1. Copyright © 2007 Pearson Education Canada 3-1 Chapter Three Marketing and Society: Social Responsibility and Marketing Ethics with Duane Weaver

2. Copyright © 2007 Pearson Education Canada 3-2 Outline Marketing Issues Marketing Ethics and Society Marketing Ethics and Business Consumerism Seller’s Rights Environmentalism Enlightened Marketing Societal Classification of Products

3. Copyright © 2007 Pearson Education Canada 3-3 Marketing Issues Negative impact on individual consumer welfare: –High prices due to costs of distribution, advertising and excessive markups. –Deceptive practices: pricing, promotion. –High-pressure selling. –Shoddy or unsafe products. –Planned obsolescence. –Poor service to disadvantaged customers.

4. Copyright © 2007 Pearson Education Canada 3-4 Marketing Ethics and Society Negative impact on society: –Creating false wants. –Too few social goods. –Cultural pollution. Constant assault of advertising and promotion on the senses. Average Canadian is exposed to 3000 marketing messages a day. Vicious circle: the more advertising, the more advertisers must find ways to capture our attention –Too much political power.

5. Copyright © 2007 Pearson Education Canada 3-5 Marketing Ethics and Business Negative impact on other businesses: –Harming competitors. –Reducing competition through acquisitions. –Practices that create barriers to entry. –Unfair competitive marketing practices. All can harm other businesses and reduce competitiveness.

6. Copyright © 2007 Pearson Education Canada 3-6 Consumerism An organized movement of citizens and government agencies to protect the rights of buyers. –The right to safety. –The right to be informed. –The right to choose. –The right to be heard. –The right to redress against damage. –The right to consumer education.

7. Copyright © 2007 Pearson Education Canada 3-7 Seller’s Rights These rights depend on fair and safe practices: –The right to introduce any product in any style and size. –The right to charge any price for the product. –The right to spend any amount to promote the product. –The right to use any product message. –The right to use any buying incentive scheme. Please get into groups of FOUR and compare the Seller’s rights you are aware of in your country with two others. Be prepared to share these differences/similarities with the class.

8. Copyright © 2007 Pearson Education Canada 3-8 Environmentalism An organized movement of citizens, businesses and government agencies. How has this impacted marketing?

9. Copyright © 2007 Pearson Education Canada 3-9 Enlightened Marketing: Socially Responsible Marketing Five principles of enlightened marketing: 1.Consumer-oriented marketing. 2.Innovative marketing. 3.Value marketing. 4.Sense-of-mission marketing. 5.Societal marketing.

10. Copyright © 2007 Pearson Education Canada 3-10 Societal Classification of Products Salutary Products Desirable Products Deficient Products Pleasing Products High Long-run Benefit Low Immediate Satisfaction

11. Copyright © 2007 Pearson Education Canada 3-11 Marketing Ethics Corporate marketing ethics policies: –Broad guidelines that everyone in the organization must follow. Distributor relations. Advertising standards. Customer service. Pricing. Product development. General ethical standards.

12. Copyright © 2007 Pearson Education Canada 3-12 Thanks! Marketing Ethics A message from socially conscious successful businesses