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Marketing:AnIntroductionFifteenthEditionChapter16SustainableMarketing:SocialResponsibilityandEthicsCopyright©2023,2020,2017PearsonEducation,Inc.AllRightsReservedObjectivesOutline(1of2)16.1Definesustainablemarketinganddiscussitsimportance.16.2Identifythemajorsocialcriticismsofmarketingandsomecounterarguments.ObjectivesOutline(2of2)16.3Understandhowconsumer,societal,andcorporateforcesdrivesustainablemarketingstrategy.16.4Understandhowtobuildasustainablemarketingorganization.FirstStop:Patagonia’s“ConsciousConsumption”:TellingConsumerstoBuyLessBalancingpurposeagainstprofits:Afor-profitfirmtellingcustomerstobuylesssoundscrazy.Butit’srightinlinewithPatagonia’sreasonforbeing—”tosaveourplanet.”ObjectiveOutline16.1Definesustainablemarketinganddiscussitsimportance.Figure16.1
SustainableMarketingSustainableMarketingSustainability:McDonald’shasrespondedtosustainabilitychallengesbydiversifyingintosalads,fruits,grilledchicken,low-fatmilk,andotherhealthyfare,includingHappyMealsofferingmorebalancedfoodcomponentswithsimpleringredients.ObjectiveOutline16.1SummarySustainablemarketing—meetingpresentneedswhilepreservingtheabilityoffuturegenerationstomeettheirneedsSustainablemarketingcallsforsociallyandenvironmentallyresponsibleactionsSustainablemarketingrequiresconsumers,companies,publicpolicymakers,andotherstoworktogetherObjectiveOutline16.2Identifythemajorsocialcriticismsofmarketingandsomecounterarguments.SocialCriticismsofMarketingImpactonIndividualConsumersImpactonSocietyasaWholeImpactonOtherBusinessesMarketing’sImpactonIndividualConsumers(1of2)HighpricesDeceptivepracticesHigh-pressuresellingShoddy,harmful,orunsafeproductsPlannedandperceivedobsolescencePoorservicetodisadvantagedconsumersMarketing’sImpactonIndividualConsumers(2of2)Aheavilypromotednationalbrandsellsformuchmorethanavirtuallyidenticalnon-brandedorstore-brandedproduct.Criticschargethatpromotionaddsonlypsychologicalvaluetotheproductratherthanfunctionalvalue.Marketing’sImpactonSocietyasaWhole(1of2)FalseWantsandTooMuchMaterialismTooFewSocialGoodsCulturalPollutionMarketing’sImpactonSocietyasaWhole(2of2)Materialism:Somemarketersareurging“consciousconsumption.”REIclosesitsstoresonBlackFridayandencouragescustomersto#OptOutside.Marketing’sImpactonOtherBusinessesAcquisitionsofcompetitorsMarketingpracticesthatcreatebarrierstoentryUnfaircompetitivemarketingpracticesObjectiveOutline16.2SummaryMajorsocialcriticismsofmarketingImpactonindividualconsumerwelfareImpactonsocietyImpactonotherbusinessesObjectiveOutline16.3Understandhowconsumer,societal,andcorporateforcesdrivesustainablemarketingstrategy.TraditionalRightsSeller’srightsBuyer’srightsTointroduceanyproductinanysizeandstylewithproperwarningsandcontrols,ifnecessaryTobuyaproductthatisofferedforsaleTochargeanypricefortheproductwithoutanydiscriminationToexpecttheproducttobesafeTospendanyamounttopromotetheproductifcompetingfairlyToexpecttheproducttoperformasclaimedTouseanyproductmessagethatisnotmisleadingordishonestBlankTousebuyingincentiveprogramsthatarenotunfairormisleadingBlankProposedConsumerRightsTobewellinformedTobeprotectedagainstquestionableproductsandmarketingpracticesToinfluenceproductsandmarketingpracticestoimprove“qualityoflife”ToconsumeinawaytopreservetheworldforfuturegenerationsofconsumersEnvironmentalismProtectsandimprovespeople’scurrentandfuturelivingenvironmentConcernedwithDamagetotheecosystemLossofrecreationalareasIncreaseinhealthproblemsEnvironmentalsustainability:GeneratingprofitswhilehelpingprotecttheenvironmentFigure16.2
EnvironmentalSustainabilityandSustainableValueSource:BasedonStuartL.Hart,“SustainableValue,”/sustainablevalue.html,October2016.ObjectiveOutline16.3SummaryCitizenactionmovementsConsumerismEnvironmentalismCompaniesareadoptingpoliciesofenvironmentalsustainability.ObjectiveOutline16.4Understandhowtobuildasustainablemarketingorganization.SustainableMarketingPrinciples(1of3)Customer-centricmarketingViewingandorganizingacompany’smarketingactivitiesfromtheconsumer’spointofviewCustomervalue-buildingmarketingPuttingmostofacompany’sresourcesintocustomervalue-buildingmarketinginvestmentsSense-of-missionmarketingDefiningacompany’smissioninbroadsocialtermsSustainableMarketingPrinciples(2of3)Marketingethics:UnderArmour’sCodeofConducturgesallemployeesto“Protectthishouse—Maketherightcall.”regardingissuesofethicsandsocialresponsibility.“It’sassimpleasitsounds.SustainableMarketingPrinciples(3of3)Sense-of-missionmarketing:Pedigreemakesgooddogfoodbutthat'snotwhatthebrandisreallyallabout.Instead,atitscore,thebrandisaboutlovingandcaringfordogs.MarketwithEthics(1of2)Corporatemarketingethicspoliciesshouldbedevelopedbyfirmsasguidelinesforhandlingvariousissuesanddilemmas.DistributorrelationsAdvertisingstandardsCustomerservicePricingProductdevelopmentGeneralethicalstandardsMarketwithEthics(2of2)Principlesareneededtoguidecompaniesandmarketingmanagersonissuesofethicsandsocialresponsibility.Thefreemarketandthelegalsystemshoulddecidesuchissues.Responsibilityisinthehandsofindividualcompaniesandmanagers.Addressingethicshelpsbuildstrongcustomerrelationshipsbasedonhonestyandtrust.Table16.1SomeMorallyDifficultSituationsinMarketing1.YourR&Ddepartmenthaschangedoneofyourcompany’sproductsslightly.Itisnotreally“newandimproved,”butyouknowthatputtingthis
statementonthepackageandinadvertisingwillincreasesales.Whatwouldyoudo?2.Youhavebeenaskedtoaddastripped-downmodeltoyourlinethatcouldbeadvertisedtopullcustomersintothestore.Theproductwon’tbe
verygoodbutsalespeoplewillbeabletoswitchbuyerswhocomeintothestoreuptohigher-pricedunits.Youareaskedtogivethegreenlight
forthestripped-downversion.Whatwouldyoudo?3.Youarethinkingofhiringaproductmanagerwhohasjustleftacompetitor’scompany.Shewouldbemorethanhappytotellyouallthe
competitor’splansforthecomingyear.Whatwouldyoudo?4.Oneofyourtopdealersinanimportantterritoryrecentlyhashadfamilytroublesandhissaleshaveslipped.Itlookslikeitwilltakehimawhile
tostraightenouthisfamilyproblems.Meanwhile,youarelosingmanysales.Legally,onperformancegrounds,youcanterminatethedealer’s
franchiseandreplacehim.Whatwouldyoudo?5.Youhaveachancetowinabigaccountinanothercountrythatwillmeanalottoyouandyourcompany.Thepurchasingagenthintsthata“gift”
wouldinfluencethedecision.Suchgiftsarecommoninthatcountryandsomeofyourcompetitorswillprobablymakeone.Whatwouldyoudo?6.Youhaveheardthatacompetitorhasanewproductfeaturethatwillmakeabigdifferenceinsales.Thecompetitorwilldemonstratethefeature
inaprivatedealermeetingattheannualtradeshow.Youcaneasilysendasnoopertothismeetingtolearnaboutthenewfeature.Whatwould
youdo?7.Youhavetochoosebetweenthreeadvertisingandsocialmediacampaignsoutlinedbyyouragency.Thefirst(a)isasoft-sell,honest,straight-information
campaign.Thesecond(b)usesemotion-loadedappealsthatexaggeratetheproduct’sbenefits.Thethird(c)involvesanoisy,
somewhatirritatingcommercialandpop-upsthataresuretogainaudienceattention.Pretestsshowthatthecampaignsareeffectiveinthe
followingorder:c,b,anda.Whatwouldyoudo?8.Yourcompanyhaspositioneditselfasaresponsiblestewardoftheenvironment.Overthepasttwoyears,ithashighlighteditssuccessfuleffortstogreatlyreducethecarbonfootprintfromitsproductsandprocesses.Thecompanyhasnowcomeupwithanexcitingnewproductthathasexcellentfeaturesandwilllikelybeabestseller.However,thenewproduct’scarbonfootprintoveritslifecycleisfivetimesthatoftheproductitreplaces.Youhavejustbeenpromotedasthemanagerresponsibleformarketingandsellingthenewproduct.Whatwouldyoudo?EthicalNormsSuggestedbytheAmericanMarketingAssociationDonoharmFostertrustinthemarketingsystemEmbraceethicalvaluesFigure16.3
SocietalClassificationofProductsTheSustainableCompanySustainablecompaniescreatevalueforcustomersthroughsocially,environmentally,andethicallyresponsibleactions.Sustainablemarketingprovidesthecontextinwhichcompaniescanbuildprofitablecustomerrelationships.ObjectiveOutline16.4SummaryCompanypoliciesandguidelinesforethicsutilizetwoprinciples:Thefirstprinciplestatesthefreemarketandthelegalsystemshoulddecidesuchissues.Amoreenlightenedprinciple
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