1. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 18–1 Part 4: Evaluating marketing Chapter 18: Ethical marketing in a consumer-oriented world—appraisal and challenges

2. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 18–2 When we finish this lecture you should Understand how marketing can and should be evaluated Know how to assess the connection between marketing, materialism and social values Know the challenges facing marketers in the future Understand the issues at stake in globalisation Know how to consider the ethical implications of marketing decision-making Know the reason as to why the legal framework of marketing matters Realise how far marketing can or should go

3. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 18–3 Questioning marketing Would we be better off if there was not quite so much emphasis on marketing? Do we really need so many brands of products? Does all the money spent on advertising really help consumers? Should we expect to be able to order groceries over the Internet and have a van deliver them to our front door? Do all the retail stores in shopping centres just add to the price consumers must pay? Does marketing serve society well or does it cost too much?

4. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 18–4 Measuring consumer satisfaction The consumer satisfaction index – A measure based on regular interviews with a number of consumers, indicating the extent to which a company fulfils a consumer’s needs, desires and expectations Satisfaction is subjective Profit—Surrogate measure of consumer satisfaction

5. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 18–5 Micro-marketing often does cost too much Micro-marketing is only viable when the benefits to the customer exceed the costs to the marketer – For customers in production-oriented companies, micro- marketing may cost too much Many new products fail in production-oriented companies – Lack of understanding of the customer – Improper blending of the four Ps – Lack of understanding of the marketing environment – ‘Me-too’ products don’t always succeed

6. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 18–6 Macro-marketing does not cost too much Consumers have a choice as to whether or not to buy new products Prices of older products usually drop Innovative companies’ profits may rise, encouraging further innovation leading to new investments, economic growth, higher income and employment Increased profits attract competition Advertising is an economical way to provide information

7. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 18–7 Marketing, materialism and social values Marketers aim to fulfil customers’ needs, not judge them The market-directed economy can address social problems Generally, marketing does not create ‘false tastes’

8. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 18–8 Free speech and the use of sex appeal in advertising Legislation abrogates free choice Public outrage can play into marketers’ hands Marketers can choose to take a societal view

9. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 18–9 Figure 18.1 Some important changes and trends affecting marketing and strategy planning

10. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 18–10 Figure 18.1 Some important changes and trends affecting marketing and strategy planning (continued)

11. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 18–11 Figure 18.1 Some important changes and trends affecting marketing and strategy planning (continued)

12. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 18–12 Globalisation Globalisation—Considering the whole world as a market Emergence of post-communist economies Extension of free trade markets Culture clashes

13. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 18–13 Ethical marketing is not an oxymoron A rise in importance of environmental issues – Green marketing—A key tool in environmental care – The ‘triple bottom line’—A principle whereby companies should care about people, the planet and profit

14. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 18–14 Privacy is important Consumer privacy— The consumer’s right that information shared with a vendor will not be used in ways inconsistent with the consumer’s expectations Technology can threaten privacy Governments are active in preserving privacy Ethical marketing is not an oxymoron (continued)

15. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 18–15 The legal framework Unethical marketing practices are attracting bigger penalties ‘Misleading or deceptive conduct’ by marketers is targeted Who should be punished?

16. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 18–16 Responsibility for ethics must be shared Should marketers get the blame for giving consumers what they want? Consumers’ impact on marketers Consumer/marketer harmony

17. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 18–17 How far should the marketing concept go? Should dangerous products be banned? Can clever marketing kill competitors’ good products? Does legislation help?