Enviornmentalism

Consumerism & Marketing EthicsMade By :Parv ShuklaAbdul RehmanSurya Cruz

Marketing Ethics Ethics are the moral principles and values that govern the actions and decisions of an individual . Corporate marketing ethics are broad guidelines that everyone in the organization must follow that cover distributor relations, advertising standards, customer service, pricing, product development, and general ethical standards Philosophies :Issues are decided by the free market and legal system.Responsibility is not on the system but in the hands of the individual company and managers

Role of ethics in marketing

Compliance and corporate responsibility Fairness Pro-active response to ethical concerns Reactive response to ethical concerns Community involvement

Criticisms of MarketingHigh pricesDeceptive practicesHigh-pressure sellingShoddy, harmful, or unsafe productsPlanned Obsolescence

High cost of distributionComplaint: Intermediaries mark up prices beyond their value due to inefficiencies and6 nnecessary or duplicative servicesResponse: Markups reflect the cost of the services that consumers expectConvenienceLarger stores and assortmentsMore serviceReturn privileges

High Advertising and Promotion CostsComplaint: Prices are inflated to absorb advertising and sales promotion costs, and packaging only adds to the psychological not functional value of the product.Response: Advertising does add to product cost but also to product value by informing potential customers of the availability and merits of the product

Deceptive PracticesComplaint: Companies use deceptive practices that lead customers to believe they will get more value than they actually do. These practices fall into three categories:Deceptive pricingDeceptive promotionDeceptive packaging

Deceptive pricing includes practices such as falsely advertising factory or wholesale prices or a large price reduction from a phony high retail list price

Deceptive promotion includes practices such as misrepresenting the products features or performance or luring the customer to the store for a bargain that is out of stock

Deceptive packaging includes exaggerating packaging contents through subtle design, using misleading labeling, or describing size in misleading terms

High Pressure SellingComplaint: Sales people use high-pressure selling that persuade people to buy goods they had no intention of buying.Response: Most selling involves building long-term relationships and valued customers. High-pressure or deceptive selling can damage these relationships.

Shoddy, Harmful, or Unsafe Products

Complaint: Products have poor quality, provide little benefit, and can be harmfulResponse: Todays marketers know that customer-driven quality results in customer value and satisfaction that create profitable customer relationships. There is no value in marketing shoddy, harmful, or unsafe products.

Planned Obsolescence

Complaint: Producers follow a program of planned obsolescence, causing their products to become obsolete before they actually need replacement. Producers also continually change consumers concepts of acceptable styles to encourage more and earlier buying.Response: Planned obsolescence is really the result of competitive market forces leading to ever-improving goods and services. Marketers know that customers like style changes and want the latest innovations even if older models still work.

Marketings Impact on Society as a Whole

FALSE WANTS AND TOO MUCH MATERIALISMComplaint: The marketing system urges too much interest in material possessions. People are judged by what they own rather than who they are, creating false wants that benefit industry more than they benefit consumers.Response: People do have strong defenses against advertising and other marketing tools. Marketers are most effective when they appeal to existing wants rather than creating new ones. The high failure rate of new products shows that companies cannot control demand.

Marketings Impact on Society as a Whole

TOO FEW SOCIAL GOODSComplaint: Businesses oversell private goods at the expense of public goods and require more public goods to support themResponse: There needs to be a balance between private and public goodsProducers should bear full social costs of their operationsConsumers should pay the social costs of their purchases

Cultural PollutionComplaint: Marketing and advertising create cultural pollution

Response: Marketing and advertising are planned to reach only a target audience, and advertising makes radio and television free to users and helps to keep down the costs of newspapers and magazines. Todays consumers have alternatives to avoid marketing and advertising from technology.

Marketings Impact on Other Businesses

Acquisition of competitors can sometimes be good for society when the acquiring company gains economies of scale that lead to lower prices

Marketing practices can also bar new competitors from entering an industry and can create use patents, heavy promotional spending to drive out existing competitors

Unfair competitive marketing practices such as pricing below cost, threatening to cut off business with suppliers, or discouraging the buying of a competitors product can hurt or destroy other firms

ConsumerismIt is the organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellersConsumerism is the equating of personal happiness with the purchasing of material and consumption of it.

While consumerism is not a new phenomenon, it has only become widespread over the 20th century and particularly in recent decades, under the influence of capitalism.

Effects of ConsumerismConsumerism is appreciated in Western economies since a persons standard of living is valued by his or her material possessions. There are certain positive effects such as:

Positive Consumerism Effects

Primary positive consumerism effects are:More industrial production.A higher growth rate economy.More goods and services available.More advertising since goods manufactured have to be sold.Increased production will result in more employment opportunities.A variety ofchoice for goods and servicesMore comforts for a better living style.

Negative Consumerism EffectsThe University of Colorado likened the expansion of human cities to the growth and spread of cancer, predicting death of the Earth in about 2025. Since the human population has quadrupled in the past 100 years and at this rate will reach a size in 2025 that leads to global collapse .Human naturefollowing the principle of expansion to gain survival.Material wealth decides whether a society is highly developed or not. Our ethical and spiritual values have no importance.Over-dependence on labor saving devices.A car for each individual would mean gradual erosion of public transport.Crime rate also increases as wants to possess assests increase leading to thefts and robberies. Personal relationships get effected when people try to raise their living standards.Cheaper goods are consumed more leading to depleting resources.Ecological imbalances,destroying natural habitat and increasing industrial pollution are some of the other effects

Consumerism In IndiaIt is the process of realizing the rights of the consumer as envisaged in the Consumer Protection Act (1986) and ensuring right standards for the goods and services for which one makes a payment.

The transition is from a "sellers market" to a "buyers market" where the choice exercised by the consumer will be influenced by the level of consumer awareness achieved.In our Indian system the consumer has six rights given for his protection from exploitation from the shopkeepers or sellers.Consumer exploitationmeans mistreatment or cheating withconsumer by adulteration, Thagi or in any otherunfair form.To prevent consumer from exploitation, our government have passed many Acts from time to time.Some of them are asfollows:-1. Drug and Cosmetics Act, 1940 2. Prevention of Food Adulteration Act, 1954 3. Essential Commodity (supply) Act, 1955 4. Monopolies and Restrictive Trade Practices Act, 1969 5. Standard of Weights and Measures Act, 1976 6. Consumer Protection Act, 1986

EnvironmentalismAn organized movement of concerned citizens and government agencies to protect and improve peoples living environment.

People and organizations should operate with more care for the environment

The marketing systems goal should not be to maximize consumption, consumer choice, or satisfaction, but rather to maximize life quality. Environmental costs should be included in both producer and consumer decision making.

Environmentalism Environmental SustainabilityA management approach that involves developing strategies that both sustain the environment and produce profits for the company.

Levels of environmental sustainability16-28Plan for New EnvironmentalTechnologiesAdopt Designfor the Environment Practices SustainabilityVision

PracticeProductStewardship

PracticePollutionPrevention28 Enlightened MarketingA marketing philosophy holding that a companys marketing should support the best long-run performance of the marketing system.

Customer-oriented marketing

Innovative marketing

Customer-value marketing

Sense-of-mission marketing

Societal marketing

Consumer-oriented marketing means that a company should view and organize its marketing activities from the consumers perspective.

Customer-value marketing means that the company should put most of its resources into customer-value-building marketing investments: long-term customer loyalty and relationships by continually improving the value consumers receive from the firms market offerings.

Innovative marketing requires the company to continually seek real product and marketing improvements.

Sense-of-mission marketing means the company should define its mission in broad social terms rather than narrow product terms

Societal marketing means the company makes marketing decisions by considering consumers wants and interests, the companys requirements, and societys long-run interestsViews societal problems as opportunitiesDesigns pleasing and beneficial products

GREEN MARKETINGGreen marketingis the marketing of products that are presumed to be environmentally safe. In simple terms it refers to the process of selling products and/or services based on their environmental benefits.Such a product may be environment friendly in itself or produced and/ or packaged in this way.

Organic foodsOrganic foods are produced according to certain production standards. These are grown without the use of conventional pesticides, artificial fertilizers, human waste, or sewage sludge and that they were processed without ionizing radiation or food additives. For animals, they were reared without the routine use of antibiotics and without the use of growth hormoneCurrently, the United States, the European Union, Japan and many other countries require producers to obtain organic certification in order to market food as organicCorporate Social ResponsibilityDefinitionDefinition A voluntary initiative on the part of a business to contribute to a better society and a greener and cleaner environment. The responsibility of business towards the societyCorporate Social Responsibility Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.

World Business Council For Sustainable Development

Corporate Social ResponsibilityBenefits of CSRLegislative FrameworkBenefits of CSRWinning new businessesEnhancing our influence in the industryAttracting, Retaining and Maintaining a happy workforceIncrease in customer retentionDifferentiating yourself from the competitorSaving money on energy and operating costAccess to funding opportunitiesMedia interestand goodreputationBenefitsBenefitsEnhanced Relationship with stakeholdersCorporate Social ResponsibilityCSR InitiativesGuiding Principles for CSR ProjectsCSR is about corporate citizenshipIt is about giving back to the societyIt is about business sustainabilityIt is about thriving in a competitive business environmentCorporate Social ResponsibilityCSR InitiativesCSR Projects for BusinessesEmployee focused initiativeMarket focused initiativeSociety focused initiativeProduct focused initiativeEnvironmentally focused initiativeResult - Driven CSR= Benefits Corporate Social ResponsibilityPractical Application of CSRYou need to evaluate various aspects of your business and operations,Analyse the impact our business will have on our stakeholders.Set realistic targets on how to improve our business operations and processes.Draw up a result- driven CSR Policy.Embed our CSR into your business strategy.GuidelinesA good CSR Policy must be result-drivenBusiness assessment is important.

Corporate Social ResponsibilityPractical Application of CSRAppoint a driver for your CSR initiative Communicate your CSR efforts to all your stakeholders clearly and boldly.Make your CSR initiative part of your business cultureSet up CSR measuring indicators to monitor progress and possible deviations.Be enthusiastic about your CSR initiative; be committed to it. Report on your initiatives and measure progress/ impact made.

Guidelines41Thank You For Your Time and always practice