Marketing an introduction: Chapter 16

Traditional buyers' rights

1. The right not to buy a product that is offered for sale 2. The right to expect the product to be safe 3. The right to expect the product to perform as claimed

high-pressure selling

selling that persuades people to buy goods they had no thought of buying

sustainable marketing

socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs

five sustainable marketing principles that businesses take towards sustainable marketing

(1) consumer-oriented marketing (2) customer value marketing (3) innovative marketing (4) sense-of-mission marketing (5) societal marketing

the American Marketing Association code of conduct:

1. Do no harm. This means consciously avoiding harmful actions or omissions by embodying high ethical standards and adhering to all applicable laws and regulations in the choices we make. 2. Foster trust in the marketing system. This means striving for good faith and fair dealing so as to contribute toward the efficacy of the exchange process as well as avoiding deception in product design, pricing, communication, and delivery or distribution. 3.Embrace ethical values. This means building relationships and enhancing consumer confidence in the integrity of marketing by affirming these core values: honesty, responsibility, fairness, respect, transparency, and citizenship.

Consumer advocates call for the following additional consumer rights:

1. The right to be well informed about important aspects of the product 2. The right to be protected against questionable products and marketing practices 3. The right to influence products and marketing practices in ways that will improve "quality of life" 4. The right to consume now in a way that will preserve the world for future generations of consumers

Traditional sellers' rights

1. The right to introduce any product in any size and style, provided it is not hazardous to personal health or safety, or, if it is, to include proper warnings and controls 2. The right to charge any price for the product, provided no discrimination exists among similar kinds of buyers 3. The right to spend any amount to promote the product, provided it is not defined as unfair competition 4.The right to use any product message, provided it is not misleading or dishonest in content or execution 5. The right to use buying incentive programs, provided they are not unfair or misleading

three factors that lead to high prices

1. high costs of distribution 2. high advertising and promotion costs 3. excessive markups

Deceptive practices fall into three groups:

1. promotion 2. packaging 3. pricing

Products can be classified according to their degree of immediate consumer satisfaction and long-run consumer benefit.

1.Deficient products, such as bad-tasting and ineffective medicine, have neither immediate appeal nor long-run benefits. 2.Pleasing products give high immediate satisfaction but may hurt consumers in the long run. Examples include cigarettes and junk food. 3.Salutary products have low immediate appeal but may benefit consumers in the long run, for instance, bicycle helmets or some insurance products. 4. Desirable products give both high immediate satisfaction and high long-run benefits, such as a tasty and nutritious breakfast food.

marketing impact on other businesses

1.acquisitions of competitors 2.marketing practices that create barriers to entry 3. unfair competitive marketing practices.

other product criticisms

1.too often, products and services are not made well or do not perform well. 2. Product safety has been a problem for several reasons, including company indifference, increased product complexity, and poor quality control. 3. many products deliver little benefit or may even be harmful.

Environmental Sustainability and Sustainable Value

501

Societal Classification of Products

509

planned obsolescence

causing their products to become obsolete before they actually should need replacement

salutary products

products that have low immediate appeal buy may benefit the consumers in the long run

deficient products

products that have neither immediate appeal nor long-run benefits

sense-of-mission marketing

a company should define its mission in broad social terms rather than narrow product terms

societal marketing

a company should make marketing decisions by considering consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests

customer value marketing

a company should put most of its resources into customer value-building marketing investments

innovative marketing

a company should seek real product and marketing improvements

consumer-oriented marketing

a company should view and organize its marketing activities from the consumer's point of view

environmental sustainability

a management approach that involves developing strategies that both sustain the environment and produce profits for the company

consumerism

an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers

environmentalism

an organized movement of concerned citizens, businesses, and government agencies designed to protect and improve people's current and future living environment. It is concerned with damage to the ecosystem caused by global warming, resource depletion, toxic and solid wastes, litter, the availability of fresh water, and other problems. Other issues include the loss of recreational areas and the increase in health problems caused by bad air, polluted water, and chemically treated food.

corporate marketing ethics policies

broad guidelines that everyone in the organization must follow. These policies should cover distributor relations, advertising standards, customer service, pricing, product development, and general ethical standards.

two major movements to promote sustainable marketing

consumerism and environmentalism

perceived obsolescence

continually changing consumer concepts of acceptable styles to encourage more and earlier buying

several "evils" that the American marketing system has created

creating too much materialism, too few social goods, and a glut of cultural pollution

redlining

drawing a red line around disadvantaged neighborhoods and avoiding placing stores there.

the Wheeler-Lea Act

gave the Federal Trade Commission (FTC) power to regulate "unfair or deceptive acts or practices."

deceptive packaging

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

cultural pollution

our senses are being constantly assaulted by marketing and advertising.

deceptive pricing

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

deceptive promotion

practices such as misrepresenting the product's features or performance or luring customers to the store for a bargain that is out of stock

desirable products

products that give both high immediate satisfaction and high long-run benefits

pleasing products

products that give high immediate satisfaction but may hurt consumers in the long run