BUAD 307 SOCIAL RESPONSIBILITY AND THE MARKETING ENVIRONMENT Lars Perner 1 SOCIAL RESPONSIBILITY

BUAD 307 SOCIAL RESPONSIBILITY AND THE MARKETING ENVIRONMENT Lars Perner 2 Some Ethical Issues Misleading advertisements and marketing in general Taking advantage of consumer ignorance Marketing of harmful products –Physically dangerous –Over-consumption; marketing to people living above their means Marketing of products banned or not marketed in the U.S. to other countries

BUAD 307 SOCIAL RESPONSIBILITY AND THE MARKETING ENVIRONMENT Lars Perner 3 One Approach to Evaluating Ethics of Marketing Activities IS THE ACT DECEPTIVE, MANIPULATIVE OR MISLEADING? DO BENEFITS APPEAR TO OUTWEIGH COSTS TO THE USER? IS A HARMFUL OR DANGEROUS PRODUCT INVOLVED? DOES THE ACT PREY ON PERSONAL INSECURITIES? LESS LIKELY TO BE ETHICALLY PROBLEMATIC MORE LIKELY TO BE ETHICALLY PROBLEMATIC IS THERE A SUFFICIENTLY REDEEMING PURPOSE? Yes No

BUAD 307 SOCIAL RESPONSIBILITY AND THE MARKETING ENVIRONMENT Lars Perner 4 “Win-Win” Deals and Social Responsibility By pooling resources, different organizations may each get more than what they put in –Firms may be able to contribute not only cash but also relevant expertise –Favorable publicity may be worth more than the same amount spent on advertising –Charitable groups may provide access to potential customers

BUAD 307 SOCIAL RESPONSIBILITY AND THE MARKETING ENVIRONMENT Lars Perner 5 Promotional Events A large retail chain might sponsor a concert series by paying all expenses in return for considerable publicity Triple “win-win-win” deal: –The charity receives the proceeds without having to pay costs –The sponsor receives publicity. Tickets are bought in the store or on its web site. –An aging artist—whose fans are now in their prime earning years—gets an opportunity to revive a career or promote a new venture (e.g., movie role)

BUAD 307 SOCIAL RESPONSIBILITY AND THE MARKETING ENVIRONMENT Lars Perner 6 INFLUENCES ON THE FIRM AND ITS CHOICES ENVIRONMENT FIRM PROFIT PRESSURE SOCIAL RESPONSIBILITY OPPORTUNITIES RESOURCES SOCIAL ECONOMIC TECHNOLOGY LEGAL/POLITICAL DEMOGRAPHICS CULTURE