CB09-C16.ppt

© 2009 South-Western, a division of Cengage Learning. Chapter 16 Marketing Ethics, Misbehavior, and Value BABIN / HARRIS © 2009 South-Western, a division of Cengage Learning. © 2009 South-Western, a division of Cengage Learning. 16-* Learning Outcomes Discuss marketing ethics and how marketing ethics guide the development of marketing programs. Describe the consumerism movement and how the movement has affected marketing practice. Comprehend the role of corporate social responsibility in the field of marketing. LO1 LO2 LO3 © 2009 South-Western, a division of Cengage Learning. © 2009 South-Western, a division of Cengage Learning. 16-* Learning Outcomes Understand the various forms of regulation that affect marketing practice. Comprehend the major areas of criticism to which marketers are subjected. Understand how products liability issues can provide both positive and negative results for consumers. LO4 LO5 LO6 © 2009 South-Western, a division of Cengage Learning. © 2009 South-Western, a division of Cengage Learning. LO1 Discuss marketing ethics and how marketing ethics guide the development of marketing programs. © 2009 South-Western, a division of Cengage Learning. © 2009 South-Western, a division of Cengage Learning. 16-* Marketing Ethics Consists of societal and professional standards of right and fair practices that are expected of marketing managers as they develop and implement marketing strategies. LO1 © 2009 South-Western, a division of Cengage Learning. © 2009 South-Western, a division of Cengage Learning. LO2 Describe the consumerism movement and how the movement has affected marketing practice. © 2009 South-Western, a division of Cengage Learning. © 2009 South-Western, a division of Cengage Learning. 16-* Consumerism A term used to describe the activities of various groups to protect basic consumer rights. LO2 © 2009 South-Western, a division of Cengage Learning. © 2009 South-Western, a division of Cengage Learning. 16-* Consumer Bill of Rights The right to safety. The right to be informed. The right to redress and to be heard. The right to choice. LO2 © 2009 South-Western, a division of Cengage Learning. © 2009 South-Western, a division of Cengage Learning. 16-* Cyber-What? Cybersquatting occurs when deceptive individuals attempt to purchase and control websites that mimic popular commercial sites. © 2009 South-Western, a division of Cengage Learning. © 2009 South-Western, a division of Cengage Learning. 16-* The Marketing Concept and the Consumer LO2 Employee behavior Vulnerable consumers/harmful products Marketing mix © 2009 South-Western, a division of Cengage Learning. © 2009 South-Western, a division of Cengage Learning. 16-* Exhibit 16.2: The Marketing Mix and Business Ethics LO2 © 2009 South-Western, a division of Cengage Learning. © 2009 South-Western, a division of Cengage Learning. 16-* Place Restricting tickets to popular events can ultimately harm consumers. © 2009 South-Western, a division of Cengage Learning. © 2009 South-Western, a division of Cengage Learning. LO3 Comprehend the role of corporate social responsibility in the field of marketing. © 2009 South-Western, a division of Cengage Learning. © 2009 South-Western, a division of Cengage Learning. 16-* Corporate Social Responsibility An organization?s activities and status related to its societal obligations. LO3 Strategic initiatives Altruistic duties Ethical duties © 2009 South-Western, a division of Cengage Learning. © 2009 South-Western, a division of Cengage Learning. 16-* McDonald?s Answers the Call McDonald?s is a good example of a fast-food giant taking positive steps to improve its menu selection. © 2009 South-Western, a division of Cengage Learning. © 2009 South-Western, a division of Cengage Learning. 16-* Societal Marketing Concept Considers not only the wants and needs of individual consumers, but also the needs of society. LO3 © 2009 South-Western, a division of Cengage Learning. © 2009 South-Western, a division of Cengage Learning. 16-* Exhibit 16.4: Prescriptions for Improved Marketing Ethics LO3 © 2009 South-Western, a division of Cengage Learning. © 2009 South-Western, a division of Cengage Learning. LO4 Understand the various forms of regulation that affect marketing practice. © 2009 South-Western, a division of Cengage Learning. © 2009 South-Western, a division of Cengage Learning. 16-* Exhibit 16.5: Major Acts Affecting Commerce and Consumer Safety LO4 © 2009 South-Western, a division of Cengage Learning. © 2009 South-Western, a division of Cengage Learning. LO5 Comprehend the major areas of criticism to which marketers are subjected. © 2009 South-Western, a division of Cengage Learning. © 2009 South-Western, a division of Cengage Learning. 16-* Public Criticism of Marketing Deceptive advertising Marketing to children Pollution Planned obsolescence True versus artificial needs Cash advance loans Manipulative sales tactics Stealth marketing LO5 © 2009 South-Western, a division of Cengage Learning. © 2009 South-Western, a division of Cengage Learning. 16-* Deceptive Advertising LO5 Contains or omits information that is important in influencing a consumer?s buying behavior. Is likely to mislead consumers who are acting ?reasonably.? © 2009 South-Western, a division of Cengage Learning. © 2009 South-Western, a division of Cengage Learning. 16-* Marketing to Children Children?s Television Act Children?s Online Privacy Protection Act Children?s Advertising Review Unit LO5 © 2009 South-Western, a division of Cengage Learning. © 2009 South-Western, a division of Cengage Learning. 16-* Pollution Marketers are often criticized for harming the environment. Consumption leads to waste and pollution. Environmental issues are complicated. Environmental Protection Agency plays a key role. LO5 © 2009 South-Western, a division of Cengage Learning. © 2009 South-Western, a division of Cengage Learning. 16-* Marketing and the Environment Live Earth represented a major effort to highlight environmental issues. © 2009 South-Western, a division of Cengage Learning. © 2009 South-Western, a division of Cengage Learning. 16-* Planned Obsolescence The practice of managing and intentionally setting discontinue dates for products. LO5 © 2009 South-Western, a division of Cengage Learning. © 2009 South-Western, a division of Cengage Learning. 16-* True Versus Artificial Needs LO5 Need Want © 2009 South-Western, a division of Cengage Learning. © 2009 South-Western, a division of Cengage Learning. 16-* Cash Advance Loans Also known as ?payday loans.? Fees associated with the service usually amount to an extremely high interest rate. Truth-in-lending laws require disclosure, but many consumers don?t consider these costs. LO5 © 2009 South-Western, a division of Cengage Learning. © 2009 South-Western, a division of Cengage Learning. 16-* Manipulative Sales Tactics LO5 Door-in-the-face technique ?I?m working for you!? technique Foot-in-the-door technique Even-a-penny-will-help technique © 2009 South-Western, a division of Cengage Learning. © 2009 South-Western, a division of Cengage Learning. 16-* Stealth Marketing Consumers are completely unaware that they are being marketed to. LO5 © 2009 South-Western, a division of Cengage Learning. © 2009 South-Western, a division of Cengage Learning. LO6 Understand how products liability issues can provide both positive and negative results for consumers. © 2009 South-Western, a division of Cengage Learning. © 2009 South-Western, a division of Cengage Learning. 16-* Product Safety Product safety is a very important issue. © 2009 South-Western, a division of Cengage Learning. © 2009 South-Western, a division of Cengage Learning. 16-* Products Liability Strict liability Consumers can win a legal action against a firm if they can demonstrate in court that an injury occurred and that the product associated with the injury was faulty in some way. LO6 Punitive and compensatory damages may be awarded. © 2009 South-Western, a division of Cengage Learning. © 2009 South-Western, a division of Cengage Learning. 16-* Consumer Protection Finding the balance between consumer protection and market freedom is difficult. © 2009 South-Western, a division of Cengage Learning.