MKT344 CH:16 ETHICS

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1 Marketing Ethics and Social Responsibility CHAPTER SIXTEEN Vintage 1905 GILLETTE Safety Razor 2 Chapter Sixteen Slide Societal Marketing Concept “Marketers should endeavor to satisfy the needs and wants of their target markets in ways that preserve and enhance the well-being of consumers and society as a whole, while fulfilling the objectives of the organization” 3 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 3 Chapter Sixteen Slide Exploitive Targeting: Marketing to Children Guidelines by Children’s Advertising Review Unit (CARU) Guidelines include: No misleading claims about product’s performance or benefits Must not exploit children’s imagination Can not create unrealistic expectations Products must be shown in safe situation No encouragement of inappropriate behavior 4 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 4 Chapter Sixteen Slide

Transcript of MKT344 CH:16 ETHICS

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Marketing Ethics and Social

Responsibility

CHAPTER SIXTEEN

Vintage 1905 GILLETTE Safety Razor

2 Chapter Sixteen Slide

Societal Marketing Concept

“Marketers should endeavor to satisfy the needs and wants of their target markets in ways that preserve and enhance the well-being of consumers and society as a whole, while fulfilling the objectives of the organization”

3 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 3 Chapter Sixteen Slide

Exploitive Targeting: Marketing to Children

• Guidelines by Children’s Advertising Review Unit (CARU)

• Guidelines include: – No misleading claims about product’s

performance or benefits

– Must not exploit children’s imagination

– Can not create unrealistic expectations

– Products must be shown in safe situation

– No encouragement of inappropriate behavior

4 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 4 Chapter Sixteen Slide

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Exploitive Targeting: Overaggressive Promotion

• Recession due in part to Americans’ rising credit and easy credit to risky groups

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 5 Chapter Sixteen Slide

Exploitive Targeting: Selling Pharmaceuticals Directly to Consumers

• Began in 1997

• Television, print, and the Internet

6 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 6 Chapter Sixteen Slide

Exploitive Targeting: The Perils Of Precision Targeting

• Narrowcasting

– Directed messages to small audiences

– Data providers support the marketers with information

• GPS

– Cell phones and cars

– Gives marketers your location

“I'm Being Followed: How Google—and 104 Other Companies—Are Tracking Me on the Web.”

Link: http://tinyurl.com/mkt344aws

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 7 Chapter Sixteen Slide

Manipulating Consumers: Forced Exposure To Advertising

• Product placement

• Advertorials

• Infomercials

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 8 Chapter Sixteen Slide

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Advertorial

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Advertorial

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Manipulating Consumers: Tinkering With Consumers’ Perceptions

• Increased consumption from:

– Juice in short and wide glass

– Candies placed in clear jar

– Sandwiches in transparent wrap

– Visibility and aroma of food

• Store Environments

• Relative Pricing

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 11 Chapter Sixteen Slide

Manipulating Consumers: Covert Marketing

• Also called masked or stealth marketing

– Buzz and viral marketing (disguised)

– Advertorials (disguised)

– Advertainment (disguised)

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 12 Chapter Sixteen Slide

A Typology of Masked Marketing Practices Table 16.3

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Manipulating Consumers: Advertainments

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 13 Chapter Sixteen Slide

Manipulating Consumers: Advertainments

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 14 Chapter Sixteen Slide

Manipulating Consumers: Advertainments

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 15 Chapter Sixteen Slide

Manipulating Consumers: Advertainments

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 16 Chapter Sixteen Slide

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Manipulating Consumers: Socially Undesirable Representations

• Children’s Toys

– Barbie and G.I. Joe

• Thin models in the media

• Stereotypes

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 17 Chapter Sixteen Slide

Manipulating Consumers: False or Misleading Advertising

• Puffery

• Truth-in-advertising

laws

• Deceptive advertising

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 18 Chapter Sixteen Slide

Social Responsibility: Advocating Socially Beneficial Causes

• Not-for-profits

• Government agencies

• Consumer advocacy groups

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 19 Chapter Sixteen Slide

Social Responsibility: Cause-Related Marketing

• Contribute a portion of revenues

• Good fit between cause and company’s positioning is important

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 20 Chapter Sixteen Slide

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Social Responsibility: Green Marketing

• Promoting of healthy, reusable, and ecofriendly products

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 21 Chapter Sixteen Slide

Consumer Ethics

• Returning used product

• Software privacy

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 22 Chapter Sixteen Slide