Chapter 3: Sustainable Marketing, Social Responsibility and Ethics

Sustainable Marketing
Socially and environmentally responsible marketing that meets the needs of customers while preserving the ability of future generations to meet their needs
Sustainable Marketing Diagram
Sustainable Marketing Diagram
Social Criticisms of Marketing
1. High prices
2. Deceptive Practices
3. High-Pressure Selling
4. Low quality / unsafe products
5. Planned obsolescence
6. Poor service
7. “Green” or “pink” washing
1. High Prices – Factors (Social Criticisms)
– Materials (Product)
– Mark ups (Price)
– Distribution (Place)
– Advertising (Promotion)
2. Deceptive Practices – Accusations and Consequences (Social Criticisms)
Accusations:
– Pricing: false claims or exaggerated discounts
– Promotion: misrepresenting benefits
– Packaging: exaggerated or mislabeled
Consequences:
– Legislative penalty from Competition Bureau
– Harmful to consumer trust
– Not sustainable as brand reputation erodes
3. High-Pressure Selling (Social Criticisms)
-People buy products that don’t meet a need
– Damage customer relationships
4. Low Quality / Unsafe Products (Social Criticisms)
– Products deliver little benefit or are harmful
– Results from manufacturer weakness
5. Planned Obsolescence (Social Criticisms)
– Using inferior materials and components
– Continuous changing of acceptable styles
– Delaying features until follow-up version
6. Poor Service (Social Criticisms)
– Smaller stores, inferior goods
– Refusal to open in poor neighbourhoods
– Irresponsible lending
7. Green or Pink Washing (Social Criticisms)
– Faking green (environment) or pink (cancer) can damage a company’s image
– Honesty and transparency are important
Marketing decision areas that may be called into questions under the law include
Selling
Advertising
Distribution Channels
Product
Packaging
Pricing
Competitive Relations
Consumer Actions to Promote Sustainable Marketing
1. Consumerism
2. Environmentalism
1. Consumerism (Consumer Actions to Promote Sustainable Marketing)
Organized movement to improve the rights and power of buyers in relation to sellers
Consumerism – Buyers’ and Seller’s Rights
Sellers’:
– Introduce any product in any size and style
– Charge any price for the product
– Spend any amount to promote the product
– Use any product message
– Use any buying incentive schemes
Buyers’:
– Not buy a product that is offered for sale
– Expect the product to be safe
– Expect the product to perform as claimed
2. Environmentalism (Consumer Actions to Promote Sustainable Marketing)
Organized movement to protect and improve people’s living environment
Evolution of Environmentalism
– 1960-1970: Concerned consumers and environmental groups
– 1970-1980: Driven by government, resulting in environmental laws
– Firms accepting more responsibility and are adopting environmental sustainability
Environmental Sustainability Portfolio
Environmental Sustainability Portfolio
Sustainable Marketing Principles
1. Consumer-Oriented Marketing
2. Customer-Value Marketing
3. Innovative Marketing
4. Sense-of-Mission Marketing
5. Societal Marketing
1. Consumer-Oriented Marketing (Sustainable Marketing Principles)
Company should view and organize its marketing activities from the consumer’s point of view
2. Customer-Value Marketing (Sustainable Marketing Principles)
Company should put most of its resources into customer-value-building marketing investments
3. Innovative Marketing (Sustainable Marketing Principles)
Company should seek real product and marketing improvements
4. Sense-of-Mission Marketing (Sustainable Marketing Principles)
Company should define its mission in broad social terms rather than narrow product terms
5. Societal Marketing (Sustainable Marketing Principles)
Company should make marketing decisions by considering consumers’ wants, the company’s requirements, consumers’ long-run interests and society’s long-run interests
Societal Classification of Products
Societal Classification of Products
Ethics in Marketing
To guide their staff, firms develop ethics policies which cover:
– Distributor relations
– Advertising standards
– Customer service
– Pricing
– Product development
– General ethical standards