CHAPTER 1

2 SOCIALLY
RESPONSIVE MARKETING

2-1 The Impact of Marketing

2-2 Criticisms of Marketing
2-3 Increasing Social Responsibility

Chapter 2 MARKETING © 2009 South-Western, Cengage Learning

 2

Focus Questions:
 What message is being
communicated by Waste
Management in this
advertisement?
 Do you think the message
is effective?
 How does it demonstrate
social responsibility?
©WASTE MANAGEMENT

Chapter 2 MARKETING © 2009 South-Western, Cengage Learning

 3
2-1 THE IMPACT OF
MARKETING
GOALS
Explain how marketing affects
businesses.
Describe marketing’s impact on
individuals.
Discuss ways marketing benefits
society.

Chapter 2 MARKETING © 2009 South-Western, Cengage Learning

 4

Marketing Affects Businesses

Critical business function

Customer satisfaction

Chapter 2 MARKETING © 2009 South-Western, Cengage Learning

 5

Marketing Helps People

Better products at a lower cost

Expanded opportunities

Chapter 2 MARKETING © 2009 South-Western, Cengage Learning

 6

Marketing Benefits Society

New and better products

Better standards of living
Improved international trade

Chapter 2 MARKETING © 2009 South-Western, Cengage Learning

 7

Benefits of Marketing

Businesses meet consumer needs

Consumers make better decisions
Natural resources are used more
effectively
Standard of living is improved
International trade increases

Chapter 2 MARKETING © 2009 South-Western, Cengage Learning

 8
2-2 CRITICISMS
OF MARKETING
GOALS
Discuss three common criticisms of
marketing.
Explain how marketing can be used to
solve social problems.

Chapter 2 MARKETING © 2009 South-Western, Cengage Learning

 9

Common Complaints

Marketing causes unneeded purchases

Marketing wastes money
Marketing is not always needed

Chapter 2 MARKETING © 2009 South-Western, Cengage Learning

 10

The Typical
Costs of Marketing
Product Price

Total
Average product
cost of all price
Average cost marketing (100%)
of sales and activities
advertising (50%)
(2–10%)
Chapter 2 MARKETING © 2009 South-Western, Cengage Learning
 11

Marketing Solves Problems

Marketing increases public awareness

Marketing helps match supply with
demand

Chapter 2 MARKETING © 2009 South-Western, Cengage Learning

 12
2-3 INCREASING SOCIAL
RESPONSIBILITY
GOALS
Define consumerism.
Explain ways by which businesses
improve their own practices.
Discuss how ethical issues affect
marketers’ professional responsibilities.

Chapter 2 MARKETING © 2009 South-Western, Cengage Learning

 13

Consumer Protection

The growth of consumerism

Consumerism
Government regulation

Chapter 2 MARKETING © 2009 South-Western, Cengage Learning

 14

Social Responsibility
Must Be Shared
CONSUMER
GROUPS
BUSINESS

GOVERNMENT
Chapter 2 MARKETING © 2009 South-Western, Cengage Learning
 15

Sherman Antitrust Act, 1890

To increase competition among

businesses by regulating monopolies

Chapter 2 MARKETING © 2009 South-Western, Cengage Learning

 16

Food and Drug Act, 1906

To control the content and labeling of

food and drug products by forming the
Food and Drug Administration (FDA)

Chapter 2 MARKETING © 2009 South-Western, Cengage Learning

 17

Federal Trade
Commission Act, 1914
To form the Federal Trade Commission
(FTC) to protect consumer rights

Chapter 2 MARKETING © 2009 South-Western, Cengage Learning

 18

Robinson-Patman Act, 1936

To protect small businesses from unfair

pricing practices between
manufacturers and large businesses

Chapter 2 MARKETING © 2009 South-Western, Cengage Learning

 19

Fair Packaging and

Labeling Act, 1966
To require packages to be accurately
labeled and fairly represent the contents

Chapter 2 MARKETING © 2009 South-Western, Cengage Learning

 20

Consumer Credit
Protection Act, 1968
To require disclosure of credit
requirements and rates to loan
applicants

Chapter 2 MARKETING © 2009 South-Western, Cengage Learning

 21

Consumer Product
Safety Act, 1972
To set safety standards and to form the
Consumer Product Safety Commission
(CPSC)

Chapter 2 MARKETING © 2009 South-Western, Cengage Learning

 22

Americans with
Disabilities Act, 1990
To prohibit discrimination and ensure
equal opportunity for persons with
disabilities

Chapter 2 MARKETING © 2009 South-Western, Cengage Learning

 23

Telemarketing and Consumer Fraud

and Abuse Prevention Act, 1994

To prohibit deceptive telemarketing

practices and regulate calls made to
consumers’ homes

Chapter 2 MARKETING © 2009 South-Western, Cengage Learning

 24

Millennium Digital
Commerce Act, 1999
To regulate the use of electronic
contracts and signatures for Internet
business transactions

Chapter 2 MARKETING © 2009 South-Western, Cengage Learning

 25

Gramm-Leach-Bliley Financial
Modernization Act, 1999
To limit the sharing of consumer
information by requiring financial
services companies to inform
consumers about how private
information is handled

Chapter 2 MARKETING © 2009 South-Western, Cengage Learning

 26

Improving Practices

Codes of ethics
Self-regulation
Social action

Chapter 2 MARKETING © 2009 South-Western, Cengage Learning

 27

Responsibilities of the Marketer

In product development and

management
In promotions
In distribution
In pricing
In marketing research

Chapter 2 MARKETING © 2009 South-Western, Cengage Learning

 28

Responsibilities of the Marketer

Product development and management

Disclosing all substantial risks associated
with a product or service
Identifying substitutions that change the
product or impact buying decisions
Identifying extra cost-added features

Chapter 2 MARKETING © 2009 South-Western, Cengage Learning

 29

Responsibilities of the Marketer

Promotions
Avoiding false and misleading
advertising
Rejecting high-pressure or misleading
sales tactics and promotions

Chapter 2 MARKETING © 2009 South-Western, Cengage Learning

 30

Responsibilities of the Marketer

Distribution
Not exploiting customers by
manipulating the availability of a product
Not using coercion
Not exerting undue influence over the
reseller’s choice to handle a product

Chapter 2 MARKETING © 2009 South-Western, Cengage Learning

 31

Responsibilities of the Marketer

Pricing
Not engaging in price fixing
Not practicing predatory pricing
Disclosing the full price associated with
any purchase

Chapter 2 MARKETING © 2009 South-Western, Cengage Learning

 32

Responsibilities of the Marketer

Marketing research
Prohibiting selling or fundraising
disguised as conducting research
Avoiding misrepresentation and
omission of pertinent research data
Treating clients and suppliers fairly

Chapter 2 MARKETING © 2009 South-Western, Cengage Learning

 33

Ethics in Marketing

Responsibility to customers
Harm and accountability

Chapter 2 MARKETING © 2009 South-Western, Cengage Learning