cb15

Marketing Ethics and Social

Responsibility

CHAPTERSIXTEEN

Learning Objectives

1. Overall: To Understand the Meaning of Marketing Ethics and Social Responsibility.

2. To Learn About Potential Unethical Marketing Practices Involving Targeting Especially Vulnerable or Unaware Consumers.

3. To Learn How Marketers Can Ambush Consumers with Unexpected Ads, Tinker with Their Perceptions, and Mislead Them.

4. To Understand How Marketers Can Advance Society’s Interests via Such Practices as Advocating Social Benefits.

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 2Chapter Sixteen Slide

Societal Marketing Concept

• Marketing concept is fulfilling the needs of target consumer markets more effectively than competitors.

• It is some times inconsistent or incongruous with society’s well being and best interests.

• Examples: Tobacco and Alcohol.

3

• The concept requires that all marketers adhere to principles of social responsibility in the marketing of their goods and services.

• Example: fast food restaurants

4

Societal Marketing Concept

“Marketers should endeavor to satisfy the needs and wants of their target markets in ways that preserve and enhance the well-being of consumers and society as a whole, while fulfilling the objectives of the organization”

5Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 5Chapter Sixteen Slide

Marketing Ethics

• Marketing ethics is one of the most important marketing solutions, but also one of the most misunderstood and controversial concepts in marketing.

• There is no universal approach to marketing ethics yet. However, marketing ethics is important to promote marketing solutions that are both acceptable to the company and beneficial to society.

6

Why Is the Sponsor of This Ad Criticizing McDonald’s, and What Business Concept Did McDonald’s Ignore by

Using Trans Fats?

7Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Sixteen Slide

McDonald’s Ignored Consumer’s Interests and the Societal Marketing Concept.


Exploitive Targeting

• Marketing to Children• Overaggressive Promotion• Selling Pharmaceuticals directly to consumers• The perils of precision targeting


Marketing to Children

• Guidelines by Children’s Advertising Review Unit (CARU)

• Guidelines include:– No misleading claims about product’s

performance or benefits– Must not exploit children’s imagination– Can not create unrealistic expectations– Products must be shown in safe situation– No encouragement of inappropriate behavior


• According to CARU guidelines direct marketers to avoid ads that

- encourage children to pressure their parents to buy the products advertised.

- compel children to feel that ownership of given product will make them more accepted by peers.

11

• Examples:• McDonald’s-made-me-fat• Oreo cookies

12

Overaggressive Promotion

• Recession due in part to Americans’ rising credit and easy credit to risky groups


Selling Pharmaceuticals Directly to Consumers

• Began in 1997• Television, print, and

the Internet


The Perils Of Precision Targeting

• Narrowcasting– Directed messages to small audiences– Data providers support the marketers with

information

• GPS– Cell phones and cars– Gives marketers your location


Manipulating Consumers

• Forced exposure to advertising• Tinkering with consumers’ perceptions• Covert marketing• Socially undesirable representations• False or misleading advertising


Forced Exposure To Advertising

• Product placement• Advertorials• Infomercials


Tinkering With Consumers’ Perceptions

• Increased consumption from:– Organization of merchandise– Size of package– Symmetry of display– Perceived variety of display

• Store Environments• Relative Pricing


Covert Marketing

• Also called masked or stealth marketing• Messages appear to be from independent

parties but are company driven.• Disagreement as to whether they violate FTC

guidelines


A Typology of Masked Marketing Practices Table 16.3

Practice Description

Posers (disguised communicator)

Actors or salespeople who pretend to be ordinary people or researchers conducting a survey to explain product benefits and give potential consumers the chance to examine, sample, or use a product.

Buzz and viral marketing (disguised communicator)

Recruitment of people to talk about products through free samples or discounts before the product is available to the general public and suggestions on what to say and how to approach people about the product. Some refer to this as viral marketing when the contact with potential consumers is done electronically.

Advertorials (disguised format)

Advertisements that appear to be information from an independent source, such as prepared television news stories: infomercials that appear to be consumer televisionshows; and print advertisements that appear to be editorial content.


A Typology Of Masked Marketing PracticesTable 16.3 (continued)

Practice Description

Disguised monitoring of queries via search engines

Use of invisible metatags by a marketer or the sale of priority by a search engine of the results from a particular query when the results are not identified as biased.

Urgent ad-formation(disguised format)

Advertisements that appear in the form of important account information from firms with an existing business relationship, government notices, sweepstakes prizenotices, or checks that are simply discount coupons.

Advertainment (disguised format)

Product and advertising placement in television shows, at sporting events, and in video games.


Socially Undesirable Representations

• Children’s Toys– Barbie and G.I. Joe

• Thin models in the media• Brands that promote violence• Stereotypes


False or Misleading Advertising

• Puffery• Truth-in-advertising laws• Deceptive advertising• Corrective advertising


Social Responsibility

• Advocating socially beneficial causes• Cause-related marketing• Green marketing• Consumer ethics


Advocating Socially Beneficial Causes

• Not-for-profits• Government agencies• Consumer advocacy groups


What Is the Name and Meaning of the Marketing Approach Featured in this Ad?


Advocating Socially Beneficial Causes or To Promote Socially Desirable Behaviors


What Is the Ad’s Objective, and Why Is the CSPI Sponsoring It?


It is Aimed at Educating Consumers About Unhealthy Products at School –

The CSPI is a Consumer Advocacy Group


Cause-Related Marketing

• Contribute a portion of revenues

• Good fit between cause and company’s positioning is important


Green Marketing

• Promoting of healthy, reusable, and ecofriendly products


What Is the Name and Purpose of the Marketing Practice Depicted in the Three Ads and How Did Each of the Three Carmakers Featured Adopt This Practice?


Green Marketing

33

Better Mileage Social Conscience Responsibility and Luxury

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Sixteen Slide

Measuring Consumers’ Attitudes Toward Green Products – Table 16.4 (excerpt)

A Scale Measuring Consumers’ Attitudes Toward Green Products

I believe there are a lot of exaggerations about companies taking environmental risks nowadays.

I believe the government is doing all that is possible to safeguard the environment.

I believe that we should not slow down industry progress because of concern for the environment.

I believe environmental safety is the responsibility of the government, not individual citizens.

I believe that government legislation adequately regulates environmental protection.

I believe a well-known brand is always a safe product to buy.


Consumer Ethics

• Returning used product• Software privacy

35Chapter Sixteen Slide

cb15

Documents

prentice hall chapter

pearson education

meaning of marketing

important marketing

consumers interests

business concept

societys interests

social benefits