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.
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
o Too Few Social Goods
Overselling private goods at the expense of public goods.
Ie. More carsmore roads, traffic congestion, gasoline shortage and air pollution
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
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