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Marketing:AnIntroductionThirteenthEditionChapter16SustainableMarketing:SocialResponsibilityandEthicsCopyright?2017,2015,2013PearsonEducation,Inc.AllRightsReservedLearningObjectives(1of4)16-1. Definesustainablemarketinganddiscussitsimportance.16-2. Identifythemajorsocialcriticismsofmarketing.16-3. Defineconsumerismandenvironmentalismandexplainhowtheyaffectmarketingstrategies.LearningObjectives(2of4)16-4.Describetheprinciplesofsustainablemarketing.16-5.Explaintheroleofethicsinmarketing.FirstStop:Patagonia“ConsciousConsumption”—TellingConsumerstoBuyLessAfor-profitcompanytellingconsumerstobuylesssoundscrazy.LearningObjective16-1Definesustainablemarketinganddiscussitsimportance.Figure16.1-SustainableMarketingSustainableMarketingTheMcDonald’s“PlantoWin”strategyhascreatedsustainablevalueforbothcustomersandthecompany.LearningObjective16-1SummarySustainablemarketing–meetingpresentneedswhilepreservingtheabilityoffuturegenerationstomeettheirneeds.Sustainablemarketingcallsforsociallyandenvironmentallyresponsibleactions.Sustainablemarketingrequiresconsumers,companies,publicpolicymakers,andotherstoworktogether.LearningObjective16-2Identifythemajorsocialcriticismsofmarketing.SocialCriticismsofMarketingImpactonIndividualConsumersImpactonSocietyasaWholeImpactonOtherBusinessesMarketing’sImpactonIndividualConsumers(1of2)HighpricesDeceptivepracticesHigh-pressuresellingShoddy,harmful,orunsafeproductsPlannedandperceivedobsolescencePoorservicetodisadvantagedconsumersMarketing’sImpactonIndividualConsumers(2of2)Lawsuitsagainst5-HourEnergydrinkmarketersallegethatthebrand'sadvertisingisdeceptiveandmisleading.Marketing’sImpactonSocietyasaWhole(1of2)FalseWantsandTooMuchMaterialismTooFewSocialGoodsCulturalPollutionMarketing’sImpactonSocietyasaWhole(2of2)TheCenterforaNewAmericanDreamurgespeopletoreject“buymore”messages.Marketing’sImpactonOtherBusinessesAcquisitionsofcompetitorsMarketingpracticesthatcreatebarrierstoentryUnfaircompetitivemarketingpracticesLearningObjective16-2SummaryMajorsocialcriticismsofmarketingImpactonindividualconsumerwelfareImpactonsocietyImpactonotherbusinessesLearningObjective16-3Defineconsumerismandenvironmentalismandexplainhowtheyaffectmarketingstrategies.TraditionalRightsSeller’srightsBuyer’srightsTointroduceanyproductinanysizeandstylewithproperwarningsandcontrols,ifnecessaryTobuyaproductthatisofferedforsaleTochargeanypricefortheproductwithoutanydiscriminationToexpecttheproducttobesafeTospendanyamounttopromotetheproductifcompetingfairlyToexpecttheproducttoperformasclaimedTouseanyproductmessagethatisnotmisleadingordishonestblankTousebuyingincentiveprogramsthatarenotunfairormisleadingblankProposedConsumerRightsTobewellinformedTobeprotectedagainstquestionableproductsandmarketingpracticesToinfluenceproductsandmarketingpracticestoimprove“qualityoflife”ToconsumeinawaytopreservetheworldforfuturegenerationsofconsumersEnvironmentalismProtectsandimprovespeople’scurrentandfuturelivingenvironmentConcernedwithDamagetotheecosystemLossofrecreationalareasIncreaseinhealthproblemsEnvironmentalsustainability:GeneratingprofitswhilehelpingprotecttheenvironmentFigure16.2-EnvironmentalSustainabilityandSustainableValueSource:StuartL.Hart,“Innovation,CreativeDestruction,andSustainability,”ResearchTechnologyManagement,September–October2005,pp.21–27.MajorMarketingDecisionAreasThatMayBeCalledintoQuestionundertheLaw(1of3)DecisionareasLegalissuesSellingdecisionsBribingStealingtradesecretsDisparagingcustomersMisrepresentingDisclosureofcustomerrightsUnfairdiscriminationAdvertisingdecisionsFalseadvertisingDeceptiveadvertisingBait-and-switchadvertisingPromotionalallowancesandservicesMajorMarketingDecisionAreasThatMayBeCalledintoQuestionundertheLaw(2of3)DecisionareasLegalissuesChanneldecisionsExclusivedealingExclusiveterritorialdistributorshipTyingagreementsDealer’srightsCompetitiverelationsdecisionsAnticompetitiveacquisitionBarrierstoentryPredatorycompetitionProductdecisionsProductadditionsanddeletionsPatentprotectionProductqualityandsafetyProductwarrantyMajorMarketingDecisionAreasThatMayBeCalledintoQuestionundertheLaw(3of3)DecisionareasLegalissuesPackagingdecisionsFairpackagingandlabelingExcessivecostScarceresourcesPollutionPricedecisionsPricefixingPredatorypricingPricediscriminationMinimumpricingPriceincreasesDeceptivepricingLearningObjective16-3SummaryCitizenactionmovementsConsumerismEnvironmentalismCompaniesareadoptingpoliciesofenvironmentalsustainability.LearningObjective16-4Describetheprinciplesofsustainablemarketing.SustainableMarketingPrinciples(1of2)Consumer-orientedmarketingViewingandorganizingacompany’smarketingactivitiesfromtheconsumer’spointofviewCustomervaluemarketingPuttingmostofacompany’sresourcesintocustomervalue-buildingmarketinginvestmentsInnovativemarketingSeekingrealproductandmarketingimprovementsSustainableMarketingPrinciples(2of2)Sense-of-missionmarketingDefiningacompany’smissioninbroadsocialtermsSocietalmarketingMakingmarketingdecisionsbyconsideringConsumers’wantsCompany’srequirementsConsumers’long-runinterestsSociety’slong-runinterestsFigure16.4-SocietalClassificationofProductsLearningObjective16-4SummaryFivesustainablemarketingprinciples:Consumer-orientedmarketingCustomervaluemarketingInnovativemarketingSense-of-missionmarketingSocietalmarketingLearningObjective16-5Explaintheroleofethicsinmarketing.MarketingEthics(1of2)Corporatemarketingethicspoliciesshouldbedevelopedbyfirmsasguidelinesforhandlingvariousissuesanddilemmas.DistributorrelationsAdvertisingstandardsCustomerservicePricingProductdevelopmentGeneralethicalstandardsMarketingEthics(2of2)Principlesareneededtoguidecompaniesandmarketingmanagersonissuesofethicsandsocialresponsibility.Thefreemarketandthelegalsystemshoulddecidesuchissues.Responsibilityisinthehandsofindividualcompaniesandmanagers.Addressingethicshelpsbuildstrongcustomerrelationshipsbasedonhonestyandtrust.EthicalNormsSuggestedbytheAmericanMarketingAssociationDonoharmFostertrustinthemarketingsystemEmbraceethicalvaluesTheSustainableCompanySustainablecompaniescreatevalueforcustomersthroughsocially,environmentally,andethicallyresponsibleactions.Sustainablemarketingprovidesthecontextinwhichcompaniescanbuildprofitablecustomerrelationships.LearningObjective16

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