CHAPTER SIXTEEN Marketing Ethics and Social Responsibility Learning

CHAPTER SIXTEEN Marketing Ethics and Social Responsibility

Learning Objectives 1. Overall: To Understand the Meaning of Marketing Ethics and Social Responsibility. 2. To Learn About Potential Unethical Marketing Practices Involving Targeting Especially Vulnerable or Unaware Consumers. 3. To Learn How Marketers Can Ambush Consumers with Unexpected Ads, Tinker with Their Perceptions, and Mislead Them. 4. To Understand How Marketers Can Advance Society’s Interests via Such Practices as Advocating Social Benefits. Chapter Sixteen Slide 2

Why Is the Sponsor of This Ad Criticizing Mc. Donald’s, and What Business Concept Did Mc. Donald’s Ignore by Using Trans Fats? Chapter Sixteen Slide 3

Mc. Donald’s Ignored Consumer’s Interests and the Societal Marketing Concept. Chapter Sixteen Slide 4

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” Chapter Sixteen Slide 5

Exploitive Targeting • • Marketing to Children Overaggressive Promotion Selling Pharmaceuticals directly to consumers The perils of precision targeting Chapter Sixteen Slide 6

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 Chapter Sixteen Slide 7

Annual Exposure by Category and Program Type - Figure 16. 2 Chapter Sixteen Slide 8

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? Chapter Sixteen Slide 9

Overaggressive Promotion • Recession due in part to Americans’ rising credit and easy credit to risky groups Chapter Sixteen Slide 10

Selling Pharmaceuticals Directly to Consumers • Began in 1997 • Television, print, and the Internet Chapter Sixteen Slide 11

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 12

Data Collection by Web Companies Figure 16. 3 – Part A Chapter Sixteen Slide 13

Data Collection by Web Companies Figure 16. 3 – Part B Chapter Sixteen Slide 14

Manipulating Consumers • • • Forced exposure to advertising Tinkering with consumers’ perceptions Covert marketing Socially undesirable representations False or misleading advertising Chapter Sixteen Slide 15

Forced Exposure To Advertising • Product placement • Advertorials • Infomercials Chapter Sixteen Slide 16

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 17

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 18

A Typology of Masked Marketing Practices Table 16. 3 Practice Description Posers (disguised communicator) Actors or salespeople who pretend to be ordinary people or researchers conducting a survey to explain product benefits and give potential consumers the chance to examine, sample, or use a product. Buzz and viral marketing (disguised communicator) Recruitment of people to talk about products through free samples or discounts before the product is available to the general public and suggestions on what to say and how to approach people about the product. Some refer to this as viral marketing when the contact with potential consumers is done electronically. Advertorials (disguised format) Advertisements that appear to be information from an independent source, such as prepared television news stories: infomercials that appear to be consumer television shows; and print advertisements that appear to be editorial content. Chapter Sixteen Slide 19

A Typology Of Masked Marketing Practices Table 16. 3 (continued) Practice Description Disguised monitoring of Use of invisible metatags by a marketer or the sale of queries via search priority by a search engine of the results from a particular engines query when the results are not identified as biased. Urgent ad-formation (disguised format) Advertisements that appear in the form of important account information from firms with an existing business relationship, government notices, sweepstakes prize notices, or checks that are simply discount coupons. Advertainment (disguised format) Product and advertising placement in television shows, at sporting events, and in video games. Chapter Sixteen Slide 20

Discussion Questions • Do you think covert marketing is wrong? • Why might others have a different opinion from you? Chapter Sixteen Slide 21

Socially Undesirable Representations • Children’s Toys – Barbie and G. I. Joe • Thin models in the media • Brands that promote violence • Stereotypes Chapter Sixteen Slide 22

False or Misleading Advertising • • Puffery Truth-in-advertising laws Deceptive advertising Corrective advertising Chapter Sixteen Slide 23

Social Responsibility • • Advocating socially beneficial causes Cause-related marketing Green marketing Consumer ethics Chapter Sixteen Slide 24

Advocating Socially Beneficial Causes • Not-for-profits • Government agencies • Consumer advocacy groups Chapter Sixteen Slide 25

What Is the Name and Meaning of the Marketing Approach Featured in this Ad? Chapter Sixteen Slide 26

Advocating Socially Beneficial Causes or To Promote Socially Desirable Behaviors Chapter Sixteen Slide 27

What Is the Ad’s Objective, and Why Is the CSPI Sponsoring It? Chapter Sixteen Slide 28

It is Aimed at Educating Consumers About Unhealthy Products at School – The CSPI is a Consumer Advocacy Group Chapter Sixteen Slide 29

Cause-Related Marketing • Contribute a portion of revenues • Good fit between cause and company’s positioning is important Chapter Sixteen Slide 30

Green Marketing • Promoting of healthy, reusable, and ecofriendly products Chapter Sixteen Slide 31

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 32

Green Marketing Better Mileage Social Conscience Responsibility and Luxury Chapter Sixteen Slide 33

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? Chapter Sixteen Slide 34

Measuring Consumers’ Attitudes Toward Green Products – Table 16. 4 (excerpt) A Scale Measuring Consumers’ Attitudes Toward Green Products I believe there a lot of exaggerations about companies taking environmental risks nowadays. I believe the government is doing all that is possible to safeguard the environment. I believe that we should not slow down industry progress because of concern for the environment. I believe environmental safety is the responsibility of the government, not individual citizens. I believe that government legislation adequately regulates environmental protection. I believe a well-known brand is always a safe product to buy. Chapter Sixteen Slide 35

Consumer Ethics • Returning used product • Software privacy Chapter Sixteen Slide 36