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MGMA01H3 (184)

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Management (MGM)
Tarun Dewan

CH 4: Social Responsibility and Ethics- Sustainable Market  Sustainable Marketing- Marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability future generations to meet their needs.  Societal Marketing Concept future welfare of consumers  Strategic Planning Concept future company needs  Sustainable Marketing Concept considers both.  Marketing’s Impact on Individual Consumer: o High Prices  High costs of distribution  Too many intermediaries, intermediaries are inefficient, unnecessary or duplicate services higher prices  Resellers’ responses: Markups reflect services that consumers want- more convenience, larger stores, assortment of products, more service, longer store hours, return privilege, other.  High advertising and promotion costs  Heavy advertising and sales promotion only adds psychological value to the product rather than functional value  Response: it does add value by informing potential buyers of the availability and merits of a brand consistent quality consumers want to pay more to feel wealthy, attractive, or special.  Excessive markups  Some marketers take advantage of it should be reported  Response: additional costs purchasing, promoting, distributing and high R&D o Deceptive Practises  Led consumers to believe they will get more value than they actually do  3 groups: pricing, promotion, packaging  Deceptive pricing falsely advertising prices or large price reduction from a phony high retail list price.  Deceptive promotion i.e. misrepresenting the product’s features or performance or luring the customers to the store for a bargain that is out of stock  Deceptive packaging exaggerating package contents through subtle design, using misleading labelling, or describing size in misleading terms.  Competition Bureau try to prevent such practices.  Profitable customer relationships are built upon a foundation of value and trust. Deceptive practices are harmful to businesses in the LR. o High-Pressure Selling forced customers to buy goods when they don’t want to.  Harmful to building long-term relationships with valued customers. o Shoddy, Harmful, or Unsafe Products  Product safety has been a problem for several reasons company indifference, increased product complexity, and poor quality control. o Planned Obsolescence: products become obsolete before they actually should need replacement  Accused some producers of using material and components that will break, wear, rust, and rot sooner than they should.  Accused of always changing styles and updates so consumers are forced to buy new ones.  Response: consumers like style changes, want the latest high- tech innovation.  Competitive and technological forces led to the ever-improving goods and services o Poor Service to Disadvantaged Consumers  Actions have been taken against seller who advertise false values, wrongfully deny services, or charge disadvantaged customers too much.  Redlining charge that insurance, consumer lending, banking, and health care don’t care for the poor, elderly and minorities.  Marketing’s Impact on Society as a Whole o False wants and Too Much Materialism  Critics says that this interest in material things is not a natural state of mind but rather as a matter of false wants created by marketing  Response: our wants and values are influenced not only by marketers but also family, peer groups, religion, cultural background, and education. These values arose out of basic socialization processes o Too Few Social Goods  Overselling private goods at the expense of public goods.  Ie. More carsmore roads, traffic congestion, gasoline shortage and air pollution  Solution: 1. Producers bear the full social costs of their operations  If they cannot withstand it demand, supply exit market 2. Consumers pay the social costs  I.e. charge car owners “congestion tolls” o Cultural Pollution: our senses are constantly being assaulted by marketing and advertising.  Commercial interrupt serious programs, billboards mar beautiful scenery, spam fill our inboxes.  Many Canadians feel they are bombarded with marketing messages  Response: they hope their ads target the right audience, others find it annoying  Ads on television and radio makes it free for users and keep down the cost of magazines and newspapers  Some people find commercials entertaining  People always have a choice to watch it or not  Marketing’s Impact on Other Businesses o Acquisitions of competitors, marketing practices that create barriers to entry and unfair competitive marketing practices o Pros of acquisition: economics
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