MRKT- CH 16

5 sustainable marketing principles

-consumer-oriented marketing -customer-value marketing -innovative marketing -sense-of-mission marketing -societal marketing

American Marketing Association code of ethics

-do no harm -foster trust in the marketing system -embrace ethical values

Wheeler-Lea Act

-enacted by Congress in 1938 -gave the Federal Trade Commission 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

Deceptive promotion

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

Buyers' rights

-the right not to buy a product that is offered for sale -the right to expect the product to be safe -the right to expect the product to perform as claimed

Sellers' rights

-the right to introduce any product in any size and style, provided it is not hazardous to personal health or safety -charge any price for the product -spend any amount to promote the product -use any product message -use buying incentive programs

Marketing's impact on individual consumers

-High prices: high costs of distribution, high advertising and promotion costs, and excessive markups -Deceptive practices: pricing, promotion, and packaging -High-pressure selling: insurance, real estate, and used cars are sold not bought -Shoddy, Harmful, or Unsafe Products -Planned Obsolesce -Poor Service to disadvantaged consumers

Planned Obsolenscence

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

What principle should guide companies and marketing managers on issues of ethics and social responsibility?

-the free market and the legal system should decide such issues -puts responsibility not on the system but in the hands of individual companies and managers

Environmentalists are not against marketing and consumption

they simply want people and organizations to operate with more care for theenvironment

Environmental sustainability

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

Sense-of-mission marketing

a principle of sustainable marketing that holds a company should define its mission in broad social terms rather than narrow product terms

Societal marketing

a principle of sustainable marketing that holds 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 principle of sustainable marketing that holds a company should put most of its resources into customer-value building marketing investments

Consumer-oriented marketing

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

Innovative marketing

a principle of sustainable marketing that requires a company to seek real product and marketing improvements

Consumerism

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

Design for environment (DFE) Cradle-to-Cradle

design products that are easier to recover, reuse, recycle, or safely return to nature after usage

Perceived Obsolenscence

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

Deceptive pricing

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

Product Stewardship

minimizing not only pollution from production and product design but also all environmental impacts through-out the full product life cycle, while at the same time reducing costs

Desirable products

products that give both high immediate satisfaction and high long-run benefits (tasty and nutritious foods)

Pleasing products

products that give high immediate satisfaction but may hurt consumers in the long run (cigarettes and junk food)

Salutary products

products that have low immediate appeal but may benefit consumers in the long run (helmets and insurance)

Deficient products

products that have neither immediate appeal nor long-run benefits

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