Marketing Ch. 16

Innovative Marketing

a principle of sustainable marketing that requires that a company seek real products and marketing improvements.

Shoddy or unsafe product criticism include complaints

-Products are not made well or services are not performed well. -Products deliver little benefit or are even harmful. -Products are unsafe due to manufacturer indifference, increased product complexity and poor quality control. Manufacturers provide desirable, quality goods.

Marketers are also accused of serving disadvantaged consumers poorly

-The poor are forced to shop in smaller stores where they pay more for inferior goods. -National chain stores, insurers, and health care providers practice "redlining" and refuse to open businesses in poor neighborhoods.

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.

Customer-value marketing

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

Consumerism

an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers. Consumerism is one of two major consumer actions to promote sustainable marketing.

Marketing's Impact on Other Businesses

-Acquisitions of competitors - shrinking number of competitors. -Marketing practices that create barriers to entry - Patents heavy promotional spending can limit competition. -Unfair competitive marketing practices - Predatory pricing and other practices.

Marketing Impact on Society as a Whole

-Creating false wants and encouraging too much materialism --This criticism overstates the power of business and ignores consumers ability to defend themselves against advertising. -Overselling private goods at the expense of public (social) goods. -Creating cultural pollution, stemming from constant exposure to marketing messages.

Deceptive practices have led to legislation and other protective consumer actions

-FTC governs deceptive practices. -Use of puffery is legal but may harm consumers in subtle ways. -Deceptive practices are not sustainable as they harm a firm's business in the long-run. (Illegal)

Ethics in Marketing

-Firms need to develop corporate marketing ethics policies to serve as broad guidelines that everyone in the organization must follow. Ethics policies must cover: -Distributor relations -Advertising standards. -Customer service -Pricing -Product development -General ethical standards

Environmentalism to Promote Sustainable Marketing

-First wave in the 1960s - 1970s was driven by environmental groups and concerned consumers. -Second wave in the 1970s and 1980s was driven by government and resulted in environmental laws. -Third wave occurring now. Firms are accepting more responsibility and many more have adopted a policy of environmental sustainability.

3 factors are cited to leading to high prices

-High costs of distribution -High advertising and promotion costs -Excessive markups ----Brands impact high prices they cost more than do private labels.

Social Criticisms of Marketing

-High prices -Deceptive practices -High-pressure selling -Shoddy, harmful, or unsafe products -Planned obsolescence -Poor service to disadvantaged consumers

Salespeople are often accused of using high-pressure selling tactics

In persuading people to buy goods they had no intention of buying. Because prizes are often given to top sellers. Marketers have little to gain from high-pressure tactics such actions damage relationships with the firm's customers.

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.

Environmental sustainability

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

Societal Marketing

a principle of sustainable marketing that holds a company makes marketing decisions by considering consumers' wants and interests, the company's requirements, consumers' long-run interests, and society's long-run interests.

Deceptive Packaging

exaggerating package contents through subtle design, using misleading labeling, etc.

Deceptive Pricing

falsely advertising "factory" or "wholesale" prices or large reductions from phony high retail list prices.

Deceptive Promotion

misrepresenting a product's features or performance or luring consumers to store for out-of-stock item.

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.

Salutary products

products that have low appeal but my benefit consumers in the long run.

Deficient products

products that have neither immediate appeal nor long-run benefits.

Planned Obsolescence

refers to products needing replacement before they should because they are obsolete.

Criticisms of planned obsolescence

-Use of materials and components that will break, wear, rust, or rot before they should. -Continually changing consumer concepts of acceptable styles. -Intentionally holding back attractive functional feature, then introducing them later to make older models obsolete. Ex: iPad 1 no camera inserted one for iPad 2.

Environmentalism

an organized movement of concerned citizens and government agencies to protect and improve people's living environment. Environmentalism is the second consumer action to promote sustainable marketing.

Consumer-oriented Marketing

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