and provide delectable products that bring joy while also benefiting the community. Although there are still tasks to be accomplished, they eagerly accept the challenge and have confidence in their current endeavors' potential to make a substantial impact on the future. Their commitment is simple: by supporting coal farmers, placing sustainability as a priority, and using high-quality ingredients, they firmly believe that promoting good can ultimately benefit all.

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