Sustainable Marketing Lesson

1

Marketing: An Introduction

Fifteenth Edition

Chapter 16

Sustainable Marketing: Social
Responsibility and Ethics

2

Objectives Outline (1 of 2)

16.1 Define sustainable marketing and discuss its

importance.

16.2 Identify the major social criticisms of marketing and

some counterarguments.

3

Objectives Outline (2 of 2)

16.3 Understand how consumer, societal, and corporate

forces drive sustainable marketing strategy.

16.4 Understand how to build a sustainable marketing

organization.

4

First Stop: Patagonia’s “Conscious
Consumption”: Telling Consumers to
Buy Less

Balancing purpose against
profits: A for-profit firm
telling customers to buy
less sounds crazy. But it’s
right in line with
Patagonia’s reason for
being—”to save our
planet.”

5

Objective Outline 16.1

Define sustainable marketing and discuss its importance.

6

Figure 16.1

Sustainable Marketing

7

Multiple Choice

The marketing concept is a philosophy of ________.

1

sales and profit maximization

2

customer value and mutual gain

3

serving short-term interests over long-term gains

4

serving the company's interests over the consumers'

8

Multiple Choice

________ calls for meeting the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs.

1

Sustainable marketing

2

Ambush marketing

3

Consumerism

4

Environmentalism

9

Sustainable Marketing

Sustainability: McDonald’s
has responded to
sustainability challenges by
diversifying into salads,
fruits, grilled chicken, low-fat
milk, and other healthy fare,
including Happy Meals
offering more balanced food
components with simpler
ingredients.

10

Objective Outline 16.1 Summary

• Sustainable marketing—meeting present needs while

preserving the ability of future generations to meet their
needs

• Sustainable marketing calls for socially and

environmentally responsible actions

• Sustainable marketing requires consumers, companies,

public policy makers, and others to work together

11

Objective Outline 16.2

Identify the major social criticisms of marketing and some
counterarguments.

12

Social Criticisms of Marketing

• Impact on Individual Consumers

• Impact on Society as a Whole

• Impact on Other Businesses

13

Marketing’s Impact on Individual
Consumers (1 of 2)

• High prices

• Deceptive practices

• High-pressure selling

• Shoddy, harmful, or unsafe products

• Planned and perceived obsolescence

• Poor service to disadvantaged consumers

14

Poll

Which item has the most impact on consumers?

High Prices

High-Pressure Selling

Poor Service

All are about the same.

15

Marketing’s Impact on Individual
Consumers (2 of 2)

A heavily promoted
national brand sells for
much more than a virtually
identical non-branded or
store-branded product.
Critics charge that
promotion adds only
psychological value to the
product rather than
functional value.

16

Marketing’s Impact on Society as a
Whole (1 of 2)

• False Wants and Too Much Materialism

• Too Few Social Goods

• Cultural Pollution

17

Marketing’s Impact on Society as a
Whole (2 of 2)

Materialism: Some
marketers are urging
“conscious
consumption.” REI
closes its stores on
Black Friday and
encourages customers
to #OptOutside.

18

Multiple Choice

When company put most of its resources into customer value- building marketing investment, this company is practicing __________.

1

Consumer-Oriented Marketing

2

Customer Value Marketing

3

Innovative Marketing

4

Sense-of-Mission Marketing

5

Societal Marketing

19

Multiple Choice

Consumer-oriented marketing principles means that the company should view and organize its marketing activities from the consumer's point of view.

1

TRUE

2

FALSE

20

Multiple Choice

Following the principle of ___________, company makes marketing decisions by considering consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests.

1

societal marketing

2

innovative marketing

3

Sense-of-mission marketing

4

customer value marketing

5

consumer-oriented marketing

21

Marketing’s Impact on Other
Businesses

• Acquisitions of competitors

• Marketing practices that create barriers to entry

• Unfair competitive marketing practices

22

Objective Outline 16.2 Summary

• Major social criticisms of marketing

– Impact on individual consumer welfare
– Impact on society
– Impact on other businesses

23

Objective Outline 16.3

Understand how consumer, societal, and corporate forces
drive sustainable marketing strategy.

24

Traditional Rights

Seller’s rights

Buyer’s rights

• To introduce any product in any

size and style with proper warnings
and controls, if necessary

• To buy a product that is

offered for sale

• To charge any price for the product

without any discrimination

• To expect the product to be

safe

• To spend any amount to promote

the product if competing fairly

• To expect the product to

perform as claimed

• To use any product message that is

not misleading or dishonest

Blank

• To use buying incentive programs

that are not unfair or misleading

Blank

25

Proposed Consumer Rights

• To be well informed

• To be protected against questionable products and

marketing practices

• To influence products and marketing practices to improve

“quality of life”

• To consume in a way to preserve the world for future

generations of consumers

26

Environmentalism

• Protects and improves people’s current and future living

environment

• Concerned with

– Damage to the ecosystem
– Loss of recreational areas
– Increase in health problems

• Environmental sustainability: Generating profits while

helping protect the environment

27

Figure 16.2

Environmental Sustainability and Sustainable Value

Source: Based on Stuart L. Hart, “Sustainable Value,” www.stuartlhart.com/

sustainablevalue.html, October 2016.

28

Objective Outline 16.3 Summary

• Citizen action movements

– Consumerism
– Environmentalism

• Companies are adopting policies of environmental

sustainability.

29

Objective Outline 16.4

Understand how to build a sustainable marketing
organization.

30

Sustainable Marketing Principles (1 of 3)

Customer-centric marketing

• Viewing and organizing a company’s marketing activities

from the consumer’s point of view

Customer value-building marketing

• Putting most of a company’s resources into customer

value-building marketing investments

Sense-of-mission marketing

• Defining a company’s mission in broad social terms

31

Multiple Choice

____________ means that the company should define its mission in broad social terms rather than narrow product term.

1

Sense-of-mission marketing

2

Innovative marketing

3

Customer value marketing

4

Consumer oriented marketing

5

Societal marketing

32

Multiple Choice

__________ requires that the company continuously seek real product and marketing improvements.

1

Consumer-oriented marketing

2

Customer value marketing

3

Innovative marketing

4

Sense-of-mission marketing

5

Societal marketing

33

Multiple Choice

Which of the following is an example of a customer relationship management initiative:

1

A “frequent-shopper” program

2

New accounting software

3

Expansion of the product-development budget

4

A new bonus system for the sales staff

34

Multiple Select

Total Customer Benefits Includes

1

product benefits

2

service benefits

3

image benefits

4

all of above

35

Sustainable Marketing Principles (2 of 3)

Marketing ethics: Under
Armour’s Code of
Conduct urges all
employees to “Protect
this house—Make the
right call.” regarding
issues of ethics and
social responsibility. “It’s
as simple as it sounds.

36

Sustainable Marketing Principles (3 of 3)

Sense-of-mission
marketing: Pedigree
makes good dog food
but that's not what the
brand is really all about.
Instead, at its core, the
brand is about loving
and caring for dogs.

37

Market with Ethics (1 of 2)

• Corporate marketing ethics policies should be developed

by firms as guidelines for handling various issues and
dilemmas.

– Distributor relations
– Advertising standards
– Customer service
– Pricing
– Product development
– General ethical standards

38

Market with Ethics (2 of 2)

• Principles are needed to guide companies and marketing

managers on issues of ethics and social responsibility.

– The free market and the legal system should decide

such issues.

– Responsibility is in the hands of individual companies

and managers.

• Addressing ethics helps build strong customer

relationships based on honesty and trust.

39

Table 16.1

Some Morally Difficult Situations in Marketing

1. Your R&D department has changed one of your company’s products slightly. It is not really “new and improved,”

but you know that putting this statement on the package and in advertising will increase sales. What would you
do?

2. You have been asked to add a stripped-down model to your line that could be advertised to pull customers into

the store. The product won’t be very good but salespeople will be able to switch buyers who come into the store
up to higher-priced units. You are asked to give the green light for the stripped-down version. What would you
do?

3. You are thinking of hiring a product manager who has just left a competitor’s company. She would be more than

happy to tell you all the competitor’s plans for the coming year. What would you do?

4. One of your top dealers in an important territory recently has had family troubles and his sales have slipped. It

looks like it will take him a while to straighten out his family problems. Meanwhile, you are losing many sales.
Legally, on performance grounds, you can terminate the dealer’s franchise and replace him. What would you do?

5. You have a chance to win a big account in another country that will mean a lot to you and your company. The

purchasing agent hints that a “gift” would influence the decision. Such gifts are common in that country and
some of your competitors will probably make one. What would you do?

6. You have heard that a competitor has a new product feature that will make a big difference in sales. The

competitor will demonstrate the feature in a private dealer meeting at the annual trade show. You can easily send
a snooper to this meeting to learn about the new feature. What would you do?

7. You have to choose between three advertising and social media campaigns outlined by your agency. The first (a)

is a soft-sell, honest, straight-information campaign. The second (b) uses emotion-loaded appeals that
exaggerate the product’s benefits. The third (c) involves a noisy, somewhat irritating commercial and pop-ups
that are sure to gain audience attention. Pretests show that the campaigns are effective in the following order: c,
b, and a. What would you do?

8. Your company has positioned itself as a responsible steward of the environment. Over the past two years, it has

highlighted its successful efforts to greatly reduce the carbon footprint from its products and processes. The
company has now come up with an exciting new product that has excellent features and will likely be a best
seller. However, the new product’s carbon footprint over its life cycle is five times that of the product it replaces.
You have just been promoted as the manager responsible for marketing and selling the new product. What would
you do?

40

Ethical Norms Suggested by the
American Marketing Association

• Do no harm

• Foster trust in the marketing system

• Embrace ethical values

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Figure 16.3

Societal Classification of Products

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The Sustainable Company

• Sustainable companies create value for customers through

socially, environmentally, and ethically responsible actions.

• Sustainable marketing provides the context in which

companies can build profitable customer relationships.

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Objective Outline 16.4 Summary

• Company policies and guidelines for ethics utilize two

principles:

– The first principle states the free market and the legal

system should decide such issues.

– A more enlightened principle puts responsibility in the

hands of individual companies and managers.

• Sustainable marketing concept standards—personal

integrity, corporate conscience, and long-term consumer
welfare

44

Final Thoughts

An interesting debate can be held regarding cigarettes and
alcohol.

Is it ethical to market these products when we know they can
be harmful?

Students can take sides to fully discuss the pros and cons.

45

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Sustainable Marketing

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