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Marketing Ethics and Social Responsibility. CHAPTER SIXTEEN. Learning Objectives. Overall: To Understand the Meaning of Marketing Ethics and Social Responsibility. To Learn About Potential Unethical Marketing Practices Involving Targeting Especially Vulnerable or Unaware Consumers.

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Presentation Transcript
learning objectives
Learning Objectives
  • Overall: To Understand the Meaning of Marketing Ethics and Social Responsibility.
  • To Learn About Potential Unethical Marketing Practices Involving Targeting Especially Vulnerable or Unaware Consumers.
  • To Learn How Marketers Can Ambush Consumers with Unexpected Ads, Tinker with Their Perceptions, and Mislead Them.
  • To Understand How Marketers Can Advance Society’s Interests via Such Practices as Advocating Social Benefits.

Chapter Sixteen Slide

slide3
Why Is the Sponsor of This Ad Criticizing McDonald’s, and What Business Concept Did McDonald’s Ignore by Using Trans Fats?

Chapter Sixteen Slide

mcdonald s ignored consumer s interests and the societal marketing concept
McDonald’s Ignored Consumer’s Interests and the Societal Marketing Concept.

Chapter Sixteen Slide

societal marketing concept
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”

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Chapter Sixteen Slide

exploitive targeting
Exploitive Targeting
  • Marketing to Children
  • Overaggressive Promotion
  • Selling Pharmaceuticals directly to consumers
  • The perils of precision targeting

Chapter Sixteen Slide

marketing to children
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

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Chapter Sixteen Slide

discussion questions
Discussion Questions
  • Think back to when you were a kid.
    • What products seemed more appealing in their ad than in actuality. Why?
  • As a student:
    • What marketers try to sell you products that might not be in your best interest?
    • What marketing tactics do they use?

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Chapter Sixteen Slide

overaggressive promotion
Overaggressive Promotion
  • Recession due in part to Americans’ rising credit and easy credit to risky groups

Chapter Sixteen Slide

selling pharmaceuticals directly to consumers
Selling Pharmaceuticals Directly to Consumers
  • Began in 1997
  • Television, print, and the Internet

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Chapter Sixteen Slide

the perils of precision 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

Chapter Sixteen Slide

manipulating consumers
Manipulating Consumers
  • Forced exposure to advertising
  • Tinkering with consumers’ perceptions
  • Covert marketing
  • Socially undesirable representations
  • False or misleading advertising

Chapter Sixteen Slide

forced exposure to advertising
Forced Exposure To Advertising
  • Product placement
  • Advertorials
  • Infomercials

Chapter Sixteen Slide

tinkering with consumers perceptions
Tinkering With Consumers’ Perceptions
  • Increased consumption from:
    • Organization of merchandise
    • Size of package
    • Symmetry of display
    • Perceived variety of display
  • Store Environments
  • Relative Pricing

Chapter Sixteen Slide

covert marketing
Covert Marketing
  • Also called masked or stealth marketing
  • Messages appear to be from independent parties but are company driven.
  • Disagreement as to whether they violate FTC guidelines

Chapter Sixteen Slide

discussion questions1
Discussion Questions
  • Do you think covert marketing is wrong?
  • Why might others have a different opinion from you?

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Chapter Sixteen Slide

socially undesirable representations
Socially Undesirable Representations
  • Children’s Toys
    • Barbie and G.I. Joe
  • Thin models in the media
  • Brands that promote violence
  • Stereotypes

Chapter Sixteen Slide

false or misleading advertising
False or Misleading Advertising
  • Puffery
  • Truth-in-advertising laws
  • Deceptive advertising
  • Corrective advertising

Chapter Sixteen Slide

social responsibility
Social Responsibility
  • Advocating socially beneficial causes
  • Cause-related marketing
  • Green marketing
  • Consumer ethics

Chapter Sixteen Slide

advocating socially beneficial causes
Advocating Socially Beneficial Causes
  • Not-for-profits
  • Government agencies
  • Consumer advocacy groups

Chapter Sixteen Slide

what is the name and meaning of the marketing approach featured in this ad
What Is the Name and Meaning of the Marketing Approach Featured in this Ad?

Chapter Sixteen Slide

advocating socially beneficial causes or to promote socially desirable behaviors
Advocating Socially Beneficial Causes or To Promote Socially Desirable Behaviors

Chapter Sixteen Slide

slide29
It is Aimed at Educating Consumers About Unhealthy Products at School – The CSPI is a Consumer Advocacy Group

Chapter Sixteen Slide

cause related marketing
Cause-Related Marketing
  • Contribute a portion of revenues
  • Good fit between cause and company’s positioning is important

Chapter Sixteen Slide

green marketing
Green Marketing
  • Promoting of healthy, reusable, and ecofriendly products

Chapter Sixteen Slide

slide32

What Is the Name and Purpose of the Marketing Practice Depicted in the Three Ads and How Did Each of the Three Carmakers Featured Adopt This Practice?

Chapter Sixteen Slide

green marketing1
Green Marketing

Better Mileage

Responsibility and Luxury

Social Conscience

Chapter Sixteen Slide

discussion questions2
Discussion Questions
  • Do you make an effort to purchase green products?
  • If a product is better for the environment than the alternative, are you more likely to purchase the green product? Would you pay more for the green product?

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Chapter Sixteen Slide

measuring consumers attitudes toward green products table 16 4 excerpt
Measuring Consumers’ Attitudes Toward Green Products – Table 16.4 (excerpt)

Chapter Sixteen Slide

consumer ethics
Consumer Ethics
  • Returning used product
  • Software privacy

Chapter Sixteen Slide